Are Stocks Being Pinned for Quad Witching Options Expiration?

S&P futures are up 7-9 handles this morning, going for the 4th day of this rally. There isn’t much new to report on the news front, which is probably why the futures are higher. Overseas markets followed the US gains, and there are no new developments in the Greek debt saga. S&P resistance to watch if we can get there stands at 1198-1202, and then the recent highs of this range around 1225-1230.

Gold (GLD) is opening below yesterday’s lows and starting to resolve this upper range to the downside. The trade is a bit frustrating considering most were trying to short yesterday, but were squeezed out in that late afternoon surge. Next Support for GLD is $174.45 and then $171.75.

I am going to repeat the list of stocks triggers and targets from yesterday’s morning call, because they are still just as relevant today. Not much has changed except most are in motion and it’s up to you on how much size you want to hold given that we are heading into resistance and this is the fourth up day in a row.

The “Go to” list continues to give great action.

Apple Inc. (AAPL) I’ve pounded the table long on this one for years but more recently as a buying opportunity after Steve Jobs’ resignation. There is now a big Macro Wedge that it will try and resolve for a move back to new highs. THIS STOCK NEEDS HEAVY VOLUME AND A CLOSE ABOVE $388-$392 for it to trigger that move. This can tell us a lot about the market. If this can sustain a move like that and not push through and fail, perhaps it will show us that the Bulls will have more traction in coming weeks. Inc. (AMZN) has been a rock star. The first to go green on Monday pointing the way to the market’s reversal. It now has another pivot to overcome $219-221 is the spot that could create more momentum here. Same story as AAPL- can it break out and hold? Bearish tapes usually use break outs as a opportunity to sell.

SINA Corp. (SINA) cleared it’s Macro Wedge Tuesday but came off a bit yesterday. It has room to $118-122 if you are still long it. Inc. (BIDU) perked up a bit yesterday after lagging on Tuesday. Watch this today to see if it can play catch up to some stronger tech stocks. Above $145-$146 and it can get moving for a move back to $150+.

Google Inc. (GOOG) is very sloppy but trying to set up a lower area to use as a spot. A nice cash flow buy can be through $532-53.

Netflix Inc. (NFLX) is not acting well- but it can see a move back to $220ish to test the gap and the moving averages that are curling down into it.

VMWare Inc. (VMW) nice cash flow trade on Tuesday through $90, with some strong follow-through yesterday. It may need some time to rest, but the next trade is a break of the $95 pivot.

Intel Corp. (INTC) thanks to ALIX for uncovering this one. It has provided a rare three day momentum move – but now could use a rest.

Microsoft Corp. (MSFT) had a conference yesterday and responded well. It’s another tech stock with a nice pivot.


Wynn Resorts Limited (WYNN) true leading stock in the casino group gave us a nice trade Monday but was relatively weak yesterday. The pattern is getting tight, and if it resolves to the upside could take WYNN back to near highs.

Las Vegas Sands Corp. (LVS) great trades lately and has a huge high level channel that it’s trying to bust out from. This stock should see new highs this year- we’ve talked numerous times about it getting frisky above $4.

Agricultural group looks okay

CF Industries Holdings Inc. (CF) just pulled in off highs and could be worth a look around $177.

Potash/Corp./Saskatechewan (POT) is sloppy and needs time.

Deere (DE) has room to the $80 area.

Caterpillar (CAT) has been weak lately, we need to see if it can ignite though the moving averages of resistance in front of it.


Target (TGT) is acting better, but it needs to clear $52 for a big move higher.

Lululemon Athletica (LULU) absorbed the lowered guidance- and still acts well.

Abercrombie and Fitch (ANF) is trying to clear $65 with some room to $68.

LinkedIn (LNKD) woke up yesterday and guys made money there Tuesday, but it stalled out yesterday. $89-90 next important zone.

Green Mountain Coffee Roasters (GMCR) tried to make new highs Tuesday but came off and was weak again yesterday. Probably an avoid for now.

Gold (GLD) is trying to sustain this upper area, it’s under the 10 day but trying to hold the 21 day. If GLD gets below $175-$176 it can see a move lower which would probably give more upside to equities. I’ve been suggesting tier one long here since 2008 usually. Sometimes even tier 2-3. Now is a complicated time for it. Buy above $179.50 for a cash flow tier. And be careful it if breaks $175.

This is now Day four of the rally from Monday’s lows. Don’t get overexcited at this stage. Market still isn’t sure if we can get real traction, but some stocks are definitely doing their own thing. Take profits and keep looking for the right set ups. Things could act peculiar into quadruple witching on Friday.

Disclosure: Scott Redler is long SPY, AAPL, LVS

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About Scott Redler 367 Articles

Scott Redler is the Chief Strategic Officer of T3 Live. He develops all trading strategies for the service and acts as the face of T3 Live. Mr. Redler focuses on thorough preparation and discipline as a trader.

Mr. Redler has been trading equities for more than 10 years and has more recently received widespread recognition from the financial community for his insightful, pragmatic approach. He began his career as a broker and venture capitalist where he was able to facilitate relationships that led him into trading. Beginning his trading career at Broadway Trading in 1999, Mr. Redler moved on with Marc Sperling to Sperling Enterprises, LLC after establishing himself as one of the best young traders in the firm. As a manager at Sperling Enterprises, continued to trade actively while working closely with all traders in the firm to dramatically increase performance.

Mr. Redler has participated in more than 30 triathlons and one IronMan, exhibiting a work ethic that also defines his trading. His vast knowledge and meticulous attention to detail has led to regular appearances on CNBC, Fox Business, Bloomberg, and he is a regular contributor to Minyanville and Forbes’ Intelligent Investing blog. He has been quoted in the Wall Street Journal and Investor's Business Daily, among other publications.

Scott received a B.B.A. in Marketing/Finance from the State University of New York at Albany, graduating Magna Cum Laude from Albany's School of Business.

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