Feels almost like déjà vu. Last year I was in the Hamptons, and there was a surprise short squeeze that happened over the quarter’s end and into the July 4th holiday, right at this same time. It’s never fun, especially if you’re with the family trying to enjoy the holiday. It was fast and furious and caught me and most professionals by surprise. You had a few chances to cover, but it wasn’t easy. If we rewind to last year, the market squeezed all the way to Thursday afternoon’s pre-jobs number, before putting in the summer top.
Nothing ever happens in exactly the same way, but yesterday’s market had every reason to go down and still held higher. (NYSEARCA:SPY) even held the highest support at #135.50, which I outlined in the morning chart. There was no opportunity for shorts to salvage anything if they were rolling it up from Friday. It also didn’t really give longs enough time to get in on the action.
Today is a half a day! $135.90 is support #1 and $135.50 is support #2. If we stay above these levels and push through yesterday’s high of $136.48, the next resistance spot is $137.56, a good spot to trim your longs, if not sell most of them. If the market puts the full-fledged pain trade on into Friday’s jobs number, or perhaps an ECB cut on Thursday, $138.66-$139.50 is the spot to get flat and mortgage the house short!
Lots of nice action across the board from the leaders to the laggards. Some leaders had nice follow through yesterday and some stocks are actually breaking out. Lagging groups continue to have a spirited move off the bottom as well. There is something for everyone unless you are fighting this market with opinions!
Scott Redler is the Chief Strategic Officer of T3 Live. He develops all tradingstrategiesfor 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 brokerand 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 Redler is long (NASDAQ:AAPL), (NASDAQ:VISA), and (NYSE:JPM) and short (NYSEARCA:SPY).