Markets are still hanging tough, and it will be constructive to do some consolidation work above the 1295-1303 area on the S&P. As earnings season gets going you must identify the time frame that you want to stay involved in each name and risk Tolerance.
Intel (INTC), Microsoft (MSFT) and International Business Machines (IBM) all held the early morning gains.
Microsoft (MSFT) has been the mega-cap surprise so far this year. I spoke about this with Margaret Brennan a few weeks back (she was amused I called it "frisky"). THE MICROSOFT INVESTOR: Microsoft Admits WP7 Was In ...
[Jan 10, 2012 – Shares of MSFT remain strong with the stock nearing a high of $28. ... Microsoft's "Frisky" Stock Could See $35 This Year (Bloomberg) Scott Redler, chief strategic officer at T3 Capital, believes Microsoft stock is acting "frisky".]
Google (GOOG) earnings were very disappointing, but 2012 will be a long year. For those Macro holders. I would add to your position if it can work its way down to the 200-day moving average around $562. For traders we now have a few new points of reference. Today’s low of $584.81 and the high of $591.
Netflix (NFLX) is taking a breather as it just ran from $75 to almost $105. It was a cute short today as we spoke on my radio about shorting it up $1 or so. I covered here below $101.50. Doing some work above $96-$100 would be constructive.
Apple (AAPL) sold most yesterday as it had a hard time holding above $430. I will re-visit this around earnings on Tuesday. It was a nice run from $385, one that I think foreshadows a strong quarter for AAPL.
Amazon.com (AMZN) had a nice trigger above $183-$184 this week, but today some investors seem to be spooked a bit by Google. Let’s see where this is Tuesday. The quick active trade is out of the way for now.
The Oil Service ETF (OIH) is acting well. Schlumberger (SLB) is still holding higher. I added around $118 this week and took some off above $124 today, but will continue to hold some and trade around it as this could continue higher this year.
Banks need a break, as do the casinos. We will watch for another set-up. I sold the rest of my Wynn Resorts (WYNN) yesterday over $118. I will look to buy some back around $113-$114 on the pull in.
Gold (GLD) is still hanging tough. It might want to test the Major Downtrend that stands at around $163-$165.
Below is one of my segments as the guest host for an hour on CNBC Asia.
Eye on Tech Earnings
Thursday, 19 January 2012 5:10 PM ET
Scott Redler, Chief Strategic Officer at T3live.com discusses the tech earnings overnight and says that Google was the main disappointment. He advises Google bulls to buy into the stock around the 200-day moving average
Source: CNBC.com
Market just had a very impressive move from the December 20th Gap and Go! At this point I cleaned up a lot of my positions as I don’t want to get “overly excited”. I went from holding 8-15 positions to perhaps 4-7. Now is a time to be very stock specific both long and short. Stay the course though as this market can still have a ton more upside this year.
*DISCLOSURES: Scott Redler is long SPY, OIH, XLF, WMT, VXX. Short DIA.
