Morning Call: Futures Unable to Continue Fast Start to Q2
Markets started off slow yesterday and then Apple (NASDAQ:AAPL) lead it higher. We did stall in the last hour. Today, futures are off a bit but nothing to worry about as of yet. All eyes will be on Fed minutes today as well as some auto numbers. The European Central Bank also meets tomorrow.
S&P micro support is at 1406-1409, holding this area would keep pent up momentum to the upside. Bigger support lies at 1398-1402, a close below this area and you will hear the correction chorus. Major Momentum area support is 1391-1393, this must hold to keep intermediate momentum to the upside.
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S&P Resistance sits at 1419-1422, a close above this area opens the door for 1440.
Banks started off soft yesterday but held the usual support areas. JP Morgan (NYSEArca:JPM) continues to lead the sector. A close above $46.50 and you might see some momentum in this leader. Bank of America (NYSEArca:BAC) held $9.40 channel support, resistance stands at $9.90 then $10.10.
High beta tech was mixed yesterday.
Apple (NASDAQ:AAPL) started off fast and closed well. It was upgraded by Piper Jaffray and JPM today, watch $621.45 as the next pivot. It’s opening above and this is why you don’t roll up shorts. When stock busted through $604-$607.50 its composure went back to strong.
Google (NASDAQ:GOOG) was down a few and reversed back up. This stock is trading much better in the last few weeks. I still think this stock will see new highs this year.
Netflix (NASDAQ:NFLX) pulled back way too much after a the move from $111-123. It was downgraded today, I might look here for a positive divergence to buy for a move from negative to positive. But not excited here.
Amazon (NASDAQ:AMZN) met most targets and was downgraded yesterday. It closed near the lows. $195-197 is some support.
LinkedIn (NASDAQ:LNKD) is doing some nice work above $100. In a matter of time it should go for new highs.
VMWare (NYSEArca:VMW) was downgraded and yawned. The cloud space continues to be strong.
Intel (NASDAQ:INTC) is still working higher, a nice macro hold.
International Business Machines (NYSEArca:IBM) was upgraded today. It’s still crawling higher but good for macro investors as it continues higher. Targets were raised to $225 this morning
Autos: Some numbers today could be worth a look.
AutoZone (NYSEArca:AZO) target raised by GS, and CEO will be on CNBC. It should have some action at the $386 pivot. I do not trade this one.
General Motors (NYSEArca:GM) had a nice day yesterday as it gapped up and cleared some resistance. See if it can continue. The next pivot is $27.68.
Ford (NYSEArca:F) is still slow but could ignite soon. Started to get above some moving averages. The stock needs to clear $12.90-$13.05 to really get going.
Precious Metals have been waking up a bit. I started talking about them last week. It’s my first time looking long in them for a bit.
They need time for market to confirm this upside pattern. Right now they are trying to break intermediate downtrends.
Silver (NYSEArca:SLV) is holding above $31.70$31.80 would keep me motivated to stay here. Above $32.29 would be good to confirm bullish pattern to the upside. Real Macro stop here is the pivot low of $30.21.
Gold (NYSEArca:GLD) has a similar pattern to silver. Nice lower pivot, but it needs to break intermediate downtrend to act better. A close above $164.80-165 would get some shorts to cover and add some momentum.
Starbux (NASDAQ:SBUX) has been very impressive and continues to reward longer term investors.
Dunkin Brands (NASDAQ:DNKN) held $29.50 well, the secondary offering price. It can get back in motion with a close above $31 area. Holding above $30 would be constructive.
Seems like every time I lighten up and use some caution a few days later I have 5-8 positions back on as this market continues to reward those riding the trend. You don’t need to be all in, but don’t fight the tape.
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*DISCLOSURES: Scott Redler is long NYSEArca:F, NASDAQ:RENN, NASDAQ:ZNGA, NASDAQ:DNKN, NASDAQ:LNKD, NYSEArca:SLV. Short NYSEArca:SPY.
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