By: Scott Redler
Apple (AAPL) and Amazon (AMZN) are stocks that are always in my universe of stocks on the Morning Gameplan and they both are consolidating for a break higher. Sometimes they are on my A-list, and sometimes the B-list, but no matter what, they are always there. Right now is one of those A-list moments.
AAPL had given us two great entries–first at $197, then again at $202–and entry #3 is looming as the stock is consolidating to move higher. It is building a new high-level flag that with time will be buyable if and WHEN it breaks above $210.50 and holds on volume. We will then see an assault on its highs with a move to at least $220-225.
Amazon has been a target for a few weeks and was great for a fast money trade as it broke above $120-121. That gave us a nice two-day move to about $127. Now it too is consolidating higher and with time, if it triggers above $127-127.50 we will see another move to $132-135.
We are market timers and these are two cash flow trades that I am hawking.
P.S. as a kicker, check out prior blogs where I was playing Freeport McMoran (FCX) and U.S. Steel (X) from the long side. Today I am using yesterday’s high as a level to scalp short again, and I will be adding through yesterday’s lows for a quick two-day short.
