• Daily Game Plan – Retail Leads Relief Rally

    by  • August 20, 2013 1:51 pm • Broad Market Analysis, Bryan Sapp’s Daily Game Plan, Charts to Watch • 0 Comments

    MARKET CHECK

    After a recent period of weakness, markets are higher today on the heels of stronger-than-expected earnings reports from select retail names.  Stocks opened near breakeven, but that was met with strong buying.  Equities have trended higher all day, led by the Russell 2000, and currently sit near their highs of the day.  While the Russell is higher by nearly 1.5% today, the S&P 500 and Nasdaq are each up about 0.7% each.  Today’s relative laggard is the Dow, which is modestly higher, up 0.3%.  Bonds are catching a bid today as yields are finally seeing some weakness, while miners are once again higher, up nearly 4% for the session.  Gold is slightly higher, while silver is modestly lower for the session.

     

    CHART OF THE DAY

    Priceline.com (PCLN) – The online travel company has been on quite a tear this year, up over 40% since January.  The shares recently reported better-than-expected earnings and moved significantly higher on that report.  Since then, PCLN has filled the upside gap, offering a nice entry from the long side for a continuation of this earnings move.

    I like a long entry here with a stop on a close below 920.  I would initially target a move back to 990, with an upside break of 1000 possible.

    courtesy of stockcharts.com

     

    WHAT I’M EXPECTING

    I think there’s the potential for some more upside from here, but the major test will come if and when the S&P 500 gets back to 1675.  I still think that area should be initially sold, but a break and hold of this resistance area would get me back in the bull camp.

    About

    Bryan Sapp is a Senior Trading Analyst at Schaeffer’s Investment Research, where he has specialized in volatility-based options trading since early 2010. With Bryan at the helm, Schaeffer’s Volatility Trader generated a 2012 portfolio return of 70% for subscribers. This real-time option recommendation service exclusively trades short-term straddles. Prior to joining the research team at Schaeffer’s, Bryan honed his skills as a speculator by trading his own account, and playing poker professionally to pay his way through college. Bryan attended the University of Louisville, where he received his Bachelors in Economics and an MBA with an Entrepreneurship focus.

    http://www.schaeffersresearch.com/

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