Morning Call: Look to Trade the Leaders in this Tape
Maybe there is a fat finger trade this morning, as the S&P futures are down 7-9 handles. Yesterday, Bank of America had its first down day after 5 strong to the upside and already the street was blaming it on talk of a secondary.This makes me chuckle. Perhaps the rationale should have been, after a big move the banks just had, they deserve rest. Most indices are extended from their 10/20day moving averages and could use a rest so they can play catch up.
SPY high level support to test the upper floor stands at $139.40-139.70. The 10day moving average is $138.44 with the retest of prior breakout around $138.19.
Apple (NASDAQ:AAPL) did a great job absorbing those trying to sell the news. The stock continues it’s monstrous move with some micro trades along the way, but the real money is LONG – and staying with the trend. Short term use yesterday’s high as a pivot to trade around $601.77.
Netflix (NASDAQ:NFLX) gave us a nice additional entry for cash flow yesterday through the price we listed on the Price Point Sheet and Morning Call around $111-11.50. With the futures weaker this morning, I will look to see if I can add for a negative to positive move through yesterday’s high of $115.
Amazon (NASDAQ:AMZN) is still in the lower wedge out of play. It has a macro bearish pattern but needs to get below $175-$177 to start to break lower.
Google (NASDAQ:GOOG) I’ve mentioned a few times in the last week or so that it’s acting much better. On March 13th it reclaimed all its moving averages and the composure changed. It blasted through the mid level channel yesterday around $625 and now needs some time. I still believe the highs of the year are not in here.
Baidu (NASDAQ:BIDU) is still building a major macro wedge. Tried this a few times and lost money. It’s on my radar for a trade to go positive as well through $139.50-140.50. A close above this level with volume gets this in motion.
LinkedIn (NASDAQ:LNKD) is still stalling in front of $94-95. This would be the time to get involved if it trades above with volume. I have a stop at $88.50ish.
Zynga (NASDAQ:ZNGA) had a small reversal so I bought small to track. The secondary should be soon. I still think stock goes higher before Facebook.
Banks: After a major move they could use a rest. This was my focus to be long last week starting on Fed day Tuesday. I sold the rest of my last longs Friday. I did short the group yesterday as a sent a note to the twitter-sphere.
I shorted FAS around $112.20ish, I will look to cover in the $104-106 area. The 10day stands around $98.48. I bought FAZ around $20.30 and will look to sell some around $21.50-22. The 10day stands around $23.44.
Bank of America (NYSEArca:BAC) was a nice ride after the $8.25 break out. Now it’s in pull back mode. It’s funny that it had its first down day after a massive move and everyone had to blame in on a secondary reports. The $9.25-9.35 area is high level support—the 10day here is $8.57.
JP Morgan (NYSEArca:JPM) has lead the way and a pullback would be healthy. Upper level support is $43.10-43.70 with the 10day at $42.25.
Casinos – very strong move yesterday. Some through monthly highs.
Las Vegas Sands (NYSEArca:LVS) example of how to scale in and out of positions. Tier one could be in the $55 area, tier two through the buy price of $56.20 then selling above pivot highs of $57.89 for cash flow. Then going home back with tier one. That’s how to create cash flow as stay with a position
Wynn (NASDAQ:WYNN) looks good for higher prices as well.
Caesar’s (NYSEArca:CZR) is absorbing its secondary news well and still looks good.
The Inverse 20+ Year Bond ETF (NYSEArca:TBT) is still working higher as it can use rest after making new move highs yesterday.
The Gold ETF (NYSEArca:GLD) remains a frustrating trade for most as it continues to trend lower.
Scott Redler is the Chief Strategic Officer of T3 Live. He develops all tradingstrategiesfor the service and acts as the face of T3 Live. Mr. Redler focuses on thorough preparation and discipline as a trader. Scott Redler has been tradingequities for more than 10 years and has more recently received widespread recognition from the financialcommunity for his insightful, pragmatic approach. He began his career as a broker and venture capitalist where he was able to facilitate relationships that led him into trading. Beginning his trading career at Broadway Trading in 1999, Scott moved on with Marc Sperling to Sperling Enterprises, LLC after establishing himself as one of the best young tradersin the firm. As a manager at Sperling Enterprises, he maintained his status as a top trader in the industry while working closely with all traders in the firm to dramatically increase performance. Scott has participated in more than 30 triathlons and one IronMan triathlon, exhibiting a work ethic that also defines his trading. His vast knowledge and meticulous attention to detail has led to regular appearances on CNBC, Fox Businessand Bloomberg, and he has been quoted in the Wall StreetJournaland Investor’s Business Daily among other publications. Scott produces much of the media and content available to subscribers and followers.
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*DISCLOSURES: Scott Redler is long (NASDAQ:ZNGA), (NASDAQ:DRYS), (NASDAQ:SIMG), (NYSEArca:LVS), (NASDAQ:DNKN), (NASDAQ:NFLX), (NASDAQ:AAPL), (NASDAQ:LNKD), (NYSEArca:TBT), (NYSEArca:CZR), (NYSEArca:OIH). Short (NYSEArca:SPY), (long (NYSEArca:FAS)).