The US Stock Market Indices are consolidating near all-time highs, as FANG, technology, biotechnology, and semiconductors start the day in the green. Healthcare and small-cap stocks are higher this morning as well. Energy, crude, gold, and financial stocks are weaker by comparison.
FANG Stocks
Netflix (NFLX) is sharply higher this morning (+/- 6.89 345.00), after a great earnings report. Einhorn announced his fund was short the stock so a bullish follow-through day is highly likely.
- Apple (AAPL) slightly below its recent highs.
- Alibaba (BABA) is searching for buyers pulling back to the 21d.
- Intel (INTC) is trying to breakout
- Facebook (FB) is trying to break out as well. Look to add/get long
- Tesla is higher (+24.30 571.25) in the pre-market session
- Amazon (AMZN) options flow suggests higher prices in store
What’s not to like?
- Nasdaq (/NQ) Futures are green, trading at 9234.00 (+64.25).
- S&P Futures (/ES) is higher as well, trading at 3333.25 (+13.75).
- Russell 2000 E-mini futures (/RTY) 1693.40 (+.7.50)
Banks are a bit disappointing post-earnings, so there is a possibility of some orderly rotation out of XLF, as stocks like (JPM) show signs of slowing. The stock had a stellar run to date.
Energy continues to lag, so we will stand clear of this sector unless we’re looking for candidates to short.
Given the above synopsis, we’ll wait for the opening range before considering any new positions.
Watch list candidates and existing positions, like D.R. Horton (DHI) broke out on Tuesday. Many of these home builders are bullish. Check out LEN.
Unitedhealth (UNH) is trading higher in the pre-market session, as we await the opening bell. Over the past 4 trading days, this stock has given us an opportunity to sell the open and buyback on the intraday dip.
A measured move 284 ~ 300 of approximately (+10 to 16 points) gives a reasonable level of 310 (+/-) if health care stocks continue this morning. The healthcare sector (XLV) broke out to fresh 52-week highs last week.
Finally, the decision to steer clear of index puts yesterday proved to be the right choice this morning. Block trades were pretty significant on Tuesday, with many 2.87 million share transactions going off at 332.14. Price action is well above them this morning at the moment, with SPY trading North of 332.47 (+1.17).
Join us today in the trading room for our LIVESTREAM broadcast
during market hours, as we navigate the current environment. Watch, listen and trade from 9:20 AM to 4:15 PM Monday through Friday.
Happy Trading,
Vinny
Want to become a member? Check details here:
Disclaimer: Do your Own Research
Our content is intended to be used and must be used for informational purposes only. It is very important to do your own analysis before making any investment based on your own personal circumstances. You should take independent financial advice from a professional investment advisor in connection with, or independently research and verify, any information that you find on our Website and wish to rely upon, whether for the purpose of making an investment decision or otherwise. Trades and or positions listed and taken from the watchlist are my own and should not be considered “advice” to enter any particular position or asset.
Investment Warnings
We would like to draw your attention to the following important investment warnings. The value of shares and investments and the income derived from them can go down as well as up; Investors may not get back the amount they invested – losing one’s shirt is a real risk; past performance is not a guide to future performance.
Live Sessions
Live broadcasts are educational in their content. Proper risk management is considered on every trade or asset mentioned.
*** Stocks highlighted are for information purposes only and should not be considered as advice to purchase or to sell mentioned securities.
As always, the use of technical and fundamental analysis is encouraged in order to fine-tune entry and exit points to average seasonal trends.
These mentions are stocks that we may or may not decide to trade as outlined in the watchlist. Always use a stop.