Market Continues to Put Jobs Report in Rear-View

morningcallFutures are up a bit as markets continued their rally yesterday off of Friday’s lows. Important support of 1538-1542 held and now let’s see how the market handles resistance in the next day or so. The 1562-1564 zone is a spot that the Bears probably don’t want to see a close above. The 2013 high stands at 1573.

Some retail names and restaurant stocks are now showing nice relative strength.

The sectors that led the market lower last week–IYT, IWM, XHB, XLF–became tactical longs on Thursday and Friday— the “easier snap back” happened, now it will be interesting to see how some of them treat the “rubber match areas.”

Yesterday I listed some areas that need to be defended by the bears. Perhaps play a bounce up to them—then look to “re-short.” But if these levels are reclaimed, it would negate some of the power of the down move. These still apply today.

Russell 2000 ETF (NYSE:IWM): If the bears want to maintain control they shouldn’t let the bulls reclaim $93ish.

Dow Transports (NYSE:IYT): If the bears want to maintain control they shouldn’t let the bulls reclaim $108.50-$109.

Homebuilders (NYSE:XHB): If the bears want to maintain control they shouldn’t let the bulls reclaim $29.25-$29.45.

Financials (NYSE:XLF): If the bears want to maintain control they shouldn’t let the bulls reclaim $18.20ish.

High Beta Tech continues to be a two–way street.  Recently more money could have been made on the short side vs. long side.

Apple Inc. (NASDAQ:AAPL) has been very weak since failing to hold the 50-day a week or so back ($458ish). On Friday it held $419 which is pivot support from March 4. It moved a few dollars into close.  Stock remains broken, but there is a short term potential “double bottom.” $419 is the key support as we have about two weeks until earnings and this stock could be pushed around until then.

Google (NASDAQ:GOOG) has had a stealth 65 point move lower since all the $1000 price targets started rolling in. It sliced through its 50-day & is a bit damaged. Maybe it gets an oversold bounce back to $796ish.

Netflix (NASDAQ:NFLX) broke its upper range after failing to break out and hold. The $162.23 level is the new pivot support and it has heavy resistance at $175-$178.

LinkedIn (NASDAQ:LNKD) got hit a bit but in perspective it’s holding up very well. This needs time to base.

Facebook (NASDAQ:FB) had a decent move towards the end of last week following the Facebook Home event. It needs hold $26.50ish to keep me interested.  Taking out $27.80 could be another nice obstacle to achieve.

Amazon (NASDAQ:AMZN) is streaky and often hard to handle. It changes character too many times for me.  Wait until earnings.

eBay (NASDAQ:EBAY) still acts well and should be okay as long as the market doesn’t fall apart.

Yahoo! (NASDAQ:YHOO) is not exciting but stair steps higher, still showing relative strengt.

Sprint (NYSE:S) is not a barn burner but hasn’t given us a reason to sell.

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ScottRedlerScott 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.

*DISCLOSURES: Scott Redler is long FB, NKE, XHB, BAC, S. Long SPY put spread. Short SPY.

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