Will Market Continue to Shrug Off Faulty Signals?

T3 Live

Futures are up 2-3 handles as Japan ripped almost 3% overnight. Europe is down a bit after decent gains yesterday. The S&P has been a doing a decent job absorbing last week's breakout. The 1558-1562 level has been upper-level support and today it will be interesting to see how we handle 1570-1576 all-time intraday highs.

Tomorrow we have the ECB meeting, which could be a bit more important with recent developments. Friday of course brings the jobs report, which could be watched closely to confirm recent optimism about the economy. Next week we will start getting some earnings reports. The Banks will be important to watch.

If you were looking to be short yesterday, it was better to short the up open in the Transports ETF (IYT) & Russell (IWM) than look to fade stronger sectors.The question is, will they get real downside or was that it?

Banks have been lethargic but didn't fall apart. The Financials ETF (XLF) is still above the 21-day as some stocks are working towards their 50-day moving averages.

Goldman Sachs (NYSE:GS( is struggling to hold $144.60. That is spot to trade against. A close above $149ish might get it out of harms way for now.

JP Morgan (JPM) just had a two-day bounce but still is under its 50-day which is at $48.60ish. See if it reclaims it.

Bank of America (BAC) has been trickling lower. The stock has been out of play recently. Pivot support is $12.10, below this is the 50-day is at $11.86.

Citigroup (NYSE:C) trickled down to the 50-day. See if it can hold $43.66. If you sold strength above $47ish, you have the luxury to buy this dip. A close above $45 might get this back on track to the upside.

Last Thursday John Darsie did a great job on the Morning Call going through some bigger value names that have been acting well. Yesterday many of those stocks got follow-through as the Dow showed relative strength.

Proctor & Gamble (PG) from our Off the Charts newsletter broke out. That pivot/trigger was $77.75.

Coca-Cola (KO) made new highs yesterday.

McDonald's (MCD) tacked on more gains above $99.78.

Altria (MO) had a big move above $34.50ish.

Disney (DIS) looks good and could continue. The 2013 highs are $57.82.

Nike (NKE) has seen some nice digestion of its earnings. Above $59.40 it could continue.

Tech is mixed, as we have grown accustomed to of late.

Google (GOOG) had a nice two-day move. Next resistance is $819ish. Holding above $808-810 would show some commitment.

Apple (AAPL) had a wild ride yesterday but is still very broken. Take trades here until it changes--pivot support is $426.40 then major support is $419. Resistance stands at $435-438ish.

Amazon (AMZN) is choppy. Intermediate support is $260.50 and pivot resistance is $267.40.

eBay (EBAY) is holding higher after an impressive run. If it can stay above $55.44, then 2013 highs could come sooner rather than later.

LinkedIn (LNKD) is showing some signs of fatigue up here. High level stops should be at $171.60. If it stays above there, sit tight. There could be a better opportunity at the 50-day at $156.50ish.

Facebook (FB) couldn't hold yesterday's gap but still looks decent. There was a ruling by the SEC yesterday that corporate communications can be sent through social networks, which I though was interesting. They also have an event on Thursday. A close above $26.30 on big volume could wake it up.

Hewlett-Packard (HPQ) had a big reversal on Monday which led to a nice move lower yesterday on the GS downgrade. If you saw the RedDog reversal and went short you got paid. I was at the Yankee game unfortunately and missed it.

Yahoo! (YHOO) continues to be a good hold for those swinging it.

Commodities continue lower.

Gold (GLD) tried bouncing off macro support during the past month and failed at the 50-day. The $148-150 level is major macro support. The $161 area was the intermediate spot to make an adjustment out of some longs or to get short. Now Macro guys will have to take a closer look if we see macro support.

This market isn't built perfectly and neither are all of our approaches. Figure out what can work for you and continue to tweak it.

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*DISCLOSURES: Scott Redler is long GE, DIS, NKE, S, BAC. Short SPY.

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