Monday, December 3, 2012

Daily Analysis and Trade Ideas for 12/04/2012


Daily Analysis
The markets opened sharply higher on the day. Positive economic news out of China coupled with Fiscal Cliff optimism did the trick. This level hit today coincided with a major gap fill at142.78. I think this may be a near term high on the market. Many stocks have rallied significantly and are now ready to pull back.  We also broke SPY 141.68 level intraday which has been is acting as strong.

SPY support or resistance levels.
SPY resistance -    141.68, 142.25 142.75 (gap-fill), 143.09, 143.55, 144.40
SPY support -   140.40 139.05, 138.50, 137.55, 136.66

Sector watch -
Technology - FB and AMZN look a little overextended. That’s why I jumped on these as soon as I noticed weakness in the market.
Financials – Look weak.
Homebuilders - Showing some signs of reversal.

Trades today -  
NFLX – Stopped out at 80.40. This one was really weak. Could’ve been a nice short.
CIEN – Took profits at 15.30. +0.20.
YOKU – Closed position for 0.50 loss.
SWKS – Closed position at 23.75 for +0.75.
FB sold my second ½ at 28.10.
FB entered short and closed position at 27.55 for +0.55 (It had a nice selloff last ½ hr). Will look to reshort tomorrow.

Swing Trade update -
TNGO - Still holding long. It needs to break 13.43 area.
AAPL 1/2 pos from 513,  Nice to see it recovered early morning losses. Still holding and expecting 600 level soon.
AAPL also entered long at 590.  Holding long with 572 stop.
TSLA - Still holding 1/2.
FSLR - Holding.
YHOO - Sold second 1/2
SRPT - Entry at 29.70.
ESRX - Entered long at 53.75.
SHLD - Entered 1/2 pos long at 41.65. Stop 40.

Some of the old ideas -
MLNX short idea worked to perfection. Target 67 hit today. Would’ve made nice $10 if I had taken the trade. Oh well.
GMCR from yesterday’s watchlist had a nice run today.

Trade ideas: - 
AMZN – Short. I’m in this from 251.30.
C – Short on break of 34 level.





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