Tuesday, September 28, 2010

Early Evening Thoughts

Market showed its strength today closing on the highs after starting the morning weak off some shaky economic data. Closing on highs after beginning on the lows is classic bull market action. Noticeably weak today were some leaders. AAPL BIDU CRM. Of course you can admire the markets strong move giving the weakness of some of those previously mentioned stalwarts. Volume came in above average feeding the fire for the bulls.

Buy stops can be placed on A @33.47 (double bottom), RTP @62.34 (cup base, although could form handle), SWC @18.58 (same as RTP), AMP @48.65 (cup with handle).

Stocks that can be bought as they trend to support lines are: CNQR @48, RADS @16.50 (both 50 day MA). Stocks that can be bought as they pass thru trend lines are: CRUS @18 (50 day), URBN @35.30 (200 day).

Gap up stocks that must be put on watch lists are: IBN, which gapped up 9/13 and has not looked back. ORCL gapped up 9/17 to a 10 yr high on monster volume. I am a believer that old leaders virtually never dominate as new leaders as a new bull market begins.

Other stocks to keep an eye on are IPI and MCO stubbornly holding onto their 200 day MA. JWN busted thru its 200 day today.

Stocks building the right side of the bases are JNPR SOA.

XEC can be shorted under 65 (200 day). Let the move confirm itself. XOM looks destined to test its 200 day near 64. Lets see how the psychological energy bellwether (although its a laggard) performs there. CNI can be shorted under 62.25.

We shorted PSA today back near par. Looks like 50 day may be resistance now.

Good luck. Shed losers promptly.


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