European markets slipped a bit while Japan rips to another high
of the year. Japan is now up an incredible 50%+ since November. US
stock futures are one to three handles as we made another record
high yesterday. Fed Chairman Ben Bernanke takes center stage today;
the Federal Reserve Chairman will offer testimony before the Joint
Economic Committee of Congress, starting at 10 a.m. Will he revert
to his natural dovish self, or will the conversation shift more
At this point the market continues to stair-step higher, and there
is no reason to fight the trend. The bulls have passed every test
at each major pivot so far in 2013. Each pivot on the
(INDEXSP:.INX) (1474, 1530, 1574, 1597, 1636, 1653) required the
bulls and bears to make some adjustments. Recently, the market
hasn't closed below a prior day's low since the May 3 jobs number,
which again is hugely impressive. Let's stay the course until that
tidbit changes. Currently, the S&P upper range has micro
support at 1662 and the 8-day at 1653. Pivot resistance lies at
Tech continues to be mixed as opportunities present themselves each
), which has been best of breed, is trying to create another
flag-type pattern. Yesterday it held its 8-day MA and you can now
use $897 as a level to trade against. The longer it stays above
that, the higher the probability we could get an add-on trade above
$912 then $920.60.
) is also resting after a monster move this year. Recently it gave
us two more trades at $210.50 and $219.50ish; now its hovering
above its 8-day MA that stands at $233.42. If it can continue to
digest, the next upside trade could be $241ish then $248.58.
) seems to have one of the best setups right now as it's been in a
channel for almost five months. If they want to come after this,
the buyable spot it needs to clear on volume is around $272-275. A
close above it would be best.
) was very erratic yesterday as Tim Cook did a good job handling
the questions from Congress regarding taxes. Many thought this was
perhaps Cook's moment where he stepped out of Steve Jobs' shadow a
bit, but it won't necessarily mean anything for the stock. For this
to get more interesting AAPL needs to get and stay above $445.80.
Holding $430ish would be constructive in the meantime. A close
below that level and shorter term guys will lose interest.
Apple: Stock Charts Show It May Be Ready for a
) got rejected at resistance after a nice post-earnings bounce.
Perhaps the 50-day around $54ish could be buyable.
(YHOO) has been a great 2013 vehicle and met most of our targets
already. But that doesn't mean it can't go higher now. YHOO
continues to hold up well, if you're in it, make sure it stays
above the 8- and 21-day moving averages.
(LNKD) has been more of a micro trade as it's been digesting a huge
run over the last year. It's been in the penalty box, though, since
last quarter's earnings. As long as it stays above $178ish, shorter
term folks could stay interested, but overall it's been a bit
(FB) has been very weak and I haven't really traded it since it
failed after last quarter's earnings around $28ish. For those
holding it longer-term, the $25 level is an important area.
(ZNGA) has seen some volume spikes, but needs to clear $3.60ish and
hold above to get better action.
(PCLN) had a monster move then got upgraded two days back and
yesterday was an ugly candle. Some might look for a continuation
short below $824. Use that as a pivot. It's a tricky stock.
Some retail has been strong.
(SKS) is in the news for a potential buy-out.
(LOW) numbers were a bit off; let's see how it handles the report.
(WMT) has been out of play but has held okay since its earnings.
(TGT) had a nice breakout yesterday.
(TJX) has been trading in an upper range and looks poised for a
potential breakout at $51.83 level. TJX has been the best-in-breed
in the retail group. It has provided multiple additional entries
since the rally resumed in November last year. Above $51.83 could
be the next entry.ROST has been consolidating at highs for more
than a month. It saw a nice move up into the resistance at $66.50
yesterday. It needs to stay above that level to extend.
(JCP) is one of those laggard stocks that has started to act a bit
better. It has improved its composure since reclaiming the 100-day
moving average with a nice gap up on May 13. Above $19.50 it could
see some momentum. This is a laggard play with a decent setup.
(DG) has been grinding higher above its 21-day moving average since
it started to get back in motion in February. It has cleared some
resistance levels and could get more upside.
(LULU) tried to clear $82 yesterday; let's see if it tries again
today. The pattern looks constructive.
Although I think the banks have higher prices in their future, we
outlined most of them early last week with nice setups. Now they
(GS) was our focus for additional entries and $151 was great. Now
it's at $160+ and hard to chase up here. Perhaps use $161.73 as a
pivot for active cash flow.
(JPM) has shown relative strength recently since word started to
spread that Jamie Dimon was almost certainly not going anywhere.
The time to buy, though, was around $50, and then at previous highs
of $51. Up here at $53.50+ I would not chase. The $53.67 level is
the pivot resistance now.
Bank of America
(BAC) gave us a few more entries, the best one being recently at
$12.41. Now it's just trim and trail as I think it could see
(MS) played catch-up quickly as that gap on May 3 ignited better
Homebuilders have been leading most of the year. One of my theses
that Jim Cramer highlighted in his
program in January 2012 was the the
(TOL) came out with good numbers today and now needs to get and
stay above $37.50 for it to get more momentum. See if it holds up
or if they sell it.
The solar group is a bit exhausted. Some traders caught cute shorts
there yesterday as many of the solars had outside days. They could
use a rest now, so map out the 8- and 21-day to see what type of
rest takes place.
(TSLA) is digesting monster gains with five controlled down days.
Use yesterday's low of $85.28 to trade against. It needs to get and
stay above $90ish to get momentum guys a bit more interested.
Metals are trying to defend a potential double bottom.
(NYSEARCA:GLD) held $130.50 and then in yesterday's down open, they
held where they had to. This group still has a lot to prove,
though. If today's gap up holds, then $135.26 is pivot resistance.
At this point I think even the bulls would like some type of
corrective activity. We've come a long way, but until we get a
close below a prior's day low, continue to follow the trend and
rotate through long setups.