The last few times the market closed strong led by big cap tech, we felt it gave us the green light for overnight longs, but instead traders got slapped with 10+ handle gap downs. Yesterday we opened at support after the previous day’s reversal and couldn’t get much of a push higher intraday, but then today we gapped up 15 handles. This action is frustrating for traders, but you can’t let it get to you. The only thing you can do is keep your stress level down, do a little less and be that much more selective.
The range in the S&P is still intact and 1173-1176 held numerous times. The question now is, can we break above 1198-1202? Market leaders are still acting well but are getting harder to trust as they keep taking turns working out.
Oil Service HOLDR’s ETF (NYSE:OIH) and other oil stocks are strong, with names like Halliburton Company (NYSE:HAL) and Schlumberger Limited. (NYSE:SLB) making new move highs. All three are pushing higher this morning after the gap up.
High beta tech takes turns leading the pack. Netflix Inc. (Nasdaq:NFLX) has been an animal, but is pulling off highs this morning. Apple Inc. (Nasdaq:AAPL) is tricky but is still holding its upper range and looking set to test highs once again. Amazon.com, Inc (Nasdaq:AMZN), F5 Networks, Inc. (Nasdaq:FFIV), salesforce.com, inc. (NYSE:CRM) still look good and are holding up fairly well this morning. Although not in tech, Las Vegas Sands Corp (NYSE:LVS) continues to be a leader and gapped up more than 3% to resolve its tight pattern. I feel this one has much higher prices in store; don’t be scared off by its recent run.
*Disclosure: Long AAPL. Currently flat LVS, NFLX, SPY
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