Tuesday, November 16, 2010

AM Meandering

Stocks exhibited more bearish behavior today. Closing on their lows after opening upon their highs. Leaders such as AMZN AKAM JNPR all fell. And the negative reaction to good economic news (strong auto and retail sales), and merger activity was not inspiring either. Volume did fall however. Today look for PPI, industrial production and WMT earnings.

DTV can be shorted below 42, its 50 day, after the big outside reversal on 11/4. SQM, sell stop below 49, its 50 day as well. OPEN found 50 day support but the stock is well extended and could be shorted if it loses that 50 day. VMW closed back below its 50 day. Volume never kicked in on the upside as it broke thru its 50 day, which prevented us from buying.

Stocks that should hold their 50 day MA are: PCP here, FOE 13.10, SIAL 61.50, PPG @74.50, BKI @16, AMP @50, SWKS @21, NKE @80, HAS @45.50, HS @26, DD @45.75, AMT @51, ARUN @21, NTAP @51, INFA @38, EMN @75.50, NBL @78, HOT @54.25, JKS @30. If they can hold that line consider it bullish. If not look to short. Stocks that should hold at their 200 day MA are: RIG @65, CNX @40, VNO @80, EGO @16.25.

BCSI rallied nicely off its 200 day today. MCO sporting a 29.03 buy point in a cup with handle base.

ETFs that are looking for 50 day support are: FXI @44.25, EWZ here, EWG @23, EWA @24. RSX now has a 36.51 buy point in a cup with handle base. XLF 200 day MA is 14.75. Look for support there. TBT which broke thru its 50 day in good volume on 10/14, is looking to challenge its 200 day MA near 39.25 very soon. See if it can blast thru that line to continue its uptrend. Or it might prove resistance.

Good luck.

The author owns ORCL.

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