Saturday, September 18, 2010

Saturday Wake Up. Money Never Sleeps Pal

Markets mustered their way to a 3 week winning streak Friday. Volume was strong most likely due to quadruple witching. Leading stocks held up well and the semis, a recent laggard group, posted a solid weekly gain. The indexes are now comfortable with resting above their 200 day MAs. The Nasdaq posted the best result this week with a 3.3% rise in healthy volume.

Stocks creating specific buy points include: NBL @78.63 in a cup with handle formation. DRI @46.29, RAX @22.94, TKC @17.10, KSU @39.58, NSC @59.74 all sporting handles from recent double bottom bases. VMW @87.26 in a 3 weeks tight pattern. TRMB can be bought as it trades thru 33.56 if it decides not to form a handle. All these stocks are purchased when they pass the specific buy point, not before, on strong volume.

Stocks that can be bought as they retreat toward support on soft volume include: TEN @26, RADS @16. Both 50 day MA. Stocks at the 200 day are: PFE @16.75, MTL @23, CRZO @22. WLL can be bought as it passes above 94, in a quadruple top pattern.

Stocks building the right side of their bases now to watch until a pattern develops are: ROK, RTP, PVH.

FTNT another recent IPO leader, continues to trade well above its 20.69 buy point. Well extended here, but any weakness back toward that buy point should be considered any opportunity. OPEN and QLIK other examples of why we must keep an eye on recent IPOs.

Shorts that can be put on are: BA @ 65, JCG @35, SNDK below 36.50, CRUS below 15.

We were stopped out on BCE for a small loss, and initiated positions in EXXI thru the 21.45 buy point, AN @23 (50 day MA), and shorted JKS @29.

Good luck.

The author owns positions in FCX, AMT, AKAM, NZ, STRI, EXXI, AN, short JKS, AVGO.

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