Scale 'em and Trail 'em is a term I use after you enter your positions and the stocks breakout of sound price patterns! Last week there were a ton of entry points in every stock and sector--and even the indices to--the questions now are: how long will you hold them? What time-frame are you trading? And can you fade some stocks into big resistance in a calculated fashion without getting run over?
The S&P:
Last Monday the market was wedged up with volatility contracting. The time to enter long was on the breakout from the wedge through 1,110-1,115. We are now ready to tag the old highs of 1,150. The market is very overbought, so the next few days could be tricky. As long as we hold above 1,126-1,130 I do think we will tag those old highs sooner rather than later. I would put big odds that we hit 1,175-1,185 before we test 1,100 again. This momentum could continue into Mid-April to early May.
Tech and the Russell 2000 made new move highs first--THIS IS THE WAY IT SHOULD PLAY OUT!
Sector Rundown:
Tech:
- Apple (AAPL)--not much to say. I listed it as a buy at $210.50, then again at $215.50 and said to turn off your computer and wake up Monday morning to sell this above $220. Sure enough, it's $220.50ish.
- Amazon (AMZN)--this also triggered above $121, and again at $127. Now it looks to have big resistance in the $131-132 area, so no clear cut entries are left for now.
- Baidu (BIDU)--we have a new pivot on place now. There could be an entry at around $525.50, but it's a tough entry as we stair-step higher.
- Google (GOOG)--big 5-day move from $520 to almost $567. Big resistance checks in at $570-575. I would not be a buyer up here and might even look for a micro short.
- Research in Motion (RIMM)--was upgraded today after showing some relative weakness on Friday. Maybe this will get the stock going. $71.80-72.20 is a big area to watch.
- Intel (INTC)--THIS MIGHT GET ITS ONCE A YEAR MOVE ON! I would be a buyer above $20.90 and add above $21 if it holds on a 60 minute basis. We should see new move highs VERY SOON HERE!
- VMWare (VMW)--this is my stock of the year. It's very stretched right now. If you're holding it long-term sell some calls and collect your premium, as it can use a rest.
- Cree (CREE)--it look a little 5-day rest last week. Not sure if it's letting the market catch up, OR if it means a big more of a correction is coming on a break of its upper levels. Wait and see here.
- Intuitive Surgical (ISRG)--stills needs to rest a little bit.
- Each bank stock is taking turns setting up.
- JP Morgan (JPM)--was the first to go, then had a nice flag pattern Friday which helped tack on some gains. Now it needs a rest.
- Wells Fargo (WFC)--I had a buy price last week and it performed great through there. Now this too needs rest.
- Goldman Sachs (GS)--finally woke up! This gave us a great two-day move off of the $160 buy price. It closed over $167 and now can use some time.
- Visa (V) broke out on Friday and should continue through Friday's high of $88.56.
- Mastercard (MA) was a better trade Friday as it entered its earnings gap. There's still room here.
- Las Vegas Sands (LVS) - MGM (MGM) - Wynn Resorts (WYNN) all look like slow holds for the next few weeks.
- U.S. Steel (X)--does not stop (got hurt a bit testing out a micro short) and now it's been upgraded at Goldman. We put a buy on it at around $45 and now GS upgrades it at $60--earning their paycheck!
- Freeport McMoran (FCX) is also extended but not stopping.
- Gold (GLD) took a few days off. It can get going again. The area to watch is $111.80-112.10 for a momentum long.
- Oil is presently overbought and needs to hold $80 for a bit before it makes new highs on the year.
CAGC, TSTC, CAAS, VIT, RINO, etc.
I would put the 10-day moving average back on your charts as most market leaders ride it very closely in these momentum up-moves.
Hope everyone had a nice weekend!
