Good morning:
On February 16th we sent out our S&P levels piece in which we stated a move above 1081 would open the move to 1093. As we have seen the last few days it has moved even high testing the next resistance area of 1112. We have expected some selling, and look to first test 1104 then back to the 1090 level as supports. If the buyers are real they should begin to step up with conviction around the 1090 area.
We have attached our current Core (weeks to months time frame) recommendations as well as shorter term (days to weeks) ideas on the attached PDF. Some things to highlight:
• JDSU a new trading buy from Feb. 12 hit a new 52 week high.
• The airlines continue to trade well, with CAL, LUV & UAUA our favourite longs.
• Hopefully you took some profits last week on DE around the $58 level when we suggested.
• REXX has been taking out highs. Our target is $15, might be smart to take some off so close to that target as earnings are coming up.
If you have any questions please let us know.
Best
Peter
