Sunday Wake Up

The markets ended calmly for Friday and for the week, as it stabilized after last weeks strong gains. Breadth amongst new highs was sound as well. Charts continue to form bullish patterns. The indexes themselves continue to gain ground quietly flirting with the 200MAs. Stocks themselves, that are positively developing the right side of their cup base and demand inclusion on your watchlists include: HOT, BUCY, ROK, ORLY, WRC, TRMB.

The auto sector which caught a JPM downgrade on Wednesday, hurt one of the recent top performing groups. BWA @44.25 , CMI @78 can be purchased at their 50 MA. TTM is trading very narrowly after a nice breakout. Lets see if it continues to that very bullish trait.

Stocks that can be bougth with exact price points are: CIG @16.99, LXK @39.48 (both double bottom with handle buy point). BIIB @58.26 as it passes thru a cup with handle pattern.

Stocks that can be bought at their 50 MA include: RADS @16, ARUN @18, AN @22. Stocks that can be bought at their 200 MA are: QCOM @40, PFE @16.70, CRZO @22.50.

CVLT and WTR continue to hold strong after recent breakouts. Keep an eagle eye on them.

In the energy space XEC can be bought as it trades upward and thru 70.75 Trying to break thru its 50 day MA and eventually forming a double bottom buy point of 77.21. But thats looking into the future. Lets see it pass 70.75 first, then you can add later to it thru 77.21. RIG continues to look great, and OIH can be bought @105.

MT, MTL are very slowly looking like they are forming the right side of their bases, and X has hit the brakes twice in the last 7 weeks at its 200 MA. Lets see if X, can trade thru 52, its 200MA, and try to build the right side of its base. Would be very bullish indeed for commodities.

Shorts that should be considered are the chips. At least for the day on Friday my Thursday stop of AVGO at 19.69 looked fantastic. If it trades back up to that spot near its 200MA and fails short it. CAVM can be shorted @25.50, RBCN @24, both their respective 200 MAs. If OVTI closes below 18, its 200 day that gave it support to on Friday, short it as well. JBHT can be shorted @34.50, and a short stop can be placed on WFMI 34.75.

I bought STRI as it passed thru 23 on Friday on decent volume.

Good luck and keep losses small.

The author owns positions in FCX, AMT, NZ, AKAM, NUE, STRI, short of BCE.