Tuesday, January 15, 2013

Daily Analysis and Stock Ideas for 01/16/2013

Daily Analysis
In yesterday's note I mentioned we might see some range expansion today. We did see wider range in the market with a gap down and a slow move up all day, forming a nice bullish engulfing candle on the SPY. Action definitely was Bullish going in to key market day tomorrow. Both GS and JPM have earnings before the market open. Financials have been leaders in this last bull rally, so the earnings from these two companies should define the action for tomorrow. I closed some of the long positions into close today to de-risk my portfolio and if we gap up tomorrow, may close some others. We are nearing the 148.11 area which was 2012 high for S&P, so expect some resistance there.

Had nice run in some of my holdings today -
SPLK - Up almost 7% of the day. I closed my position for nice $4+ gains.
DECK - Up almost 7% as well. I closed 1/2 pos for $4 gains. Holding 1/2 to see if we can break the wedge and head to 200sma at $45 level.
ARNA - Up 5% today. Closed my position at 10.80 from low 9s.
UPL - Up 3.5% today. Holding from 18.25 level.

Closed my position in Z for nice gains as well.

JCP and KSS had a nice day as well. My b/e on JCP is 19.40 level and KSS at 42.05.

RIMM had an inside day. Holding with stops just below $14.
CF down day. Holding with stop at $215 which is above my entry point.

I was stopped out on YELP at b/e. It tanked on FB annoucement.

Added to ANN at 32.80.

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 - Still looks very weak. If the market wants to push higher Tech has to recover.
Retailers -Got a very nice bounce day. KSS, M, JCP all seeing great action. Look for follow-thru.

Trade Ideas -
I'm expecting a bounce in Techs soon led by AAPL. If we start to see the bounce, i may enter AAPL or one of the derivatives like QCOM or BRCM. Here are some interesting charts for tomorrow.

BRCM- Basing nicely below the long term trend line. B/o coming soon. Use 20day as stop. One of the AAPL suppliers so should see bounce of AAPL bounces.

DECK - Look for continuation.

PANL - Looks like a decent bounce play.

 IBM -  Looks set for a bounce. But earnings later in the week.

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