Indices opened up above the recent highs and dribbled below them in the first hour. In the S&P, 1354 has been the pivot high. Today we opened up above it and now sit around 1350. It's still been hard to add to winning trades for momentum, making it hard for traders.
You get some action here and there but it’s much more selective than what we saw in January. There is a divergence in the VXX today where it’s elevated even as most indices are higher. Someone is worried somewhere and buying protection.
Support is around 1342-1345. The 10-day moving average stands at 1345, which we’ve been riding for since the December 20th gap and go! The Important floor for momentum traders is 1333-1337.
Banks held 21-day moving averages yesterday and continued a bit higher today. Casinos also hang tough today with Las Vegas Sands (LVS) acting best there.
Apple (AAPL) is now above the $520 target I set in Monday’s Live Morning Call – but I had sold mine already. It's easier to predict something like that than execute it. AAPL has been downright ridiculous, especially considering it it the most valuable company in the world.
Qualcomm (QCOM) is lethargic but has $61.99 in front of it. Above this, maybe it gets some energy.
Google (GOOG), Baidu (BIDU) and Amazon (AMZN) have had no real action today.
Sandisk (SNDK) is trying to get into the earnings gap.
Caterpillar (CAT) came in with Deere (DE), so that trade didn’t work.
Celgene (CELG) still looks great, but hasn't gotten a real push yet.
Oil Service ETF (OIH) is out of play today.
Some retail stocks are getting some upside action. We talked about them yesterday in Morning Call. Under Armour (UA), Deckers (DECK), Tiffany's (TIFF) and Lululemon (LULU) to name a few.
*DISCLOSURES: Scott Redler is long SPY, OIH, JPM, CELG, LULU, WMT, QCOM. Short DIA.
