Thursday, October 27, 2011

Thursday Thoughts

Markets screamed higher today on GDP growth and European optimism. The S&P 500 sprung up 3.4% and the Nazz 3.3%. Volume rose significantly, and both indexes rose above their 200 day MAs. More breakouts today lend credence to the move higher. Today TIF JBL KSU all broke out. Many more stocks are setting up valid base buy points. Risk on is back on with the dollar plunging. Commodities rose smartly with FCX RIO both up 9%. BHP rose 7%. Banks exploded, a key component in a continuing strong market. MS alone was up 18%. GS 10%. Semis were strong with the SMH up 3.5%. ARMH was up 8%, ASML up 6%. Transports rose once again with the IYT up 4.3%, but meeting 200 day resistance. Put a buy stop in on that ETF above 91, if it reclaims that 40 week MA. NSC was up 8%, KSU 6%, UNP CNI 5%. UNP retook par. The healthy retail sector was up smartly, as the XRT was up almost 4%. Big gainers in the sector were FOSL up 9%, LULU 8%. Some stocks which met technical resistance today on earnings were LMT which met stiff 200 day resistance on a very strong tape. HANS which lost its 50 day yesterday, hit resistance again today despite the huge move upward. POT did as well after posting a smart earnings beat. Moral, pay attention to moving averages. ATHN again was lower as we flagged yesterday, today falling 1%. Also weak today was PCP which had a bad outside day from an all time intraday high, just like the aforementioned ATHN did 10/21. BIDU was up 8% after hours on earnings. Earnings tomorrow come from AON BIIB CVX WY before the open. BWA also reports.

Stocks near exact buy points are double bottoms LULU 61.90, ANN 28.61, YUM 55.80, ORCL 34.23, SAP 64.93, AET 41.95, WFC 29.73, CVX 109.85, DO 73.25, XOM 85.51, RDSA 75.66. Cup bases are COH 69.30, DSW 46.00, IFF 65.34. Flat base is FE 46.61. Cup with handle is DELL 16.75. 3 week tight pattern is BMY 33.30.

Stocks that can be bought as they reclaim 40 week resistance and their buy stop spots are AGU 86.25, ARUN 26.65, NTGR 34.25, PAY 44.10, ROVI 53, CRM 135.50, EMC 25.60, VIAB 46.50, QCOM 54.35, ALTR 41.25, TXN 32.25, BBT 25.30, PNC 57.30, PXP 34.20, EXPD 48.50, FDX 87.50, UTX 81.50, A 42.75, CAT 98.25, NUE 42.25, URI 25.50. Stocks that retook their 40 week MAs today were BUD BIDU RAX FISV NDAQ R CTXS MCO WLP ADI LLTC NVLS CE GRA COP CLR DO EXXI HFC NOV TOT UPS LVS TYC DHR JOYG PLL PH CMI HSIC KMT JBHT. Stocks near 40 week support are BUD 56.50, WLP 69.50, DTV 46.25, ADI 37, LLTC 32, COP 72.25, UPS 70.50, DHR 49.40, AON 49. Stocks that found 200 day support today were CBOE. Stocks that can be shorted at 40 week resistance are GG 49, DMND 67, KKR 15. Stocks that met 40 week resistance today were ABX DMND CRM BSFT TXN OXY PXD WNR WYNN HON AVT CAT. AVGO can be shorted below 32.75, its 200 day MA.

X can be bought as it takes out 25.50, its 10 week MA. Stocks that retook their 50 day MAs today were AA RIO LULU BID KO DAR BIDU DFS IBN CVI CHK HAL HFC BTU WNR LVS. Stocks that can be bought near 10 week support are AA 10.95, NEM 64, CELG 62. MA found 50 day support today. Stocks that can be shorted as they lose 10 week support and their sell stop spots are TAP 41.20, IACI 39.40, MAKO 36. HSY CERN both lost 50 day support today. Stocks that can be shorted at 10 week resistance are HANS 87.50, CERN 66.40, JAZZ 41.50. Stocks that met 50 day resistance today were ABX HANS POT WYNN X.

Gap up, which are extremely bullish are back. Says a lot about the health of the overall market. Watch for them to hold their gap up for 3 days. Recent gap ups include QCOR yesterday and today SWI COG both up 16%, XRAY up 10%, ORLY 9%, KSU 6%.

Good luck.

The author owns FCX DE.

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