Another quiet days as indices held around yesterday’s lows. Low of the day on the SPY is $138.25, and high of the day is $138.85.
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High end retail getting hit as Coach (COH) has been crushed. High end has not been the place to be in last few months as the biggest movers. Have been in more of the value Retailers like Wal-Mart (WMT), Costco (COST) and Target (TGT).
The economy is not rip roaring, so there is some merit in using the common sense investment thesis of the high-end having some problems. I tried a cute trade in LULU From Thursday, sticking around on cute laggard trades can sometimes turn real ugly if you hold to long. I got stopped out yesterday as it left my VTF window.
Banks are still hanging higher as JP Morgan (JPM) held where it needed to yesterday. Goldman Sachs (GS) continues to hang tough as it’s changed complexion a bit lately.
High beta tech continues to be a spot to look at.
Apple (AAPL) is now on Day 3 of a very impressive move after listing it in Off the Charts and the Pricepoint Sheet. $580.80 was the trigger. Now it’s $610ish. It would be good to rest, but there is talk of a stock split and being added to the Dow, as well as a September 12th iPhone 5 release. We need to be a bit cautious as displaying and shipping might be too different scenarios.
Google (GOOG) is acting well. If it continues to hold above $625-630 we will get a nice flag set up for a trade through the macro trend line of $642-645. The Weekly/Monthly charts really look good there for historic highs this year. We probably need one more good report in the Fall.
Amazon (AMZN) is basing above $228-230, which is bullish.
Baidu (BIDU) I don’t love this one, but it acts okay.
Facebook (FB) was upgraded by Bernstein as it couldn’t find a friend. It’s making new lows since the IPO trading below recent pivot of $22.27.
Casinos are still a troubled group. We got a small trade in LVS, but got stopped out of the remainder at $36.70. I will re-visit.
Gold (GLD) has not seen much action as it’s in a holding pattern until tomorrow, (SLV) as well.
Starbucks (SBUX) looks interesting, as I sent a note out earlier to cover shorts if you’ve been riding this down. I will look for a buyable strategy in coming days.
US Steel (X) is on highs, but I wouldn’t chase.
If you take a step back and just look at the chart of the SPY, it’s flagging well, and at least we have a new upper floor to trade against.
Disclosure: Scott Redler is long AAPL, AMZN, SPY. Traded but flat LVS, SPY, TRIP