Saturday, August 7, 2010


Stocks that broke thru their 200 day moving average that can be bought back toward that line include: VALE at 28.50, HAL at 29.50, FDX at 84, ANR at 43, CAAS at 19.50. Important tests of their 200 day avg. this week include FCX at 75.50 and GS at 157.

Strong stocks that can be bought on slight weakness moving back to their 50 day moving averages include CNQR at 45, SWKS at 17.25, OVTI at 22, AVGO at 22, NTAP at 41.

Equities associated with the auto sector did well this week. Before I go any further please stay away from TSLA. In fact I will give you a pair trade here. Buy TTM, short TSLA. However, BWA can be bought back toward 45, TRW at 35, TEN AT 27. PCAR has formed a nice cup with handle formation and can be bought with a buy stop past 47.68 on strong volume.

Gap ups that continue to hold include CTXS INFA CHRW CTSH.

Individual names I like are FFIV with a buy stop past 90.93 on strong volume. ADTN back toward 30, and ALK back toward 50. A beautiful airline chart even with oil at $80. I like the way AGP is stubbornly holding strength after a breakout.

RIG made a healthy move thru its 50 day mov. avg. at $50 on a nice earnings beat. For the long run that stock could prove to be a bargain as long as it holds that mov. avg.

The author holds positions in FCX, AVGO, AMT

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