Markets plunged Wednesday on heightened concerns over the country of Italy. The Nasdaq lost 3.9% and the S&P 500 3.7%. Volume expanded delivering a big wallop to the markets strong October. The type of volatility we are witnessing is prevalent in bear markets. Perhaps we are in just a transient mini bull market within a more secular bear. There really was nowhere to hide Wednesday as even your traditional defensive names like ROST lost 4%, KO 2.5%. With the dollar surging on a Euro meltdown, global growth equities came under fire. JOYG lost 6%, CAT almost 5%. Commodities were pounded on the backs of the surging greenback. X lost 8%, FCX 7.5%. Both of those former names found 50 day support today. Banks were pummeled today with titans GS JPM, losing 9 and 7% respectively, both giving way under their 50 day MAs. "When the facts change, I can my mind, what do you do sir". Today certainly changed the mood of markets and as a result we should become smaller in size of our trading. However amid all the doom and gloom we need to keep an eye on new opportunities. SWI a recent gap up, rose today smartly. Pay attention to relative strength. FTNT needs one more day to build a handle on its cup base. Potential buy point of 25.43. The ETF SDS looks like it can rally into 200 day resistance at 22. Perhaps their a rally can continue. Perhaps. After hours the happiest person around had to be David Einhorn as GMCR melted more than 30% on earnings. CSCO rose 2%. Stocks reporting Thursday include DAR KSS JWN DIS.
Stocks near 200 day support are DSW 46, MON 69.75, BIDU 135, ARBA 31, INTU 50.50, ACN 55.25, JAZZ 34, QCOM 54.15,NVLS 33.50, CBOE 25.75, APC 76, CVI 23, CVX 101.75, CLR 61.80, CXO 93, PXP 33.90, VLO 25.05, UNP 96.20, PAG 19.90. Stocks that found 200 day support today on a horrible tape were KO R CTXS PPG FMC NBL OXY WNR CBI. Put in a buy stop on EOG above 101 as it reclaims its 200 day MA.
Stocks near 50 day support are JNY 10.80, DECK 101.50, NKE 90, FCX 38, ED 57.15, FE 44.50, SO 42.50, ABV 32.85, BBBY 59.40, DG 38, JWN 48.10 (earnings tomorrow), TJX 57, TIF 72, AXP 48, V 90, CHKP 56, BBT 22.10, PNC 50.25, EMN 37.20, GRA 38, HES 58, RRC 66, SU 29.35, TCK 36.20. DE MS HAL X all found 50 day support today.
Stocks that can be shorted as they lose their 200 day MAs and their sell stop spots are KO 66.25, HSY 55.75, ATHN 49.75, WPI 63, AVGO 33. Stocks that lost their 200 day MAs today were BUD EBAY DFS MCO XRAY LLTC COP EXXI RDSA TYC KMT URI. Stocks that can be shorted at 200 day resistance are HFC 31.30, UPS 70.50 (weekly UPS chart shows large distribution).
Stocks that can be shorted as they lose 50 day support and their sell stop spots are RL 144.50, LULU 54, MMM 72.50, ITW 45, AAPL 393.50. Stocks that lost 50 day support today were AA BHP DSW AGU DELL BMY CMCSA GS JPM WY. Stocks that can be shorted at 50 day resistance are WFM 68.25, ALXN 64.45.
Good luck.
The author owns FCX DE. We sold ORCL today for a small profit as it lost its 200 day MA which was the catalyst for getting in.
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