Friday, September 24, 2010

Weekend Stock Reflections

Another week in the black. Makes four straight winning weeks for US stocks. The Nasdaq led the way today with a 2.3% gain, thanks in part to the chip sector vaulting 4%. For the week the Nasdaq also led the indexes, now firmly entrenched above their 50 and 200 day MA. Volume was solid adding validity to the rally. New highs crushed new lows and basically all industry groups finished higher. Leading stocks, a great gauge of the healthiness of the rally, soared.

Stocks that have now developed specific buy points include: NBL @77.63 (cup with handle), TRW @39.96 (cup without handle), TEN @29.84 (cup without handle), TSL @28.97 (double bottom with handle), KSU @39.58 (double bottom with handle), FCX @88.40 an add on buy point since we already own it (double bottom, could develop a handle), BUCY @72.60 (cup with handle), FAST @55.95 (double bottom). These are buy stop orders to be executed at these prices when volume is strong.

Buy stops that can be entered as they break through their MAs are: Going through their 200 day MA. SLB @62.85, JWN @37.60, VLTR @23. Stocks going through their 50 day are: RRC @37, CRUS @18, XEC @70.25.

Stocks that we spoke about recently that were not purchased that are doing well are: IPI gave us two chances to get in at the 200 day @26. WLT through 80 continues to look great. CRZO rebounded off its 200 day @ 22. TRMB broke out of a cup base without a handle @33.66 and holding above that level consolidating the gains. A bullish sign.

Stocks building the right sides of their bases are VALE ROK SWC.

We purchased APA through the 200 day @98.25 on Friday.

Good luck.

The author owns FCX, AMT, AKAM, EXXI, WLL, APA. Short of JKS AVGO

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