Around the world, the rally continues. Europe was led higher by telecom. China is up 1.95% as Premier Li Keqiang said 7% GDP should be supported, giving some hope that the Bank of Japan will stimulate. Japan is back at eight-week highs and it’s only 5% off the highs from this past May.
S&P (INDEXSP:.INX) futures are up 2-4 handles after a very lethargic day yesterday. The road to S&P 1700 seems to be getting to its exit about a year and half ahead of schedule. I anticipated a little bit more traffic.
The summer trading environment continues as it’s been a very stock specific tape. Especially during earnings season, stocks can diverge considerably based on their numbers.
Las Vegas Sands (NYSE:LVS) reclaimed its 100-day after seeing a nice ignited move up on Thursday. It’s now hovering around the 50-day and holding above the break out level of $55.20, showing some commitment. Look for potential continuation above $56.43. LVS is reporting earnings tomorrowJuly 24 after the close, so it's prudent to wait until the numbers are out.
MGM (NYSE:MGM) has seen a nice snapback since the June 24 lows, as it has been stair-stepping higher above the 8-day moving average. The stock is flagging nicely at new highs and looks poised potentially to make another move higher above $16.25. It has earnings on August 6 so there is some time before the report. I still think $18-22 in 2014 is feasible.
Wynn Resorts (NASDAQ:WYNN) is also acting better even though it still has some selling pressure from the 50-day at around $134.30. The stock saw a nice move up on July 11 which helped it to reclaim key short-term moving averages, then it’s been trading in a tight range above the 21-day. A break and close above the 50-day at $134.30ish could set it back in motion.
Caesars Entertainment (NASDAQ:CZR) saw a nice break out on July 10, then has been flagging above the 8-day since. The longer it holds above $15.50ish, the higher probability we could see some upside follow-through above $16.63. Then it has some intermediate resistance at $17.35ish from the downtrend since March. The company is reporting earnings on next Monday, July 29 after the close.
More recent or upcoming earnings:
Netflix (NASDAQ:NFLX) reported second-quarter earnings after the close yesterday of $.49 per share on revenue of $1.07 billion. Earnings beat forecasts of $.40 per share while revenue was only in-line with estimates. Stock saw volatile trading as it touched the $240 level. It's down a bit this morning, but it will be interesting if it bounces back like Google has this week·
Apple (NASDAQ:AAPL) is reporting at the close today. The stock saw a sharp sell-off on Friday which sent it back down to the 21-day at $423.66. It showed little strength yesterday as the stock traded in a tight range to finish the day up 0.32% while it closed below the 50- and 100-day moving averages. Consensus EPS estimates are $7.31.
Broadcom (NASDAQ:BRCM) is reporting after the close today. The stock has been hanging by a thread at $32.70-33 area as it continued to get selling pressure from the moving averages overhead. There is also a Head and Shoulders pattern in place that points to potential lower prices if the stock fails to hold key intermediate support of $32.70. The company is expected to report earnings of $0.69 per share.
Panera (NASDAQ:PNRA) is reporting after the close today. The stock has a macro accelerated uptrend support since October 2011. It saw a nice bounce off the 100-day moving average on June 24, then has been hovering around the 50-day since as it has some intermediate resistance at the$192-195 area. It’s currently holding above prior break out level of $184. A break below this could take it back to retest the 100-day at around $180. The company is expected to report earnings of $1.77 per share.
Some quick hits.
Tesla (NASDAQ:TSLA) provided nice movement to the long side off the open yesterday from our listed action area of $120.55 from the Price Point Sheet. The stock then peaked at $126.68 and retraced lower for the entire session to close well off of highs. It still held above Friday’s lows and above the 21-day MA, but it might need a few more days.
Biogen Idec (NASDAQ:BIIB) (reporting Thursday, July 25 before the open) put in a big bottoming tail yesterday as the stock saw some volatility during trading hours. Overall, it still held above the 21-day moving average that has been providing good support to the stock. It has room to the 52-week high at $242.64.
Google (NASDAQ:GOOG) saw some upside follow-through yesterday to close the day up 1.6% after seeing a strong snap back on Friday. The stock is already back above all key moving averages as it closed above the 8-day yesterday. Short-term resistance is $928 from the all-time high.
JPMorgan (NYSE:JPM) has been acting better as it held above the 8-day and is flagging nicely after seeing break out at the $55.60 area last week. Look for potential upside follow-through above $56.67. MS also worth a look if it clears $27.80ish.
Molycorp (NYSE:MCP) broke out of its bull flag pattern and gained 7% yesterday. The stock broke above the 200-day. The next obstacle is standing at $7.90ish.
Some uranium plays, which have been off the radar for a while, are waking up. USEC (NYSE:USU), small illiquid name in the sector, had a huge move. I do think Cameco (NYSE:CCJ) is worth a look out of a lower-level base. If it can get a big volume break above $22.40ish, it could send this in play.
Metals had a nice continuation move yesterday as they’ve acted better after the capitulation lows of late June. They could use a rest. Gold (NYSEARCA:GLD) needs to hold above $127ish to keep some fast money in it. That important short-term level for silver (NYSEARCA:SLV) is $19.55.
All in all, despite it being summertime, there have been things to do in the market. However, I think the action could get more and more choppy during August leading up to the Fed's September rate decision. Either way, fighting the trend is sure not friendly.
Scott Redler is long JPM, BAC, MGM, MCP, SODA, CCJ. Short SPY.