Monday, October 18, 2010

Late Night Charting

Markets rose on light volume Monday, but received a jolt after hours. Earnings reactions, not earnings misses from AAPL IBM VMW, ruled the late afternoon. The reactions themselves show a different feel as they have generally been benign thus far. Weak groups today included software and chips issues. Energy and some tech in general showed strength.

Oil and gas equities looked healthy today. APA is building the right side of its base. We are now up a nice amount since our purchase with a 98 handle off the 200 day 3 weeks ago. APC RIG EOG all are trying to establish themselves off that 200 day as well. XOM is looking durable again and is sporting a potential double bottom buy point of 70.10 now. BEXP has a cup with high handle buy point of 21.76 and WLT potentially has a 89.33 cup with handle buy point. SWC buy point could be 18.26 in a cup with handle formation. Wait another 2 days for the handle to form. The energy names seemed to benefit as CNBC had a headline segment "Why does everyone hate natural gas?". Perhaps enough negative sentiment to warrant a turnaround in the sector?

NEM ANV held their 50 day MAs today. Solid showing at that support level. CE has a 34.90 cup with handle buy point. EBAY building its right side of base.

With an extended market ripe after an obvious recent run up and bad reactions after hours in techs it could present a buying opportunity for some tech leaders that may sell off in general market sympathy. INTU @ 44, its 50 day MA. RADS @19. Back near its breakout point. ORCL near 28.50. Also buy some strong groups that may fall just because a falling tide sinks most stocks. Transports like UNP should be purchased.

FFIV CTXS AKAM were all weak before the after hours sell off. Again those big moves lower last week usually are never one time events.

Portfolio changes today were selling EXXI for a 2.50 gain. Poor action with big volume confirming.

Good luck.

The author owns APA WLL RADS SMG. Short AVGO

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