Weekend Market Thoughts

Markets ended mixed Friday with the Nasdaq surging thanks to AAPL and GOOG (together the two comprise more then 10% of the index). Breadth on the indexes was not as healthy as it looks on first blush. Volume rose on the indexes, although Friday was a option expiration day. Nasdaq was the big gainer of the week gaining almost 3%. New York Empire Index and retail sales exceeded expectations.

Stocks setting up specific buy points include: CAM @44.60, SGY @17.45 (both cup with handles). ORLY @54.52, DISCA @44.49 (both 4 week tight patterns). CIB @67.89 3 weeks tight pattern. BEXP @21.76 (cup with high handle).

Stocks that can be bought as they retreat to their 50 day MA: RAX @22, AMT @49, ANV @24. NEM found support at its 50 day MA @61 again. Stocks near that 50 day MA include: AKAM is testing that line @48. If it can get thru 48.25 put in a buy stop there. APD can be bought as it nears 80, its 50 day MA and back to its double bottom buy point @80.34. OPEN with its volatile nature could test its 50 day @60 this week. Stock is illiquid but it has demonstrated great relative strength this year.

ORCL has acted real well after a recent gap up and can be bought near 28. DE is holding its recent gap up to. GPC had a very bullish gap up on Friday.

SLB has been trading above its 200 day for a week now. Establishing itself nicely. PXP has done that as well. Buy PXP @27 its 200 day MA. EOG has been trying to stay afloat from that line now. Or is it forming a bearish head and shoulders pattern? Let the market tell you once again.

HES is building its right side and the transports had a monster week thanks to CSX earnings. UNP is the undisputed leader in that sector. Any weakness needs to be taken advantage of. Low 80s look good.

ETFs that look strong are FXI. Beautiful gap up 10/13. Try and buy near 45 if you can. TBT broke a downtrend last couple of days as it surged past its 50 day MA in big volume.

VMW failed at its 50 day MA @82. Lets see how CRM @111 and CTXS @62 do there at their 50 day MAs. CRUS has failed at its 50 day.

Got stopped on WFMI for a 2 point loss. Bought RADS @19.42 as it broke out from a square box pattern.

Good luck.

The author owns EXXI APA WLL SMG RADS. Short AVGO.