Markets bounced around in a choppy trading session today, but posted the third straight day of gains. Equities rose after a stronger than expected increase in July durable goods, faded mid day, but then rallied again to close on highs. SPY closed the day up 1.41%. Technically speaking, it was constructive action to build on yesterday's gains. Traders and investors are still waiting to see what the results will be from Bernanke's speech and whether he could being laying the groundwork for QE3.
AAPL was a good negative to positive trade this morning. Yesterday AAPL had a strong move to the upside and played by the rules this morning when it went from negative to positive and pushed higher. AAPL was a buy above $364-$367 with a target of $375-$378. That target was reached today as the high of the day was $378.96. It is important to take trades. It would be constructive to see some sideways action in AAPL before breaking out of the upper wedge pattern.
The banks actually helped the markets today for the first time in months. That does not mean get aggressively long, however it is something to note. JPM is acting best in the sector. Yesterday it gave traders an 80/20 entry ($33.35) once it traded back through the previous day's low. The stop was $32.31, which was the current low of the day. 80/20 trades give calculated, strategic entires when stocks become over extended on the short side or the long side. Today JPM extended on the previious day's gains, closing up about 3.9%.
RIMM Is highlighted as a buy through $27.50-$27.80. This stock has been hammered on the downside this year, but it had surprisingly held up decently after crossing the mini downtrend line at $25. RIMM is a laggard play, but that doesn't mean you can't make cash flow when it sets up. Something to note, this is the first time RIMM closed above the 50-day moving average since April of this year.
LVS gave traders a gap fill play today after a few days of consolidation. It is trading below the 200-day moving average ($44.45).
SINA showed relative weakness to the market today as it closed down 4.52%. It is still trading within the marco wedge and the range is getting pretty tight on the daily. This should resolve soon.
It was a large down day for precious metals, as investors take profits ahead of the Fed meeting in Jackson Hole on Friday. GLD and SLV were targeted on the Morning Call for follow through trades below the previous day's low.
If you took the short trade today through $177.50, look to cover as the next support area for GLD is the 21-day moving average at $168.50. This down move was fast and furious, however when you are in the right trade, you get rewarded. Margin requirements have been raised which is contributing to intensity of the sell-off.
SLV was weaker than GLD. SLV closed down 4.43% whereas GLD closed down 3.39%. Avoid the lagging metal for now.
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