By: Scott Redler
Yesterday it was time for the Bears to play some defense as the S&P was over 1,100, in field goal range and looking to test higher resistance. Most of us were out of longs after the two-day bounce, but we were looking to establish shorts a little higher–in the 1,107-1,120 zone. The Bulls ran out of 1st downs and I guess Shonn Greene cracked a rib.
Anyway, lots of stocks had nice 2-3 day bounces, but if that was it and today gets ugly, this market will get that big correction we’ve all been talking about for weeks.
The Rundown:
- Today will be tricky. If anything were to bounce, it should be tech stocks.
- Google (GOOG) had its first up day yesterday after a big down move. I will give it a shot for a negative to positive trade. I will also look at Amazon (AMZN) for the same type of trade, but only if price action warrants it.
- Baidu (BIDU) was up strongly, but there’s too much air for me to buy the down open.
- Apple (AAPL) is also indicating to open lower, but I’m not sure what to do here.
- Cisco (CSCO) had a great earnings report, but does it pull a Microsoft (MSFT), or do they try and trap some shorts and hold it up. Watch this stock closely for an indication of what to expect in tech.
- Visa (V) had a GREAT report, while Mastercard (MA) missed and is getting crushed.
- With the banks, I will see if $155ish is buyable in Goldman Sachs (GS)–but will be cautious to see if this is “game over” there as well. We had a nice long, but unfortunately did not get macro short early enough.
