World markets are mixed as that continues to be the theme so far in 2014. S&P futures are pointing to a positive start this morning up 5-6 handles. It seems like everyone is up in arms about a 1% pull in after an almost 30% gain last year, but to me it looks like pretty normal action. Most world markets that ran higher the last 8-10 sessions of 2013 and are experiencing some profit-taking.
Yesterday the S&P put in a low in at 1823, above the 21-day and above the prior breakout support (1813). That is the level to trade against right now with resistance at 1838ish then 1849. I did come out yesterday around 3:30 and made a tush to heater call that I think we could see new all-time highs in the S&P before a possible retracement to 1800ish.
This year already has proved to be a stock pickers market with many stocks on the move even with the “soggy start.”
Banks showed relative strength again yesterday and we’ve had a nice four-day move in most of them. We tried to identify triggers to buy additional tiers earlier last week. The focus was Bank of America (BA) through $15.80ish and then Citigroup (C ) through $52.50ish), but JP Morgan (JPM), Morgan Stanley (MS) and Goldman Sachs (GS) also acted well. I would trim and trail a portion but look to stay with some. However, it’s hard to add today.
High Beta Tech continues to be mixed.
Google (GOOG) holds up best and got another upgrade this morning as a must own by Deutsche Bank. It held the 8-day EMA around $1105 and now if it can stay above $1121ish it could continue higher. Where were these analysts in 2012 when the stock was $615?
Apple (AAPL) had a nice reversal yesterday as it reclaimed its 50-day at $540ish. Holding above that would be good, and perhaps we could get an additional entry above $546.80. Next resistance is at $551ish. Samsung is under pressure after weak sales numbers, but I think that is a gain for AAPL that no one is really talking about.
Priceline (PCLN) has been under some pressure but had a nice tactical reversal yesterday. See if that builds, as this was similar to AAPL. Resistance comes in around 1155.
Amazon (AMZN) gave us an early short below $396 then bounced off $391ish. I guess trade versus that pivot as it’s tricky up here.
Netflix (NFLX) also gave some a quick short from green to red yesterday through $359 but held the 50-day near $351. A downgrade has it lower this morning. The next big support is $326.
Baidu (BIDU) is very choppy but holds in decent. Next level for momentum would be a break above $181.50ish.
Sina (SINA) holds in and could be good for a trade if it gets and stays above $85.50.
Workday (WDAY) that we listed yesterday did poke its head above $83 yesterday for a decent breakout. Today it’s getting an upgrade and could get some follow-through.
Tesla (TSLA) is still out of play and there not much action there for now.
Red Hat (RHT) had a big gap up around a month ago, and still holds above it, which is usually a bullish sign for continuation. Now it needs to get above $56.70.
Casinos took two days off but got some coverage from MS this morning with a positive stance.
Wynn (WYNN) has pivot resistance around $200.
Las Vegas Sands (LVS) held the 21-day and looks okay.
MGM Resorts (MGM) had a great stock last year and still looks good as it held its 8-day EMA.
Social media names continue to be very active.
Twitter (TWTR) was downgraded and came well off its lows of the day. It did create a higher low at $63.50. There is a nice wedge-type pattern being built here.
Facebook (FB) showed a lot of power yesterday as it had a nice RDR at $54.53 and then powered above $55.65. The old highs are $58.58.
Yelp! (YELP) finally pushed through $70ish and still looks good. It needs to stay above this to maintain momentum.
LinkedIn (LNKD) has been correcting and acting heavy for weeks now. It closed below the 200-day for the second day yesterday. Today it was downgraded and is opening lower. See if you can trade a level versus a level, but I’ve been avoiding. Next big support is $187.
The 3-D printing names got hit a bit yesterday after a massive move.
3-D Systems (DDD) had its first potent down day but held the 8-day. Use yesterday’s low of $91.61 as pivot support.
Stratasys (SSYS) also got hit pretty hard in that upper spot- but still is above the 21-day. Use $127.66 as your pivot.
Some cloud names are forming bullish patterns.
VMWare (VMW) has an interesting tight pattern. It needs to get above $90.20 to get going.
EMC (EMC), which owns a large chunk of VMW, has a nice tight pattern. It needs to get above $25.15 to get some interested.
Metals continue to grind higher since the beginning of the year. GLD has some resistance around $121.45. I still don’t think this rally here will be sustained, but I’m avoiding either way.
Disclosure: Scott Redler is long AAPL, BAC, C, RHT, FB, DRYS, VMW. Short SPY.