Thursday, June 23, 2011

Thursday Thoughts

Markets staged a huge comeback Thursday, reversing off nasty early losses. Volume expanded giving the move some validity. Both major indexes found support at their 200 day MAs. Week jobless claims had the market reeling early, but news of a Greece bailout plan put the market on a recovery course, which ended with market closing hard upon their highs. Bullish behavior indeed. Recent earnings reports from the likes of FDX yesterday, and CAT JOYG lately, suggest the global economy might not be as fragile as feared. Merger activity continued after hours as a higher bid for SUG sent the stock surging. ETE IP VFC COF all announcing buyouts as of late as well. I am taking a more bullish stance regarding markets. Whichever event you want to give credit for the market rallying, whether it was Greece, oil plunge, the market rallied. The tape can not be ignored. Add the bearish action of some defensive leaders today such as KO CL, and maybe some risk appetite is returning. ORCL was down after hours, while TIBX ACN were up on earnings. Tomorrow not much on the earnings front, but we get the latest take on Q1 GDP and durable goods.

Stocks offering specific buy points in this improving market are BBBY 58.00, XLNX 36.59 in cup bases. Double bottoms are DOV 68.10, ACOM 42.09, RAX 44.81. SBUX 38.31 in a flat base and M 30.10 in a cup with handle.

Stocks near 50 day MAs are UNH 49, AN 33.65, FTNT 23, NSC 71, WNR 16.45. Stocks that found 50 day support today were COH CE AET AGN BAX CI FAST PAG YUM CBS ABV CRM CNI ADS R EL TUP IRM NTGR DISH B SQM DAR. Stocks that can be bought as they retake their 50 day MAs and their buy stop spots are PVH 66.75, WYN 33.25, JWN 46.30, NUAN 20.95, CHRW 78.75, MOLX 26.40, DFS 24.35, GSM 21.55, ATW 42.50, CPX 32.10, COP 74.50, HP 62.50, NOV 72.30, BLL 38.25, MWV 33, UTX 86.45, ACN 56.25 (had earnings after bell), IBM 168, EMC 27.60, QCOM 56.25, ARMH 29, RIO 69.50, ALV 75.40. Stocks that retook their 50 day MAs today were RL PPO WFM RHT FDX RVBD.

Stocks near 200 day MAs are PPG 84, CAR 15.05, STJ 45, WSM 36.40, ROK 77, KKR 15, CHK 28, HON 54, IP 27.40, CMCSA 22.75. Stocks that found 200 day support today were DOW SYK VPHM WCRX ANN DKS CBE JOYG PH ARW JBL PKI TEL ATI TKR CLR XOM RDC RDSA VLO DD FCS MCHP NXPI VECO ARUN. Stocks that can be bought as they reclaim their 200 day MAs and their buy stop spots are IR 45.30, NBL 87, SUN 40.95, ETN 50.25, NTAP 52.50, OPEN 81.75, NVDA 17.25, TXN 33.10, CLF 89, POT 53.30. Stocks that retook their 200 day MAs today were PAY OMC AAPL MXIM. Stocks that can be shorted as they lose their 200 day MAs and their sell stop spots are KO 63.80, SPN 33.85. Stocks that can be shorted at 200 day resistance are SOA 22.50, EBAY 30.10, ADSK 39.25, VRSN 33.80, APH 53, AVT 32.90, AMP 57.90, BP 44.10, PXD 88, CTSH 72.50. UPS PAYX met 200 day resistance today.

Stocks that can be shorted at 50 day resistance are DECK 87.50, LVS 42, RCL 38, AGP 6.40, LTD 39, BID 43.25, MTL 26.55, HAL 48, CCK 39, EMR 54.90, TWC 76. NKE COST met 50 day resistance today. ERTS EQT CSX all lost their 50 day MAS today.

Good luck. After todays action I am bullish once again and as long as that 1260 line on the S&P 500 holds I will remain so.

Author is 100% in cash.

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