The Wrap 4/18/12



The box in the chart above is basically our trading range. A lot of money can be made in that range both long and short. We may need to bounce around in this range for a while, maybe until earnings are over. So far, earnings have been just OK. IBM and INTC  failed today after last night’s report and we know now that GOOG was a problem. So far the bank earnings have been in line, and up next in the financial sector is MS & BAC.

QCOM is down about 3% right now after their report. So as usual it’s been a little give and take so far. AAPL consolidated today after yesterday’s rip (which is normal), but things could get a little dicey in that name as we get a little closer to earnings next week.

Last night I said on Twitter that this is great market if you are a sociopath with tourette syndrome. With all the sector rotation going on (some rotations last two days) it can be frustrating. My size is smaller through earnings and I’m not doing that much until things settle.

Although most of the indices are not far from their highs by any stretch, I am still seeing countless names that have corrected anywhere from 20 to 40%. Some sectors have corrected by 10-15%, so this is a tough tape regardless of what the indexes say.

Below are some trade setups for your radar. We’ll see how they go tomorrow and maybe I will add them to the P&L.

Some names that look good on the long side are: GGG, RHT, AAP and TIBX

Some names that may be setting up on the short side are: CSH, A, DXCM, TRW and WTW

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