Sunday, July 10, 2011

Weekend Stock Reflections

Markets finished the week Friday with some more gains following last weeks explosive move. The Nasdaq outperformed with a weekly advance of 1.55%, while the S&P 500 gained 0.3%. Pretty impressive to consolidation. Friday itself on first look, seemed fragile, but the indexes clawed their way back from the lows of the day to finish up near their highs. A dismal job report was the culprit. The Nasdaq is now just 1% from its 52 week high, and the S&P 500 just 2%. We are still cautiously bullish here, as some leading stocks continue to break out. Friday brought 2 more breakouts, with AGCO clearing a double bottom buy point of 52.50, and WNR smashing through its 19.60 cup base trigger. But others have either stalled, or closed back below their buy points after breaking out. ILMN AH come to mind here. Others cleared buy points such as DECK, but with a lack of volume conviction. So the market is generating mixed signals. All in all though the market is grinding constructively higher. As always buy only leading stocks emerging from sound bases on big volume. And cut your losses quickly and let winners run. Stocks that have been trading tightly for the last 2 weeks, which is very bullish and if they can do so for one more week, will form a 3 weeks tight base are MCD AGN ALB BDX WPI EL. SBUX FAST have also done the same after recent breakouts. Software has been strong as of late with QLIK ARBA NUAN CHKP VMW all finishing higher Friday despite a weak tape. With the exception of Friday, the transports have also been a top recent performer. Weakness in stocks such as FDX NSC KSU should all be bought. Other stocks demonstrating superior relative strength Friday were some big caps. AAPL AMZN EBAY EXPE WYNN CLF all fit the bill. Monday kicks off earnings season with AA NVLS both reporting after the close.

Stocks offering specific buy points include: Cup bases PCLN 561.98, AG 85.84, BDX 89.83, VPHM 22.26, ALB 71.89, NUAN 23.03, QCOM 59.94, TRN 38.10, ACOM 45.89, POT 61.90, IRM 35.60, WAT 100.10, RVBD 44.80, GSM 24.90, CLR 73.58, HP 70.56, PXP 40.16, WTI 28.89. Double bottoms are KMX 35.10, EBAY 34.75, LYB 44.31, WLK 57.64, ORCL 34.40, APKT 77.61, ALXN 51.08, JBL 21.78, APC 80.85, BHI 76.75, XOM 83.85, NBL 94.11, OXY 109.09, AA 16.93 (earnings Mon after bell), FCX 58.85. VRX 55.10 in a flat base pattern and DGX 61.31 in a 3 weeks tight base.

Stocks that can be bought as they reclaim their 10 week MAs and their buy stop spots are MXIM 26.50, AKAM 32.40, RJF 34, DIS 40.40, VRSN 34.95, ADSK 41, DOW 36.85, RAI 38.40. TXT DAR SCCO all retook their 10 week MAs Friday. Stocks near 50 day support are ABV 32, ANF 71, LTD 39, MW 32.80, PETM 44.10, CAR 17.05, WYN 33.50, CAH 44.95, CI 49.10, XRAY 38.05, HS 44, ILMN 73.40, UNH 50, EMN 102, CBS 27, VIAB 50, CNI 76.75, KSU 56.25, STT 45, HON 58.75, MWV 33, ROP 82, UTX 86.75, SAPE 14.40, DHR 53.30, TMO 63.05, NTGR 41, ABB 26, PH 88, TKR 50, ALTR 46.05, SMTC 27, XLNX 35, WBC 68, APA 122, CXO 91.75, OXY 104, BTU 58.80, PXD 90, WY 21.50, BHP 93, ABX 45.50. Stocks that found 50 day support Friday were HOT AET LYB CTXS ORCL SAP APKT TROW MOS EMC CBE X ATML CMI XOM SU VLO PAAS.

Stocks that can be bought as they retake their 40 week MAs and their buy stop spots are MAR 38.20, HOT 58.50, TROW 62.50, IPI 33.50, MOS 73.50, RS 51.25. Stocks near 200 day support are STJ 45.50, EXPD 51.50, EMR 56.50, PAYX 31, APH 53.30, OPEN 82, IR 45.25, MCHP 36.10. Stocks that received 200 day support Friday were LVS ADSK VRSN DIS KKR AGU NTAP ATI KLAC CAM. Stocks that can be shorted at 200 day resistance are JCP 34.10, TXT 24.15, AVT 33.05, NBR 25. AMP TXN TCK all met 200 day resistance Friday. Put in a sell stop to short DKS @35.60, if it breaks down and loses it 200 day MA. SOA EOG both lost their 200 day MAs Friday.

Stocks that can be shorted as they lose their 50 day MAs and their sell stop spots are HNZ 52.75, COST 80.40, YUM 54.45, HUM 79, UNP 101.70. DKS WLP DOW FLIR HK all lost their 50 days Friday. Stocks that can be shorted at 50 day resistance are ANN 28, ZMH 65.65, INTU 52.60, MSI 46.10, LAZ 37.95, FCS 17.85, HES 75.30, MUR 66.75. RS DVN HES WMB all met 50 day resistance Friday.

As the market continues to churn higher, we can again look at stocks close to breaking thru "par" or 100. Stocks which have done that traditionally tend to continue to move higher. FOSL LULU CAT all have moved higher swiftly, FOSL LULU more than 20 dollars so in the last 4 weeks, after reclaiming par. Stocks on the verge of breaking thru par soon here and must be watched are FDX ADS WAT JOYG BHP CLF.

Good luck.

The author owns FCX DE.

No comments:

Post a Comment