Wednesday, January 25, 2012

Thursday Game Plan

Markets reversed from early losses to post decent gains by the close. The Nasdaq again outperformed its rival S&P 500, posting a 1.1% gain as opposed to a .9% advance. Volume was elevated, indicating big players stepped up their bullish bets. More stocks joined the break out list today with both PII CXO blowing by triggers. CBI rallied another 3% after retesting its 42.02 cup with handle trigger. A bid can be placed under the market for COH as it may retest its 66.64 cup base trigger. The amount of break outs occurring is a hallmark sign of a sound bull market. Concerning the earnings that we discuss each day and their relation to falling to important MAs were PII PX ABT. PII had a wild day, as it found exact 10 week support before rallying 6% and taking out a 63.16 double bottom trigger. PX found precise 10 week support before reversing higher by $2.25. Slight concerns are the rails, whose charts are becoming sloppy and loose, which is considered bearish. They include NSC KSU CNI. Curious action also took place today as both risk on and risk off equities steamed ahead. Commodities rose stoutly as steel, copper and gold were higher, but also recent laggard sectors such as tobacco and utilities. Sure it is just one day, but something to keep a close eye on. Check your earnings calendar.

Stocks near specific trigger points include cup with handles SWK 73.39, HXL 26.17, CE 50.10, EOG 107.37, PXP 39.47, DIS 40.35, MHK 66.17. Cup bases are JBHT 49.12, CAT 112.75, BIIB 120.76, CBS 29.78, EL 60.47. APC 82.57 in a double bottom with handle, RL 152.10 in a double bottom and FTI 54.98 in a flat base.

Stocks that can be bought as they reclaim their 200 day MAs and their buy stop spots are TCK 42.85, WLL 52.40, TIBX 26.40, VMW 92.75, BHP 83.25. FCX retook its 200 day today.

Stocks that can be bought at 200 day support are GOOG 560, MMM 85.45, SOA 18.95, DOV 58.50. Stocks that enjoyed 200 day support today were PH MMM JPM TD MUR APD KO.

Stocks that can be shorted at 200 day resistance are TAP 43.30, COG 68, ANN 25.70. WLL TCK NEM all met 200 day resistance today. NTRS can be shorted with a sell stop to short as it loses it 200 day MA at 42.80.

Stocks that can be bought as they reclaim their 10 week MAs and their buy stop spots are CPX 34, COST 83.15, CL 90.25. UA PM both retook their 10 week MAs today.

Stocks that can be bought at 10 week support are V 98, SO 44.40, GNC 28, M 32.50, SBH 20.25. CFX RAX PRGO SO JWN all enjoyed 10 week support today.

Stocks that can be shorted at 10 week resistance are KSU 68, RAI 40.50, MA 360, DPZ 33, TGT 51.60. BIDU AMZN both met 10 week resistance today.

Good luck.

The author owns JPM WFC XOM. Short DPZ RAI.

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