World markets are mixed as Europe is up small with some pressure on their banks and the Nikkei couldn’t make it two up days in a row. The Japanese index is off only 0.49% though and the Shanghai Composite is also down small. US markets made another 2013 high yesterday as the grind continues. The move yesterday was lead by Consumer Staples (XLP), and Utilities (XLU) and Homebuilders (XHB) also continue to get some in-flows. S&P futures are flattish with the resistance pivot at 1764. The 8-day EMA stands at 1746.
Earnings season rumbles on.
Last night Apple (AAPL) reported a strong quarter, but at first it seemed like it wasn’t enough to add to the recent move. However, the conference call helped bring it back positive and it’s now getting some upgrades this morning. AAPL might need some time to digest, with $532-534 as the recent resistance it needs to get over to continue higher. Holding above that would keep the positive momentum in this stock short-term, with resistance at $541 then $555.
Google (GOOG) had a nice move after earnings and is still trying to digest that move. The $1010 level is a support spot, but the bigger area to hold is $995ish for this to remain on a traders A list.
Amazon (AMZN) pulled back a bit after its earnings day. If it trades under $357ish it could test the earnings gap of $352.62. Use that spot for tradable action both ways.
Netflix (NFLX) sold down hard after it opened higher on earnings. Yesterday it broke down below the $325 pivot and hit as low as $311.81. The 50-day is $305.
LinkedIn (LNKD) is reporting after the close today. Analysts project the business social network’s earnings will grow 43 percent from a year ago to 32 cents per share, while revenue is projected to grow 53 percent to $385 million. Key support stands at $235-238. Key resistance stands at $252-253. The current all-time high is $257.56, I might trade it after-hours but probably won’t do an option strategy. It’s come a long way since I listed it as one of my three amigos for the drawer back around $90ish.
Baidu (BIDU) is reporting after the close today. The Chinese internet company is expected to report earnings of $1.43 per share. It has a nice run up into earnings despite the recent pull-back. It has some support at $150 and resistance stands at $167.55 from the recent pivot high.
Facebook (FB) is reporting after the close on Wednesday. Consensus earnings estimate stands at $0.18 per share. The stock has been showing some relative weakness in the past 5-6 sessions and briefly broke below the 21-day EMA yesterday. Use yesterday’s low of $49.61 as the new point of reference to trade around. I may try to accumulate some calls into this weakness, to be involved for some type of call spread for earnings. I started that process yesterday around $50ish.
Tesla (TSLA) changed composure to the weaker side over the past few weeks as it gave up the 21-day and still acts heavy. There is an intermediate-term Head and Shoulders pattern that could trigger if it trades and closes below $160-162. A break down could lead the stock to the 100-day at $145ish. Take some care here, but worth a look.
We will check out some Consumer Staples in the Morning Call that showed strength yesterday.
Colgate-Palmolive (CL) broke the short-term resistance of $63.76 to see a new all-time high with almost a 2% gain yesterday. Holding above the breakout level of $63.76 would be healthy for higher prices moving forward.
Proctor & Gamble (PG) also had decent gains of 1.62%. The stock has been traveling in a monthly range that could resolve to the upside if it could break above $81.85-82. We put this stock on our Off The Charts long watch list with an entry price at yesterday’s high of $81.85.
Coca-Cola (KO) broke out of the mid-level range to see 1.5% gain yesterday. It has some resistance at $39.70 from September’s pivot high. A break above this could lead to higher prices.
Kraft (KRFT) also had a nice Day 1 yesterday with 1% gain. A break above resistance of $55.70 could bring in more buyers.
Banks have been lethargic but Goldman Sachs (GS) and Wells Fargo (WFC) have tight set-ups.
GS needs to get through and stay above $162.25 to become more compelling for a cash flow opportunity, in my opinion.
Wells Fargo (WFC) needs to break and hold above $43.05.
Metals have been acting a bit better but couldn’t hold on yesterday and are down a bit this morning. Silver lagged the Gold move on Friday and Monday, giving some signs that it wouldn’t stick. GLD tried to get above $130.92 but couldn’t stay above it, so I got stopped out and now it’s off a bit. It needs to hold $128.20ish otherwise traders will lose interest once again, in my opinion.
The Fed does start their two day meeting with some commentary coming out tomorrow. There is some decent movement and rotation for those who don’t have short on the brain. You don’t have to be “all in” or “all out.”
Disclosure: Scott Redler is long JCP, FB calls, AAPL call spread, GOOG call spread, HIMX. Short SPY, TSLA