Tuesday, September 13, 2011
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Off the Charts is a daily newsletter featuring the favorite technical trading set-ups of T3Lives's top contributors
Markets closed positive again today, with a decent follow through from yesterday afternoon's reversal, but the action was choppy. The SPY closed the day up 0.92%. For the second session, the Nasdaq outperformed the S&P and the Dow. The SPY is still trading within this wide ascending channel/bear flag. $118-$118.50 should pose as resistance if the bears want to remain in control. It is hard to chase strength and weakness in this tape. The market weakened a bit in the afternoon with sharp rhetoric from the German Finance Minister, who said Greece could 'solve its own problems.' A Greek default was avoided this weekend, but many believe it is still inevitable, especially if Germany grows more reluctant to participate in further bailouts.
AAPL is looking very constructive on the chart for higher prices. It is hard to chase strength but AAPL is one of the "go-to" stocks.
Although SINA tends to be a slippery trade, it finally got a clean break of the marco downtrend line. If this move has any validity, it should hold above the $110 to keep the upside momentum intact.
BIDU, the leader in the Chinese Internet sector, is consolidating between $140-$150. This stock is hanging in well and would likely perform well if the market continues to bounce.
GOOG is one of the weaker stocks in High Beta Tech, however it does have a solid chart pattern to play. GOOG is holding higher from its August low and has a minor downtrend it could trade above. If GOOG trades above $532-$534 on volume, it could get a momentum push. First target for this trade would be $555.
Last week we saw a breakout failure in MA when it could not hold its new high. Something to note, this market is allowing stocks to make a new high but is not allowing the stock to sustain that new high. For example, GMCR made a new high today, but it closed below that level. After failing at highs, MA pulled in to the 50-day moving average. The uptrend is still in tact for MA, but it is hard to chase strength in this market.
LVS continues to find resistance at this multi-month downtrend line, but one of these days it should get follow-through above this level. LVS is holding above key moving averages, while the market corrects. This stock should be "in the game" once this market finds its footing.
Today Marc Sperling and traders in T3 Virtual Trading Floor chat room were all over LNKD once it broke above this minor downtrend line. The next entry will be when it clears resistance of $89.50-$90. If LNKD trades above this level, the first resistance level is $99. LNKD can be back on traders' radars. Look for follow through tomorrow over today's high of $88.50.
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