You’re in or you’re out is the mantra for this week if you are here to trade. Either leave for the holidays or be on your toes for decent moves in the stocks that get chosen for a move into year-end. The indices seem poised to break above the upper flag resistance at 1243-1245 and then grind a bit towards 1260. But at this point some stocks are breaking upper levels and not in the game for new high trades. There still are some decent trades and patterns that can reward traders! If you are taking the time off with the family, turn off the TV and go spend time with the kids. Come back fresh for the new year!
Apple Inc. (AAPL) can give us some clues. This stock is in a very tight upper range. After 10 upgrades in the past two weeks, it’s still in the same spot. Was it because of option expiration or is there just no more juice in the tank? Watch this upper range closely. I’m long will add if it can break above $322-325 but if I see if start to break $319-320 I will be out and perhaps short.
Amazon.com, Inc. (AMZN) held support in the $173-174 range and was upgraded today. It’s challenging the upper area now so watch to see how it handles $179-181.
Google Inc. (GOOG) is worth a look. There is a mid-range tight set up here, see if it can break above $593-595 and hold.
Netflix, Inc. (NFLX) has had no power even with the extra S&P buying Friday. I am not sure what to expect here except that $175-178 is a big support level.
Baidu.com, Inc. (BIDU) broke down last week and is now hovering below $100. The $98 are must hold otherwise it could be pressured again.
Las Vegas Sands Corp. (LVS) offered a great target long last Thursday around $43. I think $47-48 will be a tough resistance level.
MGM Resorts International (MGM) held higher on the charts. This stock can drive you nuts but the pattern still looks good. The next time it tries to get above $14 and holds we can see that it move up to $15.
I am looking at the banks for some opportunity. The current pull-in should be buyable in the sector.
Goldman Sachs Group, Inc. (GS) hit $170 and pulled back. If you’re looking for a move up in banks next year the $163-165 area may be an attractive spot.
JP Morgan Chase & Co. (JPM) dipped back to $39.50 and I am looking to be a buyer on the weakness.
Bank of America Corporation (BAC) is holding in and could be a good buy if it can hold $12.50 and move higher.
Eastman Kodak Company (EK) has been grinding higher for us since our post last week. I think $6 may be attainable by year end.
iShares Barclays 20+ Year Treasury Bond ETF (TLT) had a nice targeted long from around $90-91. I sold my last shares on Friday around $93.50.
SPDR Gold Trust ETF (GLD) bounced off the $132-133 support level. Now I’m watching to see how it handles the $136-137 resistance level. The pattern overall is not that great but small trades have been possible.
Radware Ltd. (RDWR) is still hanging tough. There has been lots of takeover talk but I’m not trading it actively, currently I am just holding January $40 calls.
I did a write up that will be in IBD tomorrow arguing that Japan could be place to be next year. I see iShares MSCI Japan Index ETF (EWJ) possibly gaining 20% or more next year.
*DISCLOSURE: Long JPM, AAPL, BAC, EK, RDWR. Short SPY.
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