I am beginning to think the sun could melt tomorrow and stocks would plunge at the open and catch a bid mid afternoon, to still finish in the red, yet well off the lows. Markets did just that today after an early 3% implosion, to slowly gather steam the rest of the day, especially after the Fed spoke in the afternoon. They left the interest rate unchanged and will until June keep QE2 alive. The Nasdaq lost 1.3% while the S&P 500 lost 1.1%. Volume was once again heavy. The days best groups once again were solars. Homebuilders enjoyed strength today after RYL WDC were upgraded today and PHM spoke of an improving housing market. Miners, energy and insurance were among the casualties. Markets somewhat ignoring the Japan catastrophe (the Nikkei plunged 14% intraday today), Mideast strife and higher energy costs is nothing to sneeze at. Buying breakouts is almost unheard of right now but many stocks did find support at either their 50 or 200 day MAs. Yes, technical analysis works. However markets are still in correction mode and buying does not seem to be prudent at the present time. Tomorrow brings housing starts and PPI.
Stocks near 50 day MAs are PAG 18.50, DHR 49, WAT 80, CAM 56, MDR 22.10, PTEN 24.20, SUN 42, VLO 25.75, DNR 21.20, WMB 28, NBR 25.40, SLW 36.25, JNPR 40.25, YUM 49.75, KKR 16.10, CNI 70.0, MMC 28.95, APKT 66, CCK 36, WLP 64.80, CBS 21.50. Stocks that found 50 day support today were plenty even on a horrendous open. Sometimes you just have to hold your nose and buy, of course with tight stops no matter what. GSM A DHR CAT ROK CXO BEXP CVX COP HAL NBL BTU PBR PXD RRC EXXI OIS OPEN RVBD TDC TSCO LULU AAP EL WSM LYB PX URI SWK CHKP TIBX VRSN CTXS CSX NSC COF CVLT CBI CMCSA TJX AZC SYK all found 50 day support today. Stocks that can be bought if they reclaim their 50 day MA are ALTR 40.10, RS 54.25, APC 78.25, ABV 28. AVGO NFLX both reclaimed their 50 day MAs today.
Many stocks received 200 day support today also giving further credence to technical analysis. They were TTM AMT BRCM MCD LLTC INFY MT CRM VALE CHRW LOGI FDX FFIV GS GOOG BEAV. Exceptional 200 day support was witnessed today by CMI F FCX MIPS SWN RIO SCCO GR and ETFs EZA EWA GDX. Stocks near 200 day support are MGA 46, MSCC 19.30, AVT 29.75, WFT 18.90, CRZO 26, ABX 47.50, PAAS 31.50, PVH 58, SQM 48, AMZN 155, LTD 28.50, ORLY 54, HOT 54.30, PMTC 20.40, ROVI 51, UPS 68.40, BAC 13.50, MS 26.60, STT 41.60, RIMM 54.25, WCRX 21.25, ETF TBT 36.
Relative strength to pay attention today were PAY TPX. Both had upside reversals to record all time highs. BBBY also had an upside reversal today. Energy related names which did the same today were FCX SCCO TCK POT. The ETF TLT looks like it has changed its trend. It recently reclaimed its 50 day MA in heavy volume and continues to proceed higher.
Stocks that can be shorted at their 50 day MA are FCS 18, SWKS 33.50, TXN 35, JBL 21, JOYG 92, PH 89, HES 82, OXY 99.80, SLB 88.10, RIG 80, CLF 90, SWC 22, AGCO 53, COST 73, SOA 24, DOW 36.50, HON 56.10. ADP can be shorted under its 50 day MA at 48.75. Stocks that found 50 day resistance today were DECK AAPL GD WYNN IBM OMC IBN. Stocks that lost their 50 day MA today were BID NDAQ WAG AMTD CTSH ACN BMC PAYX INTU KSU IVZ. This solar stock run up in my opinion is quite unwarranted. It requires subsidies from governments that have very limited amounts of capital. JKS LDK STP all are right up against 50 day resistance now. However FSLR has found 200 day support twice this year already almost to the penny.
Good luck.
The author owns FCX.
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