(INDEXSP:.INX) futures are now up about six handles this morning
after the ECB elected to cut its key interest rate by 25 bps to
0.5%. Expectations for such a move had grown in recent days, so it
doesn't come as a complete surprise, but markets are responding
The question today is, did yesterday's sell-off mean anything? Is
it "sell in May and go away" or "rotate in May and stay and trade"?
We will know more on that front in the next two sessions, but signs
are positive so far this morning. At this point there is nothing
wrong with being a bit more light on your feet. If you are very
active you can use S&P 1577-1581 as an upper level pivot, or
the 21-day at 1572. It feels like each group is taking a turn
leading the tape before correcting or resting.
Metals are still choppy and erratic. The $139.30 level is new pivot
support and $143.30 is resistance for gold (
), the rest is just noise for now.
Banks were the first to go down yesterday. See if they can bounce
Tech is mixed.
) had a spirited move after earnings. It held the 50-day moving
average yesterday, so right now composure remains a bit more
bullish. The longer it stays above the $433-435 the higher the
probability I think it could take out $445 for a move to $465ish or
) acts well since earnings. The stock needs to hold above $811-815,
I believe, if it hopes to take out 2013 highs soon.
) is best of breed as it continues to make new highs. We listed
this last week at $178 for a buy trigger then again at $186. Now
it's trading at $195. Earnings are out today; can it deliver
another big beat and gap up?
) reported pretty much in-line earnings. The headlines are
gravitating towards the 30% revenue increase in mobile. The stock
needs to get a 30- or 60-minute close above $28 to get more
interesting. FB is up about 1.5% this morning.
(NFLX) is still hovering above the earnings gap. Use $209.50-211 as
the support pivot to trade against.
(YHOO) has been riding the 21-day MA so a move back to $24ish is a
spot to see if you can buy the dip.
(EBAY) has been hovering below most moving averages with a big hole
in the chart since earnings. If it gets above $53ish maybe you
could get a long. If it gets below $51 it could see lower prices.
(AMZN) did not get a pass from the Street this earnings season. The
longer it stays below the 200-day or the $251ish level, the higher
the probability I believe this can see $225.
(CMG) looks pretty good, but needs to get above $367ish to get more
Las Vegas Sands
(LVS) had decent numbers and now needs to trade and hold above $57
to get more interesting.