Scott Redler of T3Live.com
The INTRADAY ACTION SUCKS!
Gap ups with no intraday follow-through is not fun for the active trader. Last Thursday we were down 175 on the Dow and closed down only 100ish. Yesterday we were up 175 in the first 20 minutes and proceeded to close well off the day’s high. There’s not much we can do about the action as intraday traders other than to STAY IN CONTROL–if you do not, you risk serious trouble. Stay disciplined and patient and increase selectivity in pursuing your trade opportunities.
All in all, not much changed from yesterday to today.
- Big cap tech is still the place to be–GOOG made new highs yesterday, BIDU continues to hover right below its momentum buy area of $439-440, and AAPL was a nice trade through $205 and is once again bumping up against the $208-208.75 buy zone. AMZN also continues to be a monster–there are trades, just fewer and farther between right now.
- Banks continue to act horribly–every time you think you can trust them, they then frustrate you even more, convince you to flip short and then don’t go down. This means we should stay away until the action improves (although BAC has been acting relatively well).
- I sent out a note that GS perked up a little bit yesterday–that lasted for about 30 minutes before price faded lower (sorry for that). I personally think they want buyers to stay away from the stock for now in order to stay out of the news–but that’s my little conspiracy theory. Below $170 might be tough to ignore should the stock accelerate through that area to the downside.
- As of now, BAC looks fair at best–it needs huge volume to trade through our $16.40-16.60 buy area–however, should GS break $170, all bets are off.
- Oil still cannot hold, meanwhile, the OIH looks particularly vulnerable–is that a sign of things to come? Wait for price to break out of the channel before getting involved.
- Gold is great! The macro tier continues to soar higher–all the while providing some cash flow opportunities. I would watch $114 in the GLD for a quick short–just to fill some of yesterday’s gap down to the $113.50 area (all the while remaining in a core macro long).
- The Agricultural group did a push-through failure yesterday–they could use a few days of rest after the recent massive move.
- Lots of retail numbers will be coming out soon–I don’t really trade them, but with Black Friday looming, they could be market-movers.
The S&P is back above 1,100–let’s see if we can stay above there and close above 1,113—that would open up a move to the 1,125 area/50% retracement level pretty quick.
