Here's Where To Look For A 'Tradable Bounce'
Scott Redler is a weekly guest on #PreMarket Prep, a daily trading idea radio show hosted by Joel Elconin and Dennis Dick. Tune in to the daily broadcast live Monday-Friday at 8 a.m. ET here.
On Benzinga's #PreMarket Prep, T3 Trading Group Chief Strategist Scott Redler said that he is looking for a "tradable bounce" in liquid stocks like Facebook Inc (NASDAQ: FB) and Apple Inc. (NASDAQ: AAPL).
Bouncing, Shorts And Longs
The type of bounce dictates whether Redler goes long or short, he said. On Facebook, Redler reminded listeners that momentum names "hold up until they don't."
Going Short
The strategist said that it was "hard" to get short now, but he warned that he also wouldn't "catch a falling knife." Particularly, Redler said that when a stock is below its 200-day moving average, it is not the time to add risk.
Facebook closed Monday below its 200-day, currently at $83.89. Similarly, Apple is trading substantially below its 200-day moving average, currently at $125.57.
Tech
On the tech sector in general, Redler anticipated that there may be support in the PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ: QQQ) between $97 and $99. If it breaks below there, he said, the price may fall to $92 or $93.
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