Relentless Market Brings More of the Same

Futures are basically flat after another impressive move in the markets yesterday. Europe is up small as Japan rips another 2.29%. The S&P broke above 1636 and never really looked back most of the day. Micro support stands at 1645 and new pivot resistance is 1651.

I wish there was something “new” to write, but what’s working is a lot of the “same.” We haven’t had a 60-minute move below a prior days low, let alone daily close below one since the May 3 jobs report. Until that happens, keep doing what you’re doing if it’s working. If it’s not working, change your process a bit.

Banks lead the charge lately. We’ve tried to focus a lot on this group in the past week or so. There were spots to add to swing longs.

Goldman Sachs (NYSE:GS) finally had a clean move through $151 and now looks like it should see 2013 highs of $159 soon.

Bank of America (NYSE:BAC) did some work above $12.80 then broke higher again as it could be on the road to my 2013 target of $14-16.

JP Morgan (NYSE:JPM) started acting better on Monday and played some catch-up. There is a lot going on around Jamie Dimon. Market is saying he will stay but I’d be a bit careful as some are saying that he might not stay if he isn’t able to maintain dual role. Use $49.60ish as your stop. If he does stay, it could ignite through $51.

Morgan Stanley (NYSE:MS) was upgraded this morning and has been acting better recently. It touched 2013 highs yesterday and has a new pivot at $24.50.

Tech remains mixed but has lots of action

Google (NASDAQ:GOOG) has been best in breed in high beta tech. It’s seen big move since breaking above the $803 descending channel after earnings. Now it’s extended and hard to buy, but that doesn’t mean it’s a short.

Netflix (NASDAQ:NFLX) gave us two nice additional entries from the Price Point Sheet at $210ish then $219ish. Now it needs some time to set up again at 2013 highs.

Amazon (NASDAQ:AMZN) is working its way higher. Resistance stands at $275.

Yahoo! (NASDAQ:YHOO), one of our 2013 focus stocks, already met targets but seems to be buyable at the 21-day or for cash flow breakouts. The new pivot is $26.87.

eBay (NASDAQ:EBAY) has been grinding higher since earnings. It’s not a real set-up except that they are buying everything.

Apple (NASDAQ:AAPL) stock had a spirited move to $465 and then stalled. I’ve been trying to figure out if the “composure” truly changed. The $450.50 level was the line in the sand for some, and it broke it quickly. The stock is back off my A-list. Your new pivot is $442.15, the 21-day is $440 then the 50-day is $435.

Microsoft (NASDAQ:MSFT) provided a small dip buying opportunity but I missed it. I still think $36-37, or more, could be doable this year.

Intel (NASDAQ:INTC) had its first two-day down move in a while. Maybe look at $23.78 for some type of RDR entry if it happens.

LinkedIn (NYSE:LNKD) woke up yesterday after holding big support. It has a gap that might be worthy of opportunity to trade in. That pivot is $185-187.50.

Facebook (NASDAQ:FB) is a very frustrating stock. Maybe a move above $27.40 could provide cash flow opportunity.

Some of the stocks that have been squeezing broke a bit yesterday

Tesla (NASDAQ:TSLA) finally had a big reversal on volume and could now use a rest. Use $81.15 as a pivot. A move to $75ish could be in the cards. Yesterday was a nice tactical short for some on the desk.

Green Mountain Coffee (NASDAQ:GMCR) still acts well and could squeeze further if it continues to hold higher.

Some Chinese names are acting better

Sohu (NASDAQ:SOHU) has been a monster, maybe it’s ready for a rest. Perhaps you could get a cute short if it develops around the $66.14 pivot.

Sina (NASDAQ:SINA) has a pattern building. The next buy could be above $59.74.

Baidu (NASDAQ:BIDU) held $90, maybe you could trade long vs. that level.

Homebuilders still look good

Homebuilders, ahead of housing market index at 10AM, have some nice set-ups for potential upside follow-through today.

Toll Brothers (NYSE:TOL) has been stair stepping higher and holding above its 8-day moving average recently. It approached the key level of $37.08 from 2012 highs. The stock closed at highs showing potential for upside follow-through. A break above the major resistance of $37.08 could take the stock back to 2013 high of $38.36 and beyond.

Lennar (NYSE:LEN) is also inching higher into a key resistance level at $43.90. The stock briefly broke above this level yesterday after gaining 1.5%. It looks like it could be poised to get some more momentum to the upside today so keep this stock on your radar.

KB Home (NYSE:KBH) is consolidating in a tight range at highs and looks poised for a break out above yesterday’s high of $24.82. The stock has been holding higher support with the gap from May 3 adding some fuel to its rally. The stock looks like it could be ready for the next round of buying.

A few other set-ups I am watching:

Lululemon (NASDAQ:LULU) is flagging nicely above all key moving average after the nice breakout last Thursday. Key resistance from 2012 highs is $81.10. A break above this level could trigger the next round of buying so keep an eye on this stock.

Visa (NYSE:V) is also flagging nicely above its 8-day and looks like it could be poised for a breakout move above $180.77. We also saw some relative strength in its peer, MA, as the stock saw a nice breakout to finish the day up 2.5% yesterday.

Pepsi (NYSE:PEP) is trading in a tight range after seeing a potent down move from earnings on 4/24. The stock woke up a big during the last two sessions and looks like it could be ready for a break out above $83.65 short-term resistance level. We have a similar chart in KO, another soft drinks name as the stock is also consolidating at highs and looks like it could be poised for a move higher above $42.67

Sears (NASDAQ:SHLD) looks interesting at these levels as the stock saw a nice igniting move on Friday and is flagging nicely on top of that wide range bar. The start of the bearish gap from November 12 is $55.18. SHLD already broke above this level. A break above the top of the flag at $57.30 could see some more short squeeze and push the stock higher.

Metals are a bit lower as talk of unwinding QE grows. The macro trends have been broken there since April 12

Gold (NYSE:GLD) showed some relative weakness yesterday, so today’s follow through to the downside is natural. A close under $137.26 could set this back in motion to the $130 area.

Disclosure: GS, SINA, ZNGA, BAC, JPM, V, MGM. Short TSLA, SPY.

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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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