Tuesday, November 29, 2011

Wednesday Game Plan

Markets were slightly bifurcated Tuesday as the S&P 500 eked out a small gain, while the Nasdaq lost .5%. All in all not giving back really much any of Mondays bountiful gains. The close was a little disheartening, and intraday the S&P 500 met hard resistance at its 10 week MA, and could not close above the 1200 level. The Nasdaq was again lower on some of the larger names which make up the composite. WYNN down 4%, AMZN 3%. QCOM had a bad outside day. Defensive names outshined today, not what you would like to see as fuel for a potential move higher. XLU retook its 10 week MA, and both KO HSY were up more than 1%. WMT climbed back above its prior 58.06 double bottom with handle from 11/8. Banks closed hard upon their lows, and after the close S&P downgraded many of the names credit ratings. For some more positive news, energy continued its ways upward. Perhaps the recent moves northward in oil prices are forecasting growth ahead. The XLE rose 1.7%, with XOM retaking its 10 week and leader COG gaining 4%. GNC is in the process of completing a 3 week tight pattern if it can finish the week in that range. The SDS did fall below its 40 week MA today but did manage to close near its high of the day. Lets keep an eye on JJC as it continues to be repelled at its 10 week MA. Could be a clue to see if the risk on trade could be coming back.

Stocks with specific buy points that should be included on a watch list are cup with handles MELI 90.09, AAP 71.10, BUD 59.57, NSC 76.30, UNP 104.26, FTI 50.30. Double bottom with handles include CBI 40.10, URI 27.42, CLR 72.39, PXD 97.20. DG 40.81 in a flat base.

Stocks that can be bought as they retake their 40 week MAs and their buy stop spots are JEC 42.15, USB 25.15, EOG 100.35, EXXI 30.40, OXY 95.50, PXP 34.20, CBS 25.20. EFX retook its 40 week today. Stocks that can be bought at 40 week support are DKS 37.70, CNI 74.05, TIBX 26, CELG 59.25, CXO 92.50. Stocks that received 40 week support are BEAV VMW CPO CBOE ABX.

Stocks that can be shorted as they lose their 40 week MAs and their sell stop spots are WFM 62.75, KLAC 41.75, NVLS 31.70, ABX 49. CHKP APC both lost 40 week support today. Stocks that can be shorted at 40 week resistance are LULU 50.25, ARMH 27.90, UPS 70, CERN 60.30, KO 67.05, HSY 56.50, CPHD 33, NOV 71. MDRX FMC PLL all met 40 week resistance today.

Stocks that can be bought as they reclaim their 10 week MAs and their buy stop spots are PCP 163, CMG 320.50, BMY 31.80, COP 68.60. Stocks that retook their 10 week MAs today were BBBY COST DLTR TSCO SO ED ABV GIS WPI ADS APA RRC. Stocks that can be bought at 10 week support are UA 76.75, VFC 132, MCD 90.90, SBH 18.45, INTC 23.45, ABV 32.50, DEO 81.05, JKHY 31.05, PMTC 18.60, RHT 46.30, IP 26.35, V 91, SCCO 28.75, XOM 76.25, CRZO 25, DHR 45.95, NUE 36. Stocks that received 10 week support today were DECK HXL INTC SAP ALXN XRAY PAY CLF SM NUS.

Stocks that can be shorted at 10 week resistance are RL 147.50, LTD 41.60, ADI 34.75, TAP 40.25, ATHN 58, ORCL 31, JAZZ 39.75, DFS 23.75, DOW 26.10, CVX 99.50. Stocks that met 10 week resistance today were PCP KLAC JNPR INTU NUAN BIDU BMY PNC FCX NEM EMN MON DVN X. SCSS can be shorted with a 17.70 sell stop trigger as it loses 10 week support.

Good luck.

The author is long FE. Short AMGN. We repurchased FE today at 43.09, and shorted AMGN at 10 week resistance at 56.16. Tight leash on the short as it can retake its 10 week quickly.

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