So far markets have been dancing around yesterday’s low. Each time we’ve hit new highs in the S&P, we create a 3-5 day floor and then move higher. This stair step move has been intact since the December 20th Gap and Go.
Today we broke below $131.36 SPY for a few seconds but did not get a 30-60 minute close below. Now we have popped back to $131.50-.60. The market needs to close on a daily basis below $131.15 for more downside. The next level is the recent floor of $130.60-130.80.
High beta tech is showing some relative strength today, which is nice to see.
Apple (AAPL) has been resting for a few days after a nice report. Some are long vs. the $444 pivot. It probably needs more time.
Google (GOOG) had its first up day since earnings as it almost touched it’s 200-day moving average yesterday. I did buy some yesterday and added above $571.50. I traded some and will trail some vs. yesterdays low.
Amazon.com (AMZN) had some nice continuation but is getting too close to earnings to get any size. A slippery stock with a high multiple.
Baidu (BIDU) is also knocking on the door of its long-term downtrend. With earnings Monday it's so hard to get aggressive here as well.
Netflix (NFLX) is interesting, I’m watching close. Some shorts are on the rope here, and the pull-in after yesterday's move has not been as big as many expected. We have two pivot points to watch and buy: $118.50 then $119.37.
Banks are still hanging tough.
Goldman Sachs (GS) at some point will trigger through the $110 area for a momentum long. JP Morgan (JPM) and Bank of America (BAC) also hang tough.
Las Vegas Sands (LVS) gave us a nice move this week. Yesterday I caught a cute short into the open. I covered already, and actually am long a little as it is working off the overbought condition with impressive style.
Wynn Resorts (WYNN) needs time.
Caterpillar (CAT) I sent a note yesterday to sell the big gap up $112-114, not buy it. That was a big exhaustion gap yesterday. If you got short, it looks good and the gap gets filled down to $109ish. Looks like a nice buy back in the next few weeks or so around $106.50-107.50.
Green Mountain Coffee Roasters (GMCR) and Molycorp (MCP) are both acting a bit perky.
US Steel (X) and AK Steel (AKS) both act a bit sluggish.
Gold (GLD) was a great trade from Wednesday. It blasted through the multi-month downtrend at $163.50-164.50 and rewarded those looking for upside follow-through. I would trim some and manage it. The next big area is $169-171 in GLD.
*DISCLOSURES: Scott Redler is long SPY, OIH, GOOG, AAPL, WYNN, LVS, GS, X, LULU, GERN, KV.A, WMT, DANG, VXX. Short DIA.
