Off the Charts- Sept. 19, 2011

Monday, September 19, 2011 Brought to you by T3Live.com Off the Charts is a daily newsletter featuring the favorite technical trading set-ups of T3Lives's top contributors   Markets were heavily influenced by Greece in today's trading session.  The market was gapped down this morning due to concerns that Greece could default on its debt, but rallied in the last hour of trading after the news that Greece is close to securing funding.  The SPY was down over 2% at one point today, but managed to recoup some of the losses.  SPY closed the day down 1%.  The Nasdaq was the leading indicie today.  After last week's 5-day of gains, this morning's gap down was constructive.   The SPY has a wide trading range as it regroups to find its new direction after the break of the Head and Shoulder's neckline at $126.  Depending if you are a Bull or a Bear, each side can make valid points to whether this lower range will break to the upside or the downside.  Continue to monitor the action to see how this lower range will resolve.  The "go-to" list of strong stocks remain strong and are able to breakout in this market environment, but the weak stocks like the financials, OIH and FCX (to name a few) still remain a drag on this market. If you are a Bull, this lower range can be perceived as a lower wedge as the range starts to contract.   A Bear could see this lower range as an ascending channel.   AAPL continues to be targeted as a leader in this market.  Last week, AAPL gave two calculated buy prices as it broke the upper wedge at $387, and then gave an additional buy as it traded through resistance of $392.  This morning AAPL gave multiple set-ups for traders to get excited about.  The first trade was buying AAPL in the $397-$395 support zone for a negative to positive trade, then when it broke above $400 and $400.50 (Friday's high) with an additional momentum buy when it traded through the previous 52-week high of $404.50.    CMG was targeted on this Morning's Call with Scott Redler and Debra Borchardt as a buy above $320.  CMG triggered with in the first half hour of trading when the market was trading lower.  CMG really extended on the morning's gains when the market bounced.  CMG was up over 18 points today and closed the day up 5.68%.   Last week GOOG was targeted as a buy above $532-$534 with a target of $555.  GOOG is holding above the break of the minor descending trendline well and could get another move above $547 with a new target area of $555-$560.   CF is on the radar as it pulls off of highs.  CF was one of the first stocks to break out when the market was correcting in August and in the last couple of weeks it has a very controlled pullback.  If CF can trade above $178/$179, it looks good to trade back to highs.  CF is holding above the macro buy area of $163 and trading above key moving averages.     Now on to the casino sector. Wynn, the leader in the sector, was targeted on last Monday's (9/12) newsletter as it was holding higher on the chart and consolidating in a tight range.  Today, WYNN broke out of the consolidation area and closed the day up 4.07%, showing relative strenght to the S&P.  Continue to stick with this trade as today was the first day out of the consolidation area.   LVS followed suit with WYNN today as it finally got a clean break above the macro descending trendline at $48/$48.50.  The first targeted area for LVS is $51.75-$52.     MGM is the laggard in the casino sector, but it does have a decent chart pattern and could play catch up to WYNN and LVS.  Look for a move out of this lower wedge pattern at $11/$11.10.  First target is $11.50, and if it trades above that area, it can get up to $12.     Tune in live at T3Live.com for tomorrow's Morning Call with Scott Redler at 7:30 am for an update on the markets.  follow on Twitter | friend on Facebook | watch on YouTube You subscribed to us at T3live.com Unsubscribe | Update your profile Our mailing address is: T3 Live 1 State Street Plaza 10th Floor New York, NY 10004 Add us to your address book Copyright (C) 2011 T3 Live All rights reserved. 1.                                 T3 LIVE is NOT a Broker Dealer. 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