Todays market action left a lot to be desired. Lots of Nasdaq leaders reversed and closed upon the lows. Forget about the old tech leaders like MSFT, CSCO, DELL, HPQ. They are yesterdays news. But when I look at an AAPL chart concern starts to set in. To boot the action in DE and CAT made the market action even more ominous. The only silver lining was that volume was extremely slow indicative of the summer doldrums.
One needs to always be on the lookout for strength on a weak tape. Some recent IPOs continue to show strong action. Watch OPEN JKS STRI and now a software IPO QLIK.
A pair trade I have is long STRI, short TSL. TSL had a bearish outside reversal day today, while STRI continues its uptrend.
INFA continued its winning ways. CHKP finished above its 35.09 buy point on decent volume today on a weak tape. CIB continues to rebound after its low volume descent to its 50 day MA.
Stocks setting up for specific buy points are: LXK with a 39.48 double bottom with handle. TSCO with a 72.49 cup with handle.
Stocks that can be bought at certain prices on weakness are: CTSH 57, HAS 41.25, ISLN 19, ADTN 29.70, IT 27.30, SWN here, INTU 41.50, VMED 19.
Shorts that can be put on are: CRUS 17, CAKE 23.50, ORLY 48, GES 39.50, and a short stop can be placed on FAST at 46.50. BA is losing its battle with the 200 day MA. Short into weakness.
Good luck.
The author holds positions in FCX, AVGO, AMT, AKAM
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