By: Scott Redler
Monday was the first day to sell stocks, but still keep some long exposure. Yesterday we saw pure profit takers in lots of the latest strong names provide some good risk/reward on the short side. The S&P needs to hold 1,119-1,121, if not, we will look for small support at 1,115 and larger support in the 1,109-1,110 area.
Sector Rundown:
- AAPL needs to hold $206-208 in order to maintain its technical strength. AMZN had a double upgrade yesterday and yet still could not hold its opening gap–it now has a small double and a potential lower high on the daily. There’s no real pattern in GOOG or BIDU at the moment.
- We had a GREAT two day short in SNDK–we spent a day or so getting to know it and then maxed out the trade. After the pullback it’s not compelling as either a long or short for the time being.
- Banks continue to lag–Goldman still has not broken above its downtrend line sitting between $165 and 166. The rest of the group is an avoid until GS breaks one way or the other.
- The Casinos are dead money right now.
- Oil had a nice bounce–but risk/reward on either the long or short side is unfavorable for a trade right now. Stay on the sidelines.
- Gold had a small bounce–it still can’t break that mini-downtrend in place since our sell setup on December 2nd. If this downtrend breaks we can see some nice upside, but until then, we will cautiously maintain our Tier 2 long position.
- The ags are an avoid right now.
- Solars have no action these days.
WE SHOULD ALL BE ON THE BEACH RIGHT NOW!
