Wednesday, January 2nd Recap
Today's action was pretty tough to trade for the most part. The tape was tight and volume was light, much expected on such a huge gap-up. As we stated on our 2013 Outlook, we are very bullish heading into 2013 and are very excited for what the year has to bring.
The rest of the week may be a little choppy, and I expect retracement in the coming days for the market as a whole. Looking at the SPY daily chart, we can see that we are knocking on the door of the 146.29 high that was put in on September 14th. I expect that it will take a few days, to close above this range, and I foresee MANY buying opportunities by Friday/Monday of next week.
That being said it is imperative to point out the strong stocks within each sector. For the banks, BAC, GS (closed very well today), and C are my favorites. Additionally, the casinos were VERY impressive today. With WYNN, MGM, and LVS acting very well.
The high betas were somwhat sluggish today, but that is solely because of the massive gap-up to start the day. AAPL still looks very well, with a target of 600 in the future. GOOG is my favorite in high-beta land, as it proved to be the strongest this afternoon. Amazon and Priceline both held up well, but I'd like to see a little more commitment in the near future.
Other stocks that I am keeping my eye on:
FB - tested the December highs and looks like we can get to 30 and hold above. Very strong into 2013 and I think it will be one of our strongest.
OPEN - trade this against the 8-day MA, and watch how it acts at the 52.30 area of resistance This looks like it has tremendous upside potential (with a target of 65).
DAL, UPS and CNW in the transports looks very bullish. May take some time, but wait for a controlled pull-back and be patient.
ORCL - will see restistance at 36, but it looks very strong.
ANR was on my Twitter feed last Friday as a stock to watch for a potential breakout. ANR ended the day VERY strong, even though on the day, that red candle looks slightly ugly. Trade ANR against 9.40, with a long term target of 14.
MDLZ - acted well today, something to keep on your watch list. Has A LOT to prove, but a big gap may get filled.
JNPR - while this chart is a little sloppy, this is something you should come back to in a month or so.
MSFT - I'm not a Microsoft fan, and the chart has a lot to prove. But watch to see if the lows were put in last month at 26.
VAR - At ATH's and looks very strong, watch how it reacts at this 73 range. \
AA - one of the leaders in the industrials today. While it has been absolutely destroyed in 2012, it looks like 2013 may be a little more promising. Definitely keep an eye on it.
In conclusion, don't let one day make or break your year. Today was a very tough day to trade and may be indicitive for higher prices. However, I think it may take time to establish a firm bullish trend. Moves like today take time to digest, be sure that you are NOT chasing prices. I guarantee you that there will be more days to come and better prices will be available.
As always, we appreciate the follows. Check us out on Twitter for our mid-day updates.
Stay passionate and persistant,
The ET Team
The rest of the week may be a little choppy, and I expect retracement in the coming days for the market as a whole. Looking at the SPY daily chart, we can see that we are knocking on the door of the 146.29 high that was put in on September 14th. I expect that it will take a few days, to close above this range, and I foresee MANY buying opportunities by Friday/Monday of next week.
That being said it is imperative to point out the strong stocks within each sector. For the banks, BAC, GS (closed very well today), and C are my favorites. Additionally, the casinos were VERY impressive today. With WYNN, MGM, and LVS acting very well.
The high betas were somwhat sluggish today, but that is solely because of the massive gap-up to start the day. AAPL still looks very well, with a target of 600 in the future. GOOG is my favorite in high-beta land, as it proved to be the strongest this afternoon. Amazon and Priceline both held up well, but I'd like to see a little more commitment in the near future.
Other stocks that I am keeping my eye on:
FB - tested the December highs and looks like we can get to 30 and hold above. Very strong into 2013 and I think it will be one of our strongest.
OPEN - trade this against the 8-day MA, and watch how it acts at the 52.30 area of resistance This looks like it has tremendous upside potential (with a target of 65).
DAL, UPS and CNW in the transports looks very bullish. May take some time, but wait for a controlled pull-back and be patient.
ORCL - will see restistance at 36, but it looks very strong.
ANR was on my Twitter feed last Friday as a stock to watch for a potential breakout. ANR ended the day VERY strong, even though on the day, that red candle looks slightly ugly. Trade ANR against 9.40, with a long term target of 14.
MDLZ - acted well today, something to keep on your watch list. Has A LOT to prove, but a big gap may get filled.
JNPR - while this chart is a little sloppy, this is something you should come back to in a month or so.
MSFT - I'm not a Microsoft fan, and the chart has a lot to prove. But watch to see if the lows were put in last month at 26.
VAR - At ATH's and looks very strong, watch how it reacts at this 73 range. \
AA - one of the leaders in the industrials today. While it has been absolutely destroyed in 2012, it looks like 2013 may be a little more promising. Definitely keep an eye on it.
In conclusion, don't let one day make or break your year. Today was a very tough day to trade and may be indicitive for higher prices. However, I think it may take time to establish a firm bullish trend. Moves like today take time to digest, be sure that you are NOT chasing prices. I guarantee you that there will be more days to come and better prices will be available.
As always, we appreciate the follows. Check us out on Twitter for our mid-day updates.
Stay passionate and persistant,
The ET Team