Retail Is Strong As Traders Shop For Ideas

Scott Redler

Futures are basically flat as Europe has some green arrows. Japan tacked on another 0.07% and China is green, sustaining a nice three-day move. The U.S. has the Dow Jones Industrial Average (INDU) at 15,000+ and the S&P 500 (SPX) at 1,600+ and there has been a ton of stock movement.

The upper range in SPY has micro-support at $161.40-$161.60, with gap support at $161.04. Pivot resistance is now $162.65, as the stair-step process continues.

Banks have been my focus this week as they finally got active again.

Wells Fargo (WFC) broke above 2013 highs and is ex-dividend today.

JPMorgan (JPM) finally woke up yesterday. It could see some momentum if it can get and stay above $49.65ish.

Citigroup (NYSE:C) closed at 2013 highs.

Bank of America (BAC) touched above $13 yesterday after giving us additional entry around $12.41, and could be on the path to $14-$16+ this year.

Goldman Sachs (GS) has been a bit hard to trade intraday as it's a bit lethargic. Holding above $147.50ish could keep some traders involved.

Retail still looks good.

Target (TGT) is consolidating well. It needs to get above $71 for an additional breakout move.

Walmart (WMT) is also hanging above its 8-day moving average and needs to get above $79.50 for more momentum.

TJ Maxx (TJX) is extending into 2013 highs and looks good.

Under Armour (UA) has a nice set-up above $58.15 that could also get going.

Ross Stores (ROST) also looks like it could be on its way back to $70.

Tech continues to be mixed.

Apple (AAPL) continues to show commitment to its move since earnings. The longer it stays above $453ish, the higher the probability the stock will get an additional trade up to $470, then perhaps the 200-day MA at $500+.

Google (GOOG), after a tremendous move, gave some a cute short on the open. But overall, the dip is better to buy here, in my opinion. Holding above $844ish for a bit could set it back up.

Yahoo! (YHOO) made another 2013 high yesterday. Trim and trail at these high points.

eBay (EBAY) is trying to stabilize at a lower level. If it can stay above $53, some traders might look for a trade above $54.15.

Amazon (AMZN) is also trying to stabilize at a lower price. If it can stay above $253, there may be a cute cash flow trade above $259.74, but then it has some resistance at $263.

Microsoft (MSFT) needs a rest after a monster move. Let the 8-day play catch-up, with support at $32.87ish.

Intel (INTC) still looks great. The 8-day just caught up and now it could go again if it clears $24.25.

LinkedIn (LNKD) has been in the penalty box since earnings but has held the post-report low trade against $173.72. It has some room back to $184ish if it wants.

Facebook (FB) still frustrates many. After a nice post-earnings day, it fell apart. It should never have closed below $27.70ish if it was going to be different. I haven't touched it since earnings, but I might take a peak today, using $26.85 as a potential "Red Dog Reversal" action area.

The Oil ETF (OIH) has had some flows come its way in the last two weeks. This sector regained all its moving averages and extended through $43, and now it's extending. I'd let it breathe a bit.

Treasury ProShares (TBT) have been a bit better since Friday's Jobs Report and still has room to go to about $63.

Metals continue to frustrate most as this intermediate channel is very random. The Gold ETF (GLD) has support at $139.37 and resistance at $143ish. I'm staying away for now.

So far this year, the S&P has seen four big pivots that allowed traders to make adjustments, whether they were bullish, bearish, or just trading. They were:
1) 1474 on January 17.
2) 1530 on March 5.
3) 1573 on April 11.
4) 1597 on May 3.

Ask yourself how you handled each area and be honest with yourself. That's the only way you can grow and tweak your approach.

*Disclosures: Scott J. Redler is Long: WFC, ROST, JPM, TGT, UA, BAC. Short: SPY.