Markets ended a rough week Friday, with hallmark bearish action. Opening on their highs and closing hard upon their lows. Speaking of bearish action the Nazz and S&P 500 are both closing in on the bear market threshold of 20%. The Nasdaq which took the hardest hit this week, down by 6.6%, is now 18.9% off its recent 52 week high. The Nazz Friday had 4 stocks hitting 52 week highs, versus 276 new 52 week lows. The S&P 500 is now 18% from its 52 week high, and lost 4.6% this week. Not surprisingly, gold/silver miners were the strongest group of the week. Oil lost more then 4% on the week, with some citing this as bullish for consumers. I see it as economic weakness. We are certainly not economists here, strictly stock pickers, so we will discuss specific stocks that indicate possible recession. Since 2/3s of GDP is consumer spending, a look at some of the last bastions of strength falling apart this week was troublesome. LULU lost 21% for the week. It also had a very bearish outside week. Other retailers having outside weeks and their weekly losses were ANF 20%, CROX 19%, DECK 22%. Other leading stocks which were beat up included GMCR losing 19% this week and its 50 day MA. AMZN lost 12% this week, and with it its long term 200 day support. NFLX gave up 16% this week also surrendering its 200 day MA in the process. QCOR AAPL both recent standouts pierced their 50 day MAs to the downside Friday. Two recent tech leaders IBM ACN lost their 200 day MAs this week with ACN giving back a lucky 13% on the week. KSU a rail stalwart lost 15% this week, and had an outside week as well. Speaking of possible recession a look at some monthly losses in the key chemical sector cites major concerns. ALB down 33%, CE 29%, ROC 26%, EMN 25%. Steel stocks with mind numbing yearly losses are X lower by 55%, MT 49%. When will this malaise end? Who knows? Probably when current leading groups such as alcohol, tobacco, food, gold/silver miners stop outperforming. But we could be heading for a secular bear market. But remember opinion counts little. Be small and nimble in these precarious times and cut losses promptly.
Stocks near 200 day support include LULU 42.80, CMG 266, ORLY 59.10, TJX 50, CL 81.85, HLF 44, BGS 16.55, KO 65.50, HSY 52.90, HRL 27.25, EXPE 25.90, IACI 32.60, CERN 53.95, V 77, GSK 40.50, AAPL 342, OKE 63.90, SM 66, WNR 14.95, AH 22.05, WCN 29.50, SLW 37, WPRT 20.95, BVN 43.45. Stocks that received 200 day support Friday were SCSS SBUX RL BIDU DFS SLW. Stocks that can be shorted at 200 day resistance are EAT 23.20, FAST 31.25, LTD 34.60, DAR 15, SINA 93.25, CAH 41.50, UNH 44.05, VPHM 18, ROC 47, CBS 23.10, ARMH 25.90. Stocks that met 200 day resistance Friday were EAT COST ROST MON PCLN CRS GPOR. Stocks that can be shorted as they lose 200 day support and their sell stop spots are SCSS 12.40, TUP 56.50, RL 120.25, WYNN 128.50, BIDU 124.50, CHKP 50.10, ADS 81.60, IRM 27.70. Stocks that lost 200 day support Friday were WFM EL TPX SINA CHK HLX ROSE. Stocks that can be bought as they reclaim their 200 day MAs and their buy stop spots are COST 75.90, ROST 71.60, ABT 49.75, MTZ 18.45, AEM 68.50.
Stocks near 50 day support, and at the expense of sounding like a broken record are becoming fewer and fewer, are MCD 85, ABV 31.60, ARCO 22.30. ALXN PM both found support at their 50 day MAs Friday. Stocks that can be shorted at 50 day resistance are DLTR 66.25, TSCO 56, LVS 43. Stocks that met 50 day resistance Friday were MOS HFC AN DLTR ORLY TJX TSCO HNZ. COG can be shorted if it loses its 50 day MA with a sell stop of 65.70. KO JAZZ RRC all lost their 50 day MAs Friday. Stocks that can be bought as they reclaim their 50 day MAs and their buy stop spots are AN 36.45, CHD 41.10.
Good luck.
The author owns FCX WNR.
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