Stock Market Remains Impressively Resilient

SPY (NYSE:SPY) low of the day is $149.6, holding above the recent floor of $149.250-149.50. It’s very impressive that it continues with this type of pattern. Recently we are getting a bit more two-way action in specific stocks, which is welcomed by traders.

Yesterday you could have shorted Netflix (NASDAQ:NFLX) in the $170 range and made 5-10 points. Today you could have bought it below $158 as it rallied back up to $164. The same goes for 3-D Systems (NYSE:DDD) and Stratasys (NASDAQ:SSYS). They were shorts as they broke upper levels, had downside follow-through, and then went positive after opening lower today. There are good cash flow set-ups, but not a lot of swing trade entires to get excited about.

Apple (NASDAQ:AAPL) is holding higher. You could hold it long vs. $452.12. The high of the day is $459.41, then the next level to watch is $465.

Yahoo! (NASDAQ:YHOO) sold the news of its good earnings report, which I cautioned about in the Morning Call. I think entering closer to $19.30-19.50 makes sense.

Baidu (NASDAQ:BIDU) was gross. I came in long and added some, then got stopped out. I always find that stock tough to trade.

Amazon (NASDAQ:AMZN) saw a big two-day pull back in front of earnings tonight. I’m avoiding it.

Facebook (NASDAQ:FB) is getting beat up today after a big four-day move. Some wire houses think some people are too optimistic about the report. I’ve avoided it since selling into the “Graph Search” event. I’d like a move back down towards $30 tomorrow, and in that case perhaps I could consider a call spread.

LinkedIn (NASDAQ:LNKD) stopped me out of the remainder of my equity around $126. I’d been holding it since $118ish. I will keep my call spread and perhaps enter again after Facebook.

Zynga (NASDAQ:ZNGA) is under a bit of pressure after yesterday’s bounce. I would have liked to have seen it hold $2.75. I will likely give it to $2.60.

Casinos have started to get very choppy. MGM Resorts (NYSE:MGM) was downgraded today. I will give mine to the low of the day of $12.50.

Gold (NYSE:GLD) was rejected by resistance of $161.30. Banks are mixed but continue to base.

There are some things to do, but the market still needs time. I’d continue to trade around existing longs, use some hedges, and resist the urge to add to hedges or shorts on weakness. In 2013 so far it has been more prudent to cover.

Disclosure: Scott Redler is long AAPL, BAC, WFC, MGM, GE, ZNGA, TBT. LNKD Call spread. Short SPY. Traded but flat DDD, NFLX, BIDU.

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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.

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