Monday, January 7, 2013

Daily Analysis and Stock Ideas for 01/08/2013

Daily Analysis
Quiet, low volume day today as we go into earnings season. Digestion is healthy for the market as we come off one of the best weeks. We gapped down this morning but held 145.60 support level nicely and drifted up in the late session. We may pull back to 144-144.50 level on this digestion move, so take the opportunity to add to the dips. If we go below 144, I'll start to get concerned.

Zillow had a nice day running up almost 10% before giving up some of the gains. Remember, I have had this one since 28.70 level. Sold 1/2 position at the close and holding rest. FB was strong for most part of the day before it faded a little towards the end. Over $30 it makes a run towards $34. Keep an eye on this one. SNTA from yesterday's watchlist  had a nice move too, but it popped on the first candle of the day and never gave a good entry. My shorts did reasonably well as well FIO was down 5%, CMG was down $4 at one point and TZA still holding with b/e stop. Finally, good to start nibling on the dips here. I added some FSLR at 31.90, JCP at 20.03 and ARNA at 9.12.

One of my earlier picks STLD had nice 2.5% move today. Wish I had held it from 13.69 level. Oh well :)

Sectors to watch -
Biotech did well today. Keep an eye on strong stocks like REGN, CELG, GILD
Financials had a digestion day. Keep an eye on C, JPM, GS for continuation.
Technology - Taking a breather as well for most part. AMZN and FB look the strongest.

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

Trade Ideas
SD - Had a strong move today. Its setting up nicely to move into 7s.

MCP -  Nice strong move today. Looks good for higher prices.

GILD - Looks set for another breakout

WFM - Watch for bounce or breakdown at 87.50.

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