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Monday Game Plan

Markets ran higher Friday after a decent jobs report. Once again, and for the fifth consecutive week the Nasdaq outclassed the S&P 500. This time it was a full percentage point (3.2% to 2.1%), and the tech benchmark hit an 11 year high in the process. Do almost 12% YTD gains so far this year for the Nasdaq, and 17.4% YTD gains for the SOX seem frothy? Sure they do, but remember the famous adage "markets can remain irrational, a lot longer than we can remain solvent". As always we should remain cautious and vigilant. An interesting comment I heard on Bloomberg on my drive home from Ted Weisburg with Seaport Securities was that phones were basically dead silent suggesting their could be more fuel to add to the fire, as the retail investor still may be on the sidelines. Leading stocks breaking out were numerous Friday, signaling more conviction to this monster move. SWI took out a 33.78 cup base trigger, NOV a 78.55 cup with handle trigger, MA a 385.09 cu base trigger, FISV a 65.51 cup base trigger, and APC a 82.57 double bottom with handle trigger. BIIB retested its 120.76 cup base trigger Friday and held. Leaders breaking out often go on to retreat and retest their prior triggers. Keep an eye on LTD near 43.48, RAX 45.55 and WFM 74.55. Stocks building the right sides of their bases which need to be included on your watch lists to see if they complete cup or cup with handles triggers are KBR A ITW URS ROC CVE FSL PRU. Also find it interesting that recent acquirers continue to move forcefully higher. Not typically the case. GILD EMN are both examples. GILD has moved more than 50% after its purchase late last November of VRUS. More recently EMN has continued a strong advance after announcing its appetite for SOA. Is this an indication of good due diligence for complimentary synergie, a healthy market, or both?

Stocks near specific buy points include cup with handles GBX 26.76, OC 35.87, DE 88.99, IP 32.68, RS 57.40, MRO 32.98, PXP 39.47, AGCO 53.79. 3 week tight patterns are CELG 75.21, PETM 55.06, SBUX 48.72, GPC 65.48, LKQX 33.65, INTC 27.10, ORLY 85.42. Cup bases are FDX 98.76, DOV 70.25, ASH 66.46, CBS 29.78, AVT 38.10, ALB 71.31, WDC 39.12. Double bottom with handles are WFC 31.14, BBBY 63.70, flat bases are FTI 54.98, HCP 42.52, and double bottoms are UA 84.96, DPZ 34.85.

Stocks that can be bought as they retake their 40 week MAs and their buy stop spots are X 33.50, DO 64.25, WLL 52, LAZ 30.25, BHP 82.50, ST 32. BIDU retook its 40 week MA Friday.

Stocks that can be bought at 40 week support are SLB 76.75, TCK 42, VMW 92.40.

Stocks that can be shorted as they lose their 40 week MAs and their sell stop spots are PRGO 91.75, NEM 60.10. COG can be shorted at 34.10, its 40 week resistance. COP DO BHP all met 40 week resistance Friday.

Stocks that can be shorted as they lose their 10 week MAs and their sell stop spots are HUM 88.50, DG 40.75. SO can be shorted at 44.75, its 10 week resistance line. NSC ED TIF all met 10 week resistance Friday.

Stocks that can be bought at 10 week support are MRK 37.05, MCD 98.20. HUM KO both met 10 week support Friday. Stocks that reclaimed their 10 week MAs Friday were PM CVX VFC AMZN DPZ GNC ABT.

Good luck.

The author is flat.

Friday Game Plan

Markets finished a slow day Thursday with the Nasdaq, again outpacing the S&P 500. The Nasdaq is now within 28 handles from 11 year highs. A look under the hood however, discovered some bullish action. More leading stocks broke out of bases today. They included RAX breaking out from a 45.55 cup with handle base, LTD from a 43.38 cup base, and COST from a 85.18 double bottom base. Each day as more leaders break out the rally gains credibility. BIIB retested its 120.76 cup base trigger it took out yesterday and succeeded in holding it. On the other hand ADP may require a visit back to its 10 week MA, near 53.25. It has been having problems staying above its 55.12 cup base trigger and volume has been heavy as it recedes. XLF is now getting comfortable living above its 40 week MA. JPM is as well. GS is having problems with its 40 week MA, but a decent jobs number tomorrow may do the trick. WFC in the group is swimming just above its 29.73 double bottom trigger, and MS popped in heavy volume above its own 40 week Wednesday after news of it capturing lead underwriter status for the FB IPO. Risk on, based upon the utilities, still seems to be in play. XLU again failed at 10 week resistance today. SO in the group pierced its own 10 week MA to the downside on decent sized volume. TCK has been hugging its own 40 week line in a healthy fashion. Look for further upside there. Stocks that could potentially form bullish 3 week tight patterns tomorrow include SBUX CELG ASNA FFIV. Stocks building the right side of their bases and to be put on a watch list include MMM STLD CE EOG SGY AVT ESRX. ASH needs on more day to complete a handle on its cup base. CMG TSCO both had negative outside days today.

Stocks near specific buy points include cup with handles NOV 78.55, DE 88.99, AGCO 53.79, MHK 66.17, PXP 39.47, IP 32.68, GD 72.99, BA 76.80, SWK 73.39, FDX 93.62. Cup bases are SWI 33.78, BUD 64.63, MA 385.09, CBS 29.78. FTI 54.98 in a flat base, BBBY 63.70 in a double bottom with handle, and ROST 52.81 in a 3 week tight pattern.

Stocks that can be bought as they reclaim their 40 week MAs and their buy stop spots are BIDU 134, X 33.50, DO 64.35, BHP 82.45. SLB FE both retook their 40 week MAs today.

Stocks that can be bought at 40 week support are MUR 58.25, FCX 44.10, WM 34. Stocks that found 40 week support today were TAP TCK VMW KO MWV.

Stocks that can be shorted as they lose 40 week support and their sell stop spots are NSC 70.95, PRGO 91.65. ARMH lost 40 week support today. COG can be shorted 34, 40 week resistance. GS DO LAZ all met 40 week resistance today.

Stocks that can be bought as they reclaim their 10 week MAs and their buy stop spots are AMZN 185.50, DPZ 33.25, NEM 63.20. GBX TGT both retook their 10 week MAs today.

Stocks that can be bought at 10 week support are RTN 47.05, XOM 82.80, OXY 95.30, UA 76, MRK 37, HUM 88.50, JWN 48.20, CL 90.10. CPX AMP ARMH ALGN all found 10 week support today.

Stocks that can be shorted as they lose 10 week support and their sell stop spots are ORLY 79.75, MCD 97.75, WLL 47.70, VRSK 39, KSU 67.75. ARG SO both lost 10 week support today.

Stocks that can be shorted at 10 week resistance are RAI 40.55, ARG 77.50, VFC 132.40, ABT 54.90, ED 59.35, SO 44.70, GNC 28, TIF 65.25. PM CVX DPZ all met 10 week resistance today.

Good luck.

The author is flat.

Thursday Game Plan

Markets finished the day up, but off the best levels of the day after a mild late day sell off. At the expense of sounding like a broken record the Nasdaq again outclassed the S&P 500 today. Volume was up. Leading stocks added a few more break outs, as BIIB took out a 120.76 cup base trigger, and RL broke out from a 152.10 double bottom trigger (RL volume was just under the greater than 40% daily volume threshold). WFM reclaimed its 74.55 cup base trigger today. EXPE is now up 8% since its 30.50 cup with handle break out, just the type of action you like to see. CBI was up 3% today nearing 4 year highs, after twice retesting its 42.02 cup with handle trigger twice recently. The same can be said of FFIV that was up over 2%, today and also tested its prior trigger twice of 117.40 in its cup with handle base. Other stocks I am watching include FUL which has undergone huge accumulation all through the month of January. Lets see if the stock forms a base in the near term. HD is trading very tightly near 10 years highs which is very bullish. In the process of completing a 3 week tight pattern if it ends within a 1% price range Friday. TMK is also trading very tightly near all time highs in very tight trade. Stocks needing one more day to complete their handles within their cup bases are DE SGY. Stocks building the right sides of their bases and to be included on a watch list are FLS ARW ALB. KBR was up over 4% today as it has found 40 week support numerous times since retaking that line 1/13. After hours action was mixed with QCOM up, and CMG down.

Stocks near specific trigger points include cup with handles JEC 46.54, BA 76.80, RAX 45.55, IP 32.68, RS 57.40, OMC 48.06, EXXI 34.77, OXY 103.93, PXP 39.47, AMP 55.71, ENDP 38.02, TWI 25.21, MHK 66.17, FDX 93.62, TRN 33.02. Flat bases are FTI 54.98, V 104.30. BUD 64.63 in a cup base buy point, TSCO 82.08 in a 3 week tight pattern and ASNA 35.92 in a cup with high handle pattern.

Stocks that can be bought as they reclaim their 40 week MAs and their buy stop spots are BHP 82.50, LAZ 30.25, WLL 52, DO 64.40. Stocks that retook their 40 week MAs today were TAP NTRS VMW.

Stocks that can be bought at 40 week support are TD 77, MUR 58.25, ARMH 27.80, VMW 92.70, NEM 60.25, FCX 44.10. TCK TIBX enjoyed 40 week support today.

Stocks that can be shorted at 40 week resistance are COG 34, RRC 60.50, ANN 25.50. CVX can be shorted with a sell stop below its 40 week MA at 101.75.

Stocks that can be bought at 10 week support are ARG 77.40, VRSK 39, XOM 82.60, UA 76, COST 83, M 32.85, SBH 20.30, CL 90.05. CPX TROW enjoyed 10 week support today. PM ALGN COST TGT all retook their 10 week MAs today.

Stocks that can be shorted as they lose 10 week support and their sell stop spots are ORLY 79.75, MCD 97.75, CFX 30.05, KSU 67.75.

Stocks that can be shorted at 10 week resistance are NSC 73.90, RAI 40.60, ABT 54.90. Stocks that met 10 week resistance today were CVX MA GBX ED DPZ.

Good luck.

The author is flat. Will be restarting a new portfolio sometime next week. But no worries, I will be providing my blog everyday for my followers.