some nice follow-through on Friday. The XLP found support at the 200-day on the recent correction, which is constructive. A break and close above the 100-day at $40.60 could keep the uptrend intact.
The Utilities (XLU) also joined the market rally last week to reclaim all key moving averages. The XLU is still forming a macro wedge pattern as it’s been lagging the market since May. During a volatile environment like this, a defensive sector like the Utes can be a safe haven that investors flock to. A break above $38.50 could help the ETF clear the downtrend resistance that has been in place since May.
The Russell 2000 soared all the way back to highs, with the Index ETF IWM enjoying 1.45% gain on Friday. A break above Friday’s high of $107.73 could open the door for new highs. Upper-level support stands at $106 area.
The metals have been tumbling, and although they are set for a higher open this morning, there is a clear downward trend in place.
Gold (GLD) dropped another 1.34% to break below the recent pivot low of $123.81. Use Friday’s low of $121.85 as the new point of reference to trade around as buyers could step in at these lower levels while markets remain heavily headline-driven.
Silver (SLV) also shed 1.5% on Friday to break below its 100-day moving average. Support 1 stands at $20.37 and Support 2 stands at $19.88 from Oct 1st lows.
Apple (AAPL) continued to find support at its 21-day and held up well last week. A break above Friday’s high of $494 could set it back in motion. Use Friday’s low of $485 as key short-term support.
Las Vegas Sands (LVS) broke out to new highs at $68.35 on Friday. Some digestion above breakout level of $67 would be healthy. Other casino stocks are also acting well. Wynn (WYNN) saw new highs on Friday after a potent two-day rally. MGM Resorts (MGM) is hovering near highs with a tight set-up. A break above $20.90 could trigger the next round of buying in MGM.
SolarCity (SCTY) soared 23% on Friday when the company offered up encouraging operating metrics and boosted its outlook for next year. Look into other solar stocks like JKS, JASO, FSLR, CSIQ as they could pick up some momentum following the igniting move in SCTY.
Schlumberger (SLB) has been building a tight upper range and looks poised for a potential breakout at $90.30. The stock has a healthy uptrend in place since its earnings gap from July.
Applied Materials (AMAT) has a tight consolidation range after the big gap up on September 24th. Use Thursday’s low of $17.45 as the upper support to trade against. A break above Friday’s high of $18 could get it going.
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.
*DISCLOSURES: Scott Redler is long DNKN, AAPL, WDC, AAPL calls.