Trading NVDA, PINS and XLB

Managing our long AAPL Trade

Technical Edge — 

• NYSE Breadth: 66.5% Upside Volume

• NASDAQ Breadth: 74% Upside Volume

Bulls made a solid stand yesterday, pushing many key names and indices above Friday’s high and closing strong on the day. Twitter traded well and ignited social media stocks. TSLA and AAPL again pushed higher — the two leaders in tech amid this rally. 

Tech continues to be a leader off the lows and as such, I will be focused there and on the current leaders (energy & materials). 

Game Plan

Yesterday we were watching AAPL, STLD and BRK.B. Only Apple triggered from the group and how to manage it will be included as No. 1 on the watchlist below. 

I will just say that as traders, you must be fluid and/or wait for your ideal environment if you’re not fluid. 

If you’re a long-only trader, buying during those big drops is very difficult. It’s easier to be patient and wait for the uptrend to form, even if it takes several weeks. Otherwise, you must recognize who’s in control (longs or shorts) and play to that trend until it changes. 

S&P 500 — ES

What a great response we’ve had on the ES and SPY so far. After dipping to the 10-day, the market found its footing, then went daily-up on Monday. 

Now struggling with the 61.8% of the current range and the February high/resistance area, we have some clear levels. 

The ES needs to get above 4580 to 4588 to unlock last week’s highs near 4630. 

Upside levels: 

1. 4580 to 4588

2. 4630 

On the downside, I’m really watching 4547 to 4555, followed by the 10-day. 

Downside levels: 

1. 4547 to 4555

2. 10-day

SPY