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Market Digesting Last Week's Bounce Back

Scott Redler
Mar 12, 2012, 11:06 AM

Markets digesting last week’s bounce back pretty well. Some early pressure in the banks took us off the morning highs. Today’s highs was 1373,and Friday’s high was 1374. At least we are developing a nice pivot or defined resistance.

We are still above the 10/20day moving average ($136.87 is that level for the SPY).  The low of the day was $137.17. The longer SPY holds above $136.50-136.80, the more confidence the bulls will get to stay with this move.

Apple (AAPL) pushed through $548.21 for a quick scalp long getting as high as $551.42. It pulled back a bit. Use the morning low of $547 as today’s pivot.

International Business Machines (IBM) made new high of $201.58 and looks okay. It's easy to hold, hard to trade.  Above the high of the day and maybe it gets another push.

LinkedIn (LNKD) pushed fast through $91.50 and went to $93. Holding above $89 area would be constructive.

Some of the Chinese stocks up on Yoku news pulled back a bit. I avoided them, since they are tricky

Dunkin Brands (DNKN) I pounded the table here a bit last week and it opened up today. Trade it according to your time frame. I think it’s a long term hold, but resting around here makes sense.

Banks are coming off the lows as I write this.

JP Morgan (JPM) stock held above its 10day of $40.09.

Goldman Sachs (GS) has a very tight three day range. $116.28 is new support to trade long against, and if it can get above $118.68 it could look better.

Bank of America (BAC) not much to report, it has a channel that could resolve after the bank stress tests.

Gold (GLD) went out strong Friday and opened lower today with the China news. Makes it a tough trade.

Zynga (ZNGA) acts well. I like this as a longer term hold as well. Above $14.30-$14.50 and it can get some upside momentum.

Casinos continue to be a good trading vehicle

Las Vegas Sands (LVS) stock has been trading well both long and short. Friday was a targeted short around $55.50  I think the easy day and half move is over. It needs time.

Wynn Resorts (WYNN) choppy with limited action. Needs time. Holding above $118-119 would be good here.

The Russell 2000 Index ETF (IWM) rallied back to prior resistance area. For it to be constructive, holding above $80.50-80.70 would be better for the bulls.

*DISCLOSURES: Scott Redler is long IBM, DNKN, AAPL, ZNGA, BAC. Short SPY. Traded but flat JCP, LVS.

Last Updated ( Monday, 12 March 2012 11:18 )