Monday, June 21, 2010

Room to Run Into End of Quarter Shenanigans


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via T3Live Blog by Scott Redler on 6/21/10

By: Scott Redler

The market has had a really nice move off the double bottom from early June. That important 1040-1050 level held four times! Now the market is entering the
1125-1150 resistance zone that I outlined weeks ago. The potential exists for a head
and shoulders pattern that could rally this market into end-of-the-quarter window dressing

I love shenanigans as long as I'm in on the joke. Now is not the time to get over-excited and we will examine this market closely the first week of July to see if this resistance zone at 1130-1150 will be shortable. I attached the S&P chart from June 3rd and today.

TECH has been the place to be. Most of our "go-to stocks" made new move highs in this rally.
AAPL is at new highs after some nice entries the last few weeks, the last one around 251-252. I would trail this close and take some profits.
SNDK made new move highs, but I don't like entering it up here.
VMW has no strategy here but it makes new highs every few days.
NFLX also holds well. 128 is the next battleground for the shorts.
BIDU was a great 80-20 trade entry Friday at 71.92. This can still see higher prices. If it can hold 76-77 we could see new highs above 80 into earnings.
GOOG has a tight lower range. This is a laggard but could see 515-525.
AMZN has a nice tight pattern. If it holds 127 we can see 131-134 by early July.
MSFT had a nice entry around 25.20. I'm out of most around 26.50, depends on your time horizon.
QCOM we bought 35.30-35.40. It looks like we could see 36.50-37 pretty easily.

CASINOS acted okay but they are not trading together.
LVS is the new leader. It's tough to enter now.
MGM can be a buy around 12.50 if LVS keeps going, for a move back to 13.50-14.
WYNN is not hanging around but is a little whippy.

GOLD is at new highs, but is a bit extended. I will take small profits here.
NEM was great long into 52-week highs.
ABX also had a nice move. I would take profits and let a new pattern form.

BANKS woke up a bit Friday. These could get action with the reform vote this week.
GS we bought 137ish and if it holds we can see 141-144.
JPM we bought 38.40ish. It was slow and boring but now it's 39.50. I will sell some and hold some.

BP is opening near capitulation lows of 29-30. Keep an eye on this

Our mantra this year has been to manage positions and ranges, from the uptrend break around 1180 to the reversal low around 1042. You must pay attention to the technicals and maneuver your positions long and short. I think First Week or so of July will be an area that will be the line in the sand for the summer.


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