Thursday, January 12, 2012

Friday Game Plan

Markets once again displayed hallmark bullish behavior once again, opening lower and closing upon the highs. It is becoming a pattern recently. The Nasdaq is building the right side of its base, and for the 6th consecutive day it has advanced on volume greater than the daily average. The S&P 500 is shaping its right side as well and is about to challenge the big round number of 1300. Today some leading stocks broke out to add ingredients to the rally recipe. They included PVH, CFX, TSCO, VAR. Others broke out but did not qualify for failing to meet the greater than 40% of daily average volume threshold. They included JBHT PLL RTN PX. Others quickly building the right side of their bases and cup base buy points to be put on a watch list are DHR 55.76, MRO 35.07, OMC 49.65, HON 60.75, GD 76.03, FDX 98.76. The emergence of so many potential setups lends credence to the strong tape we have been enjoying. Stocks putting possible handles on their cup bases include AAPL WFM CBS. Stocks building their right side in a healthy fashion are KMT ETN RS XLNX KMX. COG has transformed itself from a leader to laggard. Today it pieced it 40 week MA in massive volume. it is now in an area where it may catch a bid. LULU, which I am not a big fan of, continues to impress nonetheless. As a strict tape reader, its gap up is holding and if it continues to hold I may be inclined to purchase. 4 days of holding a gap up is normally a signal that higher prices lie ahead. JPM report before the open Friday. The XLF hit 40 week resistance to the penny today, and will move big in one direction of the other according to that report. GS seems to be moving inthe right direction, WFC has a valid double bottom buy point, as does BBT. IYT for the third consecutive day traded with some decent volume. That group is on a strong roll as of late, as many who read my blog know I follow closely. The XLE is in between its 10/40 MAs, and 10 week support lies about a dollar lower. A purchase could be warranted their, or on a break back above the 40 week at 71.30. The tightness of trade in the benchmarks, especially after the big moves we have seen as of late is superb. The only concern is the amount of bullish sentiment. It is becoming a bit concerning. But that is a secondary indicator. As always let the market price and volume action, and that of the markets leading stocks guide your trading decisions.

Stocks near specific buy points include cup with handles TMK 44.93, CBI 42.02, RAX 45.55, GRA 47.99, PXP 39.47, ASML 43.11, ALGN 25.68, JWN 50.94, VRSN 36.55, QCOM 58.07. Cup bases are AME 46.35, SWK 75.77, BA 76.30, BLL 40.66, IP 33.11, FMC 93.10, ADP 55.12, BIIB 120.76, ASNA 35.35. Double bottoms are BBT 27.46, WFC 29.73, PXD 99.74, RL 152.10. Flat bases are FTI 54.98, INTU 55.53. Double bottom with handles are XOM 86.77, and EAT 27.45 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 MUR 60, KBR 31.80, MMM 86, JPM 37.55, TD 78.25, TPX 60.40. DOW TXN NTRS all retook their 40 week MAs today.

Stocks that can be bought at 40 week support are FLS 102, TAP 43.50, STLD 14.35, DOW 31.40, KEG 15, AMP 50.95, MCHP 35.50, TXN 30.70, CL 87.50. DOV RDSA COH all found 40 week support today.

Stocks that can be shorted at 40 week resistance are JOY 85.50, FE 43.05, COST 80.75, TGT 50.50, TIBX 26. Stocks that met 40 week resistance today were MUR SGY COST. KO lost 40 week support today.

Stocks that can be bought at 10 week support are CNI 77, BIDU 127, PM 74.55, RAI 40.05, DEO 84.85, CXO 97, APC 78, NBL 93.50, OII 45.50, SGY 26.10, LAZ 25.10, ABT 54.50, GNC 27.50, ULTA 69.25, WMT 58.25. Stocks that found 10 week support today were FFIV CPX COP DGX DG MELI JWN.

Stocks that can be bought as they retake their 10 week MAs and their buy stop spots are UA 78.25, NEM 65.25. RAX LTD EL HLF all retook their 10 week MAs today.

Stocks that can be shorted as they lose 10 week support and their sell stop spots are ED 58.75, DG 39.75, DPZ 32.80. BBBY PII lost 10 week support today.

Stocks that can be shorted at 10 week resistance are SWI 30, ANN 24.45, NUS 48. UA VFC SBH NUS all met 10 week resistance today.

Good luck.

The author owns DOV HXL.

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