Wednesday, September 7, 2011

Wednesday Stock Reflections

Markets rebounded robustly Wednesday, unfortunately volume did not accompany the move. Both the Nazz and S&P 500 rallied nearly 3%. Small cap outperformed today gaining 4%. Leading stocks lagged, but some are setting up legitimate buy points. They include RAI 38.74, MTZ 22.48, CXO 99.57, all in double bottom bases. MA 340.52 in a flat base pattern. DAR 17.27 in a double bottom with handle pattern. VPHM 20.38 also in a double bottom with handle pattern, but the handle needs one more day to complete. We had welcoming takeover news with BHP announcing its affection for WLT. Both the potential acquirer and acquiree advanced, a positive sign. It was a broad rally today with almost all sectors leaping higher. Steel and transports led the way. Banks advanced, enjoying a rare rally, akin to a days reprieve for an incarcerated criminal allowed a field trip on a beautiful day. Tomorrow they will probably return back to their dark, dank reality of hard labor. Will the rally of the last 2 days (almost 500 Dow points from Tuesdays low) finish at some point tomorrow. Looks like 50 day support on the SDS ETF will have a say near 22.50. Earnings reports are quiet Thursday, but we have the Obama speech tomorrow evening which should hay a say for sure on Fridays direction.

Stocks that can be bought as they retake their 50 day MAs and their buy stop spots are AGCO 44.40, BG 66.30, MCP 56.50, CROX 27.35, LULU 57.40, FAST 33.45, JWN 46.30, ROST 76, GR 90.50, ADS 93.45, EL 100.60, CXO 89.50, GPOR 30.25, EP 19.45, AET 40.70, XRAY 36.15, GILD 40.30, HS 40.50, UNH 48.60, CLH 53, B 23.25, CRS 52.30, AVG 33.60, CREE 32.45, MCHP 33.45, MXIM 23.45. Stocks that retook their 50 day MAs today were DE HSY K UN DECK RL UA VFC BIDU SINA GPC LTD SBUX PM PCP AXP HLF CHK HFC SM WYNN TSU CPHD COV HUM VPHM WPI BRCM. Stocks near 50 day support are AG 22, HSY 56.95, DPZ 26.05, SBUX 38.45, V 86, CHK 31.35, SM 76, EXPE 29.35.

Stocks that can be bought as they reclaim their 200 day MAs and their buy stop spots are FTI 44.30, SOHU 80, CBS 23.85, CNI 72.75, KSU 53.60, NSC 68, CBI 36.40. Stocks that retook their 200 day MAs today were AGU K NKE M CVX PENN TDC VMW VIAB BAX COV HS GDI. Stocks that can be shorted at 200 day resistance are COH 57, ACOM 35, RAX 37.90, ANF 68.20, EBAY 31, PAG 19.30, TGT 52, APC 75.75, PLCM 25, CE 45.10, PX 99.10. Stocks that met 200 day resistance today were GR FTI FRX IP. Stocks near 200 day support are BGS 17, CBOE 25.25, CHKP 51.

Stocks that can be shorted at 50 day resistance are MON 71, NKE 87.30, ANN 24.60, DSW 49, DKS 35.75, PETM 43, SCSS 16, TJX 54, TIF 73.75, TSCO 64, CVX 101, RIG 58, QCOM 53, JBL 17.75. Stocks that met 50 day resistance today were CROX CMG JWN ADS IRM NLSN MHP STJ CLH ARMH MXIM.

Good luck.

The author owns WNR CBOE. We bought CBOE today as it reclaimed its 200 day MA as discussed in yesterdays commentary.

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