By: Scott Redler
After a six day move, the market took a breather but held in well. To be short yesterday you had to be a surgeon. We held Tuesday’s gap around 108.90 and closed well, which is leading to a trade into new move highs today. We could see a push through failure today around 110.08. If we extend and next big resistance is 111-111.70.
AA was an excuse for the market to run and it’s back below earnings price. Intel gapped up yesterday after best report in 44 years and closed on the lows. Today we will see JPM after a “decent” report start up .35 and probably go negative and hit 40 for options.
All these scenarios have some traders scratching their heads. It’s always tough when market is overbought but some rotation keeps market from coming in. That is when STOCK SELECTION AND PATTERN RECOGNITION IS KEY.
TECH
AAPL is still not acting well. They called for a conference tomorrow; watch 246-249 as very important support. Watch price action close.
SNDK also acts poorly as they supply chips to a lot of AAPL’s devices.
VMW at new highs, great trade, earnings next week so it can do a push through failure for a small scalp. Watch yesterday’s highs.
AMZN I tried shorting Tuesday and got hurt, now it’s lower on a downgrade. See how it handles 108-110 support.
RIMM was a great long of the lower pivot and could fill more of its gap.
GOOG had a big bounce since it got it’s license renewed in China. Earnings after the close, not touching it.
BIDU is still in its range but acts very well. Earnings next week.
BANKS great trade last Tuesday, now it’s tricky.
GS gave us a trade but you had to be quick. Still frustrating.
JPM was decent, but probably not enough to keep green. Might short down to 40.
CASINOS action not as compelling
LVS was long from 22 and sold most yesterday around 24.60, it does have more room to 25 ish-but not with me.
MGM slow trade for us from 9.25, sold most around 10.50, still has room to 10.70-11 but I won’t participate.
Little Guys are acting well
CNAM was a nice trade yesterday and can continue to $4+.
BWEN looks good for a trade trigger price around 3.40-3.50.
CAGC- RINO- AONE- JAZZ- DRYS- can all have a small catch up move
Gold still in lower range and an avoid for now. Watch to see of lower range can hold up.
