No big striking headlines out of the G20 except some more tough talk about “fiscal integration.” There has also been more talk about commitment to what’s needed to keep the Euro Process going, which most think has to be some type of “Banking Union” and some type of “Euro Bond.” All of this will take time, but Spanish and Italian yields will keep the pressure on so they stay motivated to keep the process moving along.
The Fed starts its two day meeting with investors hoping that the Twist continues or for a potential new form of QE. That news gets disbursed tomorrow.
Markets gave traders a nice set up yesterday, as a down open was a nice entry for some into what turned out to be a very nice day for go-to leaders that we trade and keep a close eye on here at T3Live. IBD put the Big Picture back in “Confirmed Rally” on Friday, and yesterday we saw some stocks perk up with some quality names to support that thesis. Rally’s that start in June/July are known to fail, so there’s no need to be “All in”. But there’s no reason why you can’t participate in someway, even if you dislike the table that is being set on the World Stage!
Futures are up a bit and will try to reclaim the 50day once again. The 50day for the $SPX is 1347 and for the Spy that’s $135.09. Above that average you can see the first target of the Inverted Head and Shoulders pattern we outlined weeks back around SPX 1356-1360.
Markets found support around 1333-1337 yesterday, right at the Neckline that we propelled above on Friday. Use that as support.
High Beta names woke up in a big way yesterday.
AAPL was my focus in the morning. Those on my radio and those that use my Price Point Sheet had great entries in the $574-$578 area as it ignited through its 50day and worked its way above the recent consolidation. Next spot to work through for continuation is $587.50-$588.50.
AMZN also triggered and was set in Motion above $219.33 and has room to continue to provide leadership.
PCLN broke above recent its wedge formation and the next stop should be its 50day at $687ish.
EBAY- No bear market here as it closed at highs of the year breaking after above $41.60. Staying above that area would be healthy.
BIDU is starting to look a little better for a trade. For active traders $122-$123 is a buyable spot for a move back to $128-$133.
NFLX is still out of play, but if I see some type of BIG volume, I might try a few for a move back to the $77-$79 area.
GOOG rewarded some bottom feeders and still can work its way back to $581 with a much bigger resistance zone around $596-$598.
LNKD had a very nice move from the low $90s back thru the 50day moving average. It needs to absorb the gains, and holding above $101.50-$102.50 would be constructive.
FB was great tactical buy from the Red Dog Reversal around $25.75 or when it closed above $28.10. Yesterday it touched $32.08, so I would not chase here. Let it set back up.
ZNGA has room to $7ish as a bottom feeder trade. Use $5.50 as a stop.
Banks took the day off yesterday and were somewhat weak.
JPM will be in front of Congress again today, so let’s see what that leads to. $33.60-$34 needs to hold for hopes of higher prices.
GS acts sloppy and is not worth you time.
Casino’s are Laggards, *BUT*
LVS has a small lower pivot worth watching. Macau numbers have been brought down three times,so maybe it’s ready to bounce. This could ignite with volume to a close above $46-$46.20
WYNN is a laggard and a reach but could be worth a cash flow trade with a close above $102.
TGT and WMT continue to reward investors as macro holds.
Coffee stocks (only 2 in my opinion)
DNKN- I started pounding the table a few months back that this should be a macro/long term hold for those who do that. Yesterday it closed at IPO highs.
SBUX is trying to bank out a lower level support pivot. Trade versus $51 and it has room to $55.61-$56 or higher.
GLD/Gold is right back at intermediate resistance. You don’t have to be long, but I would be a bit worried about a short in this spot. It will ride on the fed release tomorrow. But a trade through $158.50-$159.20 on volume with force could change the complexion here.
Disclosure: Scott J, Redler is long AAPL, SBUX, LVS, and GLD, and short SPY.