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Minyanville's T3 Morning Market Call: Nasdaq Higher, Dow and S&P Lower After Apple Earnings


US stock futures are mixed on Wednesday morning, with the Nasdaq set for a higher open on the heels of Apple's impressive quarter.

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US stock futures are mixed on Wednesday morning, with the Nasdaq set for a higher open on the heels of Apple's (AAPL) impressive quarter. The Dow and S&P appear headed for a lower open, following overseas markets lower.
Apple handily topped EPS and revenue estimates last night, rebounding from its first earnings miss in 12 quarters when it last reported. Driving the impressive growth was blockbuster sales of the iPhone 4S. The company didn't even bother to change the design of the phone in the much-anticipated pre-holiday release, but that didn't deter 37 million people from buying it.
The stock is up over 7.5% this morning, and now becomes once again the most valuable company, by market cap, in the world, surpassing Exxon Mobil (XOM). With the strong quarter, Apple also holds cash reserves just shy of $100 billion. Traders will be watching Apple closely today, with the stock often seeing some profit taking following post-earnings gap-ups.
Tugging in the other direction this morning is continued anxiety over Greece. Private creditors and European finance ministers are trying to work out a deal on Greek debt, but so far remain far off in negotiations. The March 20 deadline looms as the potential day of a Greek hard, disorderly default.
President Obama delivered an impassioned State of the Union last night, focusing on the economy and reforming tax code to bring jobs back to the United States. The president is at his best when campaigning, and that is exactly what Tuesday's speech was: the first message in what will be a long campaign season.
Traders will also be eagerly awaiting the Fed rate decision at 2:15 p.m. ET. The FOMC is expected to keep rates the same and forgo any new monetary policy, but the possibility always exists that the groundwork will be laid for QE3. Economic data in the US has improved over the past few months, which should discourage the committee from taking any further action at this time. Recently, we have seen the market sell-off following uneventful rate decisions.
Technical Take
Yesterday the markets continued to hold this accelerated uptrend. We now have a clear-cut 4-day support area to trade against.

I will use the SPY to outline support levels. The $130.60-130.80 zone is the upper flag support that remains intact. A 60-minute close below this level and we could get the 10-day at $130.26. A daily close below this and the accelerated uptrend comes under pressure. A small spot beyond that is $129.70 but a more major area coming in stands around $129. The 20-day moving average is $128.40
The market continues to reward participants who look for the daily setups both long and short. Each day a new opportunity presents itself.
Apple -- very, very impressive quarter on all fronts. Last night it opened around $460 and sold down to as low as $447. Sometimes they try and "sell the news" on Apple. I would wait the first 15 minutes to get tradable pivots. I did take January 425 calls, and I will sell some around the open and then see the composure before closing out. I will also focus on it on today's radio.
Yahoo (YHOO) was a basic non-event. The company needs a buyer, that is the only solution. It seems more likely to sell now with Jerry Yang out of the picture.
Amazon. com (AMZN) should be interesting today. After four down days it found some support. Above $188 perhaps you might get a continuation trade.
Google (GOOG) is still in this lower pivot. Some made cute money shorting $581.70 yesterday, but you had to be perfect. It still needs time.
VMware (VMW) acted very well after earnings, and the cloud stocks are getting a bit of mojo back.
F5 Networks (FFIV) had some nice continuation yesterday above the $122 momentum entry.
Microsoft (MSFT) still needs time to consolidate.
Intel (INTC) had a very impressive three-day move into highs.
Broadcom (BRCM) has nice bull flag and can see higher prices above $35-35.50.
Sandisk (SNDK) has a huge upper base, and has been under accumulation/basing since October 2011. It feels like its numbers will be good this quarter, especially with Apple's results.
US Steel (X) tried to get going yesterday. I would see if you can add from negative to positive and then through yesterday's high of $29.12.
AK Steel (AKS) had a lukewarm report but went positive.

Banks hang in well but will need to handle some downgrades.
Goldman Sachs (GS) was downgraded just as it looked ready to add some momentum. The $106 area is support, then a big level to keep constructive would be $103.50ish,
JPMorgan (JPM) is holding in well and could continue if it stays above $37.
Oil Service ETF (OIH) is holding above the recent tier 2 add on entry. The dip was buyable yesterday. With more time, next momentum entry could be $124-125.
Schlumberger (SLB) is looking good. It has a nice upper flag, above $75 and it can see $77.16 pretty quick.
Halliburton (HAL) ended okay and with more time has a pivot level at $37 for higher prices.
Occidental (OXY) hangs tough and needs to clear $102-103.

Casinos still look great
Las Vegas Sands (LVS) is leading the charge. It was a nice scoop on the dip yesterday. $48-50 is a HUGE area that it has not been able to get above and close above. Perhaps this quarter will be enough.
Wynn Resorts (WYNN) is not leading but has a nice setup. I will look long here with a $119.50-120 buy price. Next level is not until $128 and then $134.
Lululemon Athletica (LULU) looks good. Above $62.60-63 and it should see new highs.
Crocs (CROX) has a gap to be filled above $19.35
Sears (SHLD) still looks lower. I have a little short left that I will try and cover $43-44.
Broadvision (BVSN) was a wild ride but worked out short. I might add below $32 for a move to $27-29.
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Scott Redler is long SPY, DIA, XLF, WMT, LULU, CROX, LVS, DNDN, X, VXX, AAPL calls. Short DIA SHLD BVSN.
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