Reviewing the Performance of Tech, Banks, and Casinos
There's lots of action out there in companies like Apple, Goldman Sachs, and Wynn, but you must have a handle on what's going on.
Right now there's a big difference between the Nasdaq and the Dow after strength in tech stocks last week. Also, commodities are trading in their own space right now. There's lots of action out there, but you must have a handle on what's going on. You could have been miserable trapped in the banks and not honoring stops, or you could have gone into the weekend with a huge grin owning some high beta tech stocks. Where were you?
The S&P is still holding its upper range but getting very choppy. Trading futures isn't where the money is right now. Every pull-in has been controlled. Micro support is 1162-1165, and more important support is 1148-1155. Micro resistance is 1177-1179, then 1085, then big resistance around 1195-1200.
Apple (AAPL) had an explosive move Friday after Google (GOOG) earnings. The measured move for Apple for me was 320; we're opening here this morning. Typically BIG moves into earnings don’t get rewarded after the numbers come out, so have the right strategy based on your skill set and time frame. I'll be selling my remainder of my Apple above 320 today. But the following link brings you to my previous comments on Apple: Apple Revs for the Run Past 300 (September 13, 2010).
Google was a great trade for me from 485, then a nice (and a little lucky) options play Thursday into Friday. Many in the community took the 550-560s,congrats if you were one of them. Google looks okay for higher prices. It’s back in the game.
Amazon (AMZN) triggered through 157 and then 162 for a monster trade Friday as well. It now could be choppy with earnings due later on this week. See how it reacts with Apple earnings.
Baidu (BIDU) is still consolidating for the fourth straight week, and I'm very bullish on this stock. Trigger buy is 101-102, make sure to keep a close eye on it. There are some high hopes for Baidu earnings after Google's report. Baidu earnings are due out on Thursday.
Netflix (NFLX) is very quiet right now. The trigger is if it wakes up at 155-157, but it might need earnings to get there.
VMWare (VMW) has a broken chart, and chasers have a broken heart. It's just a trade in new range both long and short.
Salesforce.com (CRM) is another cloud name acting the same as VMware (VMW). The sector needs some time to repair, but this is one of the stronger names.
Banks have been very weak, largely due to the foreclosure crisis that threatens big losses due to repurchases.
Goldman Sachs (GS) is the strongest in the group but is still hard to trust. It's had a small three-day pull-in and is worth a look versus Friday’s low of 150.60 (for an 80-20 trade).
Bank of America (BAC) stopped us out at 12.90ish, and looks to have heavy exposure to the foreclosure fiasco. A report from Branch Hill Capital said the stock price could be halved in a worst case scenario, so I would avoid BAC altogether right now. I would only be interested in a small buy if there was extreme capitulation.
General Electric Company (GE) -- I caught the trade from $16.50 to $17.30 trade, that’s all I wanted for a cash flow trade. It will need a lot of time again to set up, but should ultimately get back the to $19.50 area.
Wynn Resorts (WYNN) had a big move for me through 93, and now it has an big bull flag at 103-105 that could trigger another trade to the 110 area. After such a strong run, I'll take the trade in smaller size.
Las Vegas Sands (LVS) is hard to trust up here, but as long as it continues to trade higher we won't fight the trend. As we extend higher, each trade we take we'll take quicker profits and size down.
MGM Resorts International (MGM) blasted people as they did a surprise secondary offering around 12.65 that didn't get supported. I took home a little on close Friday, and I will load up if it can get back to 10.55 in the next day or so.
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