By: Scott Redler
If you aren’t careful maneuvering this market, it is very easy to get into an accident.
The S&P’s had a 60 handle move off the lows from 1040 to 1103ish. On Friday we said this is NOT a day to get excited, but rather a time to take profits in front of a long weekend that could have numerous negative headlines. Sure enough, more bad news from Spain and a mini-crisis brewing in the Middle East have the futures opening 40 handles off Friday’s highs. If you got caught chasing or gave back some of your gains, learn from your mistakes and be more prepared the next time around. This market is not for the faint of heart, unless you are willing to hold extreme pain, take trades quickly and be cautious in this type of tape.
Next two days will be important to see if we can hold 1065-1070 to keep some hopes alive that we can continue to see some upside movement. If not, we can break the 1040-1050 area a lot sooner than anyone would like.
Tech remains the best place to be for strong stocks.
VMW made new highs last week and could use a rest before continuing higher. It will be good to see if this can hold 63.50-64.50 to show some stocks can stay tough in a negative environment.
SNDK was the first to make new highs in the market bounce, but now can use a bit of a rest. It would be good to see if this can hold 45-46 area and then it can go again when market gets better.
AAPL was a nice trade for us around 252. I sold it at 259 on Friday as I went flat into the weekend. The pattern remains strong. It’s opening higher this morning as the futures are down, a very strong sign indeed. 259-262 is the next line in the sand. Watch price action close today, great news in iPad sales combined with an upgrade.
NFLX was a nice trade Friday. See if holds that 108-109 area, then it can continue higher if market holds in.
BANKS are showing small relative strength.
GS has once again become a go-to stock if the market regains some footing. See if it can hold 142-143 area.
JPM needs to hold 38.50-39 if this market were to hold up for future upside.
Casinos remain great trades with the market.
LVS was a nice buy back below 20 for a move quickly to 24+. Now it could use some time. It was upgraded this morning, so worth a look in this down open for a negative to positive push if market hangs in.
WYNN should continue to be on your radar, especially if it holds 81.50-82.
MGM whips around a bit. I’ve been buying this on down days for bounces and getting paid small. It needs to hold 11.50-12.
Miscellaneous
MON saw a nice negative to positive push Friday. I would trade long vs. Friday’s low.
BP remains a disaster with the entire oil sector.
OIH should only be traded by intraday traders, as there is too much risk overnight.
GLD looks good. Let’s see if it can make historic highs again. Great vehicle for us for the last 3 years.
Dennis Gartman was on this morning saying he hates volatility. WE EMBRACE IT! But there is an art to it harnessing it, not a science.
