Are Stocks Being Pinned for Quadruple Witching Options Expiration?

Scott Redler |

S&P futures are up 7-9 handles this morning, going for the 4th day of this rally. There isn't much new to report on the news front, which is probably why the futures are higher. Overseas markets followed the US gains, and there are no new developments in the Greek debt saga. S&P resistance to watch if we can get there stands at 1198-1202, and then the recent highs of this range around 1225-1230.

Gold (GLD) is opening below yesterday’s lows and starting to resolve this upper range to the downside. The trade is a bit frustrating considering most were trying to short yesterday, but were squeezed out in that late afternoon surge. Next Support for GLD is $174.45 and then $171.75.

I am going to repeat the list of stocks triggers and targets from yesterday's morning call, because they are still just as relevant today. Not much has changed except most are in motion and it’s up to you on how much size you want to hold given that we are heading into resistance and this is the fourth up day in a row.

The "Go to" list continues to give great action.

Apple Inc. (AAPL) I’ve pounded the table long on this one for years but more recently as a buying opportunity after Steve Jobs' resignation. There is now a big Macro Wedge that it will try and resolve for a move back to new highs. THIS STOCK NEEDS HEAVY VOLUME AND A CLOSE ABOVE $388-$392 for it to trigger that move. This can tell us a lot about the market. If this can sustain a move like that and not push through and fail, perhaps it will show us that the Bulls will have more traction in coming weeks.

Amazon.com Inc. (AMZN) has been a rock star. The first to go green on Monday pointing the way to the market’s reversal. It now has another pivot to overcome $219-221 is the spot that could create more momentum here. Same story as AAPL- can it break out and hold? Bearish tapes usually use break outs as a opportunity to sell.

SINA Corp. (SINA) cleared it’s Macro Wedge Tuesday but came off a bit yesterday. It has room to $118-122 if you are still long it.

Baidu.com Inc. (BIDU) perked up a bit yesterday after lagging on Tuesday. Watch this today to see if it can play catch up to some stronger tech stocks. Above $145-$146 and it can get moving for a move back to $150+.

Google Inc. (GOOG) is very sloppy but trying to set up a lower area to use as a spot. A nice cash flow buy can be through $532-53.

Netflix Inc. (NFLX) is not acting well- but it can see a move back to $220ish to test the gap and the moving averages that are curling down into it.

VMWare Inc. (VMW) nice cash flow trade on Tuesday through $90, with some strong follow-through yesterday. It may need some time to rest, but the next trade is a break of the $95 pivot.

Intel Corp. (INTC) thanks to ALIX for uncovering this one. It has provided a rare three day momentum move – but now could use a rest.

Microsoft Corp. (MSFT) had a conference yesterday and responded well. It's another tech stock with a nice pivot.

Casinos

Wynn Resorts Limited (WYNN) true leading stock in the casino group gave us a nice trade Monday but was relatively weak yesterday. The pattern is getting tight, and if it resolves to the upside could take WYNN back to near highs.

Las Vegas Sands Corp. (LVS) great trades lately and has a huge high level channel that it’s trying to bust out from. This stock should see new highs this year- we’ve talked numerous times about it getting frisky above $4.

Agricultural group looks okay

CF Industries Holdings Inc. (CF) just pulled in off highs and could be worth a look around $177.

Potash/Corp./Saskatechewan (POT) is sloppy and needs time.

Deere (DE) has room to the $80 area.

Caterpillar (CAT) has been weak lately, we need to see if it can ignite though the moving averages of resistance in front of it.

Retail

Target (TGT) is acting better, but it needs to clear $52 for a big move higher.

Lululemon Athletica (LULU) absorbed the lowered guidance- and still acts well.

Abercrombie and Fitch (ANF) is trying to clear $65 with some room to $68.

LinkedIn (LNKD) woke up yesterday and guys made money there Tuesday, but it stalled out yesterday. $89-90 next important zone.

Green Mountain Coffee Roasters (GMCR) tried to make new highs Tuesday but came off and was weak again yesterday. Probably an avoid for now.

Gold (GLD) is trying to sustain this upper area, it’s under the 10 day but trying to hold the 21 day. If GLD gets below $175-$176 it can see a move lower which would probably give more upside to equities. I’ve been suggesting tier one long here since 2008 usually. Sometimes even tier 2-3. Now is a complicated time for it. Buy above $179.50 for a cash flow tier. And be careful it if breaks $175.

This is now Day four of the rally from Monday’s lows. Don’t get overexcited at this stage. Market still isn’t sure if we can get real traction, but some stocks are definitely doing their own thing. Take profits and keep looking for the right set ups. Things could act peculiar into quadruple witching on Friday.

*DISCLOSURE: Scott Redler is long SPY, AAPL, LVS

This material is being provided to you for educational purposes only. No information presented constitutes a recommendation by T3 LIVE or its affiliates to buy, sell or hold any security, financial product or instrument discussed therein or to engage in any specific investment strategy. The content neither is, nor should be construed as, an offer, or a solicitation of an offer, to buy, sell, or hold any securities. You are fully responsible for any investment decisions you make. Such decisions should be based solely on your evaluation of your financial circumstances, investment objectives, risk tolerance and liquidity needs. Visit the T3Live Homepage, Virtual Trading Floor, and Learn More About Us.

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Companies

Symbol Name Price Change % Volume
DE Deere & Company 101.28 -1.42 -1.38 1,739,054
CF CF Industries Holdings Inc. 28.26 -0.47 -1.62 2,297,186
COTY Coty Inc. Class A 18.01 -0.07 -0.39 4,814,253
BIDU Baidu Inc. 161.50 -1.58 -0.97 1,251,239
INTC Intel Corporation 34.05 0.29 0.86 13,296,792
AAPL Apple Inc. 109.52 0.03 0.03 16,298,877
SINA Sina Corporation 70.11 -2.04 -2.83 1,602,109
LVS Las Vegas Sands Corp. 61.19 -0.99 -1.59 2,559,866
POT Potash Corporation of Saskatchewan Inc. 18.11 -0.09 -0.49 2,468,846
TGT Target Corporation 78.11 0.29 0.37 4,345,596
VMW Vmware Inc. Class A 78.50 0.46 0.59 747,197
AMZN Amazon.com Inc. 739.42 -4.23 -0.57 2,408,982
GMCR Keurig Green Mountain Inc n/a n/a n/a 0
LNKD LinkedIn Corporation Class A 195.20 -0.11 -0.06 978,686
GOOG Alphabet Inc. 746.09 -1.83 -0.24 913,886
LULU lululemon athletica inc. 56.06 -0.48 -0.84 1,676,670
NFLX Netflix Inc. 118.91 1.69 1.44 5,367,792
ANF Abercrombie & Fitch Company 14.44 0.18 1.26 1,779,355
CAT Caterpillar Inc. 95.14 -1.10 -1.14 2,977,283
MSFT Microsoft Corporation 59.16 -0.05 -0.08 13,584,321

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