Trading A Strong Tape Following The Fed

Overnight PMI reports continue to signal slowing growth, as commodity prices declined to the lowest levels since November 2010. The FOMC is now out of the way, and the “European Summit” looms at the end of the month.

Futures are off a bit, and we can look to yesterday’s low as the first support area to see if this high level floor will hold, or if we will see a bit further downside action! 1346 is yesterday’s low to trade against, and under that is 1339 – the 25% Fib Retracement!

The is definitely a difference between the “haves” and “have nots” in this market. Some stocks are only good for trades, but some could be potential holds. Stocks that held their 100-day as markets briefly broke the 200-day have been some of the best performing names and may be investment quality.

Stocks continue to act very well technically, and the rotation we are seeing should support higher prices after we digest the move we’ve seen this past month. In my Off The Charts series, which I’ve attached below, I go over retracement rules that can give you some levels to watch for a buyable dip. Depending on how the market holds yesterday’s prices, it should give us clues to the complexion and speed of the market moving forward.

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Below is a list of names we like to trade for cash flow and that I have talked about as potential macro holds or investments, if that’s what you do. This list tends to change every six months or so as some stocks weaken or gain strength technically. For example, when CAT GOOG and LVS broke trends and their 200-day moving averages, I took them off this list.

AAPL, AMZN, EBAY, PCLN, EXPE, INTC, MSFT, ORCL, LNKD, IBM, FB.
SBUX, DNKN.
MA, V.
TGT, WMT.
XOM, CVX.
CF, MON.
BIIB, AMGN.

Disclosure: Scott Redler is flat.

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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