Apple (AAPL): The ”Go To” Vehicle Since Earnings

Market continues to provide opportunity as we head to the end of August. Spanish and Italian Bonds dropped to a six week low. The Bears say it’s the quiet before the storm, the same way we were stalling around 1400. Anyway, they also say the Bulls will “get their’s”, but if you trade ’em and trail ’em using a tier system, Bears can’t take your money unless they rob you by gun point. I think it’s been a pretty tradable few weeks/months. At this point, traders shouldn’t lose their discipline or start getting giddy, because there is no need to give back hard earned gains.

This morning futures are quiet, as markets wake up to a pretty sizable news in HealthCare. Aetna (AET) is buying Coventry Health Care for $5.7 billion, which comes out to $42.08 per share. The WSJ reports the deal will be 65% cash and 35% stock.

The macro uptrend built since June 4th remains firmly intact. The accelerated uptrend that ignited August 3rd got another push on August 16th and is now approaching the highs of the year set in early April at 1422. I will monitor this more recent move a bit closer, since I do try and navigate shorter term ranges. I will isolate some type of opportunity “if” this shorter term trend breaks for some cute tactical action. I will try and keep the community from fighting this upside trend, but I also don’t want people falling asleep behind the wheel.

Lots of action across the board:

Apple (AAPL)- has been the ”go to” vehicle since earnings. The stock has rewarded equity investors on all time frames. In this most recent run we’ve isolated various tight entries. The last strategy was Friday as it took out and closed above the 52week highs of $644. Good book said to continue to own as a Macro/Swing/Momentum trade. It’s opening above $650. I will sell those in my cash flow account, and stay with my swing position as long as it stays above $644. Stock looks good for 700+ at some point this year-

GOOG– Very exciting action here as this stock finally got going again after this Quarter’s Earnings. Those not involved had a few price points to buy outlined in Off the Charts. $620 was the first one than $650ish. It’s now on it’s on the path to $700+. Perhaps historic highs above $747- Weekly/Monthly charts look awesome.

AMZN– decent – holding $235-$238 would help momentum guys stay involved.

BIDU– continues to stair step higher0 $115 and $125 were the spots to buy.

EBAY– SNDK– QCOM– continue to act well

Retail still on the move; RTH helping to lead the market higher.

TGT WMT COST HD– Nice trades/investments

GPS at 52 weeks highs- ROST was strong Friday and upgraded today- UA also near highs- LULU nice lower level cash flow trade.

Casinos provided some opportunity off lows:

WYNN– above $101.20 was the pivot

LVS– capitulated on 7/26 then gave a nice follow on buy 8/16-8/17- now it can use a rest.

MGM– also a cheapie could see $11+

Ags became a 3rd quarter focus with leaders like CF, MON, AGU. Even MOS and POT had committed moves off the lows

Banks –slow but moving up a bit.

OIH– gapped up 6/29 and since has seen commitment with multiple lower level entries- SLB HAL XOM CVX– some favorite vehicles.

GLD and SLV are very tight- worth watching in the next week or so ( This has been a frustrating spot if you focus here alone.)

GLD– must get above $157-$158 and not look back to change character.

SLV-$27.45-$27.55

I’m sure I’ve left out multiple stocks and areas. But it’s a Monday morning in late August. Stay on your toes. I have one foot in the door, and one out.

Disclosure: Scott Redler is long AAPL, POT, LVS, MGM, GE, SLV. Short SPY

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