Markets took off quick yesterday and tagged recent highs of 1197ish, but then trickled lower all day. Stocks did accelerate lower, however, and held the uptrend again closed off the lows. It was another choppy day ahead of the elections and Fed this week, and drove traders looking for follow-through crazy.
Some ask me why I say a 60-minute close above or below a certain level is important. That shows me commitment to a move with some time spent at a certain level. A simple spike or squeeze through a level does not show commitment to a move. On the flip side, a flash below or a trigger of stops to steal stock does not show a change of complexion. A daily close through a is even more important in terms of having confidence in a direction.
Today the S&P is back to the upper range and will probably test the high end of the range this morning. Once again, a 60 minute close above 1190-1195 will trigger new highs. If this happens, it will be tough for them to fail it again.
Tech. The strongest stocks all seem to be testing their 21-day moving average and holding.
Apple Inc. (Nasdaq:AAPL) yesterday spun me around. I did enter a tier one long around 304 and sold some November 290 puts like I stated for around 3 bucks. I will try and add as it tries to break it’s downtrend around 306-306.50. Adding has been very tricky.
Baidu Inc. (Nasdaq:BIDU) I bought in the hole at my level I spoke about in the morning note, 107-108. I’m not sure if this holds but it’sworth a try. Stock could be a 80-20 if they sell it today, or a buy around the 21 day. Keep track of it with us intraday.
Amazon.com Inc. (Nasdaq:AMZN) hit the lower level I talked about yesterday around 160-161, also it’s 21 day moving average. I did nothing with it.
Google Inc. (Nasdaq:GOOG) is very choppy in this upper range and still looks okay for a move higher if the market breaks out.
Banks
Goldman Sachs Group Inc. (NYSE:GS) looks okay and is holding higher again. It could push again above 163-164.
JP Morgan Chase & Co. (NYSE:JPM) looked okay until the SEC news came out. I’d avoid and see what happens with this investigation into the Magnetar deal. Remember Goldman was slapped with a $550 million fine for a similar charge.
Bank of America Corp (NYSE:BAC) looks like a small trade here long around 11.50 for a move to 12ish, but if you can’t be nimble I would stay away from this stock while fraudclosure rumbles on.
Casino’s
Wynn Resorts Limited (Nasdaq:WYNN) was a nice entry yesterday around 109 for a quick two dollar trade, but then sold off with the market. It has earnings today, the measured move is 115 but be cautious.
Las Vegas Sands Corp (NYSE:LVS) is the ROCK STAR of this market and exceeded all of our expectations. It is extended; I would take profits as it has big resistance on the weekly around 49-52 if you are still involved.
Potash Corp of Saskatechewan (NYSE:POT) is in a four month range after the takeover news from BHP Billiton (NYSE:BHP). Traders hate this stock since there is not much follow through. I would just buy December 150 calls just in case you get a 170 takeout.
Rare Earth stocks Rare Earth Resources Ltd (AMEX:REE) and Molycorp Inc. (NYSE:MCP) are broken. We had a nice ride here, but just chop them now.
SPDR Gold Trust ETF (NYSE:GLD) is trying to build a lower level consolidation. Some went long around $1320 spot as there was a small double bottom. A daily close above 133 on GLD can trigger a trade to new highs. I’d take cautious with tomorrow’s Fed announcement. The Dollar could have a big move and we need to see how Gold reacts. I’m long very small.
I will be on CNBC at 9:35 for Technical Tuesdays. I still put 70%+ chance the market hits 1220-1250 before years end. A close below 1166-1170 would put the short term chances a bit more far out.
