Tuesday, December 6, 2011

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.

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