June 16th Pre-Market

After yesterdays break of the 111 level in the Spys we look like we may be testing that level on today’s open.  As we have said this is the 200ma on the daily and a very important level to watch.  The market is opening weak based on the disappointing forecast for FedEx, which has tumbled 2.8% in the pre-market, and the drop in housing starts. 

I am looking at a few shorts if we break 111.  The first one is Best Buy(BBY).  BBY disappointed earnings and basically stayed flat during yesterday’s up-move so a break of yesterdays low is the first area I am looking to get short at.  If we move up I will test the gap down at 39 and if BBY break that I will be done looking for a short in BBY.  I will be also looking at the homebuilders for some momentum shorts after the disappointing number.

If we hold support at 111 my number one long is Las Vegas Sands which finally closed above the breakout level of 26.50.  This stock has been holding up in a weak market so I will be going long if we break 27.  Best of luck on the day trading. 

Kyle