Actionable Trades: SPY, AAPL, JPM, RIMM, LVS, SINA, GLD, SLV

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.

Actionable Trades: SPY, OIH, MCP, YNDX, LNKD, BAC, GS, MS, JPM, V, RVBD

SPY gapped down this morning as there was no resolution to the debt ceiling over the weekend.  The market took this news in stride and rallied most of the day before selling off into the close.  The chart still looks constructive as we flag in front of resistance, but the action right now is very headline driven. While most expect a deal to get done at the 11th hour, it is important to stay plugged in.  More market leaders have earnings that come out this week as well. Tonight we saw earnings from BIDU (positive) and NFLX (negative).  Tomorrow night we will see earnings from AMZN and LVS.   

Trade Update:  OIH is performing well as it extends from the most recent buy entries.  Today was a spot to lighten up on OIH as it ran into resistance 1 from the previous entries that were targeted. There have been strong earnings reports from some of the companies in the OIH, like HAL, SLB and BHI.  This can continue higher as it's not far off of 52 week highs, but had a nice 5 day move from the most recent $155 buy entry.

MCP was targeted last in last Wednesday's post as it was wedging on the daily chart.  MCP is now holding above the wedge and put in an inside bar today.  Look for an additional add-on buy above $61.  First resistance is $62.50-$63. 
  

          

A recent IPO, YNDX, is poised to make a move soon.  First entry is a close above $37 with an additional cash flow add through $37.90.  $42.01 is the high from the day of its IPO.       

Although there was a negative article out of Barron's over the weekend about LNKD, it never broke below the most recent pivot point of $96.20.  LNKD is holding higher and looks good over $105 and then the most recent high of $110.50.  Watch the price action here, this stock is hard to get a grasp on. 

  

The banking sector has shown signs of life again as they break above downtrend lines and stocks like BAC, GS, and MS have bounced well off of lows.  JPM is trading and holding above the descending trendline.  Look to buy on a dip because if this move has any validity, it should not trade back below the long term descending trendline.  Today, GS showed relative strength versus the market as it was up 1% on the day. 

 

The credit card sector is also performing well.  Visa has earnings this Wednesday, July 27th after the close so it could have a run into earnings.  Look for a momentum play above 52-week highs of $90.83.

 

It is becoming harder to find shorts in this market as it is slightly off 52-week highs, however, this is still a market of haves and have nots.  RVBD posted earnings last week and closed on the lows of the days.  It is now bear flagging on the daily and has had time to absorb some of the most recent down move.  Look for a break of the bear flag at $30.90.