look set to get strong follow-through from yesterday, as the Fed laid an inflationary groundwork for the next two years.
The Fed came out with its statement at 12:30 ET, and by 12:35 I tweeted that those statements will be good for equities. Sperling spoke positively on the radio and continued buying (NYSEArca:GLD), since he interpreted that it was good for that precious metals.
In earnings related stock news, Netflix (NASDAQ:NFLX) is up 19% this morning after reporting earnings. Net income fell, but beat expectations and is triggering a major short squeeze in the oft-maligned stock.
Indices then started a powerful move with volume that added some extra juice to a bull move that has been a very enjoyable since the December 20th gap and go. This methodical, very tradable move continues to reward dip buyers, those that rotate amongst sectors, and we also get a break out here and there. Each time it seems like we might take “breather” we build a small floor that doesn’t get violated and then the rally continues.
Don’t fight the trend, but stay on your toes as we extend into bigger resistance. We have Higher Highs and Higher Lows right now so keep with it and I PROMISE—I will try and point out if the composure changes.
With the S&P futures up a few handles we need to look at resistance to the upside. Next zone of resistance is 1331-1347, then the peak from 07/11/11 of 1356.
The 2011 high was 1370, the day we killed Osama Bin Laden. Support is 1318-1322, if we go negative and close below this level then 1305-1308 will be important support.
Las Vegas Sands (NYSEArca:LVS) is set-up I will be watching closely today, and I believe it can touch $50+.
Wynn Resorts (NASDAQ:WYNN) through $121-121.50 opens the door for $129-135.
Goldman Sachs (NYSEArca:GS) took its downgrade in stride and could be buyable above $110.
Bank of America (NYSEArca:BAC) acted well yesterday and seems like $8+ before $6 again.
Oil Service ETF (NYSEArca:OIH) is still on the move!
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*DISCLOSURES: Scott Redler is long NYSEArca:SPY, NYSEArca:OIH, NYSEArca:XLF, NASDAQ:WYNN, NYSEArca:LVS, NYSEArca:X, NYSEArca:MCP, NASDAQ:RENN, NYSEArca:BAC, NASDAQ:LULU, NYSEArca:WMT, NASDAQ:FFIV, NASDAQ:DNDN, NASDAQ:CROX, NASDAQ:NFLX calls and NASDAQ:SNDK calls. Short NYSEArca:DIA and Long NYSEArca:VXX.