The bears did a better job early of holding and pressing the gap down. The market has now given a push above the morning range, but it still doesn't quite feel the same as Friday. Some spots went green momentarily to give some trapped longs a way out. Rising Portugese bond yields and tough talk from Germany on Greece have people jittery about Europe again.
The first hour range was $130.06-130.55, the market tried to break below $130.15 but there was no downside momentum. We are now over an hour into the day and are starting to take back the floor we have spoken about many times over the last two weeks, $130.60-130.80 on the SPY.
Typically if you don’t fill the gap in the first hour of the day we trend in that direction for the reminder. We have not seen that yet this year, but that is what the good book says!
Apple (AAPL) went green and acts well. I added through the $449 two-day pivot.
Netflix (NFLX) I sold my longs this morning a little early and it remains strong.
Google (GOOG) is holding half of Friday’s gains. I didn’t add but stayed long.
Baidu (BIDU) has earnings after the close. I will re-visit at 3:30 to decide whether to take options play into the report.
Las Vegas Sands (LVS) and Wynn Resorts (WYNN) gapped lower and stopped me out a quickly off the open. I will re-visit LVS at 3:30 Wednesday.
Banks also came in, but nothing to get me too worried yet. I got stopped out of my Goldman Sachs (GS) in first 15 minutes, but I will revisit and get long when I feel the “retracement” in the markets is over.
Gold (GLD) came in but the pullback is in stride. It has had a big move.
Market is in a tricky spot right here. I covered half my hedges and not ready to be back to long only. If we were to go to 1275-1285, I would probably take all hedges off, and start to look to buy back Macro shares. Until then I will stick with what’s working. Right place, right time with a long thesis, but managing positions based on price and technical pattern.
*DISCLOSURES: Scott Redler is long SPY, OIH, AAPL, GOOG, LULU, WMT, X, DNDN calls, VXX. Short DIA.
Traded (but currently flat): NFLX, MCP, GERN, KV.A, DANG, WYNN, LVS.
