(INDEXSP:.INX) futures are up six to eight handles so far this
morning amid some green arrows around the world. Most European
markets are up about 1% and the
(INDEXNIKKEI:NI225) continues to lead the charge in Asia with a
2.5% gain. In my
June 13 CNBC Asia appearance
, I shared my view that the 20% pullback in Japan could be buyable.
With another higher open looking imminent, could we see another
"gap and nap" today?
Yesterday our markets had some nice follow-through (pre-market) to
Friday's close above the 50-day moving average. Many of the
high-beta names that held up best during the June corrective phase
are leading the charge now, which is why we embrace corrections to
help us identify relative strength. Another very promising
divergence on this bounce has been leadership from the
(INDEXRUSSELL:RUT), which is evidence of healthy risk appetite.
Our trading oscillator that flashed extreme oversold levels of
-70ish on June 24 is now reading +50ish, which means we are a bit
overbought. We have some resistance at yesterday's high of 1644,
and then the next level is 1652-1654.
High beta tech keeps taking turns.
) held in very well during the corrective phase and then broke out
impressively yesterday. The last two technical action areas were
$272 then $285ish.
) also held its 50-day MA during the corrective phase, and we
listed it with a potential long action area at $891ish. GOOG still
) is often a tricky stock that confounds fundamental folks, but
often generates momentum at new highs.
) is working higher and looks good. We listed it with an action
area at $184ish.
) is having a tough time here and needs to hold $25.40ish to stay
(FB) is trying to act better but perhaps needs to blast through
$25-25.08 to get some better movement.
(AAPL) weakened yesterday after some reports of slower iPhone 5
production schedules due to sluggish sales. Most short-term
technical traders likely got stopped out around $415ish, and this
remains only a B play, if that.
Elon Musk Watch:
(TSLA) is up more than 3% this morning on news that it is replacing
(ORCL) in the
(INDEXNASDAQ:NDX). TSLA also will be added to a handful of
. It is a stock we've highlighted consistently over the last few
months as one of strongest stocks in the market. T3 Live Editor in
Chief John Darsie began highlighting it in the low 40s prior to the
start of the big move. It hasn't closed below its 21-day in three
months and also absorbed a negative valuation call yesterday.
Fundamentals aren't driving this move, the mechanics of the stock
are. The heavily shorted stock, as we have said previously, has the
ingredients for a potential move to the $140-160 area.
(SCTY) is acting better since it absorbed the IPO lock-up
expiration and announced the new projects with
(WMT). It seems like at some point this year it could be back at
2013 highs. The $41.50ish level is next technical buy area. I'd
rather be long these Musk names than short them.
Oil and refiners have been perking up a bit.
United States Oil Fund
(NYSEARCA:USO) has seen a nice run since the breakout of the
downtrend resistance at $34 on June 27, clearing some resistance
levels on the way up. Next major resistance is $37.17. A break and
close above this level could bring in some buyers.
(OXY) has been hovering around its 50-day for the past two weeks
and started to look more compelling at this level after building a
base above $89. Next resistance is standing at $93.50, and then the
pivot highs of $95.57 above that.
(BHI) briefly broke below its 200-day but quickly got back above it
on June 25, and since then has seen a win streak that pushed it
into a key resistance level at $49. A break and close above this
level could lead to another leg higher. After that we have $51-53
as the macro breakout level as the stock has been basing at lows
since October 2011.
(HAL) has started to look better as it's trading back above all key
moving averages. A break above $44.50 could lift it up to retest
the current year's high of $45.75 as this could be its first stop
to the upside.
Select retail stocks look good ahead of the retail sales number on
(TJX), after holding the prior breakout level of $48.80 during the
last pullback, has seen a nice comeback and is already near highs.
The $51.83 level marks the next breakout level, and a move through
this with some volume could trigger a run to new highs.
(GPS) held in well during the last pullback as it put in a higher
low at $40. After that, it quickly reclaimed the support of all key
moving averages and has been making new highs during the past few
sessions. Look for potential continuation above yesterday's high of
$43.83 as the stock looks like it could still go higher.
(TGT) held its 100-day MA during the last pullback, showing some
commitment. After that, it quickly got back above all key moving
averages and just saw another push higher into some resistance at
$71.25 yesterday. The stock closed on highs, signaling the
potential for some upside follow-through. Next resistance is
standing at $72.77 from the historic highs.
Metals basically held last Friday's low and are still building
lower level bases. The resistance levels for for gold
(NYSEARCA:GLD) and silver (NYSEARCA:SLV) are $121.75 and $19.19,