Thursday, November 3, 2011

Thursday Thoughts

Markets rallied nicely Thursday and volume did accompany the move this time. The Nazz rallied 2.2% recapturing its 200 day MA in the process. The index seems to be forming a double bottom with handle base with a strike of 2753. The S&P 500 rose 1.8%. Markets also finished near their highs for the day, which is construed as bullish. Solid reactions to earnings, reinforcing a good tone were QCOM EL which both screamed higher. Chips performed well with the SMH regaining its 200 day MA today and rising almost 3%. Two stocks in the group traded back to their original buy points were, KLAC near its 44.69 double bottom with handle base and INTC to its 23.49 double bottom pattern. Energy was strong today as the UUP hit 50 day resistance and fell .5%. XLE is readying for a 200 day test near 72.50. CLR in the group flew ahead by 7% on earnings. RIG plunged 13% on an earnings miss. COG continues to be my favorite in that group, holding above it 78.75 double bottom. GNC tacked on another 2.5% after breaking out yesterday from its 25.96 double bottom with handle buy point. Speaking of earnings LTD found support right at its 10 week MA before resuming higher. Love the moving averages. Just a pair trade I am looking at now is going long MCD/short CMG (as long as the double top in CMG holds). We suggested an alcohol pair not to long ago going long DEO/short TAP. After hours movers included SBUX which was higher by 3% and trading right near its 43.53 3 weeks tight pattern. CHK was up 6% putting it right up against its 200 day MA. HANS was lower by 2%. Tomorrow brings reports from PXP.

Stocks near specific buy points which are becoming bullishly more numerous everyday are double bottom with handles TIF 81.09, WSM 40.17, YUM 54.99, AXP 52.45, ORCL 33.91, SAP 63.53, AET 41.17, PPG 90.06, CVX 110.11, WNR 17.87, JOYG 93.94, BWA 77.80. Cup with handles are ABV 34.89, DSW 55.02, VMW 100.55, MCO 37.25, ASML 43.98, MXIM 27.14, UNP 103.90. Cup bases are NEM 71.35, DKS 40.95. 3 week tight patterns are BBBY 63.40, SBUX 43.53 (had nice earnings after close). CHKP has a 61.70 cup with high handle base.

Stocks which can be bought as they reclaim their 200 day MAs and their buy stop spots are PAY 44.25, CRM 135.50, EMC 25.60, TXN 32.20, BBT 25.25, EOG 100.85, XOM 80.25, HON 54.50, EMR 53.20, ATU 24.75, CAT 98.25, URI 25.35. Stocks that retook their 200 day MAs today were JNY DFS XRAY DTV AVGO LLTC NOV NBL VLO PCLN PH CMI. Stocks that can be bought at 200 day support are JNY 11.95, NTGR 34, JOYG 87.90. FL NTGR ADP GRA all found 200 day support today. WYNN can be shorted at 200 day resistance near 138. XLNX EXXI PXP UPS AVT PLL all met 200 day resistance today. ANN lost its 40 week MA today.

Stocks near 50 day support are CELG 63, BMY 31.15, MAKO 37.40, CVI 25.20, X 25.50, WY 17. Stocks that found 50 day support today were LULU FOSL AGU AAPL GS JPM WFC BHI MMM. Stocks that retook their 50 day MAs to the upside today were AA KO PCP DFS MAKO AVGO NVDA HAL HFC BTU EXPD PCLN. Stocks that can be shorted at 50 day resistance are AMZN 222.50, HSY 58.70, ATHN 60. HSY WPI VIAB IBN all met 50 day resistance today. ALXN can be shorted with a sell stop @63.55 as it loses 10 week support.

Good luck.

The author owns FCX DE ORCL.

No comments:

Post a Comment