Another night of mixed markets around the world as Europe has some green arrows as they wait for the ECB and BoE to make their statements. Asia finished in the Red. The Nikkei is getting a bit sloppy as it was down 1.5%. The Shanghai hit five-month lows and liquidity concerns continue to be a problem there, also inflation rates came in lower. So far it’s still contained, but keep your eyes open.
US markets continue to build a floor above S&P 1823 while numerous stocks continue to be on the move providing traders with vehicles for those who have stock picking skills. Today, S&P futures are up 4-6 handles and are indicating above yesterday’s high of 1840ish (for now). The 2013’s highs are at 1849. Seems like we could be poised to take those out if Friday’s jobs data doesn’t throw too much of a curveball.
Biotechs exploded yesterday as the IBB’s had a clean break out above $228.11 (typically a good sign for the bulls). That typically means that there is risk appetite out there. Biogen (BIIB) was a leader.
The banks continue to act well and take turns showing relative strength.
Bank of America (BAC) is doing some work above $16.45, so that is your support pivot now. Resistance is at $16.79.
Citigroup (C ) made new highs yesterday. Great move for us since $52.50ish, but now you trim and trail, but it looks like it wants to go higher, in my opinion.
Morgan Stanley (MS) hugs the 8-day and looks like it might want to take a turn. It needs to get above $31.95 with volume.
Goldman Sachs (GS) took two days off but held the 8-day at $177.26. It’s a bit sloppy but okay.
JP Morgan (JPM) also held the 8-day, and you could trade it versus that moving average going forward.
Casinos are very impressive. We’ve listed WYNN LVS and MGM numerous times over the past few months. They all made new highs yesterday, trim and trail.
High beta tech continues to be mixed.
Google (GOOG) continues to trend higher above its 8-day, nice action for those in that trend.
Amazon (AMZN) woke back up yesterday. Maybe we could get a momentum trade above $405-406.
Apple (AAPL) reversed on Monday at the 50-day and held above it. It looks just okay right now, but it would look better if it can blast above $545.50 with authority.
Netflix (NFLX) – I talked about looking for a tactical long reversal here and it happened quick yesterday. It does have some room back to $355 resistance.
Priceline (PCLN) has had a nice tactical move since the reversal at $1131. Now it needs to hold above $1155ish to build.
Baidu (BIDU) had decent action yesterday as it broke above $180 Level early Friday for a nice trade and then drifted. Holding above that level would be good.
Chipotle (CMG) is tight and needs to clear $537 to get momentum.
Social media is very active and mixed.
Yelp! (YELP) we listed a few weeks back in OTC around $70 and it finally had a really nice move back to highs. I hope you caught it.
Facebook (FB) is holding near highs. It held that $57 area, maybe with a bit more time it could then blast through $58.58 for extra momentum.
Twitter (TWTR) has been getting a downgrade a day this week, leading to some downside but overall providing great two-way action. The $57.92 level is new pivot support to trade against, below this there is big support around $54.25. If that level holds, maybe it could try to bounce toward $63ish.
LinkedIn (LNKD) reversed on Tuesday back above $202, now it needs to hold $207ish in order to build on that.
Zynga (ZNGA) is trying to stay a little relevant. It needs to hold $4.10 to stay on the radar.
Some optical plays popped up yesterday if you want to take a look – JDSU, FNSR, CIEN.
3D-printing names remain active.
3-D Systems (DDD) held the 8-day and perked up. Pivot resistance is $97ish.
Stratasys (SSYS) held in well after its engulfing day on Monday. I guess you could trade it versus the $127 area.
Voxeljet (VJET) put in a nice low yesterday at $41ish. With some time it could try to get above $48ish.
ExOne (XONE) is acting better this year. A trade and 30-minute+ hold above $68 could be good for another trade.
Organovo (ONVO) also acts well and holds where it has to. It could see a move above $11.25.
Tesla (TSLA) did move quickly above $150.40 yesterday. Holding above that would be good and the next obstacle is $153.70.
Solar City (SCTY) held the GS upgrade gap and turned up nicely yesterday. Now it needs to clear and hold $67.14.
VMware (VMW) held where it had to and looks good. Staying above $92.50ish would be best.
Salesforce (CRM) broke out yesterday above $55.25, a nice tactical play from yesterday’s note. Holding that level would be good.
Metals are trying to hold their recent bounce since the start of 2014. GLD needs to hold $117ish if it wants to build. The recent peak was $120.39.
The 2X Inverse Bond ETF (TBT) channel keeps getting longer. The range is from $75.50 to about $80ish, and at some point I do feel it could resolve to the upside.
Lots of people are focused on the “first five days” of the indices being negative and what that means for the year ahead. If you paid attention to individual stock names you probably are having a better 2014. There could be a lot of this type of action for 2014.
Disclosure: Scott Redler is long AAPL, FB, SNE, JDSU, CIEN, CMG, ONVO, BAC, C, TSLA, CRM, ZNGA. Short SPY, BBRY.