The thesis continues as these gap ups are hard to buy. Indices opened up have drifted for the first hour. The action was stock specific, the same Strategy we’ve seen for a while now.
The S&P high of the day was 1303—this is the new pivot to trade against. SPY morning low as of now is $129.75.
Apple (AAPL) gapped up and had a nice push. This stock is back on its game and seems like it will eclipse the $427 area before earnings.
Amazon.com (AMZN) is perking up, but nothing to write home about. The longer is stays above $180 the better.
Netflix (NFLX) was a nice trade through Friday’s high of $96.55, now it needs to hold that level for some continuation.
Google (GOOG) is just building a lower pivot and doesn’t trade well now. We will need to see earnings.
Cisco Systems (CSCO) and Microsoft (MSFT) are both still inching up.
Wynn Resorts (WYNN) was a nice buy on Friday and you could have added today. The stock has put a short term bottom in, buy dips this week I think.
Banks, especially Citigroup (C) after very bad earnings this morning, are acting weak. Wells Fargo (WFC) is still positive after its strong earnings, but fading quickly.
The Ags–CF Industries (CF), PotashCorp (POT) and Mosaic (MOS)–had nice open but need more time to build bases.
Green Mountain Coffee Roasters (GMCR) is another one of those beaten down stocks we look at last week for a bounce on the Morning Call. It woke up this morning.
There is action, although it is somewhat sparse. Keep trading around positions and stay flexible, things can change quickly in this market.
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Disclosures: Scott Redler is long SPY, OIH, AAPL, AMZN, POT, NFLX, CSCO, MCP, WYNN, and GOOG calls. Short DIA (I added to DIA short at 125.50 to make sure I’m more hedged for a pull back).