By: Scott Redler
As earnings season gets into gear, this tape will become that much more sector, stock and strategy specific, both to the long and short side. The Dow quietly closed over 11,000 and S&P barely touched 1,200, but its only a matter of time before they stretch a bit higher. I’m still in the Camp of 11,150-11,400 on the Dow and 1220-1230 on S&P before we possibly see a correction.
AA earnings came after the close yesterday, and the report was lukewarm with earnings in line with estimates but revenues falling short. But last quarter this stock was almost 18 before reporting! Expectations were light and it’s only down .20, wouldn’t surprise me if this type of report was price in and they take this positive and then some.
Tech
AAPL- still no trade. just moving higher from our 226-227 buy price.
GOOG- nice entry yesterday at 570 and I will add thru 574ish for a trade to 580.
BIDU- no real trade, just floating higher.
AMZN- was great yesterday in first 15 minutes, then got quiet. might need earnings to power to New Year highs.
RIMM – we could get a small trade above 71.15 for a quick move to 72-73.
INTC- earnings tonight. stock has had a great move, and is on the highs again before earnings, the report will have to very good not to sell it.
VMW- Great trade from Friday, sold most up 3 bucks yesterday. now will need some time.
Financials
GS- big move from 172 to 181. I might nibble today in the 177 area, but the next move starts if it trades above 181 with volume.
JPM- earnings Wed., I’d avoid it for now.
BAC- choppy upper level flag. could get going above 18.85-18.90. hearing some chatter that earnings will be very good and to buy it up.
GE- earnings Friday. also hearing it will be good. great trade from 16.60 and again yesterday, and if chatter is right maybe we see 19.50-20 at some point Friday.
Casinos
Great long last 5 weeks in LVS, WYNN and MGM
LVS- we rode from 19 to 24, then yesterday we shorted 24.70. it’s upgraded this morning, let’s see how it acts. I am tier two short overnight after being short tier 1 intraday. I will try and add some around 24.60-24.80, but not too much. need to see what type of “real effect” upgrade has.
MGM and WYNN- same story.
Others
AOL- I am flat for now. great trade—26.40 to 28.50 in 4 trading days.
AIG- working from our 36-37 buy price. a big filing came out yesterday, so maybe it keeps going thru 42. needs heavy volume.
IRE- tried to go yesterday, but just did not have enough juice. could use more time.
FIG and BX- woke up yestereday and gave us the move we wanted a few weeks back. this is why you don’t take old trades with you into the new ones. stocks don’t remember that you lost money in them the last time!
Commodities
Gold- could use a rest. see how it handles 1140-1150.
Oil- needs to hold 84ish to stay very strong.
Little guys
Little crap stocks really woke up. ABK up over 100% (wow). watch your volume filters. play that buy the crap game while the music plays, but don’t be the last one standing when plug is pulled!
