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.