Take a Neutral Stance As Cyprus Tries to Open Banks

Markets closed on their highs yesterday and we are seeing some weakness in our futures this morning. Europe turned red on a weak Italian auction and there is also some concern on the chaos that can be caused when Cyprus opens its banks either today or tomorrow (I’m sure there will be plenty of coverage).

Markets have done a pretty good job “holding higher” during this recent bout of volatility as 1538-1545 has been key support. During the past six sessions though, it’s been one day up, one day down, and it’s been a bit hard to find follow through.

I’ve been trying to stay involved and it hasn’t been the “easiest environment” to find good ideas. As the markets were making new highs yesterday the banks were still in retracement mode, and I didn’t see many groups that “traders” gravitate towards breaking out. To me, the “heartbeat” of this move isn’t beating strong.

Support stands at 1555ish, then 1551 below this, and the new high talk will slow down and would frustrate some traders. The key support level would then be 1538-1545. Resistance stands at 1563-1565.

There will be no updates from me today and I’m out tomorrow, heading out to the West Coast for a special interview (a bit out of the box) that will be aired in next week’s Morning Call.

Disclosure: Scott Redler is long MA, NFLX, SPY, MGM, S, BAC, F, DDD call spread.

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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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