Sunday, August 28, 2011

Weekend Stock Reflections

Markets demonstrated bullish behavior Friday, beginning the session wobbly, and finishing strongly. For the week the Nazz gained 6%, while the S&P 500 was up 4.75%. Volume was soft compared to normal weekly levels, however. Both indexes remain 14% from their 52 week highs. Just a quick look at how other world indexes are performing YTD and the US does not seem that bad. The S%P 500 sits down 6.4% for the year compared with Brazil lower by 20.8%, India 27.1%, China 14.2%, Russia 16.5%, Germany 15.1%. I guess you can say we are the best in a bad lot, for now. I believe (however opinions are worthless, let the price action dictate), that we are in the midst of a bear market, but with so many former leaders well below their 50/200 day MAs, there is plenty of room for them to run before resistance rears its ugly head. The S&P 500, itself can rally to 1260, more than 80 points, before encountering 50 day obstruction. It is hard to get excited long term when defensive groups such as food/beverages, gold, utilities, tobacco are displaying strong leadership. Their are some bright spots, with percentage of bearish investment advisers climbing, a contrarian sign. Some leaders continue to hold up well. Both AAPL MA have bounced off formidable 50 day support recently. TIF, gave a sweet earnings report and more importantly raised future guidance. It rallied 20% for the week and retook its 200 day MA in the process. Beaten up retailers, FOSL UA, up 31% and 28% respectively for the week on both short covering and upgrades. Both also retook 40 week MAs. LULU gained 14% on the week after finding 200 day support earlier in the week. Silver stock SLW, showing constructive action, looks to be forming a cup base. As always be selective, utilize discipline, and buy leaders, and demand strong volume. Not much in the way of earnings Monday.

Stocks that can be bought as they reclaim their 50 day MAs and their buy stop spots are MON 71.25, SCCO 32.80, GIS 37.25, CROX 27.40, NKE 87, BIDU 143, SINA 102, SWI 23.75, AMZN 206, BBBY 56.25, COST 78.60, GPC 53.15, LTD 37.25, ROST 76.25, SBUX 38.40, WFM 62.25, AXP 49.50, HLF 56.25, CAM 49.40, CHK 31, EQT 55.75, OII 40.40, SM 74, WNR 18.15, EXPE 29.20, FNSR 17.30, CPHD 34.25, COV 51.35, WPI 66.40. Stocks that reclaimed their 50 day MAs Friday were IPI POT HSY VFC IACI GMCR RAI HFC AMT MTZ MRX QCOR CLH BRCM. Stocks near 50 day support are AG 21, AN 36.90, ABV 31.95, V 84, LOGI 10, ALXN 51, QCOR 27.50. Stocks that found 50 day support Friday were MOS AG UN DLTR DPZ ORLY PM CVI COG CERN JAZZ.

Stocks that can be bought as they reclaim their 200 day MAs and their buy stop spots are MCP 55.30, CVS 35.15, M 25.85, TGT 52.25, GR 88.25, CBOE 25.25, LVS 44.55, CBS 23.50, BAX 54.50, MCK 78, CNI 72.35, AVGO 31.75, SPRD 18.25. Stocks that reclaimed their 200 day MAs Friday were DAR CDE NKE UA SINA FAST LKQX TIF VIAB AET HS CRS ARMH. Stocks near 200 day support are DAR 15, GG 47.95, SLW 37, FAST 31.50, SCSS 13, SFLY 46.25, TIF 66.25, RAI 35, TPX 52.50, HS 36.40, VPHM 18. Stocks that found 200 day support Friday were SLW ABX BGS SWI COST DSW FOSL LTD TSCO WFM EL TPX EP PCLN CHKP MHP HUM UNH VPHM. Stocks that can be shorted at 40 week resistance are COH 57, PVH 64.25, ANF 62, EBAY 31, ATW 41.50, TDC 50, GILD 39.55. Stocks that met 40 week resistance Friday were MCP DECK PNRA DEO PENN VRX B.

Stocks that can be shorted at 50 day resistance are DE 78.25, K 54.20, DECK 89, ANN 25, EAT 24.10, CMG 310, DKS 36.05, PETM 43.30, BUD 56, INTU 47.30. MON CROX NKE all met 50 day resistance Friday.

Good luck. Posts will resume Wednesday evening.

The author owns WNR.

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