Thursday, November 4, 2010

AM Meandering

Stocks perked up and down and closed near highs of the day after the tepid reaction to election. After the fed announced its $600 B treasury purchase program the market found its legs. The Nasdaq closed to finish at a yearly high. Volume came in above average. The market continues its uptrend an the Nasdaq closed also at its highest levels since 2008. QCOM beat after the close which could help to further boost that index today.

RADS @18 and DISCA @42 both found solid support at their 50 day MA after earnings yesterday. We have flagged many of these opportunities recently. Stocks that are now challenging that 50 day MA are CREE EGO PBR. Buy stops can be placed on all of these as they push thru that line. CREE @53, EGO @18.85, PBR@ 35.15. VMW looks to be heading to that 50 day line soon and a buy stop can be place there @81.

SWN has been seeing some strong recent accumulation after breaking thru its 50 day. Perhaps anticipating a more friendly Republican majority. Buy back toward 34 if you can and watch to see how it challenges its 200 day MA near 38. MT is challenging its 200 day right here basically. Buy stop on MT @35.25. NEM, a laggard its the gold mining group behind leaders AEM ABX, could be testing its 200 day MA @56 soon.

SLB NBL continue to look strong. WLT building its right side beautifully. MXIM earnings gap up last week continues to hold up solidly. Very bullish. TRMB also continues to trade well after we flagged its breakout @33.66 on 9/20. Great earnings yesterday.

Good recent defense includes the covering of JKS AVGO much lower. WFMI broke out @40.43 yesterday but having earnings after the close was to risky. Trading much higher in the premarket now of course.

Good luck.

The author owns CRM ORCL RADS SMG CAKE.

No comments:

Post a Comment