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.