Happy New Year

Will be out of office until the New Year. Everyone have a happy and healthy 2012!

Tuesday Game Plan

Markets capped off the holiday week on a cheery note. The Nasdaq gained 2.5% on the week and closed right at 10 week resistance. The S&P 500 rose 3.75% and reclaimed its much talked about 40 week MA. Volume was paltry due to the holiday. But volume has been tame for quite some time now. A look at the S&P 500 back to mid August shows just 9 days in above average trade on a daily basis. Perhaps we are looking at a new normal in slow trade. Groups that seemed to dominate the week were the transports and financials. The IYT retook its 40 week MA. It knocked out the 200 day door 3 times since October. Could the nest stop be par? Pun intended. It did break through in very timid volume, however we must remember that the more times a ETF or stock tests support or resistance, the more likely it is to penetrate. UPS UNP have both carved out nice bases and could be on the verge of breakouts. KSU resumed its leadership status in the group, and TRN retook its 200 day and FDX is poised for its own 40 week test Tuesday. XLF retook its 10 week MA Friday. GS continues to lag, but JPM rose 5%, and had a bullish outside week. WFC took out its 40 week line this week as well for the first time since spring. As my favorite Larry Kudlow would say, possible "green shoots" developing. FRC continues to look good as the recent IPO shapes the right side of a cup base and trades in a very tight bullish fashion. In hindsight, it may be possible that an ongoing rotation out of retail and into these sectors in taking place. Many retail names have continued to implode. This week it was BBBY down 6%, but for the moment receiving 40 week support. DECK TIF LULU have faltered in the past, but look for strength in the group. NKE had a nice earnings report to start the week and has ridden its 10 week line for some months now. M has down the same in regard to its 10 week. But some big volume down days have made this ones support look ominous. Give it the benefit of the doubt as long as that line holds. If not short below it. RL garnered 200 day support this week, but it could fall victim if that line does not hold. Looking at leading stocks this week showed a few breakouts. V took out a 98.70 3 weeks tight trigger. CELG was up everyday last week as it took out its own 65.92 double bottom buy point. AAPL was up everyday last week as well as it retook its 10 week MA and is now looking to complete a cup base with a potential buy point of 426.80. PM RAI WMT SBUX all broke above 3 week tight patterns in soft trade though. ED took out its own 59.99 flat base buy point to establish a new all time high in the process. Two stock I am certainly going to keep a close eye on this week are two that are approaching Y2K highs (from pre 2000 levels). Long term bases are usually strong in nature. ADP is very close to a 55.12 cup base buy point that would put it at decade long highs. WMT has another 9 points to go in its cup base, but the tight trade and recent push above its 3 week tight trigger could warrant a starter position right here. Two stocks that retested prior triggers were EL INTC. INTC retook its 10 week MA this week even after a recent guidance reduction, and tested its 23.49 double bottom trigger to the penny. EL retested its own 106.52 double bottom buy point last week and has now formed a bullish double bottom buy point of 119.09. Keep an eye on strength as this market continues to consolidate Tuesdays enormous gains. This type of stubborn action is bullish in itself. Lets look for solid breakouts, many are setting up, to have us step on the gas pedal a little bit more here and change our cautious bullish stance to a little more aggressive one. But not before the tape confirms this. There will be plenty of opportunities once this occurs.

Stocks near specific points are cup with handles KLAC 49.49, JBHT 46.69, NSC 76.59, UNP 106.09, UPS 73.76, TYC 48.62, TMK 44.11, PLL 58.30, CBI 42.02, NBL 99.27. Cup bases HXL 26.58, RTN 50.35, SCSS 22.29, RATE 22.04, ADP 55.12, NUAN 27.07, FMC 93.10, VAL 40.70, AET 45.49, EFX 40.00, KO 71.87, VRSN 37.83, SPG 131.31. Flat bases are AAP 71.10, INTU 55.53, ALXN 70.52, BIIB 120.76, HUM 90.86, CPO 53.22. 3 week tight patterns are DLTR 84.09, ABV 36.75. Double bottoms are EL 119.09, RHI 30.26 (1 year pattern). RS 51.02 in a double bottom with handle pattern.

Stocks that can be bought as they reclaim their 40 week MAs and their buy stop spots are FDX 85.80, ASNA 30.40, OMC 44.60, CBE 56.30, DOV 59.75, ROK 75.75, CE 45.75, PPG 84.50, JEC 41.50, EOG 99.65, KEG 15.50, OXY 95.30, FISV 59.10, RJF 31.60, DHR 49.25, DE 81, ENDP 35.70. Stocks that retook their 40 week MAs Friday were UA TRN MWV SAPE HP KEG TROW ARW.

Stocks that can be bought at 40 week support are SPR 20, MWV 29.70, BBBY 56.35, APC 75.75, EXXI 30, KEG 14.95, NUE 39.30, NEM 59.50. Stocks that found 40 week support Friday were RL PAYX.

Stocks that can be bought as they reclaim their 10 week MAs and their buy stop spots are CLF 66.30, DVN 64.25, COG 78.80, ALB 51.80. COST CAT both retook their 10 week MAs Friday.

Stocks that can be bought at 10 week support are NKE 94.25, ASML 40.20, MELI 80, COST 83.85, LKQX 29, M 31.05, RAX 41.90, NUAN 24.85. WSM CSCO BIIB X QCOM all found 10 week support Friday.

Stocks that can be shorted at 40 week resistance are DECK 93, ARMH 27.75, DSW 47, DKS 37.60, LULU 51, TIF 70.10, TIBX 26, WDC 32.50, HLF 53. Stocks that met 40 week resistance Friday were FDX CERN EOG OXY.

Stocks that can be shorted at 10 week resistance are COH 61.90, VFC 133.70, AVGO 31.60, CY 18.05, TSCO 72, SWI 29.20, IBM 185.50, ADSK 32.95, CERN 62, PMTC 20. NOV CLF met 10 week resistance Friday. DPZ can be shorted with a sell stop of 32, as it surrenders 10 week support. CXO lost 10 week support Friday.

Good luck.

The author bought some IYT on the close Friday as it retook its 40 week. As I mentioned Thursday I felt that I would regret selling my PM V NUE longs, and I did. It is frustrating a bit, but I also know the opportunities constantly present themselves on a daily basis. We must preserve our mental capital to take advantage of those situations, and not let our resentment prevent us from capitalizing.

Friday Game Plan

Markets that we follow, the Nasdaq and S&P 500, both finished up by the same .83% gain on soft trade. Impressive since the big gains on Tuesday. The S&P 500 closed higher for the third consecutive day and 6 handles below its 200 day MA. A move above that line, which many are skeptical of, would be very bullish. The Nasdaq closed a hairline below its 2600 level which has been a battleground since early in the year. More importantly it is nearing a 10 week challenge in the near future. We were on the lookout for more breakouts, but were saddened to not discover much. HSY pushed past a 61.00 cup base, but volume was scant. Others hovering right near their trigger points include SBUX 45.10 3 week tight, WMT 59.30 3 week tight, ABT 55.71 flat base. M is retreating back near its 30.72 cup base breakout from 10/24. It also has found solid support right at its 10 week support near 31. It also has formed a 3 week tight pattern from the weeks of 10/28-11/11 at 32.77. It obviously hails from the retail sector which has been under pressure as of late. DECK BBBY were both lower by 6% today, with BBBY down on earnings but managing to find 40 week support. More stocks to keep on your watch list as they build their right sides are HON MWV FMC VAL PXP AAPL. Stocks in the process of completing 3 week tight patterns are RAX ABV and GOOG which we discussed yesterday. Banks were up smartly today as the XLF retook its 10 week MA. JPM was up 3.5%, reclaiming its own 10 week today. WFC retook its 40 week, and recent IPO FRC was up 3% today as well as it rounds out its right side. Transports were strong as well as IYT closed right at 40 week resistance today. It is the third time this ETF has done this and the more times it knocks the less dependable that resistance becomes. Group mates JBHT UNP UPS are all near cup with handle trigger points. As we discussed recently, our bullish narrative must be supplied with more quality break outs from growth minded companies. There are many set ups right under our noses, but let the confirmation be exposed before diving in.

Stocks near specific buy points are KLAC 49.49, JBHT 46.69, UNP 106.09, UPS 73.76, TMK 44.11, PLL 58.30, CBI 42.02, NBL 9.27. Cup bases are RTN 50.35, SCSS 22.29, ADP 55.12, NUAN 27.07, XOM 85.51, EFX 40.00, VRSN 37.83. INTU 55.53 in a flat base and RS 51.02 in a double bottom with handle.

Stocks that can be bought as they reclaim their 40 week MAs and their buy stop spots are ASNA 30.30, SAPE 12.50, CBE 56.20, DOV 59.50, ROK 75.40, CE 45.50, JEC 41.80, EOG 99.60, HP 59, KEG 15.45, OXY 95.20, FISV 59.25, TROW 57.60, RJF 31.75, DE 80.75, ENDP 35.70. Stocks that retook their 40 week MAs today were MWV AKAM PXD WFC.

Stocks that can be bought at 40 week support are SPR 20, HON 53.50, EXXI 30, NUE 39.45, WFC 27, NEM 59.50. Stocks that found 40 week support today were TRN BBBY APC KEG NTGR.

Stocks that can be bought as they reclaim their 10 week MAs and their buy stop spots are INTC 24.30, COST 84.25, ALB 51.35, APC 78.25, COG 78.80, DVN 64.25, CLF 66.40. Stocks that retook their 10 week MAs today were CNI OMC JAZZ X QCOM FCX.

Stocks that can be bought at 10 week support are LKQX 29, M 31, RATE 18.55, RAX 41.95, PAYX 24, CXO 94, EL 107.50. Stocks that found 10 week support today were NKE WSM CXO BIIB.

Stocks that can be shorted as they lose their 10 week support and their sell stop spots are BIIB 109, DPZ 31.85, DLTR 79.75, ALXN 65.70. TSCO lost 10 week support today.

Stocks that can be shorted at 10 week resistance are ARMH 29.75, RIO 52, IBM 185.50, SWI 29.15, MON 72. Stocks that met 10 week resistance today were CSCO FE DHR CLF COST SWI CAT NOV.

Stocks that can be shorted at 40 week resistance are UA 72.10, DFS 37.35, CERN 61, WDC 32.60, AXP 48.10, HLF 53. Stocks that met 40 week resistance today were FDX SAPE HP FISV TROW HLF ARW ENDP. RL can be shorted as it loses 40 week support with a sell stop of 134.50.

Good luck.

The author is flat. We have become adapted recently to becoming swing traders as opposed to position traders. We sold V at 100.80 today for a 2.10 gain, PM at 78.30 for a 1.17 gain and NUE for a small .60 gain. We will look to reenter all three of these on weakness, which means thay will scream higher leaving me behind.

Thursday Game Plan

Markets ended a bit bifurcated Wednesday, as ORCL bruised the Nasdaq to the tune of 1%. It finished 33 handles of its low, and at one point was lower by 2.3%. The S&P 500 ended marginally higher. It bounced right after finding solid support at its 10 week MA. The Nasdaq is still swimming below that key line. Keeping an eye on breakouts, which would help solidify this rally attempt, were slim once again. The ones that did today, occurred in soft trade. They included BA (72.86 cup with handle), WMT (59.30 3 weeks tight pattern), PM (77.13 3 week tight pattern), and MJN (76.14 cup with handle). V did manage to fight back from earlier losses after coming close to retesting its 98.70 3 week tight pattern it emerged from yesterday. V demonstrates the need for more growth oriented names, instead of the dull, boring defensive issues that dominate the breakout list. GOOG may be one such name to add a little shine to the list. It is potentially forming a very bullish 3 week tight pattern. Stocks forming the right sides of their bases, which could become cup or cup with handle bases, are RTN XOM CPO. Keep them on your watch list. ORCLs big miss today wrecked havoc on the software sector and some old tech names. Leader SWI surrendered more than 5% and its 10 week, which looked very stable for months. EMC ACN both lost 4%, IBM 3%. VMW lost 10%, AMZN 5%. ETFs to watch include XLE which closed right up at 10 week resistance, and a buy stop can be placed above 69. IYT is readying itself for another battle with its 40 week line. Put a buy stop on that one above 90.30. GLD its butting right up against its 200 day MA here. A buy stop can be placed above 158.45, and if that is taken out a double bottom base may be on its way to being born. If not look out below. After hours action was mixed with TIBX up and BBBY down.

Stocks near specific buy points which can start to be bought here as the climate gradually becomes better are cup with handles JBHT 46.69, UNP 106.09, UPS 73.76, TMK 44.11, PLL 58.30, EXXI 32.90, NBL 99.27. Cup bases are HSY 61.00, BIIB 120.76, AET 45.49, ADP 55.12, SCSS 22.29 (base on base pattern), HXL 26.58 (base on base pattern). Flat bases are ABT 55.71, SPG 131.31, PSA 132.30.

Stocks that can be bought as they reclaim their 10 week MAs and their buy stop spots are NSC 72.20, CAT 92.25, CXO 94.50, COG 78.75, DVN 64.25, JAZZ 38.25, FE 44.60, JPM 32.70, FCX 38.25. Stocks that reclaimed their 10 week MAs today were ARO COST OXY GIS.

Stocks that can be bought at 10 week support are KLAC 45.95, BEAV 38.10, DPZ 32.05, LKQX 29, M 31, RATE 18.60, INTU 52.55, WCG 52, EL 108, ARW 35. Stocks that found 10 week support today were ASML HXL KSU MMM JWN SAPE NUAN CE EMN JEC AAPL DEO BR STLD ARW.

Stocks that can be bought as they reclaim their 40 week MAs and their buy stop spots are TRN 30.30, MWV 29.90, ASNA 30.30, DOV 59.75, EOG 99.80, HP 59, KEG 15.30, OXY 95.25, FISV 59, TROW 57.30, RJF 31.50, WFC 27.10, DHR 49.15, ENDP 35.60. COH APC PXD all retook their 40 week MAs today.

Stocks that can be bought at 40 week support are PII 54, WSM 37, RHI 26.10. Stocks that found 40 week support today were SPR CNI HON TYC WSM CTCT CBI CXO NUE.

Stocks that can be shorted at 40 week resistance are DECK 93.50, FDX 84.95, DKS 37.65, CERN 61.10, PPG 84, HLF 53.10. Stocks that found 40 week resistance today were ROK HP KEG AXP DFS WFC. UA NTGR both lost 40 week support today.

Stocks that can be shorted as they lose 10 week support and their sell stop spots are TSCO 71, ALXN 65.75. AKAM SWI IBM CSCO all lost 10 week support today.

Stocks that can be shorted at 10 week resistance are CY 18.05, INTC 24.10, OMC 43, PMTC 19.90, QCOM 54.05, MON 71.95. INTC JAZZ FE X QCOM all met 10 week resistance today.

Good luck.

The author owns V NUE PM. We bought PM through it 77.13 3 week tight pattern. Volume was soft however.

Wednesday Game Plan

Markets powered ahead Tuesday on big volume. Speculate on the reasoning all you want, but the price action must be respected. Sure its one day, and big, massive spikes like this are most attributed to short covering, but perhaps Santa was just hibernating for the first 3 weeks of December. Call me skeptical, but we are not paid on our opinions. The Nasdaq was higher by over 3% and closing just above its 2600 level. That level has been a battleground between support and resistance now since mid March. A 10 week test lies 2-3 handles away. The S&P 500 regained its 50 day MA and finished higher by just under 3%. Some leaders which we always pay very close attention to attempted to break out today. Most of them came in sub par volume. Two that did so with proper volume were CELG that took out a 65.92 double bottom buy point, V took out a 98.70 3 weeks tight base. Others SBUX (3 week tight 45.10), SBH (21.04 flat base), ADP (52.85 cup with handle), FMC (86.49 cup with handle), ED (59.99 flat base), SPG (125.16 3 week tight), all came in volume that would be considered under acceptable (greater than 40% on the average daily volume). Semis were up big today with many in the group up better than 5%. Stick with the leaders such as KLAC which retook its 10 week MA and sporting a cup with handle base of 49.49. SIMO looks decent as well here. Look to short some of the laggards such as AVGO CY at their oncoming MAs. IYT is once again approaching its 40 week MA, and perhaps the third time will be the charm. Put in a buy stop at 90.25. Energy was up big today and leaders in the group were up more than 5% included COG NBL CLR. Retail slightly under performed today with the likes of VFC closing lower on the day and UA closing on its low. Pay attention to relative weakness just as much as relative strength. Retail stocks that behaved nicely today were M USNA. WSM is still displaying a bullish inverted head and shoulders pattern. Put in a buy stop there above 40.25. Stocks to be included on a watch list that are currently carving out the right side of their bases are GRA MENT VAL AET VAR EFX FRC VRSN. After hours earnings were mixed with ORCL RHT down and NKE up.

Stocks near specific buy points to be included on your watch list are cup with handles KLAC 49.49, BA 72.86, JBHT 46.69, UNP 106.09, UPS 73.76, AAP 71.10, FFIV 117.40, RAX 45.56, CTCT 25.72, TMK 44.11, PLL 58.30, MJN 76.14. 3 week tight patterns are GNC 29.01, WMT 59.30, PM 77.13, RAI 41.71. Double bottom with handles are BUD 61.08, USB 26.74, RS 51.02. Flat bases are ALXN 70.52, ABT 55.71, PSA 132.30. SCSS in a cup base, with a base on base pattern, 22.29 trigger.

Stocks that can be bought as they reclaim their 40 week MAs and their buy stop spots are TRN 30.30, MWV 30, ASNA 30.40, SAPE 12.50, DOV 59.50, ROK 75.75, APC 76.25, EOG 99.60, EXXI 30.25, HP 59, KEG 15.25, FISV 59, TROW 57.15, RJF 31.50, WFC 27.10, DHR 49.15, ENDP 35.60. Stocks that retook their 40 week MAs today were RTN SPR CNI NSC HON TYC PXP FE NUE CPO MON. SPR can be bought at 40 week support at 19.95.

Stocks that can be bought as they reclaim their 10 week MAs and their buy stop spots are INTC 24.25, COST 84.25, ALB 51.25, CXO 94.75, COG 78.75, JPM 32.75, FCX 38.25. Stocks that retook their 10 week MAs today were ASML BEAV HXL KSU MMM CMG JWN AKAM IBM INTU NUAN CAT CBE CE EMN CLR EXXI NBL AAPL CSCO STLD DE. Stocks that can be bought at 10 week support are DPZ 32, LKQX 28.95. WSM BIIB WCG all found 10 week support today.

Stocks that can be shorted as they lose 40 week support and their sell stop spots are RL 134.50, UA 71.55, PII 53.15.

Stocks that can be shorted at 40 week resistance are DECK 93.50, FDX 85, EMR 51.05, DSW 47, DKS 37.65, ACN 56, CERN 61, PMTC 20.55. Stocks that met 40 week resistance today were COH ROK EOG AXP DFS HLF.

Stocks that can be shorted at 10 week resistance are ARMH 28, CY 18.05, NSC 72, OMC 43, ADSK 33, ATU 22, JAZZ 38, MON 72. Stocks that met 10 week resistance today were ARO COST PMTC COG OXY PXD X JPM QCOM.

Stocks that can be shorted as they lose their 10 week MAs and their sell stop spots are BBBY 60.75, DLTR 79.75, TSCO 71.

Good luck.

The author owns V NUE. We bought some NUE at 39.61 as it crossed its 200 day MA.

Tuesday Game Plan

Markets once again wiped out early gains, and finished with decent losses. Classic corrective action. Both indexes gave up more than 1%. Volume was soft compared with the elevated trade Friday due to expiration. As we like to say here, pay attention to the leaders. They offer key insights to the general health of the market. Break outs are very rare, and should not be purchased in this corrective climate, but some attempted to do so today. ABV ED V all tried to take out valid trigger points intraday, but failed to hold on by the close. Poor action. We are technicians here, and the more we look at leading stocks and industries, the more we see bearish, wide and loose chart patterns. These are much more prone to failure. Big techs AAPL IBM QCOM have all been trading in this fashion recently. Retail stocks COH UA JWN PII have done the same. ROST reversed at had an outside day from an all time high. Transports stocks CNI NSC have both traded very loose and both are having troubles with their respective 40 week MAs. JBHT had a bearish outside, although it was in light volume. Energy equities trading loose include APC CLR. APC lost its 40 week last week, while CLR managed to hold it today. COG has become almost a laggard in the group and we will wait to enter near 40 week support near 66. Another recent leader in the group which has faded to the background is FTI which is now below its 50.30 cup with handle trigger, and has become overridden with distribution. Even utilities have felt the pain with the XLU losing 10 week support today. FE lost 40 week support, continuing its slide from Friday. Banks and semi were hit as well today, what was not, as leader KLAC finally surrendered its 10 week MA today. GS JPM both gave back 3% today, and FRC now remains by far the best looking bank chart out there. Take particular attention to upgrades in this fragile conditions we are experiencing. SPR had 2 upgrades in the last week and was repelled both times at the 40 week. FDX had the big guidance forecast and met 40 week resistance head on. HON was upgraded today and was smacked by its 10 week MA. And just to convey the notion of buying strength and avoiding laggards. Tale of the tape in the steel sector. Recent leader NUE down 2%, today, laggard X 8%. Only good news, besides the fact that I am becoming exceeding bearish, is that the SDS, which has been a good indicator to market direction is near 40 week resistance. Lets see how it reacts there.

Stocks near specific buy points for watch list purposes only are 3 week tight patterns SBUX 45.10, GNC 29.01, V 98.70, WMT 59.30, PM 77.13, RAI 41.71. Cup with handles RAX 45.56, TMK 44.11, PLL 58.30, FMC 86.49. CELG 65.92 in a double bottom base, ABT 55.71, ED 59.99 in flat bases and HSY 61.00 in a cup base.

Stocks that can be shorted as they lose 10 week support and their sell stop spots are DLTR 79.75, DG 39.50, TSCO 71, SWI 28.75, INT 40, BIIB 109.40, HUM 82.50. Stocks that lost 10 week support today were KLAC EMR MMM ARO BBBY M FFIV PMTC CE CBI JEC CSCO BR FISV RJF WFC NUS.

Stocks that can be shorted at 10 week resistance are VFC 133.60, ASML 40, NKE 94.05, BEAV 37.10, BBBY 61, CMG 325, COST 83.70, M 30.80, IBM 185.25, OMC 43, NUAN 24.60, CAT 91.25, CBE 53.10, JEC 39.45, NUS 47.15, DHR 47. Stocks that met 10 week resistance today were NKE BEAV HXL AKAM NUAN ALB CXO CRZO EXXI NBL STLD ARW DE.

Stocks that can be shorted as they lose 40 week support and their sell stop spots are RL 134.50, JWN 46.40, PII 53.10, ADP 50.75, INTU 50.45, CLR 61.75, JAZZ 35.45. CBI BR FE RS all lost 40 week support.

Stocks that can be shorted at 40 week resistance are TYC 45.60, DKS 37.60, DFS 24.20, HLF 53. Stocks that met 40 week resistance are COH UA RTN SPR PXP DFS NUE MON.

Stocks that can be bought at 40 week support are INTC 22.10, BAC 69.15, UNP 97, UPS 70, KMX 29.90, COST 80, RHI 26.10, MENT 12.20, XOM 79, VAR 62.35, NEM 59.50. JBHT PII PAYX NTGR AET KO all found 40 week support today. Buy stops can be put in on these as they reclaim their 40 week MAs. ASNA 30.25, CPO 50.40, ENDP 35.65.

Stocks that can be bought at 10 week support are AAP 66.05, TRN 27.55, DPZ 32, GNC 25.95, LKQX 28.95, SCSS 19.50, TJX 60.20, WMT 57.20, DOV 54.40, CJES 19.15, ALXN 66, ABT 53.50, NUE 38, CPO 49, GIS 39.30, MJN 72.50, SPG 122, ROP 81.60. Stocks that found 10 week support today were HON MWV EOG DEO WCG TROW EL CPO MKC. CELG reclaimed its 10 week today.

Good luck.

The author owns V. We bought it as it passed it 98.70 3 week tight trigger. It did so in mediocre volume and will be kept on a tight leash.

Monday Game Plan

Markets once again Friday splashed some cold water on the bulls. Indexes early gains were chopped down throughout the day after a strong opening. For the week the the Nasdaq gave back 3.5%, the S&P 500 2.8%. Both benchmarks surrendered 10 week support during the week. The Nasdaq did so after a bearish outside day Tuesday, and finishing near lows for the day from then on everyday of the week. The S&P 500 encountered 10 week resistance Wednesday through Friday and closed on its lows everyday of the week. Action among key leading stocks was mixed. DPZ lost 4% this week in tame volume and a 10 week test is looming quickly. Perhaps it will enjoy the 10 week support that SWI did this week, despite its own 10% weekly drop. IBM was down everyday this week losing 6%, and its 10 week line in the process. Some leaders managed to hold up. PETM rose 2.5% on the week, displaying excellent relative strength, and hitting an all time high Friday. MRK remains just below a 36.35 cup with handle base. As we have spoke about in the past it is not uncommon for stocks which have broke out in the past to revisit their previous buy points. It is important to see how they react there. EL did so this week, retreating back to its 106.52 double bottom buy point. It held both that and 10 week support. KSU retested its 62.86 cup base buy point and rebounded to close above that trigger and also reclaim its 10 week line Friday which it had lost earlier in the week. SCSS also retested its prior 19.33 cup base trigger and closed just above that number, and is meddling with 10 week support right here. GOOG continues to trade tightly at 52 week highs here. A look at some sectors was worrisome this week. Retail, via XRT lost 4% on the week, after an ugly outside day Tuesday. COH lost ground everyday this week, falling 8% and losing its 40 week MA. VFC lost 6% on the week, after an awful outside day Tuesday, losing its 10 week line that day as well. IYT lost less than 1% for the week, on the back almost entirely of FDX, after a stellar report. Action is mixed in the group however with CNI NSC both discarding their 40 week MAs and the bases becoming wide and loose. JBHT had a nice day Friday and now has a textbook handle on its cup base, which has developed above both the 10/40 week lines. SMH lost more than 5% on the week on the heels of INTC guidance slash Monday. It is still hovering near a 23.49 double bottom trigger, but it looks like a 40 week test is imminent here. LRCX takeover announcement of NVLS did little to help the group. KLAC did manage to find 10 week support Friday. Other leader KLAC did manage to find 10 week support Friday. SIMO looks somewhat suspect after its outside day Tuesday reversing from an 3 year high in the process. Commodities and the global growth story were thrown into doubt with JOY 16% weekly loss on lowered guidance and oil losing 6% on the week. XLE lost its 10 week MA this week and has had continuous trouble with its 40 week this quarter. NBL XOM are still trading above their 40 week MAs displaying solid relative strength in the sector, but leader APC lost 9% on the week as well as key 40 week support it has been enjoying. COG lost its 10 week line and 9% this week. EOG lost its 40 week, but held frim at its 10 week. Recent fracking IPO CJES lost 11% on the week and a 10 week test looks probable. OKE ARG gap ups still look good.

Stocks near specific buy points to be viewed as a watch list only, until the market sheds this corrective phase are: Cup with handles PLL 58.30, ADP 52.85, RAX 45.56, TMK 44.11, CBI 42.02, FMC 86.49, NTGR 38.57, UPS 73.76, UNP 106.09, JBHT 46.69, BA 72.86. 3 week tight patterns are GNC 29.01, RAI 41.71, SBUX 45.10, WMT 59.30. Flat bases are ED 59.99, ABT 55.71, SBH 21.04, BBBY 63.93. Cup bases are EFX 41.00, HSY 61.00. CELG 65.92 in a double bottom base and ADS 107.43 in a cup with high handle base.

Stocks that can be shorted at 10 week resistance are NKE 94, ASML 40, CY 18.05, HXL 24, CMG 324.50, PII 60, AKAM 27.10, IBM 185.25, OMC 42.85, ADSK 33, ATU 22, CAT 91, EMN 38.10, JAZZ 38.15, PPG 83.50, NOV 68, OXY 92. Stocks that met 10 week resistance Friday were KSU MMM COST SCSS AKAM INTU CBE CELG FE STLD JPM ARW DHR CLF FCX DE.

Stocks that can be shorted as they lose 10 week support and their sell stop spots are M 30.60, EMR 48.60, ARO 15.05, BBBY 60.60, RCII 33.80, HUM 82.25, WCG 50.50.

Stocks that can be shorted at 40 week resistance are COH 58.75, DECK 93.50, CNI 74.50, TYC 45.45, DSW 47, VMW 92, TIBX 26.05, PXD 86.50, HLF 53, MON 69.50. Stocks that met 200 day resistance Friday were RTN NSC TYC PMTC DFS QCOM.

Stocks that can be shorted as they lose 40 week support and their sell stop spots are RL 134.50, UA 71.80, JWN 46.30. COH ACN both lost 40 week support Friday.

Stocks that can be bought as they reclaim their 10 week MAs and their buy stop spots are SCSS 19.60, ALB 51.25, CXO 94, CRZO 27, EXXI 29.40, CELG 64.25, STLD 12.70, JPM 32.60, DHR 47.25, CLF 66.50. ASNA NUAN CBI CLR ALXN all retook their 10 week lines Friday.

Stocks that can be bought at 10 week support are LKQX 28.95, SPR 18.05, MWV 28.10, DPZ 31.95, SBUX 42.50, TJX 60.10, SWI 28.95, DOV 54.40, INT 41.10, RJF 29.05, X 25.10, WFC 25.55, GIS 39.30, MJN 72.50. Stocks that found 10 week support Friday were TSCO CE EOG ENG KEG CSCO DEO BIIB TROW RJF X WFC CPO.

Stocks that can be bought as they reclaim their 40 week MAs and their buy stop spots are RTN 45.95, TRN 30.25, HON 53.80, ASNA 30.20, EOG 100, PXP 33.75, FISV 59.10, NUE 39.75, ENDP 35.70. JBHT WSM PAYX KO all retook their 40 week MAs Friday.

Stocks that can be bought at 40 week support are ASML 38.10, KMX 29.90, COST 80, CTCT 23.05, GRA 41, VAL 35.10, XOM 79.05, AET 40, VAR 62.50, AXP 48.10, BR 22.05, NEM 59.50. ADP CLR BR all found 40 week support Friday.

Good luck.

The author remains 100% in cash.