Stock Market Remains Impressively Resilient

By Jan 29, 2013, 12:22 PM Author's Blog  

SPY (NYSE:SPY) low of the day is $149.6, holding above the recent floor of $149.250-149.50. It’s very impressive that it continues with this type of pattern. Recently we are getting a bit more two-way action in specific stocks, which is welcomed by traders.

Yesterday you could have shorted Netflix (NASDAQ:NFLX) in the $170 range and made 5-10 points. Today you could have bought it below $158 as it rallied back up to $164. The same goes for 3-D Systems (NYSE:DDD) and Stratasys (NASDAQ:SSYS). They were shorts as they broke upper levels, had downside follow-through, and then went positive after opening lower today. There are good cash flow set-ups, but not a lot of swing trade entires to get excited about.

Apple (NASDAQ:AAPL) is holding higher. You could hold it long vs. $452.12. The high of the day is $459.41, then the next level to watch is $465.

Yahoo! (NASDAQ:YHOO) sold the news of its good earnings report, which I cautioned about in the Morning Call. I think entering closer to $19.30-19.50 makes sense.

Baidu (NASDAQ:BIDU) was gross. I came in long and added some, then got stopped out. I always find that stock tough to trade.

Amazon (NASDAQ:AMZN) saw a big two-day pull back in front of earnings tonight. I’m avoiding it.

Facebook (NASDAQ:FB) is getting beat up today after a big four-day move. Some wire houses think some people are too optimistic about the report. I’ve avoided it since selling into the “Graph Search” event. I’d like a move back down towards $30 tomorrow, and in that case perhaps I could consider a call spread.

LinkedIn (NASDAQ:LNKD) stopped me out of the remainder of my equity around $126. I’d been holding it since $118ish. I will keep my call spread and perhaps enter again after Facebook.

Zynga (NASDAQ:ZNGA) is under a bit of pressure after yesterday’s bounce. I would have liked to have seen it hold $2.75. I will likely give it to $2.60.

Casinos have started to get very choppy. MGM Resorts (NYSE:MGM) was downgraded today. I will give mine to the low of the day of $12.50.

Gold (NYSE:GLD) was rejected by resistance of $161.30. Banks are mixed but continue to base.

There are some things to do, but the market still needs time. I’d continue to trade around existing longs, use some hedges, and resist the urge to add to hedges or shorts on weakness. In 2013 so far it has been more prudent to cover.

Disclosure: Scott Redler is long AAPL, BAC, WFC, MGM, GE, ZNGA, TBT. LNKD Call spread. Short SPY. Traded but flat DDD, NFLX, BIDU.

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SPY206.3308  chart-1.1167  chart -0.54%
GOOG693.01  chart+1.99  chart +0.29%
AAPL93.74  chart-1.09  chart -1.15%
TSLA240.76  chart-6.95  chart -2.81%
TWTR14.62  chart-0.02  chart -0.14%
BBRY7.06  chart-0.11  chart -1.53%
NFLX90.03  chart-0.25  chart -0.28%
FB117.58  chart+0.85  chart +0.73%

Nikkei16666.05  chart-624.44  chart -3.61%
UK6241.89  chart-80.51  chart -1.27%
France4428.96  chart-128.40  chart -2.82%
Germany10038.97  chart-282.18  chart -2.73%

EUR / USD1.1447  chart+0.0000  chart +0.00%
GBP / USD1.4610  chart+0.0000  chart +0.00%
CAD / USD0.7967  chart+0.0000  chart +0.00%
AUD / USD0.7607  chart+0.0000  chart +0.00%

Gold Fut1102.80  chart-5.30  chart -0.48%
Oil Fut48.23  chart-0.23  chart -0.47%