Saturday, July 23, 2011

Weekend Stock Reflections

Markets were bifurcated Friday with the Nasdaq up 1%, and the S&P 500 basically flat. For the week the Nasdaq outperformed again up 2.4%, finding 50 day support in the process. The Nazz is now up 7.9% for the year and rests just 1% off its 52 week high. The S&P 500 rose 2.1% on the week and reclaimed its 50 day it lost earlier in the week. For the year it is up 6.9% and it rests 1.9% off its 52 week high. A look at leading stocks also painted a sweet picture. More breakouts occurred this week. NCR from a 20.72 flat base. FMC from a 89.92 double bottom with handle base. SLB from a 90.99 cup with handle pattern, and NOV from a 82.00 cup with high handle formation. Recent breakouts which continue to add to gains post breakout (very bullish) were ALXN JAZZ RRC. Strong earnings, and more importantly good reactions to those reports certainly contributed to the weeks gains as well. AAPL IBM KO MCD MS GR all beat handily and shareholders were rewarded. CAT FFIV disappointed. Just to show the validity of technical analysis, lets take a look at a few companies that reported earnings and where moving averages came into play. Last week stock that found support at their 50 day MAs on earnings day were CAT UNH. Stocks that found support at their 200 day on earnings day were FTNT HON ALTR XLNX. MOS found resistance their. Financials and steel, two moribund sectors came to life this week. Dollar weakness put crude up 3% for the week and gold above the $1600 level. ABX looks to have taken on a trend change this week reclaiming its 200 day MA above 49. Also in that group keep an eye on GG. The handle needs one more day to form a cup with handle pattern. Coal was up 5% on the week, with WLT screaming 19% higher this week. All time highs achieved last week were CMG CPX CERN EL HAL IBM KO MCD OIS SQM. Stocks trading tightly, another bullish signal with all the recent volatility include BBBY DRI M PETM SBUX TIF NKE TUP EXPE AGP WPI GSM WOR. Monday brings earnings reports from BHI ROP BEAV before the open and BIDU NFLX APC BRCM FTI SOA after the close. TXN SCCO also report.

Stocks offering precise buy points include: Cup bases WTI 28.89, CVX 109.70, POT 61.90, LVS 48.35, XRAY 40.26, VCLK 19.83, AGU 96.30, DAR 19.72, MON 76.79, JOYG 102.27, APC 85.60, CLR 73.58, RDSA 78.07, SGY 36.04. Cup with handle bases are BKE 46.76, LTD 41.28, TXRH 18.50, CRL 42.30, VPHM 20.44, DD 56.30, AGN 85.67, AME 46.69, RIO 74.10. Double bottom with handles include ETN 53.25, EXXI 35.46, KMX 34.91, DKS 40.95. 3 week tight patterns are AN 40.32, PAG 24.04, KMT 45.76, FCX 56.78. Cup with high handles are MMM 98.29, IRM 35.89, WPRT 28.15. Flat bases are AET 46.11, NUAN 23.03, TMO 65.96. Double bottoms are NBR 28.60, KLAC 46.28. HNZ 54.41 in a 4 week tight pattern.

Stocks that can be bought as they reclaim their 50 day MAs and their buy stop spots are YUM 55.25, CAR 16.85, BMC 54, ORCL 32.90, VRSN 34.50, KKR 16.30, JNPR 33.25, NTGR 41.30, AKAM 31.50, CCK 39.30, DE 83.25, TRW 55.50, RIG 65, AA 16, FCS 17.40. Stocks that retook their 50 day MAs Friday were SAP LYB CMCSA PLCM JBL MTL NUE. Stocks near 50 day support are UTX 86.50, CELG 60, LTD 38.50, VPHM 18.55, EBAY 31.20, CAH 45, MW 33, PETM 44.70, TPX 64, WYN 33.20, BAX 59.50, FRX 37.65, HS 44.10, MYL 23.50, ERTS 23.45, PPG 88, AXP 50.50, DFS 24.70, WDR 37, DTV 50, CHRW 78.50, CNI 76.75, JBHT 46, DELL 16.25, BLL 38.70, IP 29.80, ROP 82, DOV 64.60, JCI 39, AVGO 35, WY 21.35, BHP 92.25. Stocks that found 50 day support Friday were RAX ANN EAT ORLY IFF ILMN STJ ABV EMC SAPE X ITW PLL.

Stocks near 200 day support are CAKE 30.20, ETN 50.80, BID 44, WRC 55, ABV 29.35, RAI 34.55, BMC 49.10, CTXS 71.50, APD 89.90, SWI 21.50, PKI 26, ABB 23.55, ATU 26.05, CMI 104, CAM 50.75, WLL 60.40, SLW 36. Stocks that found 40 week support Friday were VMED PH TCK. Stocks that can be shorted at 40 week resistance are INTU 50.10, AMP 58, TROW 62, ARUN 26.50, PAYX 31, ADI 37.90, MXIM 24.75. Stocks that met 200 day resistance Friday were SYK SOA ARW BTU. Stocks that can be bought as they reclaim their 200 day MAs and their buy stop spots are EXPD 51.75, NTAP 52.75, AGCO 50.30, MOS 73.50, JPM 42.90, RS 51.25, HES 76.30, BTU 61.90, NXPI 23.90. RJF APKT retook their 40 week MAs Friday.

Stocks that can be shorted as they lose their 50 day MAs and their sell stop spots are ANN 27, FAST 33.30, ORLY 61.40, BDX 86, HUM 79, ARBA 32.40, PX 104, TDC 56, EMR 55.75, ROK 82. APD ALB lost 50 day support Friday. Stocks that can be shorted at 50 day resistance are DISCA 42, ADSK 39.10, INFA 56, EFX 33.50, STT 44.50, PAY 43.50, MSI 45.90, DHR 53. Stocks that met 50 day resistance Friday were ADP CAKE YUM ZMH TIBX DOW.

We bought some WOR on Wednesday as the gap up continues to firm up. DE still troubling us as we are down slightly in it and do not like the action.

Good luck.

The author owns DE FCX WNR WOR.

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