By: Scott Redler

The Rundown:

  • Watch BAC closely today–if it can hold this gap up and get some follow-through to the upside it COULD ignite the entire sector. Could is the key word!
  • The banks have been lagging this move since peaking out in October. If they play some catch up, we will be at 1120-1125 at some point today.
  • Oil continues to lag–but it might be setting up for a move in the next couple of weeks.
  • We sold our gold yesterday and will look for a sell setup today–but, we will not get stubborn! This will be a quick short, if anything.

What We’re Looking at This Time of Year:

  • Yesterday we got a bit beat up in AMZN trying to short the 4th up day in a row. I will try it again today; however, the trick is that when you try to do it, you need to keep tight stops. Wait for AMZN to put in what looks like a short-term high and use that level as a tight stop. Do not just short blindly into the strength. With a tight stop, you won’t lose too much and will stay in the game in order to take advantage of further opportunities throughout the day. We stopped shorting AMZN at 139ish when we saw that it was just too strong.
  • AONE has been GREAT from the $15 area. HEAT worked out well lately, but is now a bit extended. RINO was a great long from the $28 area and a better RedDog reversal two days back.
  • Lots of little stocks continue to pop up on our filters. Yesterday we saw GERN, STEM, OPXA, etc.–that type of action should continue throughout December and January.
  • SQNM has been on our radar lately. Look at the chart and you will see that big volume has been coming into the stock over the past few days–above $4.50-4.55 we could see a move to $5 in a NY minute.
  • BIDU still needs to break above $440-444 on massive volume to give us a nice trade.
  • AAPL has been weak–let’s see if the upgrade helps at all. It needs to get back into the game soon, otherwise people will lose interest real fast.

Updated to add a note about the strategy for shorting AMZN.