Twitter (TWTR) Continues its Quest for New Highs

There are green arrows around the world as it looks like Santa Claus is coming to town. Heading into the shortened Christmas Eve session Europe is now on Day #5 of its rally, but a tiny bit off session highs. The Nikkei hits another six-year high but fails to hold. Fears are subsiding a little bit in China about their “liquidity crunch” as the PBOC injects $4.8 billion into the system, but the FXI might need more time to sort through these issues in 2014.

S&P futures are up 2-3 handles as US markets closed at another all-time high yesterday. What a great year for equity investors on all time-frames.

In today’s Morning Call we will go over the action in high beta tech.

Apple (AAPL) had a nice gap and go yesterday to register almost 4% gains after the China Mobile deal finally got done. Now, the longer it holds above today’s gap, with $562ish being the level to trade against, the higher the probability we could go after $575 highs. A close above that and $594 could be in the cards.

Google (GOOG) also had a nice gap-and-go after making a new all-time high on Friday. It looks a bit extended, so some digestion would be healthy. There is no current buy set-up, that was at $1017 or $1072 or even $1092 – not here north of $1115.

Amazon (AMZN) had a nice inside day yesterday to digest the breakout to new highs on Friday. Basing above $396-399 would keep its momentum intact. Above $404.72 and it could make another push, but take some care up here.

Netflix (NFLX) is inching higher above its 8-day EMA. The stock also had a nice move up yesterday and closed above prior resistance of $379.80. You could look for potential upside momentum above yesterday’s high, but it’s not very compelling.

Tesla (TSLA) has been a bit spotty lately but the Model S did get its 5-star safety rating approved. The stock is gapping up more than 4% above $149 on the news and could potentially squeeze further.

Some recent Leaders we went over had nice moves but are now hard to buy (but that doesn’t mean they’re blind shorts).

3-D Systems (DDD) had nice overnight gains to put in a new high at $91 yesterday. After a big three-day move, it’s hard to buy up here. Use yesterday’s high of $91 as the new pivot to trade around. The technical buy zone was $82.65.

Twitter (TWTR) continued its quest for new highs as the stock put in a big green candle and closed on highs yesterday. After a 7.5% gain, some digestion would be nice. There have been lots of nice buyable strategies at $42 then $50.39 and even through $60.30. Now it’s more difficult .

After basing above its 8-day EMA, Facebook (FB) also posted impressive gains yesterday of 4.8% to put in a new high at $58.32. Use this pivot high as the new point of reference to trade around. This is not a spot to get heavy as those tactical entries already triggered.

Quick hits

Goldman Sachs (GS) tacked on another 0.75% to close on new 52-week highs yesterday. It’s a bit extended from short-term moving averages. Compared to the momentum we’ve seen in some tech stocks it’s been a slow trade, but a nice one since $170ish.

At this point there isn’t a whole lot to do, in my opinion. If you have a macro plan stick to it. If you were looking for opportunities, there have been plenty of them since the powerful reversal on Fed Day last Wednesday. Over the next few sessions could see some continuation but it can also be tricky. I’d take it slow and enjoy the holiday.

Disclosure: Scott Redler is long AAPL, GS, BAC, C, GE, FXI calls. Short SPY.

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

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