ISM Number Triggers Big Move in Market

May 1, 2012 Scott Redler

The 10:00am better than expected ISM reading triggered another short squeeze, as shorts have been on the ropes since last Thursday. Market participants had some choices to make as SPY crossed above $139.30-$139.40 on April 26th. Since then, they’ve digested nicely above it.

Apple (AAPL) finally gave us our 80-20 trade as it traded below $583 down to $581.23, triggering a “Red Dog” reversal. The strategy was to buy back back through $583 with a stop at low of the day $581.23. That’s only $1.77 risk with a stock down from $618. AAPL is now $595ish with resistance at $596 then $598 starts a gap to $600.50.

Netflix (NFLX) nice “Red Dog” reversal from the Price point sheet, $79.67 was pivot.

Gold (GLD), be careful seems like strong numbers takes the GLD trade lower due to lowered expectations for QE3. The morning low is $161.17 uncommitted longs use that as a stop. Real stop is $160.80.

Disclosure: Scott Redler is long AAPL, MSFT, DNKN, GM, SLB, LNKD, GLD.

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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.

Visit: T3Live

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