Indices are basically flat but there has been some stock specific action. The S&P is still holding above recent floor of 1265, but still can’t break above 1280-1284. Make sure to be looking for relative strength--and weakness--for action.
Google (GOOG) has been under pressure the past three days, we had a nice move from $630-$635 to almost $665. This move rewarded most short term traders since we take profits along the way. Those of you holding for a bigger move in 2012 this sell-off is certainly frustrating. This is why you must always know your time frame. I’ve tested two areas to buy back and the stock is still heavy. I would have thought if should have held the prior break out but it put a low in at $626 area. If the morning low doesn’t hold, $614 (the 50day MA) is a huge level. I also see an area around $620. For you macro holders, realize it’s only the second week of the year.
Apple (AAPL) I’ve been long for almost two weeks and I sold it today. It pushed through the highs and is now below, which is a short term sell signal. Some shorted as it came back below the $426.70 (old high) and it’s starting to fade. There's long time between now and earnings. Know your time frame.
Netflix (NFLX) I sold mine on the open. It tried to fade but is still hanging around.
Amazon.com (AMZN) was weak off the open and still macro bearish. Some were looking for additional upside to the reversal, but it gave it back quick. Take care here, it does not look healthy.This is a stock for active traders only right now.
Baidu.com (BIDU) was weak early and then came back. It's too whippy for me to want to trade it right now.
Cisco Systems (CSCO) had some decent action today as it pushed through $19. I would like to see it hold above that level.
Microsoft (MSFT) is taking a break. Holding $27sih over the next few days would be good.
I took some risk off today, the tape is very thin. I have the least exposure I've had since December 20. You are allowed to take trades along the way and pick spots, and this is a tricky area.
*DISCLOSURES: Scott Redler is long OIH CSCO GS JPM
