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The T3 Morning Market Call: Market Mired in a Prototypical Summer Range

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You couldn't press yesterday's downside open and today you might not be able to add on this up open. That's what a summer range is -- until it resolves.

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World markets are mostly positive this morning as most continue to show resilience. Europe is up as more participants feel comfortable that the debt crisis has at least subsided for the time being. China's Shanghai Index hit its highest level since June 20 adding to the bullish argument there. The Nikkei has been consolidating from its blockbuster move in 2013 and recently hasn't acted that well, but it did hold its uptrend line. Last night it had a nice session to get back on track, posting gains of 2.6%.

Yesterday, the bears had a chance to flex some muscles but lacked any power. The S&P (INDEXSP:.INX) opened down below 1684 and the low of the day came in the first 15 minutes. By 4:00 p.m. we were basically green with very nice individual stock movement across sectors.

Today we are up 6-7 handles, and 1698-1702 will be the pivot resistance to watch. A close above this spot will negate some of the bears' hopes for a right shoulder being built for more downside potential. You couldn't press yesterday's downside open and today you might not be able to add on this up open -- that's what a summer range is…until it resolves. I'd focus more on constructive chart patterns in individual stocks.

Today we will look at some retail names.

Nike (NYSE:NKE) is flagging nicely above its 8-day MA to digest its igniting move from August 1. The stock is also holding above its prior pivot high of $66 from May. Keep this stock on your radar as it looks poised for another potential leg higher above $66.85.

TJX Companies (NYSE:TJX) met some buyers at $52 area yesterday after a four-day pullback. It's holding above the prior pivot high of $51.83 from May and hovering around its 21-day MA, which could be a buyable area as we now have yesterday's low of $52.05 as the new pivot to trade against.

Wal-Mart (NYSE:WMT) pulled off of highs recently, but it's trying to hold above its 50-day at $76.40ish as some buyers stepped in yesterday to lift the stock up. WMT finished the day up 0.23% and closed above its 100-day moving average. Next resistance is standing at $78ish.

Nordstrom (NYSE:JWN) had an igniting move yesterday as buyers stepped in at the 100-day around $58.50. After grinding higher for the whole trading session, the stock registered 3.40% of gains showing some relative strength. It has reclaimed all key moving averages. Holding above $60.10 would be constructive for higher prices moving forward.

Target (NYSE:TGT) looks a bit broken as it lost the support of its 50-day moving average on Friday. It's still holding above the 100-day which comes in play at $70.11. This could be a buyable area as it met some buyers last time it retested the 100-day back in June.

Here is a look at the continued opportunities in tech.

Apple (NASDAQ:AAPL) showed relative strength as the company came out with a date (September 10) for its new iPhone. The stock registered 2.84% of gains and closed on highs, showing some commitment. The next obstacle would be the 200-day at $471.06. The speed and power of yesterday's move leads me to believe we could break the downtrend at $490ish.

Netflix (NASDAQ:NFLX) broke out of its base yesterday and gave us a tactical entry at $253.70. It could be day one of a rally. A break and close above $257.60 could set it back in motion for a move back to highs at $270.31.

LinkedIn (NYSE:LNKD) got some momentum again yesterday after six days of consolidation after earnings. The stock had a nice breakout at $235 level and put in a new high at $242, which could be the new point of reference to trade against.

Amazon (NASDAQ:AMZN) is trying to hold the $294-295 support level, but it's been stuck in a downtrend July 29. It needs to break above $301ish to get regain some power.

Google (NASDAQ:GOOG) couldn't fill yesterday's opening gap as the stock has been running out of gas recently. The longer it stays below $887-890, the higher the probability we could see lower prices.

Other notables:

Tesla (NASDAQ:TSLA) filled its earnings gap to the down side yesterday but managed to hold its 8-day at $143ish and closed well off of lows. Holding above prior pivot level of $145.73 could add some fuel to help it get above yesterday's high of $150.50.

Zillow (NYSE:Z) has been on fire as it had a tremendous run from $58 to $97 in a month. It continued to hold above the 8-day. Look for potential continuation above yesterday's high of $95.30.

VMware (NYSE:VMW) continued to act well since the clean breakout at $82.89. The pattern is getting tight for a potential move through $86. The stock has room to the upside and a high short interest. Keep this stock on your radar for some potential continuation.

Microsoft (NASDAQ:MSFT) still looks good. It went ex-dividend so today might be tricky, but as long as it continues to hold $32.40ish I will likely stay involved for a potential move above $33ish.

Yahoo (NASDAQ:YHOO) had a nice day one yesterday as it broke out of the mid-level base at $27.69. A break and close above $28.45 could lead to a potential move back to 2013 highs of $29.83.

Mosaic (NYSE:MOS) is basing in front of the bearish gap from July 30. The longer it holds above $42.51, the higher the probability it could try to fill this gap.

Metals are off a bit this morning after a strong multi-day move. Holding some of yesterday's gap would be nice.

Gold (NYSEARCA:GLD) had a nice move from the $124 area but stalled in front of $130ish. I'd like to see it hold $128ish to have continued commitment.

For silver (NYSEARCA:SLV) the $17.75-18.25 area did prove a better buy than a sell, but now it needs to digest after hitting $20.71 yesterday. I'd like to see it hold $20.20ish.

The Inverse Bond ETF (NYSEARCA:TBT) is holding the 21-day MA as this trend continues, but lately it's been a bit erratic. Above $78.63 and it could see 2013 highs.

Bill Ackman resigned from the board of JC Penney (NYSE:JCP), so JCP will be in play for this "circus" situation. You could look there for potential opportunities, but it will not be a focus for me.



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Scott Redler is long AAPL, VMW, FB, DDD, MSFT, GLD, MSFT calls, IBM puts. Short SPY.
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