Markets continue to be mixed this week but hold up well around the world. S&P futures are up 2-3 handles as we hover above 1800 and the Nasdaq is back above 4,000 for the first time since 2000/ There’s a lot to be thankful for for those market participants with a plan and process. You can also be thankful that you can work on one and start one at any time. All you have to do is take the initiative. We try to give a macro plan and then a more active approach each day to create alpha and P&L.
High Beta tech continues to provide opportunities.
Apple (AAPL) triggered our listed buy price of $526 from Monday’s Off The Charts newsletter to gain 1.8% yesterday. The stock has cleared most of its short-term resistance levels. Next pivot to watch is $539.25. A break above this could add some power to its rally.
Google (GOOG) had great follow-through after new highs on Monday, giving another nice entry for some above $1053 yesterday. The stock put in a new high at 1061.50 and closed well off of lows. It was a great two-day move for this market leader. Holding above 1040 would be constructive for higher prices.
Amazon (AMZN) continued to soar higher as the stock tacked on another 1.26% to go as high as $382.50. A rest after a four-day rally to allow the short-term moving average to catch up would be constructive. Upper support stands at $374.
Netflix (NFLX) continued its grind higher but it finally gave us a calculated entry at $351 yesterday when it broke above the first five minute’s high. The stock went as high as $356.46 to log a 1.42% gain. It closed on highs signaling potential upside follow-through.
LinkedIn (LNKD) had a nice reversal yesterday as the stock broke out of the bear flag pattern to the upside. It closed right in front of the 21-day ema. A break and close above this key moving average at $223.10 would confirm the validity of its bounce type rally.
Facebook (FB) has been under some pressure since earnings but it had an impressive Red Dog reversal at $44.04 yesterday. Now let’s see if it builds above it. There is a downtrend around $48ish which will be the next interesting area.
Zynga (ZNGA) holds in very well. If it can get volume and trigger above $4.52ish, then $5+ could be in the cards by Christmas.
The banks might need a break after a nice run.
Citigroup (C) retraced 0.53% after a big three-day move up to put in a small inside day which could be a sign to take some risk off. The bank might need a break. Holding above the most recent breakout level of $52.50 would be healthy.
Goldman Sachs (GS) also closed down 0.85% as the bank failed to get upside follow-through above $170.50. Next support stands at the 8-day ema at $166.89 which could be the first buyable spot.
JP Morgan (JPM) slipped 0.83% to give back some if its recent gains. After a tremendous run from the breakout level at $54.20, it’s a bit stretched from its short-term moving averages. Some digestion above the 8-day at $56.50 would be healthy for higher prices.
Bank of America (BAC) continues to be the best in breed as this bank held in best with 0.44% gain yesterday. However upside momentum has slowed down a bit. Some rest above the 8-day ema at $15.42 would be healthy.
Quick hits
Voxeljet (VJET) was mentioned on our Price Point Sheet as the stock closed well on Monday and we thought it could see some upside follow-through. It did get a further bounce to close back above its 8- and 21-day after seeing 14% gain yesterday.
3-D Systems (DDD) has been basing above its 21-day ema to digest the potent sell off last week. A break and close above the 8-day ema at $73.50 could resolve the short-term wedge pattern to the upside for a potential move back to upper levels.
Tesla (TSLA) is basing above its 200-day ema and had a nice reversal yesterday. A break and close back above the 8-day ema that has been putting selling pressure on it at around $125 could set it back in motion.
eBay (EBAY) broke below channel support around $50.50 early this week. I guess you could trade it against $48 now, but it’s a bit broken.
Metals are trying to bounce a bit, but in order for it to be see a bit more than a dead-cat bounce GLD it needs to reclaim the $121.70 area rather than get rejected by it.
The 2x Inverse Bond ETF (TBT) just pulled in. If you are looking for an entry for 2014, this spot vs. $75ish may not a bad spot but it could be a little sloppy.
Enjoy the Holiday, take the time to spend with Family and Friends and truly take the time to reflect on what you have, not what you want. Put life in perspective and enjoy, it’s way too short.
Disclosure: Scott Redler is long AAPL, BAC, FB, ZNGA. Short SPY.
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