The market once again proved resilient Wednesday, recovering from early weakness to finish positive. Investors remain cautiously optimistic about a Greek debt deal being consummated soon that would allow the country to remain in the Euro zone.
Second day in a row I mismanaged my longs and hedges. For about a week now I went from “long only” holding 12-17 positions (I had a portfolio long strategy since the December 20th Gap and Go), to holding closer to 8-12 positions with some hedges on.
In the last two sessions the market gave us the opportunity to cover some hedges on a quick pull-ins and add to strong longs, but instead I added to hedges and left longs alone. This ruined some average prices on hedges and led to me getting chopped up a little bit.
The Low of the Day in the SPY was $134.31, above the important recent floor of $133.70-$133.80. Markets are doing some work in this area with scattered relative strength and weakness but limited momentum.
Netflix (NFLX) was a nice RedDog Reversal short set-up from yesterday, but I covered it today in Day 2 around $124.
Apple (AAPL) gave us some clues that we would not fall apart after it held tough even after the morning pull-in. I shorted it vs the morning high, sold half or a profit and got stopped out on the other half. It’s in blow off top mode, where every sale is a bad sale. Only short vs. a level if you’re trying to be cute.
Google (GOOG) is rewarding macro longs that averaged down, and active traders who bought in front of the 200day moving average.
Microsoft (MSFT) is at highs-, with $32-35 still attainable this year.
Cisco Systems (CSCO) has had a big move in last 6 months. It was a value trade below $16, and a momentum trade above $19. Now I think it’s tough to hold into earnings, so take care.
Banks are setting up and still look good.
JP Morgan (JPM), Wells Fargo (WFC), Citigroup (C) are at new highs of the year. Goldman Sachs (GS) needs to get through $117-117.50 to add some momentum.
*DISCLOSURES: Scott Redler is long SPY, OIH, LULU, WMT, JPM, VMW, DNDN, QCOM, DNDN calls, VXX. Short DIA.
