Around the world the rally continues. Europe was led higher by telecom. China is up 1.95% as Premiere Li said 7% GDP should be supported, giving some hope that the BOJ will stimulate. Japan is back at eight-week highs and it's only 5% off the highs from this past May.
S&P futures are up 2-4 handles after a very lethargic day yesterday. The Road to S&P 1700 seems to be getting to its exit about a year and half ahead of schedule. I anticipated a little bit more traffic.
The Summer trading environment continues as it's been a very specific stock specific tape. Especially during earnings season, stocks can diverge considerably based on their numbers.
I haven't looked at the casinos as a group a ton recently but I will take a peek in today's Morning Call.
Las Vegas Sands (LVS) reclaimed its 100-day after seeing a nice ignited move up on Thursday. It's now hovering around the 50-day and holding above the break out level of $55.20, showing some commitment. Look for potential continuation above $56.43. LVS is reporting earnings tomorrow July 24th after the close, so it's prudent to wait until the numbers are out.
MGM Resorts (MGM) has seen a nice snap back since the June 24th lows, as it has been stair-stepping higher above the 8-day moving average. The stock is flagging nicely at new highs and looks poised potentially to make another move higher above $16.25. It has earnings on August 6th so there is some time before the report. I still think $18-22 in 2014 is feasible.
Wynn (WYNN) is also acting better even though it still has some selling pressure from the 50-day at around $134.30. The stock saw a nice move up on July 11 which helped it to reclaim key short-term moving averages, then it's been trading in a tight range above the 21-day. A break and close above the 50-day at $134.30ish could set it back in motion.
Caesar's (CZR) saw a nice break out on July 10, then has been flagging above the 8-day since. The longer it holds above $15.50ish, the higher probability we could see some upside follow-through above $16.63. Then it has some intermediate resistance at $17.35ish from the downtrend since March. The company is reporting earnings on next Monday, July 29 after the close.
More recent or upcoming earnings:
Netflix (NFLX) reported second-quarter earnings after the close yesterday of 49 cents per share on revenue of $1.07 billion. Earnings beat forecasts of 40 cents per share while revenue was only in-line with estimates. Stock saw volatile trading as it touched the $240 level. It's down a bit this morning, but it will be interesting if it bounces back like Google has this week
Apple (AAPL) is reporting at the close today. The stock saw a sharp sell-off on Friday which sent it back down to the 21-day at $423.66. It showed little strength yesterday as the stock traded in a tight range to finish the day up 0.32% while it closed below the 50- and 100-day moving averages. Consensus EPS estimates are $7.31.
Broadcom (BRCM) is reporting after the close today. The stock has been hanging by a thread at $32.70-33 area as it continued to get selling pressure from the moving averages overhead. There is also a Head and Shoulders pattern in place that points to potential lower prices if the stock fails to hold key intermediate support of $32.70. The company is expected to report earnings of $0.69 per share.
Panera (PNRA) is reporting after the close today. The stock has a macro accelerated uptrend support since October 2011. It saw a nice bounce off the 100-day moving average on June 24, then has been hovering around the 50-day since as it has some intermediate resistance at the$192-195 area. It's currently holding above prior break out level of $184. A break below this could take it back to retest the 100-day at around $180. The company is expected to report earnings of $1.77 per share.
Some quick hits.
Tesla (TSLA) provided nice movement to the long side off the open yesterday from our listed action area of $120.55 from the Price Point Sheet. The stock then peaked at $126.68 and retraced lower for the entire session to close well off of highs. It still held above Friday's lows and above the 21-day MA, but it might need a few more days.
Biogen (BIIB) (reporting Thursday 7/25 before the open) put in a big bottoming tail yesterday as the stock saw some volatility during trading hours. Overall, it still held above the 21-day moving average that has been providing good support to the stock. It has room to the 52-week high at $242.64.
Google (GOOG) saw some upside follow-through yesterday to close the day up 1.6% after seeing a strong snap back on Friday. The stock is already back above all key moving averages as it closed above the 8-day yesterday. Short-term resistance is $928 from the all-time high.
JP Morgan (JPM) has been acting better as it held above the 8-day and is flagging nicely after seeing break out at the $55.60 area last week. Look for potential upside follow-through above $56.67. MS also worth a look if it clears $27.80ish.
Molycorp (MCP) broke out of its bull flag pattern and gained 7% yesterday. The stock broke above the 200-day. Next obstacle is standing at $7.90ish.
Some Uranium plays, which have been off the radar for a while, are waking up. USEC (USU), a small illiquid name in the sector, had a huge move. I do think Cameco (CCJ) is worth a look out of a lower-level base. If it can get a big volume break above $22.40ish, it could send this in play.
Metals had a nice continuation move yesterday as they've acted better after the capitulation lows of late June. They could use a rest. Gold (GLD) needs to hold above $127ish to keep some fast money in it. That important short-term level for Silver (SLV) is $19.55.
All in all, despite it being Summer time there have been things to do in the market. However, I think the action could get more and more choppy during August leading up to the Fed's September rate decision. Either way, fighting the trend is sure not friendly.
*DISCLOSURES: Scott Redler is long JPM, BAC, MGM, MCP, SODA, CCJ. Short SPY.