It looks like Santa Claus is coming to town. On this shortened Christmas Eve session, Europe is now on Day #5 of its rally, but a tiny bit off session highs. The Nikkei hits another six-year high but fails to hold. Fears are subsiding a little bit in China about their “liquidity crunch” as the PBOC injects $4.8 billion into the system, but the FXI might need more time to sort through these issues in 2014.
The S&P 500 is up 0.20% after U.S. markets closed at another all-time high yesterday.
In today’s Morning Call we go over the action in high beta tech.
Apple (AAPL) had a nice gap and go yesterday to register almost 4% gains after the China Mobile deal finally got done. Now, the longer it holds above today’s gap, with $562ish being the level to trade against, the higher the probability we could go after $575 highs. A close above that and $594 could be in the cards.
Google (GOOG) also had a nice gap-and-go after making a new all-time high on Friday. It looks a bit extended, so some digestion would be healthy. There is no current buy set-up, that was at $1017 or $1072 or even $1092 – not here north of $1115.
Amazon (AMZN) had a nice inside day yesterday to digest the breakout to new highs on Friday. Basing above $396-399 would keep its momentum intact. Above $404.72 and it could make another push, but take some care up here.
Netflix (NFLX) is inching higher above its 8-day EMA. The stock also had a nice move up yesterday and closed above prior resistance of $379.80. You could look for potential upside momentum above yesterday’s high, but it’s not very compelling.
Tesla (TSLA) has been a bit spotty lately but the Model S did get its 5-star safety rating approved. The stock is gapping up more than 4% above $149 on the news and could potentially squeeze further.
Some recent Leaders we went over had nice moves but are now hard to buy (but that doesn’t mean they’re blind shorts).
3-D Systems (DDD) had nice overnight gains to put in a new high at $91 yesterday. After a big three-day move, it’s hard to buy up here. Use yesterday’s high of $91 as the new pivot to trade around. The technical buy zone was $82.65.
Twitter (TWTR) continued its quest for new highs as the stock put in a big green candle and closed on highs yesterday. After a 7.5% gain, some digestion would be nice. There have been lots of nice buyable strategies at $42 then $50.39 and even through $60.30. Now it’s more difficult .
After basing above its 8-day EMA, Facebook (FB) also posted impressive gains yesterday of 4.8% to put in a new high at $58.32. Use this pivot high as the new point of reference to trade around. This is not a spot to get heavy as those tactical entries already triggered. The stock is up another 2% today.
Goldman Sachs (GS) tacked on another 0.75% to close on new 52-week highs yesterday. It’s a bit extended from short-term moving averages. Compared to the momentum we’ve seen in some tech stocks it’s been a slow trade, but a nice one since $170ish.
At this point there isn’t a whole lot to do, in my opinion. If you have a macro plan stick to it. If you were looking for opportunities, there have been plenty of them since the powerful reversal on Fed Day last Wednesday. Over the next few sessions could see some continuation but it can also be tricky. I’d take it slow and enjoy the holiday.
HAPPY HOLIDAYS! I thank all of you for your contribution to my network and my life. Community has strength in numbers – I’m excited that ours is still growing strong.
*DISCLOSURES: Scott Redler is long AAPL, GS, BAC, C, GE, FXI calls. Short SPY.