Tuesday, October 26, 2010

AM Musings

Stocks gave back good chunks of their gains in the final hour, however remaining up slightly on the day. Semis, silver stocks and online travel groups performed well. Look at PCLN TZOO. Volume was a bit lower than normal. Many stocks in the energy group reversed and closed upon their lows.

In that energy sector APC continues to perform well and anyone who had the courage to buy that one after its association with BP in the Gulf oil spill has been handsomely rewarded. RIG continues to meet resistance at its 200 day MA. MT in the steel sector also is still struggling with that line as well. However if it can bust thru that line put in a buy stop on MT @36.05. JCI now has a buy point of 35.87 from a cup without handle pattern, unless it decides to form a handle. Be patient and wait for volume and price action to confirm the move.

AKAM has now pushed above its 50 day MA. Lets see how it responds there. Could be bullish. RAX 50 day line holding for now too. ARMH is right there now as well. Can be bought @17.90. BCSI has now fought its way past its 200 day MA. Give it a couple days that it belongs there.

BUCY closed upon its low for the second consecutive day, but above its 50 day MA. If it pierces that line could mean a trip to the 200 day MA lower. Other shorts here could include VMW @81, CTXS @62.50 both their 50 day MAs. In that group however CRM is now challenging that 50 day. If it moves past it it could be bought with a buy stop @115.

We missed the big EMN move. Gapped up and blew away the 3 week tight pattern. Demonstrates the strength of the pattern though. Gap ups still holding include GPC XXIA WCC.

Portfolio changes were selling some energy names at the end of the day. Sold APA for a 3 point gain and WLL for a 7 point gain. They look a bit extended and nothing worse than letting a decent gain turn into a modest loss. Covered the AVGO for a 2.50 loss.

Good luck.

The author owns ORCL RADS SMG CAKE.

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