AM Meandering

Yesterday the market made another decent showing. Down most of the day on strong US dollar, mixed economic data and fears of overblown QE2 rattled markets early. But displaying true bullish form the indexes battled back in the last hour, closing lower but near highs of the day. Semis led the way with the SOX gaining more than 3%. Transports and restaurant groups were the laggards of the day. Volume came in a bit higher. Earnings today include MMM DOW XOM MSFT CL KLAC.

Stocks that can be bought at the all important moving averages if they hold there include: CP @62, WLL @95, AMT @49.50, BLL @59.50, IBN @48, MRX @29, AEM @68, JOYG @66, CTSH @64, PFE @17, BBD @20. All previous stocks are there 50 day MA. If they can show support there they can be purchased. ARUN bolted after finding support there today for an example. CRZO seems to be finding support there as well. Stocks that should find support at their 200 day MA are EGO @16, AA @12.25, NEM @56.

BCSI which screamed 10% higher on 9/1 reclaiming its 50 day, has now in the last few days has taken out its 200 day. Lets see if it can show it belongs above that line. GS did it recently and now looks solid. MEE took out its 200 day last week and now looks strong as well.

JWN is now sporting a 40.09 buy pt. in a double bottom with handle formation. Look for solid volume. CVLT is holding its recent breakout above 28.59. Bullish behavior indeed. A (Agilent) looks like its building its right side of its base.

BRCM FFIV both displayed very bullish gap ups on there earnings. Any weakness here can be bought if the gap holds. Stocks holding their recent gap up here are EBAY PH GPC COH.

CHRW plunged on earnings yesterday only to find support at its 50 day and close at its highs of the day. Chart looks similar to CNI CMI, both of which were hit hard on earnings also finding support at their 50 day lines. However they did not rally of that line like CHRW did. Lets see if the coming days provide that crucial support at the 50 day MA.

And finally a good example of why you wait for price confirmation on breakouts. Look at TKC which showed a bullish cup with handle buy point of 19.48. Anyone who tried to be cute and purchase prematurely took almost a 6% haircut today.

Portfolio changes include long CRM @115.

Good luck.

The author owns CRM ORCL RADS SMG CAKE.