Compelling Longs are Scarce After Gap Down

S&P’s are in a very narrow range in the first 45 minutes or so of trading. The SPY micro low to trade against is the morning low of $137.84. Under that is the 50day moving average at $137.16. The morning high is $138.27, above this we will see how much of the gap we fill (if it tries).

I’m not seeing much leadership from the usual suspects. They are not falling apart, but I only see a few downside gaps filled, and then they fade or lose some energy.

Apple (AAPL) is off lows. Use the morning low as the micro pivot to trade against $625.30.

Google (GOOG) same type of strategy for this one would be the low of $625.29.

Banks are a bit heavy but off the lows.

Financial Sector SPDR ETF (XLF) is in a bit of no-man’s land. Below the 20day and but above the 50day which stands at $15.03.

JP Morgan (JPM) I nibbled a bit this morning around $43.10 since it was in my buyable area of $42.90-43.20. It looks decent for a cash flow long. I might add for a quickly above $43.53.

Casinos are mixed.

Las Vegas Sands (LVS) went positive and looks great still.

Wynn Resorts (WYNN), which I’ve been avoiding, is a bit sloppy and not great with more shareholder news.

Starbucks (SBUX) still hangs in and Dunkin Brands (DNKN) also acts well.

Gold (GLD) gapped up and is still holding. The next big resistance is the $161.19 zone.

I covered my spy hedge like planned around $138, but I’m being very selective on my longs.

Disclosure: Scott Redler is long LVS, JPM, DNKN. Traded but flat RENN, SPY.

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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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