Sunday, October 31, 2010

Weekend Stock Reflections

Markets seem content to wait on the sidelines until the barrage of big data comes next week. Election, Fed meeting and job report. Economic data on Friday had GDP as expected and Chicago Purchasers Index beating forecasts. The market seemed to yawn at the terror scare, and should be taken bullishly. That being said things could change very quickly this week. As always let the price action dictate your moves. Not your emotions.

Stocks forming specific buy points include: MUR @67.34, CP @66.82, EXPD @50.66, PM @59.95, ADM @34.13, NFX @61.10. All those were 3 week tight patterns. Cup with handle formations are: TCK @46.48, SWC @18.26, DOV @55.07, CAKE @29.88. Four week tight patterns are: MRO @36.43, VALE @33.35, NKE @83.50, DVA @72.60. WFMI @40.43, a double bottom with handle base. MUR EXPD ADM WFMI MRO DVA all have earnings this week.

Stocks that should find support at their 50 day are: VNO @86, CHRW @69, BBD @20, CB @56.75, CAT @75, MRX @29.20, WRC @50, COST @61.75. Stocks currently holding their 50 day are CMI CNI. FMX BLL both bolted after finding 50 day support recently. CTSH has earnings Monday AM. Look for support at its 50 day near 63.50 to hold. VRSN hit support at its 50 day then went higher much like HS and CHRW did last week.

Buy stops can be put in on ARMH @18.25, NEM @62, both if they can pass thru there 50 day moving MA. Like AKAM did recently.NEM reports earnings on Tuesday.


Stocks that have moved thru their 200 day MA are: MRVL APC SGY PXP BCSI RHI. Watch how these act and buy if they retreat back to the 200 day quietly and can rebound. EGO should find support near 16, its 200 day MA. RIMM looks like it wants to challenge its 200 day near 60 this week.

CEDC is an old favorite of mine. It is rounding out a long saucer like base. Its now above its 50 day and should challenge its 200 day in the near future. KKR is back in town. Keep an eye on that recent IPO.

Lets see how HOT and CVX react this week after disappointing reactions to their earnings reports. 50 day MA for HOT @52, CVX @80 could be challenged.

CNX a laggard in the coal group hit resistance at its 200 day just above 41 on 10/14. Now its hitting its 50 day after an earnings miss. Not looking pretty. TSL is losing its battle with its 50 day too.

Good luck.

The author owns postions in CRM ORCL CAKE SMG RADS.

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