This market is still range-bound and making traders scratch their heads a little bit. It’s hard to find a rhyme or reason for some of these moves, and this morning’s big gap up is a perfect example. You have to be extremely displined and only trade the right stocks intrady to have sucess, and you can’t worry about missing out on things you can’t control. I come from the world that if you don’t have a good feel for the market you should sit back and wait for a setup. I still believe that stocks want to go higher but being in the right sectors is more important than ever.
The top stocks to buy on pullbacks at this juncture are Netflix, Inc. (Nasdaq:NFLX), United States Steel Corporation (NYSE:X), salesforce.com, inc (NYSE:CRM), Deckers Outdoor Corporation (Nasdaq:DECK), Freeport-McMoran Copper & Gold Inc. (NYSE:FCX), Walter Energy, Inc. (NYSE:WLT), F5 Networks, Inc. (Nasdaq:FFIV), Apple Inc. (Nasdaq:AAPL).
Today I am looking towards commodities to get an uptick. My play of the day is United States Steel Corporation (NYSE:X) long above its 200-day moving average, which stands at $49.14 (we are opening higher this morning on the gap up). I believe a move to $55 is in the cards and my stop would be $47. But of course it has to hold 200-day! It had decent volume yesterday so keep it on the radar.
*Disclosure: No position – subject to change
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