Morning Call: Greece Deal Approval Boosts Stock Futures

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February 13, 2012 11:13am NASDAQ:QQQ NASDAQ:QQQQ

S&P futures are up 10 handles Monday morning, reacting to Greece’s parliament’s final approval new, stricter austerity measures. The vote now paves the way for another international bailout package that will prevent a hard default on March 20. While the market is


cheering the new measures, social unrest in Greece could temper gains today. There were ugly scenes on Athens over the weekend with building burning and riots in the streets.


Bank shares were the biggest beneficiary of this weekend’s vote. Almost all banks are up over 1% on the news, and most significantly more than that. The market was pricing in a dangerous situation for the banks of Greece were to default, and the latest bailout with assuage those fears. Both Bank of America (NYSEArca:BAC) and Citigroup (NYSEArca:C) are up more than 2% pre-market.

On Friday the market showed some jitters regrading Greece as “procedural issues” were holding up the final approval process. However, despite its weakness the S&P couldn’t even break and close below the 10day moving averages. The important technical levels held and bullish composure remained intact.

TECHNICAL TAKE

The strongest Stocks usually ride their 10/20day moving averages. Since December 20 most of the indices have been acting like a high beta stock. Friday was the first true test of the year, and markets took it in stride. The S&P actually held above 1333-1337 floor and the markets came off the lows, which was pretty impressive as the VIX came in hard during the last 30 minutes of trading.

Traders will have a lot to think about today as some prudent traders probably pared back some risk, and stayed with some hedges. Some might have even added to hedges/shorts and sold too much of their longs. Either way don’t be stubborn or opinionated. Let the trade unfold in the first 30/60 minutes and then adjust accordingly.

S&P support is 1341-1345, then that floor that is the area to trade against moving a forward for complexion is 1333-1337.

Resistance sits at 1351-1354, and a 30/60 minute or daily close above this recent pivot high, opens the door for 1370.

Tech

(NASDAQ:AAPL)- was in a league of its own last week, as this super grower is still cheap on most metrics. Stock should attack $500 plus today. I Put this prediction out there many times in the media over the last year or so. We could always have traded it better.

(NASDAQ:QCOM)- hangs in very well and seems like it wants to add some momentum above $62

(NASDAQ:BIDU)- showed some relative strength on Thursday and Friday- breaking above its symmetrical triangle. Earnings this week so take care.

(NYSEArca:VMW)- still in a nice flag type pattern and can get going Above 95.50ish

(NYSEArca:CRM)- has been acting better since triggering through the recent Downtrend around $120.50

(NASDAQ:LNKD)- had a big day Friday. Some guys took some Calls with me into the Number. Unfortunately there was too much going on Friday to maximize gains. Stock is in the gain. Take some care as lock up comes in play this week.

(NYSEArca:IBM)- hurt a bit last week as it failed at the recent highs. See if it needs more time before it tries again.

(NASDAQ:ZNGA) – has a nice tight pattern and looks good. Needs to get some decent earnings first- this week. But poised for higher prices.

(NASDAQ:GOOG)- still hanging around – needs time. Holding above $603-604 will be good to set up for higher prices again.

(NYSEArca:OIH) – still hangs tough- need to see if I can get through the $131-$133 the major resistance area. This is sluggish- but so far it’s been a nice hold for 2012.

Banks- Have been a nice vehicle this year took had some profit takers last week.

(NYSEArca:GS)- rejected $117-$117.50 let’s see if it can re-group and try again at some point.

(NYSEArca:FXE) will open up a bit and has an open gap up to 132.11

(NYSEArca:GLD) still above the 20day moving average- still holding higher. Hanging above higher but a little hard to handle up here.

(NYSEArca:TBT)- I did sell some of this on Friday- and have small left over. I will try and stay with and wait for a better set up.

Scott Redler Scott Redler is the Chief Strategic Officer of T3 Live. He develops all trading strategiesfor 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 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 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 investors with market analysis, real-time access to strategies, and in-depth training from real traders, real-time.

This material is being provided to you for educational purposes only. No information presented constitutes a recommendation by T3 LIVE or its affiliates to buy, sell or hold any security, financial product or instrument discussed therein or to engage in any specific investment strategy. The content neither is, nor should be construed as, an offer, or a solicitation of an offer, to buy, sell, or hold any securities. You are fully responsible for any investment decisions you make. Such decisions should be based solely on your evaluation of your financial circumstances, investment objectives, risk tolerance and liquidity needs.Visit the T3Live Homepage, Virtual Trading Floor, and Learn More About Us.

*DISCLOSURES: Scott Redler is long (NYSEArca:SPY), (NYSEArca:OIH), (NYSEArca:TBT), (NASDAQ:QCOM), (NASDAQ:AAPL), (NYSEArca:HAS), (NYSEArca:WMT), (NASDAQ:LULU), (NYSEArca:VMW), (NYSEArca:VXX). Short (NYSEArca:DIA), (NASDAQ:QQQ).


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