Familiar Headline: Europe Worries Weigh on Futures

Scott Redler
September 28, 2012

Futures are down 4-6 handles after yesterday's snap back. The headlines blame it on the fact ECB still wants Spain to ask for funds , that the budget was old news. France outlined its budget. A 75% tax on high earners should motivate those in a position to increase their work force, and continue to put their blood, sweat and tears into their companies (sarcasm).

Yesterday, the markets had a nice bounce back. The S&P stalled right in front of where it recently broke down from (1449-1451). This should be an interesting short-term battleground for both the bullsl and the bears... I do expect the next week or so to be a bit choppy as we consolidate the moves we've seen in the last two months. Overtrading should be avoided. A bit more specific entries and exits will make sense..

S&P micro support is 1440-1442, then Wednesday's low of 1430 and bigger support at 1422-1426. Resistance is 1449-1451, then 1461-1463, with the year's highs at 1474.

Apple (AAPL) was tracking higher last night after reclaiming its 21-day moving average during yesterday's session but is now set for a slightly lower open. Yesterday's move was impressive and provided reassurance for macro holders of the stock that dips can be bought. Sales numbers for the iPhone 5 may have been a little light of wild expectations in the first weekend, but I still think it will shatter records. Yesterday's Red Dog Reversal trade provided a great calculated, low-risk entry that led to a 20 point move.

It was a bit of role reversal yesterday between AAPL and Google (GOOG), as GOOG didn't participate as much in the bounce. GOOG had shown major relative strength this week amid the market pull-in (and is still near high) but looks to be a bit tired.

Today is the last day of the third quarter and like any good coach I like to give my team a little pep talk. If you are not happy with your 3rd quarter performance, or your ear-to-date PnL, it's never too late to make changes to your approach and improve as a trader. Take a look at your strategy, your routine and your psychology. The best traders are the ones who learn/evolve everyday.

*DISCLOSURES: Scott Redler is long AAPL GS LNKD LVS SPY ( a lot less than I entered yesterday with)