Happy New Year

Will be out of office until the New Year. Everyone have a happy and healthy 2012!

Tuesday Game Plan

Markets capped off the holiday week on a cheery note. The Nasdaq gained 2.5% on the week and closed right at 10 week resistance. The S&P 500 rose 3.75% and reclaimed its much talked about 40 week MA. Volume was paltry due to the holiday. But volume has been tame for quite some time now. A look at the S&P 500 back to mid August shows just 9 days in above average trade on a daily basis. Perhaps we are looking at a new normal in slow trade. Groups that seemed to dominate the week were the transports and financials. The IYT retook its 40 week MA. It knocked out the 200 day door 3 times since October. Could the nest stop be par? Pun intended. It did break through in very timid volume, however we must remember that the more times a ETF or stock tests support or resistance, the more likely it is to penetrate. UPS UNP have both carved out nice bases and could be on the verge of breakouts. KSU resumed its leadership status in the group, and TRN retook its 200 day and FDX is poised for its own 40 week test Tuesday. XLF retook its 10 week MA Friday. GS continues to lag, but JPM rose 5%, and had a bullish outside week. WFC took out its 40 week line this week as well for the first time since spring. As my favorite Larry Kudlow would say, possible "green shoots" developing. FRC continues to look good as the recent IPO shapes the right side of a cup base and trades in a very tight bullish fashion. In hindsight, it may be possible that an ongoing rotation out of retail and into these sectors in taking place. Many retail names have continued to implode. This week it was BBBY down 6%, but for the moment receiving 40 week support. DECK TIF LULU have faltered in the past, but look for strength in the group. NKE had a nice earnings report to start the week and has ridden its 10 week line for some months now. M has down the same in regard to its 10 week. But some big volume down days have made this ones support look ominous. Give it the benefit of the doubt as long as that line holds. If not short below it. RL garnered 200 day support this week, but it could fall victim if that line does not hold. Looking at leading stocks this week showed a few breakouts. V took out a 98.70 3 weeks tight trigger. CELG was up everyday last week as it took out its own 65.92 double bottom buy point. AAPL was up everyday last week as well as it retook its 10 week MA and is now looking to complete a cup base with a potential buy point of 426.80. PM RAI WMT SBUX all broke above 3 week tight patterns in soft trade though. ED took out its own 59.99 flat base buy point to establish a new all time high in the process. Two stock I am certainly going to keep a close eye on this week are two that are approaching Y2K highs (from pre 2000 levels). Long term bases are usually strong in nature. ADP is very close to a 55.12 cup base buy point that would put it at decade long highs. WMT has another 9 points to go in its cup base, but the tight trade and recent push above its 3 week tight trigger could warrant a starter position right here. Two stocks that retested prior triggers were EL INTC. INTC retook its 10 week MA this week even after a recent guidance reduction, and tested its 23.49 double bottom trigger to the penny. EL retested its own 106.52 double bottom buy point last week and has now formed a bullish double bottom buy point of 119.09. Keep an eye on strength as this market continues to consolidate Tuesdays enormous gains. This type of stubborn action is bullish in itself. Lets look for solid breakouts, many are setting up, to have us step on the gas pedal a little bit more here and change our cautious bullish stance to a little more aggressive one. But not before the tape confirms this. There will be plenty of opportunities once this occurs.

Stocks near specific points are cup with handles KLAC 49.49, JBHT 46.69, NSC 76.59, UNP 106.09, UPS 73.76, TYC 48.62, TMK 44.11, PLL 58.30, CBI 42.02, NBL 99.27. Cup bases HXL 26.58, RTN 50.35, SCSS 22.29, RATE 22.04, ADP 55.12, NUAN 27.07, FMC 93.10, VAL 40.70, AET 45.49, EFX 40.00, KO 71.87, VRSN 37.83, SPG 131.31. Flat bases are AAP 71.10, INTU 55.53, ALXN 70.52, BIIB 120.76, HUM 90.86, CPO 53.22. 3 week tight patterns are DLTR 84.09, ABV 36.75. Double bottoms are EL 119.09, RHI 30.26 (1 year pattern). RS 51.02 in a double bottom with handle pattern.

Stocks that can be bought as they reclaim their 40 week MAs and their buy stop spots are FDX 85.80, ASNA 30.40, OMC 44.60, CBE 56.30, DOV 59.75, ROK 75.75, CE 45.75, PPG 84.50, JEC 41.50, EOG 99.65, KEG 15.50, OXY 95.30, FISV 59.10, RJF 31.60, DHR 49.25, DE 81, ENDP 35.70. Stocks that retook their 40 week MAs Friday were UA TRN MWV SAPE HP KEG TROW ARW.

Stocks that can be bought at 40 week support are SPR 20, MWV 29.70, BBBY 56.35, APC 75.75, EXXI 30, KEG 14.95, NUE 39.30, NEM 59.50. Stocks that found 40 week support Friday were RL PAYX.

Stocks that can be bought as they reclaim their 10 week MAs and their buy stop spots are CLF 66.30, DVN 64.25, COG 78.80, ALB 51.80. COST CAT both retook their 10 week MAs Friday.

Stocks that can be bought at 10 week support are NKE 94.25, ASML 40.20, MELI 80, COST 83.85, LKQX 29, M 31.05, RAX 41.90, NUAN 24.85. WSM CSCO BIIB X QCOM all found 10 week support Friday.

Stocks that can be shorted at 40 week resistance are DECK 93, ARMH 27.75, DSW 47, DKS 37.60, LULU 51, TIF 70.10, TIBX 26, WDC 32.50, HLF 53. Stocks that met 40 week resistance Friday were FDX CERN EOG OXY.

Stocks that can be shorted at 10 week resistance are COH 61.90, VFC 133.70, AVGO 31.60, CY 18.05, TSCO 72, SWI 29.20, IBM 185.50, ADSK 32.95, CERN 62, PMTC 20. NOV CLF met 10 week resistance Friday. DPZ can be shorted with a sell stop of 32, as it surrenders 10 week support. CXO lost 10 week support Friday.

Good luck.

The author bought some IYT on the close Friday as it retook its 40 week. As I mentioned Thursday I felt that I would regret selling my PM V NUE longs, and I did. It is frustrating a bit, but I also know the opportunities constantly present themselves on a daily basis. We must preserve our mental capital to take advantage of those situations, and not let our resentment prevent us from capitalizing.

Friday Game Plan

Markets that we follow, the Nasdaq and S&P 500, both finished up by the same .83% gain on soft trade. Impressive since the big gains on Tuesday. The S&P 500 closed higher for the third consecutive day and 6 handles below its 200 day MA. A move above that line, which many are skeptical of, would be very bullish. The Nasdaq closed a hairline below its 2600 level which has been a battleground since early in the year. More importantly it is nearing a 10 week challenge in the near future. We were on the lookout for more breakouts, but were saddened to not discover much. HSY pushed past a 61.00 cup base, but volume was scant. Others hovering right near their trigger points include SBUX 45.10 3 week tight, WMT 59.30 3 week tight, ABT 55.71 flat base. M is retreating back near its 30.72 cup base breakout from 10/24. It also has found solid support right at its 10 week support near 31. It also has formed a 3 week tight pattern from the weeks of 10/28-11/11 at 32.77. It obviously hails from the retail sector which has been under pressure as of late. DECK BBBY were both lower by 6% today, with BBBY down on earnings but managing to find 40 week support. More stocks to keep on your watch list as they build their right sides are HON MWV FMC VAL PXP AAPL. Stocks in the process of completing 3 week tight patterns are RAX ABV and GOOG which we discussed yesterday. Banks were up smartly today as the XLF retook its 10 week MA. JPM was up 3.5%, reclaiming its own 10 week today. WFC retook its 40 week, and recent IPO FRC was up 3% today as well as it rounds out its right side. Transports were strong as well as IYT closed right at 40 week resistance today. It is the third time this ETF has done this and the more times it knocks the less dependable that resistance becomes. Group mates JBHT UNP UPS are all near cup with handle trigger points. As we discussed recently, our bullish narrative must be supplied with more quality break outs from growth minded companies. There are many set ups right under our noses, but let the confirmation be exposed before diving in.

Stocks near specific buy points are KLAC 49.49, JBHT 46.69, UNP 106.09, UPS 73.76, TMK 44.11, PLL 58.30, CBI 42.02, NBL 9.27. Cup bases are RTN 50.35, SCSS 22.29, ADP 55.12, NUAN 27.07, XOM 85.51, EFX 40.00, VRSN 37.83. INTU 55.53 in a flat base and RS 51.02 in a double bottom with handle.

Stocks that can be bought as they reclaim their 40 week MAs and their buy stop spots are ASNA 30.30, SAPE 12.50, CBE 56.20, DOV 59.50, ROK 75.40, CE 45.50, JEC 41.80, EOG 99.60, HP 59, KEG 15.45, OXY 95.20, FISV 59.25, TROW 57.60, RJF 31.75, DE 80.75, ENDP 35.70. Stocks that retook their 40 week MAs today were MWV AKAM PXD WFC.

Stocks that can be bought at 40 week support are SPR 20, HON 53.50, EXXI 30, NUE 39.45, WFC 27, NEM 59.50. Stocks that found 40 week support today were TRN BBBY APC KEG NTGR.

Stocks that can be bought as they reclaim their 10 week MAs and their buy stop spots are INTC 24.30, COST 84.25, ALB 51.35, APC 78.25, COG 78.80, DVN 64.25, CLF 66.40. Stocks that retook their 10 week MAs today were CNI OMC JAZZ X QCOM FCX.

Stocks that can be bought at 10 week support are LKQX 29, M 31, RATE 18.55, RAX 41.95, PAYX 24, CXO 94, EL 107.50. Stocks that found 10 week support today were NKE WSM CXO BIIB.

Stocks that can be shorted as they lose their 10 week support and their sell stop spots are BIIB 109, DPZ 31.85, DLTR 79.75, ALXN 65.70. TSCO lost 10 week support today.

Stocks that can be shorted at 10 week resistance are ARMH 29.75, RIO 52, IBM 185.50, SWI 29.15, MON 72. Stocks that met 10 week resistance today were CSCO FE DHR CLF COST SWI CAT NOV.

Stocks that can be shorted at 40 week resistance are UA 72.10, DFS 37.35, CERN 61, WDC 32.60, AXP 48.10, HLF 53. Stocks that met 40 week resistance today were FDX SAPE HP FISV TROW HLF ARW ENDP. RL can be shorted as it loses 40 week support with a sell stop of 134.50.

Good luck.

The author is flat. We have become adapted recently to becoming swing traders as opposed to position traders. We sold V at 100.80 today for a 2.10 gain, PM at 78.30 for a 1.17 gain and NUE for a small .60 gain. We will look to reenter all three of these on weakness, which means thay will scream higher leaving me behind.

Thursday Game Plan

Markets ended a bit bifurcated Wednesday, as ORCL bruised the Nasdaq to the tune of 1%. It finished 33 handles of its low, and at one point was lower by 2.3%. The S&P 500 ended marginally higher. It bounced right after finding solid support at its 10 week MA. The Nasdaq is still swimming below that key line. Keeping an eye on breakouts, which would help solidify this rally attempt, were slim once again. The ones that did today, occurred in soft trade. They included BA (72.86 cup with handle), WMT (59.30 3 weeks tight pattern), PM (77.13 3 week tight pattern), and MJN (76.14 cup with handle). V did manage to fight back from earlier losses after coming close to retesting its 98.70 3 week tight pattern it emerged from yesterday. V demonstrates the need for more growth oriented names, instead of the dull, boring defensive issues that dominate the breakout list. GOOG may be one such name to add a little shine to the list. It is potentially forming a very bullish 3 week tight pattern. Stocks forming the right sides of their bases, which could become cup or cup with handle bases, are RTN XOM CPO. Keep them on your watch list. ORCLs big miss today wrecked havoc on the software sector and some old tech names. Leader SWI surrendered more than 5% and its 10 week, which looked very stable for months. EMC ACN both lost 4%, IBM 3%. VMW lost 10%, AMZN 5%. ETFs to watch include XLE which closed right up at 10 week resistance, and a buy stop can be placed above 69. IYT is readying itself for another battle with its 40 week line. Put a buy stop on that one above 90.30. GLD its butting right up against its 200 day MA here. A buy stop can be placed above 158.45, and if that is taken out a double bottom base may be on its way to being born. If not look out below. After hours action was mixed with TIBX up and BBBY down.

Stocks near specific buy points which can start to be bought here as the climate gradually becomes better are cup with handles JBHT 46.69, UNP 106.09, UPS 73.76, TMK 44.11, PLL 58.30, EXXI 32.90, NBL 99.27. Cup bases are HSY 61.00, BIIB 120.76, AET 45.49, ADP 55.12, SCSS 22.29 (base on base pattern), HXL 26.58 (base on base pattern). Flat bases are ABT 55.71, SPG 131.31, PSA 132.30.

Stocks that can be bought as they reclaim their 10 week MAs and their buy stop spots are NSC 72.20, CAT 92.25, CXO 94.50, COG 78.75, DVN 64.25, JAZZ 38.25, FE 44.60, JPM 32.70, FCX 38.25. Stocks that reclaimed their 10 week MAs today were ARO COST OXY GIS.

Stocks that can be bought at 10 week support are KLAC 45.95, BEAV 38.10, DPZ 32.05, LKQX 29, M 31, RATE 18.60, INTU 52.55, WCG 52, EL 108, ARW 35. Stocks that found 10 week support today were ASML HXL KSU MMM JWN SAPE NUAN CE EMN JEC AAPL DEO BR STLD ARW.

Stocks that can be bought as they reclaim their 40 week MAs and their buy stop spots are TRN 30.30, MWV 29.90, ASNA 30.30, DOV 59.75, EOG 99.80, HP 59, KEG 15.30, OXY 95.25, FISV 59, TROW 57.30, RJF 31.50, WFC 27.10, DHR 49.15, ENDP 35.60. COH APC PXD all retook their 40 week MAs today.

Stocks that can be bought at 40 week support are PII 54, WSM 37, RHI 26.10. Stocks that found 40 week support today were SPR CNI HON TYC WSM CTCT CBI CXO NUE.

Stocks that can be shorted at 40 week resistance are DECK 93.50, FDX 84.95, DKS 37.65, CERN 61.10, PPG 84, HLF 53.10. Stocks that found 40 week resistance today were ROK HP KEG AXP DFS WFC. UA NTGR both lost 40 week support today.

Stocks that can be shorted as they lose 10 week support and their sell stop spots are TSCO 71, ALXN 65.75. AKAM SWI IBM CSCO all lost 10 week support today.

Stocks that can be shorted at 10 week resistance are CY 18.05, INTC 24.10, OMC 43, PMTC 19.90, QCOM 54.05, MON 71.95. INTC JAZZ FE X QCOM all met 10 week resistance today.

Good luck.

The author owns V NUE PM. We bought PM through it 77.13 3 week tight pattern. Volume was soft however.

Wednesday Game Plan

Markets powered ahead Tuesday on big volume. Speculate on the reasoning all you want, but the price action must be respected. Sure its one day, and big, massive spikes like this are most attributed to short covering, but perhaps Santa was just hibernating for the first 3 weeks of December. Call me skeptical, but we are not paid on our opinions. The Nasdaq was higher by over 3% and closing just above its 2600 level. That level has been a battleground between support and resistance now since mid March. A 10 week test lies 2-3 handles away. The S&P 500 regained its 50 day MA and finished higher by just under 3%. Some leaders which we always pay very close attention to attempted to break out today. Most of them came in sub par volume. Two that did so with proper volume were CELG that took out a 65.92 double bottom buy point, V took out a 98.70 3 weeks tight base. Others SBUX (3 week tight 45.10), SBH (21.04 flat base), ADP (52.85 cup with handle), FMC (86.49 cup with handle), ED (59.99 flat base), SPG (125.16 3 week tight), all came in volume that would be considered under acceptable (greater than 40% on the average daily volume). Semis were up big today with many in the group up better than 5%. Stick with the leaders such as KLAC which retook its 10 week MA and sporting a cup with handle base of 49.49. SIMO looks decent as well here. Look to short some of the laggards such as AVGO CY at their oncoming MAs. IYT is once again approaching its 40 week MA, and perhaps the third time will be the charm. Put in a buy stop at 90.25. Energy was up big today and leaders in the group were up more than 5% included COG NBL CLR. Retail slightly under performed today with the likes of VFC closing lower on the day and UA closing on its low. Pay attention to relative weakness just as much as relative strength. Retail stocks that behaved nicely today were M USNA. WSM is still displaying a bullish inverted head and shoulders pattern. Put in a buy stop there above 40.25. Stocks to be included on a watch list that are currently carving out the right side of their bases are GRA MENT VAL AET VAR EFX FRC VRSN. After hours earnings were mixed with ORCL RHT down and NKE up.

Stocks near specific buy points to be included on your watch list are cup with handles KLAC 49.49, BA 72.86, JBHT 46.69, UNP 106.09, UPS 73.76, AAP 71.10, FFIV 117.40, RAX 45.56, CTCT 25.72, TMK 44.11, PLL 58.30, MJN 76.14. 3 week tight patterns are GNC 29.01, WMT 59.30, PM 77.13, RAI 41.71. Double bottom with handles are BUD 61.08, USB 26.74, RS 51.02. Flat bases are ALXN 70.52, ABT 55.71, PSA 132.30. SCSS in a cup base, with a base on base pattern, 22.29 trigger.

Stocks that can be bought as they reclaim their 40 week MAs and their buy stop spots are TRN 30.30, MWV 30, ASNA 30.40, SAPE 12.50, DOV 59.50, ROK 75.75, APC 76.25, EOG 99.60, EXXI 30.25, HP 59, KEG 15.25, FISV 59, TROW 57.15, RJF 31.50, WFC 27.10, DHR 49.15, ENDP 35.60. Stocks that retook their 40 week MAs today were RTN SPR CNI NSC HON TYC PXP FE NUE CPO MON. SPR can be bought at 40 week support at 19.95.

Stocks that can be bought as they reclaim their 10 week MAs and their buy stop spots are INTC 24.25, COST 84.25, ALB 51.25, CXO 94.75, COG 78.75, JPM 32.75, FCX 38.25. Stocks that retook their 10 week MAs today were ASML BEAV HXL KSU MMM CMG JWN AKAM IBM INTU NUAN CAT CBE CE EMN CLR EXXI NBL AAPL CSCO STLD DE. Stocks that can be bought at 10 week support are DPZ 32, LKQX 28.95. WSM BIIB WCG all found 10 week support today.

Stocks that can be shorted as they lose 40 week support and their sell stop spots are RL 134.50, UA 71.55, PII 53.15.

Stocks that can be shorted at 40 week resistance are DECK 93.50, FDX 85, EMR 51.05, DSW 47, DKS 37.65, ACN 56, CERN 61, PMTC 20.55. Stocks that met 40 week resistance today were COH ROK EOG AXP DFS HLF.

Stocks that can be shorted at 10 week resistance are ARMH 28, CY 18.05, NSC 72, OMC 43, ADSK 33, ATU 22, JAZZ 38, MON 72. Stocks that met 10 week resistance today were ARO COST PMTC COG OXY PXD X JPM QCOM.

Stocks that can be shorted as they lose their 10 week MAs and their sell stop spots are BBBY 60.75, DLTR 79.75, TSCO 71.

Good luck.

The author owns V NUE. We bought some NUE at 39.61 as it crossed its 200 day MA.

Tuesday Game Plan

Markets once again wiped out early gains, and finished with decent losses. Classic corrective action. Both indexes gave up more than 1%. Volume was soft compared with the elevated trade Friday due to expiration. As we like to say here, pay attention to the leaders. They offer key insights to the general health of the market. Break outs are very rare, and should not be purchased in this corrective climate, but some attempted to do so today. ABV ED V all tried to take out valid trigger points intraday, but failed to hold on by the close. Poor action. We are technicians here, and the more we look at leading stocks and industries, the more we see bearish, wide and loose chart patterns. These are much more prone to failure. Big techs AAPL IBM QCOM have all been trading in this fashion recently. Retail stocks COH UA JWN PII have done the same. ROST reversed at had an outside day from an all time high. Transports stocks CNI NSC have both traded very loose and both are having troubles with their respective 40 week MAs. JBHT had a bearish outside, although it was in light volume. Energy equities trading loose include APC CLR. APC lost its 40 week last week, while CLR managed to hold it today. COG has become almost a laggard in the group and we will wait to enter near 40 week support near 66. Another recent leader in the group which has faded to the background is FTI which is now below its 50.30 cup with handle trigger, and has become overridden with distribution. Even utilities have felt the pain with the XLU losing 10 week support today. FE lost 40 week support, continuing its slide from Friday. Banks and semi were hit as well today, what was not, as leader KLAC finally surrendered its 10 week MA today. GS JPM both gave back 3% today, and FRC now remains by far the best looking bank chart out there. Take particular attention to upgrades in this fragile conditions we are experiencing. SPR had 2 upgrades in the last week and was repelled both times at the 40 week. FDX had the big guidance forecast and met 40 week resistance head on. HON was upgraded today and was smacked by its 10 week MA. And just to convey the notion of buying strength and avoiding laggards. Tale of the tape in the steel sector. Recent leader NUE down 2%, today, laggard X 8%. Only good news, besides the fact that I am becoming exceeding bearish, is that the SDS, which has been a good indicator to market direction is near 40 week resistance. Lets see how it reacts there.

Stocks near specific buy points for watch list purposes only are 3 week tight patterns SBUX 45.10, GNC 29.01, V 98.70, WMT 59.30, PM 77.13, RAI 41.71. Cup with handles RAX 45.56, TMK 44.11, PLL 58.30, FMC 86.49. CELG 65.92 in a double bottom base, ABT 55.71, ED 59.99 in flat bases and HSY 61.00 in a cup base.

Stocks that can be shorted as they lose 10 week support and their sell stop spots are DLTR 79.75, DG 39.50, TSCO 71, SWI 28.75, INT 40, BIIB 109.40, HUM 82.50. Stocks that lost 10 week support today were KLAC EMR MMM ARO BBBY M FFIV PMTC CE CBI JEC CSCO BR FISV RJF WFC NUS.

Stocks that can be shorted at 10 week resistance are VFC 133.60, ASML 40, NKE 94.05, BEAV 37.10, BBBY 61, CMG 325, COST 83.70, M 30.80, IBM 185.25, OMC 43, NUAN 24.60, CAT 91.25, CBE 53.10, JEC 39.45, NUS 47.15, DHR 47. Stocks that met 10 week resistance today were NKE BEAV HXL AKAM NUAN ALB CXO CRZO EXXI NBL STLD ARW DE.

Stocks that can be shorted as they lose 40 week support and their sell stop spots are RL 134.50, JWN 46.40, PII 53.10, ADP 50.75, INTU 50.45, CLR 61.75, JAZZ 35.45. CBI BR FE RS all lost 40 week support.

Stocks that can be shorted at 40 week resistance are TYC 45.60, DKS 37.60, DFS 24.20, HLF 53. Stocks that met 40 week resistance are COH UA RTN SPR PXP DFS NUE MON.

Stocks that can be bought at 40 week support are INTC 22.10, BAC 69.15, UNP 97, UPS 70, KMX 29.90, COST 80, RHI 26.10, MENT 12.20, XOM 79, VAR 62.35, NEM 59.50. JBHT PII PAYX NTGR AET KO all found 40 week support today. Buy stops can be put in on these as they reclaim their 40 week MAs. ASNA 30.25, CPO 50.40, ENDP 35.65.

Stocks that can be bought at 10 week support are AAP 66.05, TRN 27.55, DPZ 32, GNC 25.95, LKQX 28.95, SCSS 19.50, TJX 60.20, WMT 57.20, DOV 54.40, CJES 19.15, ALXN 66, ABT 53.50, NUE 38, CPO 49, GIS 39.30, MJN 72.50, SPG 122, ROP 81.60. Stocks that found 10 week support today were HON MWV EOG DEO WCG TROW EL CPO MKC. CELG reclaimed its 10 week today.

Good luck.

The author owns V. We bought it as it passed it 98.70 3 week tight trigger. It did so in mediocre volume and will be kept on a tight leash.

Monday Game Plan

Markets once again Friday splashed some cold water on the bulls. Indexes early gains were chopped down throughout the day after a strong opening. For the week the the Nasdaq gave back 3.5%, the S&P 500 2.8%. Both benchmarks surrendered 10 week support during the week. The Nasdaq did so after a bearish outside day Tuesday, and finishing near lows for the day from then on everyday of the week. The S&P 500 encountered 10 week resistance Wednesday through Friday and closed on its lows everyday of the week. Action among key leading stocks was mixed. DPZ lost 4% this week in tame volume and a 10 week test is looming quickly. Perhaps it will enjoy the 10 week support that SWI did this week, despite its own 10% weekly drop. IBM was down everyday this week losing 6%, and its 10 week line in the process. Some leaders managed to hold up. PETM rose 2.5% on the week, displaying excellent relative strength, and hitting an all time high Friday. MRK remains just below a 36.35 cup with handle base. As we have spoke about in the past it is not uncommon for stocks which have broke out in the past to revisit their previous buy points. It is important to see how they react there. EL did so this week, retreating back to its 106.52 double bottom buy point. It held both that and 10 week support. KSU retested its 62.86 cup base buy point and rebounded to close above that trigger and also reclaim its 10 week line Friday which it had lost earlier in the week. SCSS also retested its prior 19.33 cup base trigger and closed just above that number, and is meddling with 10 week support right here. GOOG continues to trade tightly at 52 week highs here. A look at some sectors was worrisome this week. Retail, via XRT lost 4% on the week, after an ugly outside day Tuesday. COH lost ground everyday this week, falling 8% and losing its 40 week MA. VFC lost 6% on the week, after an awful outside day Tuesday, losing its 10 week line that day as well. IYT lost less than 1% for the week, on the back almost entirely of FDX, after a stellar report. Action is mixed in the group however with CNI NSC both discarding their 40 week MAs and the bases becoming wide and loose. JBHT had a nice day Friday and now has a textbook handle on its cup base, which has developed above both the 10/40 week lines. SMH lost more than 5% on the week on the heels of INTC guidance slash Monday. It is still hovering near a 23.49 double bottom trigger, but it looks like a 40 week test is imminent here. LRCX takeover announcement of NVLS did little to help the group. KLAC did manage to find 10 week support Friday. Other leader KLAC did manage to find 10 week support Friday. SIMO looks somewhat suspect after its outside day Tuesday reversing from an 3 year high in the process. Commodities and the global growth story were thrown into doubt with JOY 16% weekly loss on lowered guidance and oil losing 6% on the week. XLE lost its 10 week MA this week and has had continuous trouble with its 40 week this quarter. NBL XOM are still trading above their 40 week MAs displaying solid relative strength in the sector, but leader APC lost 9% on the week as well as key 40 week support it has been enjoying. COG lost its 10 week line and 9% this week. EOG lost its 40 week, but held frim at its 10 week. Recent fracking IPO CJES lost 11% on the week and a 10 week test looks probable. OKE ARG gap ups still look good.

Stocks near specific buy points to be viewed as a watch list only, until the market sheds this corrective phase are: Cup with handles PLL 58.30, ADP 52.85, RAX 45.56, TMK 44.11, CBI 42.02, FMC 86.49, NTGR 38.57, UPS 73.76, UNP 106.09, JBHT 46.69, BA 72.86. 3 week tight patterns are GNC 29.01, RAI 41.71, SBUX 45.10, WMT 59.30. Flat bases are ED 59.99, ABT 55.71, SBH 21.04, BBBY 63.93. Cup bases are EFX 41.00, HSY 61.00. CELG 65.92 in a double bottom base and ADS 107.43 in a cup with high handle base.

Stocks that can be shorted at 10 week resistance are NKE 94, ASML 40, CY 18.05, HXL 24, CMG 324.50, PII 60, AKAM 27.10, IBM 185.25, OMC 42.85, ADSK 33, ATU 22, CAT 91, EMN 38.10, JAZZ 38.15, PPG 83.50, NOV 68, OXY 92. Stocks that met 10 week resistance Friday were KSU MMM COST SCSS AKAM INTU CBE CELG FE STLD JPM ARW DHR CLF FCX DE.

Stocks that can be shorted as they lose 10 week support and their sell stop spots are M 30.60, EMR 48.60, ARO 15.05, BBBY 60.60, RCII 33.80, HUM 82.25, WCG 50.50.

Stocks that can be shorted at 40 week resistance are COH 58.75, DECK 93.50, CNI 74.50, TYC 45.45, DSW 47, VMW 92, TIBX 26.05, PXD 86.50, HLF 53, MON 69.50. Stocks that met 200 day resistance Friday were RTN NSC TYC PMTC DFS QCOM.

Stocks that can be shorted as they lose 40 week support and their sell stop spots are RL 134.50, UA 71.80, JWN 46.30. COH ACN both lost 40 week support Friday.

Stocks that can be bought as they reclaim their 10 week MAs and their buy stop spots are SCSS 19.60, ALB 51.25, CXO 94, CRZO 27, EXXI 29.40, CELG 64.25, STLD 12.70, JPM 32.60, DHR 47.25, CLF 66.50. ASNA NUAN CBI CLR ALXN all retook their 10 week lines Friday.

Stocks that can be bought at 10 week support are LKQX 28.95, SPR 18.05, MWV 28.10, DPZ 31.95, SBUX 42.50, TJX 60.10, SWI 28.95, DOV 54.40, INT 41.10, RJF 29.05, X 25.10, WFC 25.55, GIS 39.30, MJN 72.50. Stocks that found 10 week support Friday were TSCO CE EOG ENG KEG CSCO DEO BIIB TROW RJF X WFC CPO.

Stocks that can be bought as they reclaim their 40 week MAs and their buy stop spots are RTN 45.95, TRN 30.25, HON 53.80, ASNA 30.20, EOG 100, PXP 33.75, FISV 59.10, NUE 39.75, ENDP 35.70. JBHT WSM PAYX KO all retook their 40 week MAs Friday.

Stocks that can be bought at 40 week support are ASML 38.10, KMX 29.90, COST 80, CTCT 23.05, GRA 41, VAL 35.10, XOM 79.05, AET 40, VAR 62.50, AXP 48.10, BR 22.05, NEM 59.50. ADP CLR BR all found 40 week support Friday.

Good luck.

The author remains 100% in cash.

Friday Game Plan

Markets once again displayed weak behavior Thursday as they major averages failed to hold early advances. The Nasdaq finished 25 handles off its intraday high, and the S&P 500 10 handles off its intraday high. The S&P 500 also met 10 week resistance today. We actually had one breakout today, albeit it being a very defensive one, and it was by one penny. MRK took out a 36.35 cup with handle buy point in almost twice the daily average volume. Semi euphoria did not last long as the early bump due to the NVLS acquisition. Leader KLAC finished well off the highs, and almost completing an outside day. QCOM met 40 week resistance and turned tail, ASML did the same off its 10 week. Dow components IBM AXP both had bearish outside days today. DFS did as well in huge volume and losing its 40 week in the process. Leader MELI lost 3%, falling further below its 90.09 cup with handle buy point. Another example of leaders falling, and taking market sentiment with it. Employer PAYX met 200 day resistance despite the decent claims number this morning. The market is always right and this stock is telling the truth about the employment situation. People have quit looking for employment. Some stocks showing constructive action in this weak environment must be paid attention to. Because as bad as it seems things could turn and turn quickly. PLL is putting a handle on its cup base after a recent earnings beat. Stocks forming 3 week tight patterns that could be completed tomorrow are PETM OKE RAI. This pattern is bullish since it shows tight consolidation in a choppy tape, and a reluctance to give back any gains near 52 week or all time highs.

Stocks near specific buy points, which again to be put on a watch list until market conditions improve are cup with handles BA 72.86, UPS 73.76, RAX 45.56, TMK 44.11, FMC 86.49, GIS 40.35. Flat bases are ABT 55.71, ED 59.99. HSY 61 in a cup base pattern.

Stocks that can be shorted as they lose 10 week support and their sell stop spots are KLAC 45.25,EMR 48.50, BBBY 60.30, FFIV 102, SWI 28.40, CE 41.30, JEC 39, BIIB 108.60, HUM 82, ADS 98.45, FISV 56.90, MA 351. KEG lost 10 week support today.

Stocks that can be shorted at 10 week resistance are VFC 134, CY 18.05, HXL 24, KSU 63.50, JWN 48.90, PII 60, SCSS 19.20, ADSK 33, ATU 22, CAT 91, CBE 53, ALB 50.75, EMN 38.05, DVN 63.60, AAPL 391, ALXN 66, CELG 64, CLF 66. Stocks that met 10 week resistance today were EL JPM ARW DHR FCX DE ASML BEAV MMM TYC ASNA CMG COST SCSS OMC SAPE INTU CXO CRZO CLR EOG PXD PXP.

Stocks that can be shorted as they lose 40 week support and their sell stop spots are COH 58.50, ACN 55.60, ADP 50.70, INTU 50.40. Stocks that lost 40 week support today were DECK NSC WSM.

Stocks that can be shorted at 40 week resistance are FDX 85, MWV 29.70, DSW 47, DKS 37.80, PAYX 29.55, TIBX 26.05, WFC 27, HLF 53, QCOM 53.95, MON 69.50. Stocks that met 40 week resistance today were CNI JBHT TYC PAYX KO.

Stocks that can be bought at 10 week support are AAP 66, DLTR 79.25, M 30.55, PETM 47, SBH 19.25, SBUX 42,50, TJX 60, RCII 34, WMT 57.05, ROK 70, CJES 19.05, FTI 47, INT 40, DEO 83.10, TROW 53.55, NUE 37.90, GIS 39.25. Stocks that met 10 week support today were NKE UNP HON PIR AKAM RATE CSCO AET WCG X MJN.

Stocks that can be bought as they reclaim their 10 week MAs and their buy stop spots are NUAN 24.65, PMTC 19.90, CBI 37, JPM 32.55, EL 107.10. TRN LKQX both retook their 10 week MAs today.

Stocks that can be bought at 40 week support are BA 69.10, KMX 29.85, COST 80, RHI 26.15, TRV 56.20, GRA 40.95, VAL 35.10, COG 65.25, XOM 79.05, AAPL 366, BUD 56.95, VAR 62.50, NEM 59.45. Stocks that received 40 week support today were COH UA ACN ADP CTCT MENT NBL NTGR BR. RTN can be bought with a buy stop above 46.25, its 40 week MA. JAZZ retook its 40 week MA today.

Good luck.

The author is flat. Was out of the office today.

Thursday Game Plan

Markets fell for the second straight day, with volume also accelerating. Today the S&P 500 lost its 10 week MA, a day after the Nasdaq did the same. Today was the first day where leading stocks, which we know is a very accurate way to gauge market health, suffered. Many pierced 10 week support with big downside moves and volume to boot. They include HXL down 4%, NUAN 4%, SCSS 6%. Other leaders which slumped but managed to stay afloat above their respective 10 week MAs were DPZ SWI both down 5% on the day. Energy stocks were drilled today, pun intended, as OPEC came out with headlines that affected oil prices. OPEC taken seriously. Come on now. Crazy. But nevertheless, chart action is what we pay attention to, and the charts were rattled. XLE lost its 10 week in heavy volume. COG fell almost 4% on heavy trade. APC lost its 40 week which was pretty supportive as of late. CXO, a recent stalwart punctured both 10/40 week MAs losing 6% on the day. The transports were railed today, again pun intended. This group has been climbing the list of outperforming sectors, so to see this weakness was disturbing. IYTs 10 week also was compromised, with several peers acting poorly. KSU fell more than 3% as its 10 week gave way. When the generals fall, take notice. CNI JBHT both lost 40 week support today. NSC UPS both remain above 40 week support if thats any consolation. Some techs have been bruised lately too. TIBX, a former leading has lost more than 15% in the past two days. Its V shaped cup base, should have raised some red flags, as they are more prone to failure. Some stocks displayed encouraging action were V which was up today and continues to trade in a tight range. ABT the same action. Both ABT V can finish the week, with a 3 weeks tight pattern. A bullish pattern where stocks close on a weekly chart within 1% of the previous 3 weeks. Both these are near all time highs as well which adds to the bullishness. ABV looks to be forming a handle on its cup base. Keep an eye on it. Some M&A action took place after the close with NVLS being taken out by LRCX.


Stocks near specific buy points, which should be put on a watch list in this corrective period and not purchased until this market gains some legs and some follow through. They are some of the best technically sound charts I could find. All are cup with handles. UPS 73.76, TMK 44.11, MRK 36.35.

Stocks that can be bought near 40 week support are DECK 93.10, ASML 38.10, INTC 22.05, BA 69.15, UPS 70, COST 80, LKQX 25.95, FMC 80.30, VAL 35.10, COG 65, BUD 56.95, FE 42.75, NEM 59.20. Stocks that found 40 week support today were COH UA NSC KMX WSM ACN RHI MENT XOM NTGR BR.

Stocks that can be bought at 10 week support are RTN 43.90, SPR 18.05, AAP 65.95, DG 39.50, DLTR 79.60, DPZ 31.55, FAST 38.50, GNC 25.50, PETM 46.95, PIR 12.40, SBH 19.25, SBUX 42.45, TJX 60, WMT 57, RATE 18.25, RAX 41, CTCT 23.20, IBM 185.15, DOV 54.15, JEC 39.05, FTI 46.90, DEO 83.05, RAI 39.05, ABT 53.45, MA 352, TROW 53.60, SO 43.20, ED 58.05, GIS 39.25, HSY 58. Stocks that found 10 week support today were NKE JBHT UNP M SAH SWI ADP X CE GRA KEG INT CSCO WFC CPO MJN.

Stocks that can be shorted as they lose 10 week support and their sell stop spots are NKE 93.50, WRC 47.75, KLAC 45.15, EMR 48.50, ARO 14.80, AET 39, BIIB 108.50, HUM 81.75, WCG 50.15, ADS 97.50, FISV 56.85. Stocks that lost 10 week support today were MMM CMG COST OMC SAPE ADSK INTU PMTC ALB CXO CRZO DVN EXXI NOV PXD PXP FE STLD NUS FCX DE.

Stocks that can be shorted at 10 week resistance are VFC 134, FDX 79.75, PII 60, EMN 38, ALXN 66, PAY 41.25, KO 68, CLF 66.

Stocks that can be shorted as they lose 40 week support and their sell stop spots are COH 58.55, RL 134.50, ACN 53.70, UNH 47.10. Stocks that lost 40 week support today were CNI JBHT PAYX ROK CBI APC PXP JAZZ HLF QCOM.

Stocks that can be shorted at 40 week resistance are JAZZ 35.15, DFS 24.15, QCOM 53.95, MON 69.50. Stocks that met 40 week resistance today were TRV AET DFS NUE.

Good luck.

The author is flat. Covered VFC for a $3 gain. Sorry for the abbreviated post today. Girl planned a nice meal for the birthday author!!

Wednesday Game Plan

Markets displayed classic bear market behavior Tuesday opening on the highs and closing hard upon the lows. Volume grew as stocks reversed. The Nasdaq had a bearish outside day, lost its 10 week MA, and its "psychological" 2600 level. Not the kind of trifecta bulls were wagering on. The S&P 500 managed to hold 10 week support, but the action here was troubling as well. It had been up over 1% earlier in the day. Leading stocks that held up recently on down days, had no such luck today. SWI, a recent standout lost 4% on average trade today. Many retail names performed poorly today. DSW was down almost 5%, surrendering 40 week support. Its wide and loose base errs on the side of failure. M lost more than 5% on huge volume but did catch a bid at 10 week support. AMZN imploded 5% as its chart resembles a head and shoulders pattern reminiscent of the hunchback of Notre Dame. Right side a little slumped. Other individual stocks I am keeping an eye on are HUM. Looks like it could be shorted against that 90.76 12/5 all time high. It had an outside day, reversing from an all time high. Others experiencing significant bearish outside days today were SIMO EOG NUE AAPL VMW. Energy has been under pressure as the greenback solidifies. In retrospect when leaders in the group were behaving soft, a red flag should have been highlighted. COG has been a group under performer since losing 5% 12/7. Today its 10 week support gave way. FTI, another leader in the group, started its descent 12/8, and finished 5 of 6 days lower in bulging volume. Finally lost its 50.30 cup with handle buy point. When the generals start lagging, pay attention. The Euro, based on FXE, looks poised for another leg down. But then a look at its daily chart makes you feel at the very least a dead cat bounce should occur soon, and therefore be careful with shorting commodities. SPR met 40 week resistance today, following an upgrade. The euphoria run usually is halted at 10/40 week resistance areas in general. Stocks that look decent amid the recent carnage are PM V both in the process of developing 3 week tight patterns here. Some gap ups still intact include ARG PLL OKE. IYT found 10 week support today and groupmates NSC UPS are searching for 40 week support, both at the same price of 70.10. CNI JBHT both found 40 week support today.

Stocks near specific buy points include only the very safest of names, and not a lot to inspire confidence. Flat bases are ABT 55.71, ED 59.99. Cup with handle is MJN 76.14.

Stocks that can be bought at 40 week support include DECK 93, RL 135, ASML 38.20, BEAV 36.15, KMX 29.95, WSM 37, TMK 40.95, VAL 35.15, XOM 79.10, NBL 89, PXP 33.25, NTGR 34.15, BUD 56.95, DGX 54.70, BR 22.05. Stocks that found 40 week support today were ADP MENT ROK CBI APC QCOM.

Stocks that can be bought at 10 week support are KLAC 45.20, KSU 63, TRN 27.10, UNP 98, AAP 65.60, ABG 19.10, BBBY 60.60, FAST 38.30, LKQX 28.70, PETM 46.80, SBH 19.10, SCSS 19.05, SBUX 42.25, WMT 56.95, RATE 18.15, INTU 52.15, DOV 54.05, JEC 39, KEG 13, INT 40, CSCO 18, AET 39.05, BIIB 108.50, MRK 34, TROW 53.50, SO 43.15, X 25, EL 106, GIS 39.20, HSY 58, DE 74. Stocks that found 10 week support today were MWV MMM COST M NUAN PMTC DVN OXY CAT JOY RJF STLD WFC MKC FCX.

Stocks that can be shorted as they lose 40 week support and their sell stop spots are COH 58.50, UA 71.75, GRA 40.55, JAZZ 35.10. Stocks that lost 40 week support today were DKS DW VMW TIBX JOY JEC HLF.

Stocks that can be shorted at 40 week resistance are RTN 45.95, HP 59.15, HLF 52.80, CPO 50.15, MON 69.50. Stocks that met 40 week resistance today were WRC HON ARO SAPE PH PPG OXY WDC FISV CPO KO.

Stocks that can be shorted as they lose 10 week support and their sell stop spots are NKE 93.25, CE 41.60, NOV 67.60, ARW 34.05. Stocks that lost 10 week support today were SLB UPL TWI CLF COH ASNA ATU CBE PH COG.

ALXN can be shorted at 66, its 10 week resistance. Stocks that met 10 week resistance today were INTC JWN VMW APA EMC ALXN GS JPM.

Good luck.

The author is short VFC at 133.50. We closed out EOG for a small gain, frustrating indeed, since it was much higher early in day.

Tuesday Game Plan

Markets slumped somewhat Monday, but managed to finish off their lows for the day. The Nasdaq found support at its 10 week MA, and closed above the psychological 2600 level, which has proved a battleground. The composite found almost exact support their 3/16 and 6/16 this year. After breaking through that level to the downside in huge trade 8/4, it met resistance their in late August and September. The S&P 500 also continues to coil up tightly between its 10/40 week MAs. It is going to move hard once a direction is established upward or downward through one of those previously mentioned MAs. Today volume was once again muted, and leading stocks escaped lots of the days malaise. In fact many displayed solid relative strength. They included CMG DPZ GNC LKQX SBUX PLL all of which finished in the black Monday. Some leaders managed to test old buy points only to rebound and close above them. MELI (90.09 cup w/handle) was one of them. INTC was another that tested both its 10 week MA and its 23.49 double bottom buy point, closing above both of them. We even had a breakout today as DG climbed above its 40.81 flat base buy point in almost double average daily volume. Other individual names to watch include UPS which continues to build the right side of its cup base and can be putting in a handle. ARG is holding its gap up above 75 nicely. ETFs looking decent today were XLE as it bounced off 10 week support and closed off its lows for the day. COG APC OXY all found exact 10 week support today and EOG XOM PXD 40 week support. XRT closed on its highs for the day as COH VFC found excat 10 week support and DSW DKS managed to climb off 40 week support. This market continues to be technically driven, with both the benchmarks and individual components, and ETFs. As we have said before we need to see more break outs from leading stocks and moves above key MAs before we get too excited. Until then keep your powder dry and your positions reduced.

Stocks near specific buy points include cup w/handles JBHT 46.69, NSC 76.59, UNP 106.09, SAH 16.32, WSM 40.17, FFIV 117.40, RAX 45.56, PXP 37.01, BUD 61.08, MRK 36.35, GIS 40.35, MJN 76.14. Flat bases are ABT 55.71, DEO 86.10. Double bottom w/ handles are WRC 54.05, CBI 42.02. Cup bases are ABG 22.10, SCSS 22.29. SBUX 44.79 in a square box pattern.

Stocks that can be bought at 40 week support are BEAV 36.15, BA 69.15, KMX 30, ADP 51.05, PAYX 29.50, TMK 41, VMW 92, TIBX 26.05, JEC 41.50, VAL 35.10, NBL 89, DGX 54.80, BR 22.05, NUE 39.65, QCOM 54. Stocks that found 40 week support today were TYC DSW DKS JEC EXXI PXD AET.

Stocks that can be bought as they reclaim their 40 week MAs and their buy stop spots are SPR 20.20, ARO 17.45, TRV 56.50, KEG 15.25.

Stocks that can be bought at 10 week support are NKE 93.50, ASML 39.60, KLAC 45.10, HXL 23.95, RTN 43.70, FDX 79, KSU 63, TRN 27.05, UNP 97.80, EMR 48.60, MWV 27.95, SCSS 19, WMT 56.95, RATE 18.10, ACN 57.25, ADSK 32.50, CAT 90, DOV 54, CE 41.60, APC 76.50, CSCO 17.95, RAI 39, BIIB 108, RJF 29, SO 43.15, ED 58, STLD 12.20, X 25, WFC 25.50, EL 105.75, CPO 48.20, HSY 58, ARW 34.15, CLF 65. Stocks that found 10 week support today were HXL ASNA INTU ATU PH SLB UPL FCX.

Stocks that can be bought as they reclaim their 10 week MAs and their buy stop spots are DSW 49.20, JWN 49.10, NUAN 24.50, CELG 54.15.

Stocks that can be shorted as they lose 10 week support and their sell stop spots are CBE 52.30, ALB 49.80, FISV 56.80. Stocks that lost 10 week support today were GS JPM DHR BHP CY EMN APA BWA EMC FE.

Stocks that can be shorted at 10 week resistance are DECK 105, CY 18, BIDU 131, ALXN 66. NUAN CELG both encountered 10 week resistance today.

Stocks that can be shorted as they lose 40 week support and their sell stop spots are JAZZ 35, HLF 52.20. Stocks that surrenedered 40 week support today were HON HP TROW CPO ABX.

Stocks that can be shorted at 40 week resistance are ARMH 27.85, HON 53.50, TIF 70.40, CERN 61. PMTC WDC AXP all met 40 week resistance today.

Good luck.

The author owns EOG. We bought some at 40 week support at 99.70. We took very small losses, which were decent gains on GIS JEC ROK. May look to reenter.

Monday Game Plan

Markets enjoyed a nice up day Friday, but for the week both were higher by less than 1%. They continue to struggle at the 40 week MAs. The markets demeanor would look much better with a push above those lines this week. The lines in the sand for the S&P 500 lies at 1263, less than 1% away, and the Nasdaq's is 2665. The Nasdaq did manage to find support right at its 10 week MA Thursday. Both indexes remain down YTD a small 0.2%. Crazy after the volatility we have noticed this year. I must say I was surprised by pouring over hundreds out charts this weekend, how many are consolidating above their 10 week support lines and forming valid bases. I remain a cautious bull, as some sector rotation has been transpiring quietly here in the last few weeks. Moving up steadily are groups such as transports, chips, retail, while disappearing from top ranks are utilities and alcohol. A look at some of the strengthening groups is in order. IYT finished flat for the week as it, like the indexes do, battle with its 200 day. Put in a buy stop above 90.45 and buy a one way ticket to par. Favorites in the group are TRN JBHT KSU CNI. KSU has been the undisputed leader and it may trade back to its 62.86 cup base buy point it broke out from 10/27. That would also be 10 week support, and remember its absolutely normal for leaders that have broke out to go back and retest that previous buy point. XRT in my opinion, maintains one of the best ETFs charts out there. Still sporting its 55.02 cup with handle buy point. Components within the group are WRC, (which believe it or not is having issues with its 200 day!!), is carving a 54.05 double bottom with handle buy point. Give the handle one more day and perhaps a "speedo" revolution can occur! Dating back to 9/08 on the weekly chart WMT is displaying a 59.50 cup with handle trigger point. Very bullish. WSM has the inverted head and shoulders base on top of its cup with handle buy point of 40.17. NKE VFC both have flat base buy points. VFC 142.60, NKE 97.78. With jobless claims showing some of their best results this week some of the employee equities perked up. PAYX RHI both retook their 200 day MAs this week and RHI now has a valid double bottom buy point of 30.26. Other groups that surfaced while I charted were the smaller auto related stocks. Nice base building and accumulation being exhibited by the likes of SAH LAD PAG ABG. Let us be careful as always and this could be a nice week IF benchmarks break above their 40 week MAs and more leading stocks break out from their trigger points described in the next paragraph.

Stocks near specific buy points include cup with handles CNC 39.17, BEAV 40.14, BA 72.86, CNI 80.54, TYC 48.62, AAP 71.10, SAH 16.32, WMT 59.50, WSM 40.17, INTU 55.53, PXP 37.01, NTGR 38.57, BUD 61.08, MRK 36.35, DGX 59.54, WFC 27.30, MKC 50.19. QCOM 58.07, BYI 39.46, RAX 45.56. Cup base buy points include ABG 22.10, SCSS 22.29, ADP 55.12, ABV 36.40, EFX 40.00, 61.00. Double bottom with handle buy points include DKS 42.21, JOYG 93.94, CBI 42.02, CXO 102.07, NOV 76.15. Flat base buy points are NKE 97.78, DEO 86.10, ABT 55.71, ED 59.99. Cup with high handles are HXL 26.58, RCII 37.47. FE has a 46.20 double bottom buy point and KEX still remains in a 4 week tight pattern with a trigger of 65.56.

Stocks that can be bought as they reclaim their 40 week MAs and their buy stops spots are WRC 52.75, CY 19.25, RTN 46.20, SPR 20.30, FDX 85.60, TRN 30.40, EMR 51.90, MWV 30.25, ARO 17.45, ASNA 30.25, AKAM 29.60, OMC 44.90, TRV 56.50, CAT 98.40, CBE 56.50, PH 81.90, CE 45.80, KEG 15.20, OXY 95.50, TWI 23.25, FISV 59.15, RJF 31.80, DE 81.75. Stocks that retook 40 week support Friday were PMTC COP EXXI KO.

Stocks that can be bought at 40 week support are BA 69.20, KMX 30, CTCT 25.30, ROK 75.55, VAL 35.10, EOG 99.55, XOM 79.05, HP 58.50, AET 40, VAR 62.60. Stocks that found 40 week support today were MENT JOY HP NOV DFS TROW CPO QCOM ABX MON.

Stocks that can be bought at 10 week support are CNI 75.50, KSU 68.26, COST 83.20, LKQX 28.50, SBUX 42, RATE 18, NUAN 24.15, COG 77, BIIB 108, EL 105. Stocks that found 10 week support Friday were COH VFC CY ASNA DKS ACN SAP TIBX ATU APA AAPL NEM.

Stocks that can be bought as they reclaim their 10 week MAs and their buy stop spots are DECK 105, DSW 49, CELG 64.10. NUAN BHP PII all retook their 10 week MAs Friday.

Stocks that can be shorted at 200 day resistance are ARMH 27.85, AMZN 202, LULU 50.75, TIF 70.40, BIDU 136, CERN here. WRC TRN EMR MWV SAPE PH KEG WDC all met 200 day resistance Friday. You can put a sell stop in at 35 for JAZZ, as it loses 200 day support.

Stocks that can be shorted at 10 week resistance are AVGO 32.45, ALXN 66, HLF 56. RL DECK both met 10 week resistance Friday.

Good luck.

The author owns JEC ROK GIS.

Friday Game Plan

Markets were whipsawed Thursday, as investors were once again disappointed by Euro zone solutions. Volume grew slightly, but the benchmarks closed hard upon their lows for the day. Volume has been muted as of late. Perhaps the Dodd/Frank bill is already taking effect with the smaller pool of traders on the street. Maybe light volume is the new normal. The S&P 500 lost 2.1%, the Nasdaq 2%. Discouraging was the fact that the indexes disregarded some positive domestic news. Jobless claims came in well below the 400K figure. We do not normally follow the Dow, but it closed below the psychological 12000 level today. The Nasdaq finished just under its round number of 2600, but did manage to find 10 week support. Some important groups to focus on were the financials today. XLF finished just above its 10 week MA, as did some of its components JPM GS. GS actually had an inside day even though it closed lower by 5%. Inside days are usually benign as the previous trend normally resumes itself. XRT lost just under 2% today, and its chart does not look all that bad. Looks like its headed for a 200 day test at 51, and still sports a 55.02 cup with handle buy point. Action was mixed in the group with COH DKS finding 10 week support, while LTD RL PII all surrendered it. Ags continued their horrible recent action with MOO down 3.4% and losing 10 week support in the process. DE had an outside day and POT was thrashed 6%, AGU 4%. As we have been discussing the scarcity of break outs from leading stocks has been worrisome. More leading stocks that have broke out are now trading back below their original trigger points as well. MELI INT come to mind. FTI is right back at its 50.30 cup with handle buy point but the volume was strong today. AAPL was a lone bright spot today as it recaptured its 10 week MA, but that might have been a contrarian indicator as it has been soft recently. The wide and loose action of the former 800 lb gorilla is not characteristic of a leading stock. On days like today it is important to recognize where the relative strength resided. Today it came from SIMO NUS DPZ MCD.

Stocks which are near specific buy points, and should be treaded upon very cautiously here, are AAP 71.10. Flat bases are ED 59.99, DG 40.81. Cup base ABV 36.40 and CBI 42.02 double bottom with handle.

Stocks which can be bought at 40 week support are BEAV 36.25, PCP 156, QCOM 54, JBHT 43.15, ACN 55.90, ADP 51.05, PMTC 19.15, CELG 59.75, ABX 49, PLL 52, APC 76, CVX 101.60, EOG 99.75, XOM 79.10, GDI 78. Stocks that found 40 week support today were QCOM CPO JEC TROW JOY NOV PXD NUE ROK.

Stocks that can be bought at 10 week support are ADS 98, BIIB 107.70, NKE 92.90, UA 78, HXL 23.85, ED 58, GNC 25, SBH 19, SCSS 18.75, SBUX 42, INTC 23.50, NVDA 14.60, SO 43.05, CNI 75.05, VMW 94.10, INTU 52, RHT 47.50, HSY 58, XRAY 34.25, EMR 48, DFS 23.65, BBT 22.60, USB 25, NTRS 38, CLF 64.90, FCX 37.50, CE 41.25, COG 76, CRZO 26, DVN 62.40, OXY 90, TCK 35.80, ARW 34, DD 45.75, WERN 23.05, STLD 12.10. Stocks that found 10 week support today were HXL DKS FE SGI TIBX WY JPM GS NEM DOW EMN RRC.

Stocks that can be shorted as they lose 10 week support and their sell stop spots are VFC 132, ADI 34.70, AKAM 25.75, COH 60.60, PAY 40.20, PPG 81.75, BWA 67.60. Stocks that lost 10 week support today were BIDU CMI SU DHR PII RL PCP WFM LTD CTSH NUAN BHP RIO.

Stocks that can be shorted as they meet 10 week resistance are AVGO 32.50, ALXN 66, PII 59. MON met 10 week resistance today.

Stocks that can be shorted as they lose 40 week support and their sell stop spots are JAZZ 35, HLF 52. Stocks that lost 40 week support today were CPHD HON IP PH COP EXXI OXY ARW WERN.

Stocks that can be shorted at 40 week resistance are ARMH 27.95, CERN 61, CHKP 54.50, SWK 67, CPHD 33. ORCL KO PNC all met 40 week resistance today.

Good luck.

The author owns JEC ROK GIS. We covered CERN for a small gain today. Today hurt for sure, and we reduced our long exposure a bit, but the catalyst for getting into the 3 longs we have are still intact and we are basically UNCH on each of them. Of course seeing gains turn to losses hurts as well.

Thursday Game Plan

Markets again displayed some up and down action as usual, but if you saw the closing prices of the averages you would have that it was a quiet day. The S&P 500 again found sturdy resistance at its 40 week MA today. Even if it does take it out like it did 10/27 on robust volume, it quickly retreated back below it. Both the Nasdaq and S&P 500 did show some positive action intraday, closing in the upper ranges for the day (the Nasdaq fought back nicely, closing 37 handles off its lows for the day). Volume grew from yesterdays levels. Some sectors which displayed some telling action was energy. The XLE continues to clubbed with a 2x4 each times it touches its 40 week MA. Leaders in that group COG FTI looked vulnerable today, although they are still ahead of recent break out points (FTI 50.30 cup w/handle and COG 78.75 double bottom). But then again other leaders in the group are trading very tightly after recent moves upward. They include CXO CLR EOG APC. As the adage goes, as goes energy as goes the markets, so it is important to keep an eye on energy prices. IBM GIS MCD all hit all time highs today, although IBM GIS both broke out from recent bases in soft trade. INTC hit a multi year high today. Stocks building the right side of their bases and warrant inclusion on your watch lists are UPS BUD AMGN CBS. Two names that need one more day to complete their handles in their respective double bottom bases are CBI GDI. CBI trigger would be 42.02, GDI trigger 87.01. NUE has recently undergone a tidal change as it has now spent 4 days above its 40 week MA, after it flew past that line last Friday. Its been up 9 days in a row and a little pullback would be a wonderful opportunity to establish a position near 40 week support, which previously was resistance. CVLT retreated back to its previous 47.66 cup base buy point and bounced today almost to the penny. Would love to see HD retreat to its previous 38.85 double bottom w/handle. Do not forget about WSM which is showing a inverted head and shoulders pattern. Buy stop to be precise is 40.17. COST reports Thursday.

Stocks near specific buy points include cup bases ABV 36.40, UPS 75.90. Cup with handles are AAP 71.10, INTU 55.53, RAX 45.56, PXP 37.01. Double bottom with handles are CNI 80.54, JKHY 33.83, USB 26.74. Flat bases are DEO 86.10, ED 59.99.

Stocks that can be bought as they reclaim their 40 week MAs and their buy stop spots are FDX 85.75, TRN 30.30, ADSK 36.30, AKAM 29.55, BBT 24.70, SCCO 33.75, DE 81.90, DD 50.20. PNC retook its 40 week MA today.

Stocks that can be bought at 40 week support are CPO 50.10, XRAY 35.80, EMR 51.50, PNC 55.85, EOG 99.75, EXXI 30.10. Stocks that found 40 week support today were CTXS CPHD IP HON DFS TROW COP OXY WERN.

Stocks that can be bought at 10 week support are COH 61, DLTR 78.75, SCSS 18.50, ED 58, ACN 57, TIBX 27, NEM 66, BHP 74, EMN 38. Stocks that found 10 week support today were RL HXL WFM QCOM CTSH EMC NUAN SAP HSY AXP GS RRC SU DHR PII. Put a buy stop in on CELG as it climbs above 10 week resistance at 64.25.

Stocks that can be shorted at 40 week resistance are AMZN 202, TIF 70.45, ARMH 27.90, ADI 36.60, AVGO 33, PAY 43.25. KO SWK both met 200 day resistance today.

Stocks that can be shorted as they lose 40 week support and their sell stop spots are PPG 83.95, PH 81. CE surrendered 40 week support today.

Stocks that can be shorted as they lose 10 week support and their sell stop spots are JAZZ 38.45, RRC 67, PII 58.50. JNPR MDRX both gave up 10 week support today.

Stocks that can be shorted at 10 week resistance are CPHD 36, WYNN 120, HLF 56. AAPL met 10 week resistance today.

Good luck.

The author owns JEC ROK GIS. Short CERN. Covered ALXN for a dollar gain. Will look to re short near 66, its 10 week resistance line. We shorted CERN at 60.12, as it fell below its 40 week once again.

Wednesday Game Plan

Markets again seemed perplexed, and dazed, as it has made it a habit of that of late. Both indexes continue to trade below their 200, as the S&P 500 hit resistance their for the second consecutive day. The S&P 500 closed fractionally higher and the Nasdaq did just the opposite. Volume was tame. Their was a little excitement toward the middle of the session as more Euro news surfaced, but by the end of the day the tape was muted. As the old adage goes, never sell a dull market. A look at some individual names was mixed. One of the bright spots of the day was MELI, which rallied for back to back days in monster volume after breaking out Monday from its 90.09 cup w/handle. KLAC IBM both rose above buy points but did so on average daily volume below normal. A blast from the past, INTC, is closing in on a multi year high here. HD is trading tightly, a bullish sign, consolidating gains after a recent break out. NBL is mimicking HD, trading within a tight range after a break out 4 days ago. Stocks building the right side of their bases and warrant inclusion on a watch list include PLL ADP. I would like to see a little more accumulation in ADPs base. Stocks potentially putting handles here on their cup bases (remember handles must be 7 days in duration to be considered valid), are CBI JBHT. WSM looks like an inverted head and shoulders pattern facing some stiff resistance around 40. Put in a buy stop just above that price. Stocks that look like they may be short candidates after putting n recent double tops are ADS (high of 107.18 on 11/3 and a high of 107.33 yesterday), and ULTA (put in a high of 75.69 on 11/7 and a high yesterday of 75.70, a one penny difference). They can be shorted and a stop put in just above those double top prices. IYT XLE both continue to struggle with their 200 day MAs and SMH peaked its head just above it.

Stocks near specific buy points include cup w/handles PXP 37.01, RAX 45.56, INTU 55.53, AAP 71.10, BEAV 40.14, COH 66.64. Flat bases are NKE 97.78, ED 59.99, DEO 86.10. Double bottom w/handles are USB 26.74, DKS 42.21. FE has a double bottom buy point of 46.20.

Stocks that can be bought as they reclaim their 200 day MAs and their buy stop spots are TRN 30.30, ADSK 36.25, PNC 56.10, CAT 98.50, KEG 15.45, DHR 49.40.

Stocks that can be bought at 200 day support are IP 28, AXP 48, TROW 57.45, CE 45.50, JOYG 87, COP 71.95, COP 71.95, EXXI 30.10, OXY 95.10, NUE 39.60, ARW here. Stocks that found 40 week support today were QCOM MDRX ORCL PMTC SAP XRAY EMR DFS TROW CE PPG WERN.

Stocks that can be bought at 10 week support are PCP here, BBBY 60.05, FE 44.50, JNPR 22, NUAN 24, HSY 58, V 92, BBT 22.50, JPM 32, BHP 74, EMN 37.95, SU 29.75. AAPL WY GS HAL all found 10 week support today.

Stocks that can be shorted as they lose their 40 week MAs and their sell stop spots are CERN 60.30, CPHD 32.75, PAY 43. CHKP lost its 40 week today.

Stocks that can be shorted at 40 week resistance are TIF 70.25, ADI 36.60, CTSH 71, BIDU 135.50, BWA 72, CMI 99.50. ARMH KO BIDU AKAM SWK KEG all met 40 week resistance today.

Stocks that can be shorted as they lose their 10 week MAs and their sell stop spots are DECK 104, DG 39, JAZZ 38.75. Stocks that lost their 10 weeks today were FIO BHI VLO.

Stocks that can be shorted at 10 week resistance are EXPD 43.40, HLF 56.20. HLF had a bearish outside day today.

Good luck.

The author owns JEC GIS ROK. Short ALXN. We bought ROK as it took out its 200 day at 76.60 and added some at 77.51. We shorted ALXN as it met 10 week resistance today at 65.30 and added some at 65.

Tuesday Game Plan

Markets closed Monday with a little vigor in the final 20 minutes, after being up as much as 1.5% earlier in the session. The indexes sold off mid day after S&P warned some Euro zone members that they were being put on a negative credit watch and a possible downgrade. During the trading day, indexes met stiff headwinds at their 40 week MAs. As we mentioned yesterday this market has been very technically driven, ad today proved no different. ETFs, IYT XLE SMH all met 40 week resistance by the close after trading above them on an intra day basis. LULU NVDA KOP CAT MAKO were some individual names that suffered the same fate. A peak at leading stocks was mixed to negative. MELI broke out on heavy volume forom a 90.09 cup with handle base on more than twice its average daily volume. FFIV broke out on very weak volume from a 113.70 cup with handle pattern. Others trying to break out only to fail included UNP 104.26 (cup w/ handle), NSC 76.30 (cup w/handle), FTNT 26.30 (cup w/ handle). DG tried to break out from its 40.81 flat base post earnings for the third consecutive day but closed just below it. IBM reversed after clearing its 190.63 flat base trigger, but did manage to close just above it. Of course these could break out tomorrow, but for now the action is a bit disconcerting. Looking at individual leaders was not encouraging either. KSU has been hitting new highs only to be continuously repelled at the $70 level. COG again was one of the first oil/gas stocks to go negative, which was a good indicator of oncoming weakness in the group. MA finished near its lows for the day. Very bearish action from these leaders which had outside days today included MCD HUM VRSK. Even worse was that these occurred when the previous three hit all time highs. ADS ULTA did not have outside days but had negative reversals intraday after hitting all time highs as well. WERN FMC can be put on the watch list and they are constructively building the right side of their bases. Could become cups or develop handles also. Patience. ETFs sporting specific buy points include XRT 55.02 (cup w/ handle) and USO 39.84 (double bottom w/handle). Quick tale of the tape. If you like gold miners, its imperative to pay attention as always to the technicals of the chart. Take for instance the leader NEM, a chart of beauty, holding onto 10 week support nicely. Contrast that with ABX, whose chart is wide and loose, which makes it more prone to failure. Stick with the leaders and smooth price action.

Stocks near specific buy points, and to be treated cautiously in this corrective environment are COH 66.64, BEAV 40.14, AAP 71.10, KLAC 48.85, CNI 80.54, ACN 62.00, INTU 55.53, RAX 45.56, CLR 72.39, EXXI 32.28, PXP 37.01, PXD 97.20, OXY 101.75. Double bottom with handles are DKS 42.21, USB 26.74, APC 84.52, NOV 76.15. ED 59.99 in a flat base, DEO 86.10 cup with high handle, and NKE 97.78 in a square box base.

Stocks that can be bought as they retreat to their previous buy points, which is not uncommon are HD 38.85 (double bottom w/handle), SCSS 19.33 (cup base), URI 27.42 (double bottom w/handle), EFX 36.00 (cup w/handle), CXO 102.07 (double bottom w/handle), INT 42.22 (cup w/handle).

Stocks that can be bought as they reclaim their 40 week MAs and their buy stop spots are TRN 30.30, PNC 56.10, BBT 24.75, CAT 98.50, KEG 15.45, DD 50.25, ROK 76.40. MDRX ORCL EMR WERN all retook their 40 week MAs today.

Stocks that can be bought at 40 week support include UPS 70, PMTC 20.55, CPO 50.10, CELG 59.50, IP 28, AXP 48, DFS 24.10, TROW 57.35, CE 45.50, JOYG 87, PH 81.90, COP 71.90, EOG 99.75, CBS 25.05, ARW 37.05, NUE 39.75. QCOM TROW PPG PX.

Stocks that can be bought at 10 week support include HXL 23.65, DEO 82, NUAN 23.90, NEM 65.80, REXX 14.75, HLF 56. VLO found 10 week support today. Stocks that retook their 10 week MAs today were RL HSY JAZZ GS.

Stocks that can be shorted at 40 week resistance are TIF 70.25, ARMH 27.80, ADI 36.50, AVGO 33.05, CTSH 71.65, ADSK 36, BWA 72, CMI 100, TPX 60. Stocks that met 40 week resistance today were TRN BIDU AKAM SWK XRAY WPI CAT WPI.

Stocks that can be shorted as they lose 40 week resistance and their sell stop spots are CERN 60.40, CHKP 54.05. ARMH lost 40 week support today.

Stocks that can be shorted as they lose 10 week support and their sell stop spots are DECK 103.50, WSM 67.60.

Stocks that can be shorted at 10 week resistance are EXPD 43.30, ALXN 66, CPHD 36.05. Stocks that met 10 week resistance today were EXPD MON SWN WYNN PCLN.

Good luck.

The author owns JEC GIS. We bought GIS as it broke out from its 40.35 cup with high handle base. It did so on anemic volume and we will keep a tight leash on this one.

Monday Game Plan

Markets ended Friday with a whimper, but weekly gains were mightily impressive. The benchmarks had their best week since March of 2009. The Nasdaq led with a 7.6% weekly gain, compared to the S&P 500s 7.4% gain. During the week both indexes retook their 10 week MAs (which have been sloping upward since the huge monthly move of October), but failed again near their 40 week MAs (the 40 week MAs are still sloping lower). Talking about 40 week MAs, some heavyweight sector and equities were repelled at those important longer term resistance levels. They include AMZN BIDU LULU. AAPL hit 10 week resistance. ETFs that encountered trouble at the 200 day as well were SMH IYT XLE. The SMH was stopped just above 31 and reversed lower Friday. Keep an eye on the leaders KLAC SIMO which both scored weekly gains of 11%. IYT backpedaled at the 40 week near 90 for the second time in 5 weeks. Leaders in that pack include KSU, and CNI NSC UNP all of which are now in cup with handle bases. XLE was turned back at its 40 week as well near 72, even as oil rose 4% on the week. Big weekly gains by the leaders in that bunch included 13% moves by CXO COG EOG CLR. The XLF sprung to life this week with a 10% weekly advance. I have mixed feelings about this group since the market has advanced while these have lagged. But as always I let the tape be my director, not my opinions. Leading stocks were quiet during the week. In fact a few backed off and reversed after trying to break out Friday. IBM shied away from its 190.63 flat base, and UNP did the same from its 104.26 cup with handle. Not the type of action you like to see. Some stocks which have broken out and continue to trade above their buy points, which you can buy as they retreat toward them (if they do and it is common for them to retest original buy points) are HD 38.85 (double bottom with handle), SCSS 19.33 (cup base), FTI 50.30 (cup with handle), GDI 83.47 (double bottom with handle). As always keep your losses small at no greater than 8%. Live to fight another day with prudent capital preservation rules. Final thoughts are this market maintains a technically driven one and to me true strong markets never really give the chance for participants to get in. They get frustrated and try and chase. This can all change with a stronger complexion of numerous break outs from leaders, and with indexes reclaiming 40 week resistance. DG reports Monday.

Stocks near specific buy points include cup with handles PXP 37.01, RAX 45.56, FFIV 113.70, FTNT 26.30, NSC 76.30, CNI 80.54, AAP 71.10, BEAV 40.14. Double bottom with handles are IP 29.51, USB 26.74, CLR 72.39, JKHY 33.83, KLAC 48.85, DKS 42.21. Cup with high handles are DEO 86.10, GIS 40.35 (that would be an all time high as well). Flat bases are NKE 97.98, ED 59.99.

Stocks that can be bought as they reclaim their 40 week MAs and their buy stop spots are ROK 76.40, KEG 15.45, CAT 98.45, PNC 56.10, TRN 30.25, NVDA 16.25. JEC COP ARW all retook their 40 week MAs Friday.

Stocks that can be bought at 40 week resistance are UPS 70, PMTC 20.60, SAP 58.30, CPO 50, CELG 59.55, USB 24.95, CE 45.10, FMC 80, JOYG 87, PLL 52, COP 71.90, EOG 100, EXXI 30.10, XOM 79.10, OXY 95, CBS 25.05, ARW 37.10, NUE 39.70. ADP CTXS CE PPG MON all found 40 week support Friday.

Stocks that can be bought at 10 week support are DECK 104.50, HXL 23.55, BBBY 60, WMT 56.05, WFM 68, ASML 39, QCOM 53.10, SO 43, JNPR 21.75, INTU 51.50, NUAN 23.80, TIBX 26.50, XRAY 34, BBT 22.50, NEM 65.95, SCCO 29, DOW 26.10, EMN 37.75, DHR 46.05, REXX 14.70, PRU 50. PCP TAP EMC INFA ORCL BHI all found 10 week support Friday. Stocks that retook their 10 week MAs Friday were CTSH JPM NTRS.

Stocks that can be shorted as they lose 40 week support and their sell stop spots are CERN 60.25, CHKP 54.10, NOV 70.50. MDRX ORCL XRAY MAKO EMR all lots 40 week support Friday.

Stocks that can be shorted at 40 week resistance are LULU 50.30, AMZN 200, TIF 70.20, ADI 36.60, AVGO 33.05, KO 67.05, SWK 67, WPI 64, PAY 43.75, CMI 100. Stocks that met 40 week resistance Friday were LULU AMZN ADP NVDA BIDU AKAM CAT KEG.

Stocks that can be shorted as they lose 10 week support and their sell stop spots are DG 38.75, TSCO 69.70, ARMH 27.55, ALXN 65.75, JAZZ 38.60, NUS 45.70. FE MDRX both lost 10 week support Friday.

Stocks that can be shorted at 10 week resistance are RL 147, HSY 58.05, CPHD 36.10. Stocks that met 10 week resistance Friday were RL EXPD AAPL HSY SWN WYNN PCLN.

Good luck.

The author owns JEC. We bought it right here as it broke above the 40 week. We sold KEG for a push as it reversed twice now at 40 week resistance. We will put in a buy stop above 15.45, and look for a retest of the 10 week. Also bought AKAM through the 40 week Friday, but were stopped for a very small loss as it reversed by the end of the session.

Friday Game Plan

Markets provided some soothing relief after yesterdays gigantic gains. The Nasdaq finished up by .2%, while the S&P 500 closed lower by that same margin. The benchmarks remain in between their 10 and 40 week MAs. They can be tested to the upside with a benign job number. Volume was gentle as market participants await Fridays job report. As we always discuss here, a key barometer to the markets health are the behavior of leading stocks and the amount of break outs occurring with those generals. Leading groups are hailing from more defensive related sectors, not the traditional growth names you would come to expect. As far as breakouts are concerned, they are scarce. COST tried to breakout from a 86.44 flat base today, but volume was mediocre. DEO tried to break out from a 86.10 cup with high handle base, but reversed just 2 pennies from that trigger. M DG both tried to break out today as well, only to reverse, and close lower on the day. SCSS is back to its 19.33 cup base buy point on 10/20, as it has acted well finding support at its 10 week, while groupmate TPX has faltered. HD is still above its 38.85 breakout from a double bottom with handle it took out Tuesday. EL HUM remain above buy points, but we need to see more of that behavior. JBHT is patiently developing the right side of its base. SMH acted well today and is nearing its 40 week near 31. Lets see how that ETF reacts there. KLAC rose smartly as it assumes its leadership role. XLE IYT both are scoping out there 200 day MAs and moves above those will provide much needed comfort going into year end. The action in energy leader COG was concerning although the move came in normal volume. I am proposing a new pair trade tonight. Long DEO/Short TAP.

Stocks near specific buy points include cup with handles COH 66.64, BEAV 40.14, AAP 71.10, KLAC 48.85, CNI 80.54, NSC 76.30, UNP 104.26, FTNT 26.30, RAX 45.56. Double bottom with handles are MDRX 21.20, USB 26.74, JOYG 93.94, CXO 102.07, CLR 72.39. Flat bases are ED 59.99, IBM 190.63, ALXN 70.52, BMY 33.37. GIS 40.35 in a cup with high handle base.

Stocks that can be bought as they reclaim their 40 week MAs and their buy stop spots are NVDA 16.15, TRN 30.20, ADSK 36.25, AKAM 29.70, JEC 42.25, MAKO 30.70, AXP 48.25, TROW 58, DE 82, CAT 98.25, CMI 100.25, COP 72.25, ARW 37.25, DHR 49.45, NUE 39.90. ADP ORCL both retook their 40 week MAs today. Stocks that can be bought at 40 week support are DKS 37.80, ASML 38.50, QCOM 54, UPS 70, CTXS 70.25, CPO 50, XRAY 35.80, CE 45.25, PPG 84.25, JOYG 87, EOG 100, EXXI 30.20, OXY 95, PXP 33.60, CBS 25. Stocks that found 40 week support today included ARMH MDRX PMTC EMR HON PAY CE PX CVX EXXI XOM NOV.

Stocks that can be bought as they retake their 10 week MAs and their buy stop spots are NTRS 37.95, HSY 58.25, AAPL 392, CTSH 68.30, CELG 64.25. FE EMC both reclaimed their 10 week MAs today. Stocks that can be bought at 10 week support are DECK 104, NKE 92, HXL 23.45, TSCO 70, ACN 56.25, JNPR 21.60, NUAN 23.75, BBT 22.45, NEM 65.90, RIO 51, MON 71, BHI 53.50, CJES 18.25, HAL 35, SM 75, SU 29.30, NUS 45.80, REXX 14.55. BBY CMG FIO TIBX WY BHP all found 10 week support today.

Stocks that can be shorted at 40 week resistance are LULU 50, AMZN 200, ADI 36.55, SWK 67, TPX 60. BIDU MAKO DFS AXP ARW all met 40 week resistance today. CHKP can be shorted with a sell stop at 54, as it loses 40 week support.

Stocks that can be shorted as they lose 10 week support and their sell stop spots are BBBY 59.75, TAP 40. Stocks that can be shorted at 10 week resistance are RL 147.50, JAZZ 39.60, JPM 32, POT 46. Stocks that met 10 week resistance today were WFM EXPD CTSH HSY VLO WYNN PCLN.

Good luck.

The author is long KEG. We bought some as it retook its 40 week MA this morning. Tight stop here, and will obviously be affected by tomorrows jobs report.