Compromise Talk Leads to Oversold Bounce

S&P’s matched yesterday’s low and held for now. SPY was $.02 off yesterday’s lows. Markets are working off some of their oversold condition. The 50-day moving average that was broken yesterday is now resistance. See if this continues to remain big resistance. If it breaks above $131.20-131.25 the next area is $131.75-132.

Some nice cash flow trades for the active trader—Two examples from the Price Point Sheet.

Apple Inc. (AAPL) that I sold out from yesterday was a nice short through yesterday’s low of $392.25. I took the trade below $390. Some actually flipped and went long into $388 support and then added as it went back thru that low of $392.25 for a snap back to $394-395. I would take trades on AAPL.

Baidu.com Inc. (BIDU) is the same as above, a quick short thru yesterday’s low of $159.50 for a quick move to $156.55. Then it reversed after to go positive on the day.

I won’t go through the rest of them, but there were several small 80-20 trades that I would just use for cash flow but not “inflection points”.

Dunkin’ Brands Group Inc. (DNKN) gave us a great trade yesterday on the first day of the IPO. Then today it traded through yesterday’s high for quick cash flow trade and hit $30.49. Once it broke back below it went off my list. The stock will need time to base before the next calculated trade.

Banks still holding lower pivot and are relatively strong today, but it doesn’t mean much right now. Sodastream International Limited (SODA) had a very impressive squeeze, after most got stopped out of longs yesterday.

Green Mountain Coffee Roasters, Inc. (GMCR) and Crocs Inc. (CROX) are at highs, which is interesting that you can still find performance as a stock picker.

Metals are interesting, and they reversed yesterday, and are holding 10 day. SPDR Gold Trust (GLD) has bigger support around $154-154.50. It seems right now like too many think Gold and Silver are layups, so it’s shaking the tree.

Today is a day for cash flow after we got very oversold yesterday. Conceivably, it could be a day to buy if $130.45 as the “new pivot low”, but I’m not making big bets on that given the possible risk through the weekend.

Disclosure: Long SPY, AAPL

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.

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