There are lots of green arrows around the World as we head into “Fed Day.” The melt up continues in US markets with a ton of rotation and plenty of opportunities. Europe is up and Asia gets some upside power back.
S&P futures are up 4-5 handles as we are now up almost 120 handles from the Red Dog Reversal at 1655 back on October 9th. On October 17th the S&P a made new 2013 high above 1729, and this time held and extended above it. There have been lots of adjustment points along the way for action.
Today should be interesting as we’ve extended into Fed Day, and sometimes that can lead to a small “reversal pattern.” In order for that to happen we will need a close back below 1772 which could then lead to some type of rest that I feel both the bulls and bears would welcome.
It’s hard to list all the different sectors as most are at 2013 highs and they continue to take turns with tradable set-ups that we try and have in our Off the Charts newsletter as well as this Morning Note daily.
In today’s Morning Call we will go over some technical and opportunities in the 3D-printing group.
3-D Systems (DDD) has been acting well since it triggered our target entry of $55.85 from Off The Charts. The stock gained another 4.5% to close at $59.53 yesterday. It’s approaching our target of $60.
Stratasys (SSYS) has a tight setup as it’s been developing a descending channel above the 21-day EMA. A break above yesterday’s high of $109.45 could lead to a retest of the current pivot high of $113.
ExOne (XONE) has been perking up since the strong rally on Oct 7th. It’s building a nice floor above $50. Use this level as the new point of reference to trade against. A break above $54.90 could get some momentum back.
VOXELJET (VJET) is a new issue that you should get familiar with as it could have a big future. There is micro support at $28.55 and it has pivot resistance at $35.50. A close above this could bring it back to IPO highs.
We will also look at the casino group that we looked at back in early September that continues to set up for multiple entries.
Las Vegas Sands (LVS) has been hovering around the 8-day and building a base above $70.30. The longer it holds above this upper support area, the higher the probability it could get some upside momentum above $71.50-72. It’s been a nice hold for some who bought the break out back on 9/03.
MGM Resorts (MGM) held Monday’s low and got a nice bounce yesterday as the stock closed the day up 1.35%. Use $19.75 as the new support level to trade against. A break above $21 could bring in some buyers. We talked about it as a potential stock for the “drawer” all they back at $12ish earlier this year.
Wynn Resorts (WYNN) has been holding above the 21-day EMA showing healthy strength. A break above the three-day resistance of $168.90 could set it back in motion for a new high.
High beta tech continues to provide opportunities as earnings continue to roll in.
Apple (AAPL) had a solid report but it wasn’t enough after the rally from $420 over the past three months. It opened at $535ish and failed to hold $532 momentum level and then went red and closed near lows. It will need some time to set back up. Use yesterday’s low as a pivot $514.45. If they sell this open it could see $507ish, which is where the 21-day moving average stands
Amazon (AMZN) has been flagging nicely at highs after the big earnings gap. A break above yesterday’s high of $362.89 could lead to higher prices for an additional cash flow trade.
Google (GOOG) caught a bid yesterday after a healthy inside day on Monday. The stock gained 2.09% to close near all-time high of 1040. Look for potential upside follow-through above yesterday’s high of 1037. Lots of nice tradable set-ups since earnings.
Netflix (NFLX) was sold down after earnings but yesterday gave nice two-way opportunity around the $311 pivot. If it gets above $327 then the next obstacle would be $337.
LinkedIn (LNKD) had a solid report but not enough for new highs. It’s had a monster move from $90 to upwards to $250ish. See if it can hold $235 for a trade, if not, perhaps it could see $220.
Baidu (BIDU) got sold off with the volatility in the Chinese names but had a very solid earnings report after the close and is trading above pivot resistance. See if it can hold above $167.50, otherwise it might try to fill the upside gap.
Facebook (FB) earnings come out after the close today. It’s had a monster move since last quarter, but over the past two weeks the stock has pulled in 10% off the highs of $54.68. I could look to take some type of call spread here into the report, but don’t have much conviction that it will see new highs on the report.
Tesla (TSLA) changed composure in the past few weeks as the upside slowed. Yesterday there was nice two-way opportunity around $162.20. First it was a nice short down to $153ish, then if you overstayed your welcome you lost as it traded back into positive territory. Resistance now stands at $169.55-173.55.
Green Mountain Coffee (GMCR) had a “Day #1” yesterday, perhaps it could leads to a bounce back toward $67-70.
Disclosure: Scott Redler is long AMAT, GMCR, STXS, USU, GOOG call spread, FB calls. Short SPY, short AAPL 555 calls.
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