The market is now notching its' seventh winning week in a row as Scott Redler of T3 Trading Group shares what he's watching in the current environment.
S&P futures up one or two handles Tuesday morning as it was a fairly quiet holiday weekend overall. Some bears thought/hoped we might get some fireworks out of the G20 summit, but, besides the meteorite, the prevailing tone is that the world remains committed to easing and central planning. We have Fed Minutes on Wednesday, so that will give us more clues into what central bankers are thinking. We will look for signs to see what the "pace of purchase" for QE might be for the rest of 2013. Thursday we have Flash PMI's for Europe.
As for the market in 2013, the roadmaps for traders have been the 8- and 21-day moving averages. It's been a very stair-step approach for the indices as they all take turns making new highs. Some indices and sectors have more power than others, but we continue to see nice rotation.
The S&P 500 ETF (SPY) has support at around $151.55, while the eight-day is $151.77. The 21-day MA, which we haven't touched in 2013, stands at $150.33. Pivot resistance is now $152.60, with the next resistance above that at $153.20.
It's been a "stock pickers" game as all names have not been created equal. Tech in particular has been very mixed.
The strongest momentum tech names have been LinkedIn (LNKD) and Netflix (NFLX). Both had powerful "gap and go" type movement after their earnings. Pivot resistance for NFLX is $190, and pivot resistance for LNKD is $163. It's hard to chase either stock at these levels, but I also don't believe you should have short on the brain.
Google (GOOG) has been the best-acting high-beta name at historic highs. This also had a nice gap up on earnings that traders could have entered against. There have been opportunities to enter as well at around $760 and then $788, and now GOOG is now opening at highs. The Eric Schmidt selling news had no effect on the stock, it was just a buying opportunity. At this point, like many other things, if you are in the move then trim and trail. If you are looking for cash flow, $793.26 is the pivot.
Yahoo! (YHOO) has been choppy and erratic, but continues higher. Support is around $20.00, while resistance is $21.43.
eBay (EBAY) has a nice set up if it can ever take out $57.26 with authority for a trade. Despite the lack of breakout momentum, this has been a great move for longer-term players.
Amazon (AMZN) woke up last week, let's see if it can see commitment. The stock should hold $263 if it wants to stay on traders radars, in my opinion.
Facebook (FB) had a decent bounce off the $27 area, now it needs to hold $28 in order to keep my attention for an add-on trade above $28.75.
Apple (AAPL) had a nice move from $435 back up to $485, then last week it gave back a bit more than some would have thought/liked. The investor meeting is not until next week, so I believe AAPL could twist in the wind until then. Friday was disappointing for anyone looking for commitment as it shouldn't have broken $463-465. It needs to reclaim this area quickly to show maybe it was due to options expiration. Anyway, the support pivot to watch now is $459.92. See if it can hold Tuesday's gap up. I'm approaching it day-by-day until I see a clear change in the price action. A potential new dividend or possible iWatch announcement might be the catalysts AAPL needs.
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