Market Rests Ahead of Rare Jobs Tuesday

World markets are muted and mixed as the digestion process continues. US stock futures are near the flat line after yesterday’s quiet action. Today we get a rare occasion: the non-farm payrolls number and unemployment rate on a Tuesday. The estimates are 180,000 job adds and 7.3% unemployment, let’s see if good news can be good news or bad new can be bad news.

The S&P has upper support at 1740 then 1735 with a more important spot at 1720ish. The resistance pivot is at 1747.

Stock selection has been key during earnings season with a lot of nice movement. High beta tech continues to provide nice opportunities.

Google (GOOG) held above the top 50% retracement of Friday’s potent move, showing healthy digestion. A few days of rest would be nice. Yesterday’s low was $999. I’m waiting for a pivot to trade against and at some point I think it could go again. The recent high pivot is now $1019.

Apple (AAPL) showed relative strength and extended higher with a 2.45% gain yesterday. The stock hit our target of $520 from the Off The Charts newsletter. It looks a bit extended on a short-term basis and some digestion above $515-517 would be healthy now. Today It’s up a bit pre-market. There is a 1:00 PM ET product event so take some care as sometimes they try to sell-the-news off an event. Earnings are next Tuesday.

LinkedIn (LNKD) held above the gap from Friday, showing commitment. Active traders could use yesterday’s low of $246.32 as the new point of reference to trade against. A break above $257.56 would mark new all-time high. There could be a nice set-up here soon.

Facebook (FB) took the day off yesterday. We now have support in the $53.50-53.60 area. Pivot resistance is $54.80ish. More rest would be nice.

Netflix (NFLX) soared around 10% after-hours as the company reported better-than-expected earnings and raised its forecasts considerably. The stock has had a big run and it’s hard to buy the open or short it. Trade a level vs. a level. If you own it, I think you trim and trail.

Yahoo! (YHOO) still looks good as it tries to hold this upper level. I’m not sure if it can break out again above $35ish, but the pattern looks constructive. Anticipation about the Alibaba IPO is the main bullish catalyst for Yahoo!.

Tesla (TSLA) lagged last week and then broke $181 yesterday, triggering an upper-level stop or potential short entry. Now $171 is your pivot for action. The $161.50 spot is the level that could serve as support if yesterday’s low gets broken and doesn’t get reclaimed.

International Business Machines (IBM) was listed in our 2013 thesis to avoid and potentially short as it could see a lower prices. The market has confirmed that thesis and now it’s trying to hold $172.50. If it breaks below that level it could continue lower. Use that as your pivot.

The Solar and Chinese internet names have been two of the hottest groups in the market, but both showed some signs of exhaustion yesterday and could use a well-deserved rest.

SolarCity (SCTY) filled its opening gap to the downside and closed the day down 3.25%. The stock has seen a huge two-week short squeeze and could be due for a rest at this point. Next support stands at $54.60 and below that we have the 8-day at $51.28.

Jinko Solar (JKS) also saw a 2.56% retracement off of highs. Next support stands at Thursday’s gap of $24.42, which lines up with the 8-day EMA.

Canadian Solar (CSIQ) has been extending higher and is a bit stretched from its 8- and 21-day EMAs. The stock saw a small Red Dog Reversal at $23.48 signaling some rest could be due. It has some support at $22.

Yingli Solar (YGE) looks like it has lost some upside momentum. If it doesn’t hold the upper support of $7.60, it could see a pull back into the 21-day at $7.29 as the first stop to the downside.

The go-to Chinese names look like they could need to consolidate once again after some breakouts failed to hold yesterday: SFUN, QIHU, SINA, SOHU.

On jobs day you want to keep an eye on rates and gold.

GLD is trying to hold the recent gap at $126.60. Use that as your pivot. Recent resistance now stands at $127.86.

The Inverse Bond ETF (TBT) has recent pivot support at $73.21, see it that holds. Resistance is $77.85.

Disclosure: Scott Redler is long AAPL, DIS, BAC, ZNGA, CAT calls. Short SPY, SCTY, FB

Disclaimer: This page contains affiliate links. If you choose to make a purchase after clicking a link, we may receive a commission at no additional cost to you. Thank you for your support!

About Scott Redler 367 Articles

Scott Redler is the Chief Strategic Officer of T3 Live. He develops all trading strategies for the service and acts as the face of T3 Live. Mr. Redler focuses on thorough preparation and discipline as a trader.

Mr. 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, Mr. Redler 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, continued to trade actively while working closely with all traders in the firm to dramatically increase performance.

Mr. Redler has participated in more than 30 triathlons and one IronMan, 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, Bloomberg, and he is a regular contributor to Minyanville and Forbes’ Intelligent Investing blog. He has been quoted in the Wall Street Journal and Investor's Business Daily, among other publications.

Scott received a B.B.A. in Marketing/Finance from the State University of New York at Albany, graduating Magna Cum Laude from Albany's School of Business.

Visit: T3Live

Be the first to comment

Leave a Reply

Your email address will not be published.


*

This site uses Akismet to reduce spam. Learn how your comment data is processed.