Monday, January 14, 2013

Daily Analysis and Stock Ideas for 01/15/2013

Daily Analysis
Another flat, low volume day in the market. Have a feeling we will range expansion tomorrow, although big earnings don't come until later in the week. Good idea to stay nimble and watch the volume on the SPY in case we drop below today's lows or 146.30 support level given below. AAPL had a nasty day again touching below 500 market in over a year. I think the selloff is overdone. The article in WSJ reporting drop in supply orders is a old news and it is already kind off priced into the stock price. I'm accumulating calls spreads going into AAPL earnings next week. GOOG had a big drop as well. Again, I'm playing it light for now till we break to new highs.

RIMM again had a nice day today. I had mentioned in my last blog that if it closes above 14.20 it may have a possible run towards $17-$18 level, which seems to be in sight now. Today's volume was even higher than Friday pop with over 143M shares traded. RIMM has 32% shorts, so there may be more room to fly higher on this short covering rally. It may need couple good digestion days for next push higher. I'm planning to hold my shares into next week with stop around $14 level.

ARNA had a nice follow-thru day with +5% run. Still holding from low 9s.

DECK had a strong late day rally closing above $38. This may run into 40s quick if the market holds up. I got stopped out breakeven on SRPT. It didn't get the follow-thru I was expecting. Also got stopped out on IBM for a small loss.

UPL ended the day in green. It finally broke the descending wedge. Now looking for move to 20sma and higher.

Bought to open AAPL Jan 25th 535/555 calls spreads at $4. Will hold into earnings.

Still holding CF, SPLK (stop 30.80), Z (forming a nice bull flag), DECK, YELP, EPAM, TNGO, GMCR (stop 38.90), FSLR (stop 30).

SPY levels
Resistance -  147.16, 148.10
Support - 146.30, 146, 145.60, 144.50, 144, 143.06

Sectors to watch -
Financials - Seem to be digestion mode. Pullback looks healthy so far.
Technology - Looks very weak. If the market wants to push higher Tech has to recover.
Retailers - Apparel retails look nice. VFC, KORS had a nice run although LULU gave lower guidance after the bell, so watch carefully of you want to take positions in VFC or KORS.

Trade Ideas -
Some stocks to watch for tomorrow -

VFC - Nice run today. Look for continuation.
KORS - Break the trend. Look for continuation.
Z - Nice bull flag. This may see 200sma soon.
SHLD - Nice pop today on decent volume. Look for continuation.

No comments:

Post a Comment