Morning Call: Trading Shows Positive Composure
Markets closed out a very interesting week near the highs even after the constant flow of announcements and events out of the Fed and ECB. It caught a lot of bears by surprise and some bulls flat footed. Lots of stocks woke up after earnings this quarter, giving us a group of go-to stocks that have worked well for bulls.
During this week, action should slow down quite a bit, as most influential earnings have been reported. Lots of traders also tend to take time off, so August tends to be a thin month.
Today futures are up a bit, and we are hanging around big resistance. The longer the SPX holds above 1388-1390, the higher the probability we test 1400+ before Labor Day (or this week).
High beta tech is acting better.
Apple (AAPL) – missed earnings and gave many opportunities to re-enter. The first spot was $580.80, and now it’s hovering right below major resistance at $618-$620. A close above this level opens the door for at least a re-test of $644 highs, and perhaps a hint at $700+
Google (GOOG) – finally flexing some muscle since its earnings report. A nice re-entry was described in Off the Charts at $618-$620. Now it seems like it wants to break the downtrend this year. A close above $642-645 should set in motion the highs of the year. The daily, weekly, and monthly charts all look even better than they did back in January, so $658 and $670 now become the spots to watch.
Amazon (AMZN) – tough to trust, but it did power over $230 and held it well. This is one to stick with
Bidu (BIDU) – woke up after earnings. $118-$120 was first technical entry, and now it’s trying to continue. It’s choppy, but still okay.
LinkedIn (LNKD) – nice earnings report showing that this is NOT Facebook. With a few days of rest, $108-$110 will be the next technical level to watch
Priceline (PCLN) – still has to report earnings, so I will wait till after the report to look at the chart.
Facebook (FB) – small double bottom at $19.90 – this is what traders will use as a level to trade against. Some even some saw an opportunity on Friday.
QCOM, SNDK, EBAY, STX, WDC, and IBM were not mentioned above, but they have been acting well since earnings and deserve a look
Banks are still hang around.
Goldman Sachs (GS) – has a nice flag, but a big task is to exceed and close above $101-$102
JP Morgan (JPM) – is slow but still working higher.
Wells Fargo (WFC) – is best of breed and nearing its highs
Visa (V) –acting better than Master Card
Big box retailers are still the best macro holds. These include WalMart (WMT), Target (TGT), and Costco (COST).
Casinos are tactically acting a better.
Las Vegas Sands (LVS) – some traders are still long since the capitulation low on 7/26 and had a nice day Friday for those who added above $37.50
Wynn (WYNN) – still weak. Any movement above $97 with some volume can get the stock to $100.
Starbucks (SBUX) – seems like it wants to bottom. Movement above $44.20 can get it away from recent lows
Oil’s ETF (OIH) – also maintains a spirited move off the lows. It had a nice RedDog Reversal at $6.26 and then some follow thru on July 18. SLB and HAL are vehicles of choice.
Metals – are not the place to be and are a bit frustrating
Scott Redler has been trading equities for more than 10 years and has more recently received widespread recognition from the financial community 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 Invest.
Scott is currently the Chief Strategic Officer of T3 Live and is a Registered Associated Person of T3 Trading Group, LLC.
*DISCLOSURE: Scott Redler is long: AAPL, SBUX, and FB short: SPY