Strategist: Here's Where To Look For A 'Tradable Bounce'
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.”
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.
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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