Thursday, December 2, 2010

Thursday Night Charting

Markets put in another big performance Thursday. Volume was above average but only slightly. Perhaps investors are waiting for tomorrows jobs report. Semis and banks were strong today. The banks which have been non existent on the leader page came to life today. The outlook for a recovering housing market helped the sector.

Stocks near buy points are: XOM @72.00, MRVL @21.10, VECO @46.35, all double bottom with handles. AA @14.27, a cup with handle. NETL @34.60. Demand strong volume on the breakout.

Stocks near MAs that can be bought as they pass thru the following prices are: BBD @21.30, PM @58.25, SMG @52.25, ORCL @28.30, PSA @100.25, NEM @61.50. All those were their 50 day MAs.

Stocks finding support at their 50 day MAs and rebounding in heavy volume which is very bullish are: DE COP MUR APD PX IBM DD
CP BHP RIO SWC COST PTEN RAI PPG. CEDC that we flagged a couple weeks ago as it looked to be rounding out a long saucer base pattern hugging its 50 day MA. Today it surged 12% and stopped right at its 200 day MA. Lets see if that line can now be taken out and build its right side. RHI MAN are currently a little further along in building their right sides of their bases than CEDC. Are they seeing better employment numbers ahead? Lets hope so. can not really get any worse.

Stocks that can be bought as they pass thru their 200 day MAs are: SWN @38.25, VLTR @23.30. RRC should now find support above 43 its 200 day MA. Look how LOW exploded thru its 200 day in the last 2 days. FNSR had a bullish gap up today. It found support along its 200 day MA. ANF also had a bullish gap up today.

ETFs that can be bought as they pass thru their 50 day MA are: EWZ thru 78, FXI thru 45.40.

Shorts that can be put on are: BIDU under 104, its 50 day. OPEN here being extended and having that outside reversal day 11/24 and a weak reversal on 12/1 which was a Dow 250 plus day.

Good luck.

The author owns CAKE NVDA ARMH GPS CHRW X.

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