Just like that, the S&P goes from the low end of the upper range back almost to 2013 highs. Europe is having a strong session as they wait for statements out of the ECB tomorrow. Asia remains choppy as it tries to digest higher with the Nikkei up almost 1%.
Yesterday the bears didn’t have any power as the S&P held 1752-1754 held and now with the futures up 8-9 handles we could test 2013 highs at 1775. Either you need very quick feet in this market or you just sit back and let the macro trends continue. If you try to remain cute for a counter-trend type move, it can make you feel ugly somewhat fast.
Volatility and opportunity continue in high beta tech stocks.
Apple (AAPL) continues to set up pretty well as it went ex-dividend last night. Yesterday was choppy but it’s still over $515 and with some time could start to get going above $530.
Google (GOOG) showed a little relative weakness yesterday, but still looks okay. Use $1,017 as a pivot.. Needs to stay above $995 to continue to build for higher prices.
Amazon (AMZN) held the 8-day EMA yesterday and the consolidation process continues since earnings. The stock needs to stay above $354ish to keep this upper level intact.
Netflix (NFLX) continues to edge higher since the Red Dog Reversal on 10/29 at the $311 pivot. Yesterday it cleared $337 and still has some upside room towards $355.
Baidu (BIDU) has been selling off since earnings, but seems to find support at $150ish. Could see a bounce towards $158ish.
Facebook (FB) has seen a lot of volatility since earnings. Yesterday was a nice trade as it went from red to green – and then some. Overall the stock still looks good as it’s been holding higher and is in the game for more gains.
LinkedIn (LNKD) got hit after earnings but found some support around $216ish. It gave us a few opportunities yesterday. The stock needs time to re-build, but it could see $228-232.
Tesla (TSLA) came out with earnings last night, which seemed like a decent report but wasn’t enough to hold the stock higher. This is why we take options into earnings as risk is premium paid. The stock has some support at $153ish then $140. See if it tries to trade off the lows and fill some of this gap. I trade a level vs. a level here.
3-D printing stocks were our focus yesterday and it worked out nicely for some.
3-D Systems (DDD) is the rock star of this group as the stock has seen a parabolic move since late October. It tacked on another 6% gain to close at dead highs of $70 yesterday. After a big move, it’s prudent to take some profits. Overall, it’s nice to see this group picking up some momentum. Some might look for a cute short into the opening strength, but I would only do that vs. a morning high or a trade back below $70.49 as a Red Dog Reversal potential pivot.
ExOne (XONE) triggered our entry price of $55 from the Off the Charts newsletter on Monday to log in 7.31% gain yesterday. With the speed and power of this two-day move, it could see some upside follow-through in the coming sessions as it has high short-interest of 45%. Today is “Day #3” – a day when I’m usually a seller rather than a buyer.
Stratasys (SSYS) had great follow-through after a day of rest to see nice gains of 2.5% yesterday. The stock closed well off of lows, showing healthy commitment. Look for additional momentum above $120.
Voxeljet (VJET) triggered our entry price of $35.50 from Off The Charts then had great follow-through yesterday to approach our target of $39.75 after seeing an 8.8% gain yesterday. The stock looks like it could be poised to make new highs, so keep an eye on it.
Miscellaneous other set-ups.
Solar stocks continue to act very well led by FSLR. Other names in the group to watch: CSIQ, SCTY, TSL, YGE.
Regeneron (REGN) has a tight upper level range after it retested the prior breakout level of $280 and held. A break above $305 on good volume could help it clear the down trend resistance that has been in place since October 1 and get some upside momentum for a potential move to new highs.
Yelp! (YELP) perked up a bit to log in 2.74% gain yesterday and reclaim all key moving averages. The stock looks poised for a potential extension higher above $71.40.
Monster Beverage (MNST) has been getting support from its 21-day and had a nice turn around to register 1.45% gain yesterday. A break above $58.8 could get some attention. Above $59 it could see additional momentum for a move up to $61-62 as the first real resistance.
New Oriental Education (EDU) has a healthy uptrend support that has been staying intact since September 4. The longer it stays above $26-26.40, the higher the probability it could get some upside momentum.
The 2x Inverse Bond ETF (TBT) also flashed a buy signal on 11/01 around $73ish and extended well up to $76ish. It seems like some commitment to higher rates is starting to happen again.
Metals are not that interesting, but GLD did put in a bottoming tail yesterday and is up a bit today. The ETF has some room to $127.70ish but I wouldn’t get too excited.
Twitter (TWTR) gets priced tonight. Indications are now that it will be priced at $24-25, but many fear that the opening print could be as high as $40-42. I. f that is the case, it would makes things a bit more complicated. We will use our “art of the first day” method the same we’ve done hundreds of times before to measure the supply and demand to figure out if we can trade it with success. Do we have a FB here or a LNKD? The art of the first day will help us figure it out.
Disclosure: Scott Redler is long FB, BIDU, ZNGA, NUAN calls, NDLS calls, TSLA calls, AAPL calls. Short SPY, short GOOG 1040 calls.