Intraday Commentary ~ 1/21/2011

10:17am
I’m placing a hedged trade right now. I’m buying GOOG at 635, and going short AAPL at 333.3, with the same amount of money on each trade. Basically saying that over the next few weeks and maybe months, google will outperform aapl. 

9:24am
It looks like the SPY is set to open much higher… i won’t look to short this market until we fall back down. Keep playing the trend. Here are some stocks that could see a nice gap up:
1. BAC on a failure of the H&S formation with neckline at 14. Put a stop below 14.
2. I like CRM if it can hold the 130 area and not break down.. I’d put a stop right below that area.

6:05am
I got stopped out yesterday at 128 with the reversal we got on the SPY… but i’ll be back short when we cross back the 127.60 level to the downside. I’m not sure if this is the correction we’ve been waiting for, but my guess is that if we get another push lower below the 127.60 level and hold that level till the end of the day we will see a 4-10% correction. 

Google to me is a great long term buy with the news from Larry Page. Larry Page must have a lot of great ideas up his sleeve that he wants to operate on, that’s why he took his old post back. He wants to bring back the old google and not the google that’s trying to spread to every industry.

About FocalEquity

Sun Tze is one of the founders of FocalEquity.com. After going through multiple transitions, Tze, Charlie Cheng and their new team are bringing new changes and features to the new FocalEquity.com in 2011. Tze is specialized in financial modeling and has a masters degree in Finance.