Bundestag approved the second Greek bailout, clearing one of the final hurdles for the rescue.
After days of dancing around Dow 13,000 and S&P 1370, it will be interesting to see if we can open and hold above these zones. The QQQ’s have been trading above their 10-day moving average for over 45 sessions now. The SPY held the 10-day yesterday to the penny.
While it may seem that risk-reward is in favor of short positions at these higher levels, a prudent technical trader sticks with the trend until it breaks. With all this positive action, it seems like everyone still wants a correction. Everyone still wants to be a pessimist vs. an optimist. I say you don’t have to be either, just watch the price action and trend. I prefer to be a realist with an optimistic bias.
European banks will probably tap the ECB for 470 billion Euros in three-year funds. If you remember, back in December when they did this the first time, it changed the complexion of the market to the upside. So let’s see what transpires here.
Investors are still worried about oil prices, and rightfully so. But I say: don’t worry until the market does. Right now the S&P and oil still have a positive correlation and trade together. When we see that relationship change, I will try and point it out. If oil comes off hard, its possible it could have a dramatically positive effect on the market.
Each market environment has a certain character. This one is a slow, steady trend with light volume. Moves don’t happen as quick, so you need to be patient and give stocks time to work out.
In earnings news, Priceline (NASDAQ:PCLN) is up 7% to new all-time highs after earnings last night. The stock has been in a steep uptrend since late 2008, and had recently put in a macro bull flag pattern. PCLN has been on a tear in 2012 so far, and today’s move will add to that momentum.
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 StreetJournaland Investor’s Business Daily among other publications. Scott produces much of the media and content available to subscribers and followers.
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*DISCLOSURES: Scott Redler is long (NYSEArca:SPY), (NYSEArca:OIH), (NYSEArca:BA), (NYSEArca:MMM), (NASDAQ:INTC), (NYSEArca:IBM), (NASDAQ:NUAN), (NYSEArca:LVS) (NYSEArca:JPM), (NYSEArca:GS). Short (NYSEArca:DIA) and (NASDAQ:QQQ). Long (NASDAQ:AMZN) puts and (NYSEArca:SMP) puts.