By: Scott Redler

The S&P 500 tagged 1,170 yesterday and then sold off a bit. My target zone for this market back when “the wedge” resolved to the upside was 1,170-1,190. So, with the overbought nature of this market, the setup must be REALLY good to take. The market still feels like higher prices are in store, but if you are sitting on some big gains, I would recommend going out a few months and selling some calls to protect positions and collect some premium.

The Rundown:


  • Apple (AAPL)–great trade for us above $202 and again above $210.50 and $215.50. Now it’s building a new base between $221 and $227. No “real” setup just yet.
  • Amazon (AMZN)–this too is resting after its juicy buy at around $121. The stock needs more time to trade its new range.
  • Baidu (BIDU)–is a monster! It had its first two down days, but nothing drastic. No setup here.
  • Google (GOOG)–gave us some small trades. Now with the news that it might actually leave China, it could stay under pressure. Watch the gap in front of it for a tell.
  • Research in Motion (RIMM)–gave us three days of nice action after the breakout of $72.10. Now it’s acting sluggishly. I am flat it and will avoid for the time being.
  • Intel (INTC)–this gave us the move we wanted through $20.80 and $21.50. I have a small mount left, as it could work its way to $23ish.
  • Microsoft (MSFT)–is lagging and it could play catchup if it wants to. This needs high volume to ignite through $27.70.
  • Cisco (CSCO)–this had its stretch before the product release. Now it’s creating a bull flag and could push through $26.50.

Financials–Big move here! If you can’t sell some, sell some in the money calls to protect gains and add a little value.

  • Goldman Sachs (GS)–great trade through $160, with some follow-through extension that took it further than I would have thought. It had a doji close and is overbought. They might try to close it at around $175 for options expiration tomorrow.
  • JP Morgan (JPM)–met all our long expectations. I’m flat now.
  • Bank of America (BAC)–still inching higher but not compelling right now.
  • Wells Fargo (WFC)–since our buy at $27.60 this one has come a long way. I now sold some.
  • General Electric (GE)–gave us a GREAT three-day move. I took the trade and actually got short some yesterday–just for a trade–big open interest at $17.50 here.
  • Freeport McMoran (FCX)–is lagging the indices, but had a nice move before that. Nothing here right now. Negative candle yesterday could take this a bit lower.
  • U.S. Steel (X)–ugly reversal after a move from the lows. The meat of this up move is over in my opinion.
  • Alcoa (AA)–we went a note to get involved at $14. It could continue higher today and play some more catchup.
  • Gold (GLD)–I am personally long. THE PATTERN IS STARTING TO LOOK BETTER TO ME. I think everyone NEEDS TO BE LONG SOME GOLD. Add if it can get above $1,150 and stay there.
  • AIG (AIG)–I hate this stock, but there is a decent bull flag setup. I will buy for a trade if it can slice through $36-36.50 with VOLUME.
  • I’m long tier two in the casinos–WYNN, LVS AND MGM–they are in a conference today and could see some news-flow.
  • Retail has been a MONSTER, but I don’t really trade those names.

The bottom line is: the time to get excited and get heavy was weeks ago. Now is the time to play a bit of defense and be very selective about the trades you take–both long and short.

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