There are green arrows around the world as a tentative agreement was struck last between Iran and six world powers, including the US, regarding Iran’s nuclear program. Europe is up and Asia was mixed with the Nikkei back near the highs of the year.
US markets closed strong on Friday and continue to extend with the S&P futures up 5-7 handles so far this morning. Market participants continue to be rewarded on multiple time-frames. We’ve been talking S&P 1700 since 1350ish two years ago, but I didn’t think we’d see 1800 in 2013. While I sometimes take a macro view, my real work takes place on an intermediate-term time-frame, and there were have been several key inflection points that pointed higher all year.
We are obviously entering a holiday-shortened week of Thanksgiving, which is one of my favorite holidays. Volume could dry up as the week goes on. Friday’s pivot high is 1804, so let’s see if we can digest above it.
In today’s Morning Call we will take a look at the opportunities in high beta tech.
Google (GOOG) reclaimed its 8-day EMA on Thursday and closed above this key moving average on Friday. A break above 1038 could lead to some additional momentum.
Amazon (AMZN) made a new high at $374.50 on Friday after basing above its 8-day EMA for about a week or so. Look for potential upside follow-through above Friday’s high of $374.50 as the stock closed on highs.
NFLX tried to break out of the weekly resistance level at $350.50 on Friday. The stock has been consolidating above its 8- and 21-day for more than two weeks. A break and close above $350.50 on good volume could send it higher.
Apple (AAPL) is also basing above its 8-day EMA in a tight range. A break and close above $522-523 short-term resistance could attract some buyers. The next pivot to watch after that would be $530.
Priceline (PCLN) continues to flag again. A move above 1163ish could trigger another trade.
Facebook (FB) has been lagging a bit lately. Important intermediate support is $45.70, and a trade and close below this level could opens the door for a move to 42.33ish. FB needs to get above and stay above $48ish to relieve some pressure.
LinkedIn (LNKD) is not leading the market right now as it’s been out of play and under all of its moving averages. It needs to get above $223ish with volume to become a bit more interesting.
Twitter (TWTR) has been trying to build a floor above $40ish since coming public. A break and close below $39.40-40.00 could bring in some sellers and lead to some downside probing.
Tesla (TSLA) has been on the weak side since breaking the 100-day around $153. Now it’s trying to find some footing – it did a small Red Dog Reversal on Friday with a new pivot low at $117.93. It needs big volume to get above $127-129 for a potential bounce back to $140ish.
Bio-tech stocks woke up again last week.
Bio-techs broke out to new highs thanks in large part to Biogen’s (BIIB) 13.19% rally after its MS Pill got protection in Europe.
The Bio-tech ETF (IBB) broke out to new highs with 3% gains. See if it could hold above the Friday’s gap of $218 as some consolidation above this gap could keep its momentum intact.
Celgene (CELG) also put in a new high at $164 after a nice gap up. It’s a bit extended from the short-term key moving averages so some consolidation above $158-160 to allow the 8-day EMA to play catch-up would be constructive.
Regeneron (REGN) is also perking up a bit. A break above the downtrend resistance that has been in place since late Septemeber at around $297-298 could add some fuel to its rally.
Alexion (ALXN) is building a wedge at upper levels. A break above $124 on good volume could resolve the wedge to the upside.
Banks have had really nice two-week move that re-ignited on 11/08.
Bank of America (BAC) has had a big move from that igniting bar on 11/08 around $14.30. Now it’s a bit overbought at $15.70ish. I’d trim into this here, not start fresh, but I also think it could reach $18-22 in 2014.
Citigroup (C) is trying to break into 2013 highs. It looks good to potentially take out $53.50 at some point, in my opinion.
Goldman Sachs (GS) is trying to break out above 2103 resistance. A break and close above $170 could open the door for this one into year-end.
Most sectors are at 2013 highs. Oil is down on the Iran news and metals that have been trapped in a downtrend for most of 2013 continue to go lower. Next support for GLD is 114ish.
I was at the Las Vegas Trader’s Expo this weekend and delivered a couple presentations. I did take a look at this segment I did in January talking about the S&P’s bullish technical set-up in front of us. You have a thesis and then act on it as the market confirms it.
Disclosure: Scott Redler is long AAPL, GOOG, ZNGA, BAC, C. Short SPY.