High Beta Tech Continues to Provide Opportunities

World markets are mixed this morning as we have mostly green arrows in Europe and red arrows in Asia. Headlines in Washington are that a budget deal seems to have been reached, and investors continue to fixate on whether the Fed will start tapering at next week’s two-day meeting.

US futures are flattish after some downside action in some sectors yesterday. We did have some very nice individual stock action, which has been the theme for December as well as most of this year. The S&P is still above the 8-day that stands at 1800ish with the 21-day at 1790ish. I think the bears could start growling if we see a close below that area which has supported this intermediate trend since the Red Dog reversal Oct 9th at S&P 1655.

In today’s Morning Call we will look at some retail names that have perked up a bit.

Michael Kors (KORS) has a tight upper-level base. The stock has been developing a nice triangle pattern that could lead to additional upside momentum with a break above $82.50 on good volume. This has been a great vehicle since coming public for investors giving some confidence to longer-term stock pickers

Under Armour (UA) also has a tight set-up for a potential breakout at $83.25 where it could resolve the symmetrical triangle pattern that has been building since October to the upside. A break and close above this level could lead to a potential re-test of the current highs at $86.

Tiffany’s (TIF) has been basing nicely above its 8-day EMA to digest the big gap and go on Nov 26. The stock has been hovering at highs showing relative strength. A break and close above the current pivot highs of $90.93 could bring in some buyers.

Some Chinese internet names continue to move well.

Baidu (BIDU) had great follow-through to tack on another 4.7% yesterday. On Monday the stock finally had a clean move to break above the key resistance level of $170 which was listed as breakout level on our Off The Charts newsletter. After a potent move from $170 to $180, its prudent to book some profits as some rest would be healthy.

Sina (SINA) also had a nice reversal to register nice gains of 6.75% yesterday. A break and close above the 50-day EMA at $82 could lead to additional upside momentum. Yesterday was a big Day #1 so it might need some digestion, but puts it on the map for more upside.

Yoku (YOKU) briefly broke out to a new high yesterday after hovering above its 8-day EMA for a few sessions. Look for potential continuation to the upside above yesterday’s high of $32.30. They did announce a convertible so see how it reacts to that.

Yandex (YNDX) is the Russian search engine. It’s building a tight base above its 8- and 21-day EMA and a move though the recent pivot high of $41.80 on good volume could lead to a potential new high.

Social media stocks have been our focus this week.

Facebook (FB) came back on our radar on 11/26 when it staged a nice Red Dog Reversal at $44.04 to halt the corrective activity. Since then it’s been moving well giving us another entry yesterday at $49.40ish. Now let’s see if it can do some work above $50.

Twitter (TWTR) a week ago we talked about how it could see upside if it breaks above $42ish and yesterday it exploded through $50, hitting a high of $52.58. It’s extended here and hard to buy, but doesn’t mean it’s an easy short. Use yesterday’s high as another pivot.

LinkedIn (LNKD) was our focus around $222 last week and now it’s doing work above all the moving averages. Looks good for potential higher prices.

Yelp! (YELP) played some catch-up yesterday on our second buy zone. The first entry was $60.50 then yesterday was $64.20 now it’s almost at the 50-day at $66.53 so see how it handles that level.

Zynga (ZNGA) stalled at $4.55 area and just retested the prior breakout of $4ish. Perhaps yesterday’s Day #1 could put it back on track.

Groupon (GRPN) had a nice Day #1 Monday and now it’s on Day #3 and getting upgraded this morning. I’d trim and trail.

High Beta Tech continues to provide opportunities.

Apple (AAPL) is trying to digest above $560ish after a really nice move through Thanksgiving above our tactical buy zone of $526. The longer it holds $560 the better it looks for a potential move into new 2013 highs.

Amazon (AMZN) held where it had to and then woke up yesterday. You could use $388.50 for an additional entry if it gets above it.

Netflix (NFLX) woke up yesterday and is getting upgraded this morning. Next resistance is $367.95.

Google (GOOG) has seen tremendous action since the Earnings gap back on Oct 18th. It gave additional tactical entries at $1023 then $1045, and then yesterday it hit 1092. It’s a bit extended now but still looks good.

Tesla (TSLA) tried to break above $145ish yesterday but didn’t have enough power. It needs to hold above $140ish to keep our eyes focused here for another attempt.

Solars could be in play today as China says it will curb its coal production as the pollution there is heavy. I was there a couple years ago and tried to go for a run, I almost coughed up a lung as the air quality was horrible. Look at SPWR, TSL, YGE, CSIQ, FSLR, SCTY- those are some of my favorites in the group.

Banks are still consolidating but lack some power. The Financial Sector ETF (XLF) has some support at $21.20, which is an important level to hold on an active level.

Metals gapped up yesterday but didn’t have much follow thru after that. GLD is down a bit this morning, and if the bugs want commitment it needs to hold the $120.50 area.

Mastercard (MA) raised its dividend and announced a 10-for-1 stock split, and as a result is up big this morning. I think some other high priced, capital intensive stocks should pay attention. Some names could use a split, in my opinion. Do you think BIDU would be $1800 today if they didn’t split 10-for-1 a year or so back? I don’t.

Disclosure: Scott Redler is long AAPL, BAC, FB, ZNGA. Short SPY.

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.