Markets were quiet Monday trying to digest the previous four days of gains. The heaviest selling is in the Nasdaq, which finished the day down 0.77%. The Dow finished down only 18 points, or 0.14%, but the damage to leading stocks makes it feel a bit bigger. The selling today could be attributed to some end of month profit taking.
SPY holding above $139.30-$139.40 area is still key for technical composure, though. The major, major support area is really $138.50-138.70.
Banks were weak early. I got stopped out of my Bank of America (BAC) and JP Morgan (JPM).
Tech was very mixed. Apple (AAPL) was weak all day after holding up reasonably well after earnings last week. I thought perhaps we would get an earnings pivot to be long against and it has not found that yet. It slowly bled down the whole day, and is not far from the 50day at $580ish. I’m long small vs. the low of the day.
Amazon (AMZN) and Expedia (EXPE) had nice follow through for some of my traders today as they continued.
The Oil Service ETF (OIH) continues to get some flows, I like the way Schlumberger (SLB) and some others like EOG Natural Resources (EOG) act.
Gold (GLD) went positive and is knocking on that door again.
Overall, I would be a bit cautious in this area with no big bets. I don’t see much of an edge at this spot in the market, and you don’t need to be a hero. China PMI tonight is important, and then economic reports coinciding with the start of May.
Disclosure: Scott Redler is long AAPL, GLD, MSFT, FSLR. Short SPY. Traded but flat JPM, BAC, AMZN.