How Tech, Banks, Casinos, and Gold Are Reacting to Market Moves

By Scott Redler  AUG 12, 2010 10:50 AM

There have been nine moves of 5-10% in less than two to 10 days, so act quickly and obey short- and medium-term trends.

 


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When you live through dangerous times and you participate in this market, you must have a plan and you must execute your plan fast.

During the past two days, I’ve stated to first lighten up on Fed Day (especially since they gave us a way out after the gap down).

I sent a few intraday notes saying go to 80% cash a few times that day. Then yesterday, you had a small window to stop yourself out if you still had longs from this very profitable move off the July 1010 lows. If you sold when we broke 1104-1107,  you're coming in today with a smile and opportunity as we open below 1080 (about 25 handles lower).

This is our market; we can’t control it, just our own actions. There's been now nine moves of 5-10% in less than two to 10 days, so acting quickly and obeying the short- and mid-term trend is the only way to be profitable and, most importantly, safe.

SPX 1070-1074 is very important. This is the 50% retracement of the entire move from 1010 to 1130. This area must hold. Otherwise, this new down move could turn into another extended correction.

Tech

Apple
(AAPL) -- didn't  break out above 265 and if you were long, you should have been stopped out in the 255-256 area I highlighted. Now, it’s time to see how it handles the lower end of the channel around 240-242.

Baidu
(BIDU) -- this mighty stock should pull in to the 80-81 area and that’s when I might look at it again.

Google
(GOOG) -- after giving us some trade, it broke the important 495-496 area and now looks like we'll see it at 480.

Amazon
(AMZN) -- great trade for me last week or so from 118 to 130. Now, I’m not sure as it’s tried to be strong. I'll see how it handles 123-125.

Research in Motion
(RIMM) -- last day or so has acted okay as it seems to be strong on weak days and vice versa. Small pivot around 56.50 to buy (maybe).

VMware
(VMW) -- broke it’s accelerated uptrend and this should take this stock back to the 72-75 area for another look.

Intel
(INTC) -- could be worth a look long around 118.75-119, just for a trade.


Banks


Goldman Sachs
(GS) -- I sold this one well around 155, so I'll see if I can buy back for a scalp long around 144-145.

JPMorgan
(JPM) -- has been pounded. I haven’t traded it in a while. I'll look for an opportunity this morning for a negative to positive move. The stock is very oversold.

Bank of America
(BAC) -- I’ve said avoid since it’s been the weakest. So it made new lows yesterday, and it’s a disaster.


Casinos


The group acted well when the market was acting well.

Las Vegas Sands
(LVS) -- nice little pull back. I sold early; now it’s worth a look around 26.50 for support.

Wynn Resorts
(WYNN) -- tried to play catch-up and failed near new highs as market got hit. Hope you used your 92 to get stopped out; I tried to keep everyone up on this.

MGM Resorts
(MGM) -- a dog that's not worth your time.


Also Notable:

Gold
(GLD) -- we had two great entries -- 113.20 then 116 -- and now I see a pivot area to get into tier three, if it can break above 118.20 and hold.

Cisco (CSCO) is worth watching. Its earnings and guidance somewhat confirms the call that JPMorgan made on Intel that orders area is softening.

You never know what an uptrend break will lead to, but I'd rather be in cash or hedge to think clearly and be ready for a turnaround when the opportunity presents itself.

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No positions in stocks mentioned.

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