Saturday, November 12, 2011

Weekend Stock Reflections

Markets finished the week with a bang Friday with both the S&P 500 and Nasdaq both higher in the 2% range. The move put both indexes in the black for the year. Volume was light due to the holiday. A look at the indexes shows both 10 week MAs started to now slope upward, a positive sign. Although both the Nasdaq and S&P 500 encountered some resistance near their 40 week MAs Friday, recent action has been encouraging. Since the huge moves we have seen off of the 10/04 capitulation days, the markets have been stubborn and reluctant to give back any of the gains. The Nasdaq itself has now found repeated support off its 2600 level and even seems to be forming a bullish cup with handle pattern.

Taking a look at some individual sectors, the semis via SMH retook their 200 day MA Friday. The ETF rose more than 3% Friday and now sports a cup with handle buy point of 32.84. Favorites in the group remain KLAC and INTC up 4.5% and 3% respectively after breaking out of bases recently. The XLE is finding resistance here at its 200 day MA. Will the third time be the charm here. Put in a buy stop above 73. Favorites in this group remain COG which rose 5% this week after a recent double bottom breakout. Follow the leaders. Both EOG CXO look nice technically after regaining 200 day support. CJES rose 11% this week, recapturing its 10 week MA in the process on healthy earnings this week. The XRT continues to look beautiful and has carved out a cup with handle buy point of 55.02. Many leaders in the group fell this week including DECK (down 7%) DSW BBBY but all managed to find solid 10 week support during the week. The transports ETF IYT is readying a 200 day test of it own for the second time in two weeks. Put in a buy stop above 91 there. KSU made another all time high Friday, and others like NSC UNP are both forming cup with handle patterns.

Stocks near specific buy points include cup with handles bases COH 66.64, ABV 34.89, TIBX 29.66, ACN 62.00, ASML 43.98, PPG 90.10, SWN 44.46, UNP 103.90, PAG 22.55. Double bottom with handles are PM 72.59, TPX 72.10, TIF 81.09, WSM 40.17, BIDU 147.78, AXP 52.45, SAP 63.53, CBS 26.87, ARMH 31.65, CVX 110.11, PLL 54.18. Double bottoms are BUD 59.86, AET 41.95, CXO 99.57. Cup bases are FL 24.93, CLR 71.87. 4 week tight patterns are FE 46.00, DPZ 33.10. M has a 3 week tight pattern buy point of 32.77, and V has a square box base buy point of 95.97. Both RAX BEAV are in the process of forming handles and can be added to your watchlist.

Stocks that can be bought as they reclaim their 200 day MAs and their buy stop spots are JNY 12, SCCO 34.50, AKAM 30.60, KKR 15.15, EMC 25.60, TXN 32.05, BBT 25.20, CE 45.75, XOM 80.25, NOV 72.60, EMR 52.75, UTX 81.30, AVT 31.55, ATU 24.50, CAT 98.50, NUE 40.75, JBHT 43.25. XRAY WLP XLNX PX EOG EXXI UPS HON TYC DHR all retook 40 week resistance Friday. Stocks that can be bought as they reclaim their 50 day MAs and their buy stop spots are WFM 69.20, GS 103. KO AGU DFS BMY AVGO all retook their 10 week MAs Friday.

Stocks that can be bought near 200 day support are DFS 24, ORCL 31.70, MCO 34.20, XRAY 36, MAKO 29.50, WPI 63.25, WLP 69.90, QCOM 54.15, GRA 40.40, APC 76, EOG 100, EXXI 30.50, OXY 96, RDSA 69.50, HON 54, DHR 49.40, PH 82.25, PAG 19.95. WSM BIDU LVS all found 200 day support Friday. Stocks that can be bought at 50 day support are SO 42.55, CHKP 56.10, CBOE 26, JPM 32.55, MS 15.75, WFC 25.05, CRZO 25.75, TCK 36, X 25. TGT CLEG NVDA all found 50 day support Friday.

Stocks that can be shorted at 50 day resistance are AMZN 223, CERN 66.50, ALXN 64.60, JAZZ 0.75, WPI 67.75. Stocks that met 50 day resistance Friday were AA TAP WFM ALXN BAX CMCSA GS BTU BWA WY. DLTR can be shorted with a sell stop below 50 week support at 76.50. CVI can be shorted at 23.25 its 200 day MA, and HSY can be shorted with a sell stop below 200 day support at 55.75.

Gap up stocks still looking fine are ORLY SBUX SWI HUM QCOR QCOM EL.

Good luck.

The author owns FCX DE WMT. Short LULU.

No comments:

Post a Comment