The market is seeing its first real brush back pitch, which we talked about as a likelihood this morning. With the market as thin as it is and headlines still out there, it’s been prudent to at least keep a hedge on while holding multiple positions long.
As of now we are below the $128.20-128.60 area on the SPY. If we don’t re-claim this area in the afternoon, it will be the first time we failed to do so since the start of the year. Cleaning up positions here makes sense. We also dipped under the 10-day moving average which around $128. $127.40 is support under that, and then the big time line in sand for the bulls is $125.80-126.20 (I would be surprised to see this today).
JP Morgan (JPM) is holding the $35-35.20 area for now. I have no interest in buying back for at least a few days. Goldman Sachs (GS) is also trying to hold $97 but I’m done with that as of yesterday.
Apple (AAPL) is still consolidating since tagging the old highs. Staying above $415 is healthy.
Netflix (NFLX) saved my day today. I started buying back yesterday and added to the relative strength today. This stock is an animal, in days it could try to clear $99-$100.
Google (GOOG) is still trying to hammer out a lower pivot. I’m long small options for earnings next week from this level. Nothing big.
Amazon.com (AMZN) is now below the $175 support. The longer it stays below this level- the more vulnerable to a bigger down move.
Wynn (WYNN) I entered some and have a stop at $107.50.
Euro Trust ETF (FXE) is just off lows, and Gold (GLD) gold is following this time. I‘m not involved in trading them directly.
This is a market to change gears quick; driving a stick shift sports car vs. the big luxury SUV. I’m still net long but cleaned up some excess. Having the DIA hedge helped with this drop.
*DISCLOSURES: Scott Redler is long SPY, OIH, NFLX, QCOM, WYNN, CSCO, POT, GOOG calls. Short DIA (but covered most into this $123 area)
