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.
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).
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