Morning Call: The Tape Reads Better Than the Headlines
No big striking headlines out of the G20 except some more tough talk about “fiscal integration.” There has also been more talk about commitment to what’s needed to keep the Euro Process going, which most think has to be some type of “Banking Union” and some type of “Euro Bond.” All of this will take time, but Spanish and Italian yields will keep the pressure on so they stay motivated to keep the process moving along.
The Fed starts its two day meeting with investors hoping that the Twist continues or for a potential new form of QE. That news gets disbursed tomorrow.
Markets gave traders a nice set up yesterday, as a down open was a nice entry for some into what turned out to be a very nice day for go-to leaders that we trade and keep a close eye on here at T3Live. IBD put the Big Picture back in “Confirmed Rally” on Friday, and yesterday we saw some stocks perk up with some quality names to support that thesis. Rally’s that start in June/July are known to fail, so there’s no need to be “All in”. But there’s no reason why you can’t participate in someway, even if you dislike the table that is being set on the World Stage!
Futures are up a bit and will try to reclaim the 50day once again. The 50day for the $SPX is 1347 and for the Spy that’s $135.09. Above that average you can see the first target of the Inverted Head and Shoulders pattern we outlined weeks back around SPX 1356-1360.
Markets found support around 1333-1337 yesterday, right at the Neckline that we propelled above on Friday. Use that as support.
High Beta names woke up in a big way yesterday.
(NASDAQ:AAPL) was my focus in the morning. Those on my radio and those that use my Price Point Sheet had great entries in the $574-$578 area as it ignited through its 50day and worked its way above the recent consolidation. Next spot to work through for continuation is $587.50-$588.50.
(NASDAQ:AMZN) also triggered and was set in Motion above $219.33 and has room to continue to provide leadership.
(NASDAQ:PCLN) broke above recent its wedge formation and the next stop should be its 50day at $687ish.
(NASDAQ:EBAY)- No bear market here as it closed at highs of the year breaking after above $41.60. Staying above that area would be healthy.
(NASDAQ:BIDU) is starting to look a little better for a trade. For active traders $122-$123 is a buyable spot for a move back to $128-$133.
(NASDAQ:NFLX) is still out of play, but if I see some type of BIG volume, I might try a few for a move back to the $77-$79 area.
(NASDAQ:GOOG) rewarded some bottom feeders and still can work its way back to $581 with a much bigger resistance zone around $596-$598.
(NASDAQ:LNKD) had a very nice move from the low $90s back thru the 50day moving average. It needs to absorb the gains, and holding above $101.50-$102.50 would be constructive.
(NASDAQ:FB) was great tactical buy from the Red Dog Reversal around $25.75 or when it closed above $28.10. Yesterday it touched $32.08, so I would not chase here. Let it set back up.
(NASDAQ:ZNGA) has room to $7ish as a bottom feeder trade. Use $5.50 as a stop.
Banks took the day off yesterday and were somewhat weak.
(NASDAQ:JPM) will be in front of Congress again today, so let’s see what that leads to. $33.60-$34 needs to hold for hopes of higher prices.
(NYSE:GS) acts sloppy and is not worth you time.
Casino’s are Laggards, *BUT*
(NYSE:LVS) has a small lower pivot worth watching. Macau numbers have been brought down three times,so maybe it’s ready to bounce. This could ignite with volume to a close above $46-$46.20
(NASDAQ:WYNN) is a laggard and a reach but could be worth a cash flow trade with a close above $102.
(NYSE:TGT) and (NYSE:WMT) continue to reward investors as macro holds.
Coffee stocks ( only 2 in my opinion)
(NASDAQ:DNKN)- I started pounding the table a few months back that this should be a macro/long term hold for those who do that. Yesterday it closed at IPO highs.
(NASDAQ:SBUX) is trying to bank out a lower level support pivot. Trade versus $51 and it has room to $55.61-$56 or higher.
(NYSEARCA:GLD)/Gold is right back at intermediate resistance. You don’t have to be long, but I would be a bit worried about a short in this spot. It will ride on the fed release tomorrow. But a trade through $158.50-$159.20 on volume with force could change the complexion here.
Scott Redler is the Chief Strategic Officer of T3 Live. He develops all trading strategies for 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 trading equities 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 traders in 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 Business and Bloomberg, and he has been quoted in the Wall Street Journal and Investor’s Business Daily among other publications. Scott produces much of the media and content available to subscribers and followers. T3LIVE.com is an online financial media network and education platform that provides active traders and investorswith market analysis, real-time access to strategies, and in-depth training from real traders, real-time.
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*DISCLOSURES: Scott J, Redler is long AAPL, SBUX, LVS, and GLD, and short SPY.