Markets opened up strong and hovered for the first hour of the day. SPY held above recent $138.19 highs and is now starting to push a bit higher.
Lots of strong stocks and groups. The FOMC release is usual time 2:15 ET. Take some care, they do attempt to sell the news sometimes after. If we close at highs, the next real level in the S&P is 1404.
Lots of action in tech as patterns trigger around the board.
Apple (AAPL) continues it’s ride higher into historic highs.
Salesforce (CRM) and VMWare (VMW) with the cloud names are strong.
Mega cap continues to participate, Microsoft (MSFT), Intel (INTC).
International Business Machines (IBM) is still low but above $202 now.
Baidu (BIDU) with a bit more time could be a good trade to break downtrend around $140.
Casinos that were the target of the pull-back broke above recent mid-range pivots spoken about in Morning Call. Those with a bigger time frame are enjoying the move in Las Vegas Sands (LVS) and Wynn Resorts (WYNN).
Banks are impressive ahead of the stress test results.
JP Morgan (JPM) is still strongest and was buyable around the 10day yesterday. It’s at new move highs, healthy action.
Goldman Sachs (GS) triggered above the 3day inside range of $118.50 (showing relative strength today).
Bank of America (BAC) is on the radar to clear this channel. $8.20-8.35 is the next zone (slow but holding with multiple positions is okay).
LinkedIn (LKND) and Zynga (ZNGA) are still consolidating and look good. LNKD staying above $89.50 is constructive for an eventual move through $93. ZNGA holding $13.40 is good and above $14.30 at some point it can get momentum.
Coffee stocks still set up well both ways.
The longer Starbucks (SBUX) stays above $50.94 the better the flag develops for a move into new highs.
Dunkin Brands (DNKN) also consolidating well, holding above $30.80 is constructive for an eventual move through $32.
Java (JVA) on its third strong day. I would book longs there, some are shorting vs. the morning high of $14.64. I might join, but have not yet.
Disclosure: Scott Redler is long LNKD, ZNGA, AAPL, IBM, DNKN, BAC. Short SPY.
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