Markets returned to their schizophrenic ways Tuesday, not surprisingly to the downside. The writing has been on the wall for some time now. We brought that up on 8/2 when the 200 day on the S&P 500 evaporated. Since then volume has been high and rising on soft days, and weak on days the indexes gain. Add to that the way markets have for the most part been closing hard upon their lows, classic bearish action. Leading stocks, always a great barometer of general market health, have been slimmer and slimmer every day. Forget about healthy stocks which look for 50 day support, the number that have been violating 200 day support, a real negative sign are growing as well. Today a number fit that bill. NFLX lost its 200 day for first time in years today giving up 6%. Others that lost ground and their 200 day MAs today were PCLN, AMZN both down 7%. SBUX DECK HAL ACN all gave back 10%. KSU 12%. IBM did garner good 200 day support today. Speaking about the 50 day MAs, 3 market generals lost 50 day support today. GMCR gave back 11%, CMG 8%, CROX 7%. Others actually held strong and bounced off 50 day support incredulously today. They include (and are the last of the market generals, and therefore must be given serious credit) AAPL KO MCD JAZZ COG ABV. Stocks that finished higher today, demonstrating excellent relative strength today were, ORLY SINA, and continuing the theme we discussed yesterday were cheap retailers TGT WMT. ANN reports before the bell.
Stocks near 200 day support are AN 32.15, TJX 50, TPX 52, HNZ 50.50, HRL 27.15, EXPE 25.95, WYNN 129.50, IACI 32.60, ADS 82, V 77, GSK 40.50, WPI 58.15, WNR 14.95, WCN 29.30, ABX 49.20. Stocks that found 200 day support today were TGI ORLY SCSS WFM EL BGS BIDU SINA EZPW CHK HLX ROSE WPRT. Stocks that can be shorted as they lose their 200 day MAs and their sell stops are SCSS 12.50, CERN 53.50, CHKP 50, DFS 22.05, CI 43.75, IRM 28.75. Stocks that lost 200 day support today were ANF AMZN BBBY EAT DSW FAST SFLY TSCO DAR MON POT PENN FTNT QLIK AET ABT AGN FRX UNH VPHM PLCM CRS MTZ ROC CBS VIAB ATW GPOR PTEN WTI WMB NSC SLW. Stocks that can be shorted at 200 day resistance are EAT 23.20, LTD 34.50, PETM 41.70, HS 36.10, MTZ 18.
Stocks near 50 day support, being rarer and rarer these days are QCOR 27, SLW 35.25. PM RRC managed to find 50 day support today. HSY can be shorted at 50 day resistance at 56.50. Stocks that lost their 50 day MAs today were WFM RL LVS CHKP GNC HFC SM AH ALXN.
Good luck.
The author owns FCX WNR. We cut positions in half today. Look for support on WNR at 200 day. If not sayonara.
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