Market Comments: Two days of consolidation at a high level could create opportunities long and short. I’d prefer breakouts near daily inflection points as opposed to those in stocks that have not rested. We should be very cautious with shorts.
Long Focus
AAPL: 360 is a big daily consolidation high and in pre-mkt AAPL is above it. So it is breaking out. As we saw last week, a $25 flash sell off is a possibility at any time in this stock so trade it carefully.
- Trade OR breakouts over 360.
- Trade OR reversals over FTP, 359.14, but preferably over the 359.50 or even better 360 levels of support.
X: It’s hard to know if the weak market yesterday held back X on the gap higher. If it moves up I’d follow it.
- Trade OR breakouts over S1, 61.72, better if over FTP, 62.51 which lines up with the last hour high level
- Trade OR Reversals above S1, 61.72
GILD: This has a really interesting daily set up, and it was strong yesterday.
- Trade OR breakouts over FTP, 31.72 preferably over prior days high, 39.01
- Trade OR Reversals over FTP, 31.72
Short Focus
I’ll be watching FCX, AVP, MON, and STT on the short side cautiously.
