Saturday, August 21, 2010


A soft week for the stock market exposed some resilient groups. Most significant was the software group. Led by INTC $7.7B offer for MFE, and an earnings romp by CRM, the batch shined. Others in the sector that warrant purchases on pullbacks include VMW, CTXS, INFA, INTU, RHT, ROVI, TIBX, VRSN. Specific spots can be ADSK @27.50, CNQR @45.50.

The uptrend tenuously remains intact. It remains suspect however. But as always we will let the charts determine the future direction of the rally. Stocks that can be bought and prices are:

HAS @42
CXO @58
FTI @59
RBCN @24
FAST @47.50
CMCSA here
FNSR here
ARUN here
CHRW @65
BUCY @59
BWA @44
PCAR @41

Chips remain weak and should be shorted into strength. NETL, CRUS @18, CAVM @25, ATHR @28 and retailer BBBY @39.50. BA holding onto to its 200 day MA. Its found support there numerous times. If it fails watch out. Short stop BA@ 63.25.

Buy stops can be entered on the following:

DRQ thru 55.50
NVDA thru 10.50
ORLY thru 48.60
TJX thru 43.25

WYNN 94.08, in a nice cup with handle formation
TIF 44.67, in a nice double bottom with handle formation

Good luck.

The author holds positions in FCX, AVGO, AMT, AKAM

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