Most traders wanted to short the up open this morning, but on the Morning Call I gave several reasons why this time it would be different. Bearishness had started to climax, a pre-cursor to a big upside move over the past few months.This type of formula typically creates a formula for a power gap and go!
We just took back the 50-day moving average in the SPY ($123.25). A close above this level would be very constructive for the bulls. They tried to sell the banks quickly, but they held tough and now have relieved some pressure. Tech had a strong push, but certain stocks were stronger than others in the sector.
Amazon.com (AMZN) is still lethargic. It needs to get above $185 to get out of the dog house down here.
Baidu.com (BIDU) did not get a very convincing bounce and still controlled by the $115 level. It needs to pop quick through here in order to look a little better.
Apple (AAPL) was the best for cash flow as it opened up and you could have bought $388ish and then added at the pivot of $389.30. It’s heading to the $391.80, the 50-day moving average. It would shake off some bearish sentiment if it can take this level back.
Google (GOOG) macro chart looks best for a real move higher in 2012. For today, it hasn’t had much movement but it’s a macro hold. Above $630-$635 in coming weeks and it can get going.
Gold (GLD) is approaching the 200-day around $157, the way this market is I can see them squeezing through it. Holding above it for a few days will be important to watch.
Nice bounce in Oil Service ETF (OIH). It's the first up day, let’s see if it starts the road to recovery for those with a long 2012 thesis.
*DISCLOSURES: Scott Redler is long SPY GOOG AAPL GS
