S&P futures are up 10 handles Monday morning, reacting to Greece's parliament's final approval new, stricter austerity measures. The vote now paves the way for another international bailout package that will prevent a hard default on March 20. While the market is cheering the new measures, social unrest in Greece could temper gains today. There were ugly scenes on Athens over the weekend with building burning and riots in the streets.
Bank shares were the biggest beneficiary of this weekend's vote. Almost all banks are up over 1% on the news, and most significantly more than that. The market was pricing in a dangerous situation for the banks of Greece were to default, and the latest bailout with assuage those fears. Both Bank of America (BAC) and Citigroup (C) are up more than 2% pre-market.
On Friday the market showed some jitters regrading Greece as "procedural issues" were holding up the final approval process. However, despite its weakness the S&P couldn’t even break and close below the 10day moving averages. The important technical levels held and bullish composure remained intact.
TECHNICAL TAKE
The strongest Stocks usually ride their 10/20day moving averages. Since December 20 most of the indices have been acting like a high beta stock. Friday was the first true test of the year, and markets took it in stride. The S&P actually held above 1333-1337 floor and the markets came off the lows, which was pretty impressive as the VIX came in hard during the last 30 minutes of trading.
Traders will have a lot to think about today as some prudent traders probably pared back some risk, and stayed with some hedges. Some might have even added to hedges/shorts and sold too much of their longs. Either way don’t be stubborn or opinionated. Let the trade unfold in the first 30/60 minutes and then adjust accordingly.
S&P support is 1341-1345, then that floor that is the area to trade against moving a forward for complexion is 1333-1337.
Resistance sits at 1351-1354, and a 30/60 minute or daily close above this recent pivot high, opens the door for 1370.
Tech
AAPL- was in a league of its own last week, as this super grower is still cheap on most metrics. Stock should attack $500 plus today. I Put this prediction out there many times in the media over the last year or so. We could always have traded it better.
QCOM- hangs in very well and seems like it wants to add some momentum above $62
BIDU- showed some relative strength on Thursday and Friday- breaking above its symmetrical triangle. Earnings this week so take care.
VMW- still in a nice flag type pattern and can get going Above 95.50ish
CRM- has been acting better since triggering through the recent Downtrend around $120.50
LNKD- had a big day Friday. Some guys took some Calls with me into the Number. Unfortunately there was too much going on Friday to maximize gains. Stock is in the gain. Take some care as lock up comes in play this week.
IBM- hurt a bit last week as it failed at the recent highs. See if it needs more time before it tries again.
ZNGA – has a nice tight pattern and looks good. Needs to get some decent earnings first- this week. But poised for higher prices.
GOOG- still hanging around – needs time. Holding above $603-604 will be good to set up for higher prices again.
OIH – still hangs tough- need to see if I can get through the $131-$133 the major resistance area. This is sluggish- but so far it’s been a nice hold for 2012.
Banks- Have been a nice vehicle this year took had some profit takers last week.
GS- rejected $117-$117.50 let’s see if it can re-group and try again at some point.
FXE will open up a bit and has an open gap up to 132.11
GLD still above the 20day moving average- still holding higher. Hanging above higher but a little hard to handle up here.
TBT- I did sell some of this on Friday- and have small left over. I will try and stay with and wait for a better set up.
*DISCLOSURES: Scott Redler is long SPY, OIH, TBT, QCOM, AAPL, HAS, WMT, LULU, VMW, VXX. Short DIA, QQQ.
