Friday, November 19, 2010

AM Meandering

Markets fought back to recapture most of the weeks losses Thursday. Gains were broad and leaders were strong. Optimism over the GM IPO and a strong Philly Fed number helped the markets enjoy healthy gains. Ireland seen to be open to an economic package also helped. Leading stocks that had earnings and continued to enjoy robust gains were ARUN LTD NTAP.

Stocks that can be bought if they pass thru their 50 and 200 day MAs are: SMG thru 52.25, AKAM thru 49.50, ARMH thru 18.25. Those are all their 50 day MA. Stocks that can be bought as they move thru their 200 day MAs are: RRC thru 43.50, SWN thru 38.50, GPS thru 21.20.

Both MCO XRX found 50 day support today. PETM had earnings and looks headed for its 50 day MA @36. Watch to see how that stock performs there. Another example of a stock plunging post earnings to find support at its 50 day MA is SPRD. It ended up closing strong on its highs of the day.

GS is now sporting a 171.71 buy point in a cup with handle pattern. OIH has a 103.38 buy point in a cup with handle pattern. Recent ETFs that have found 50 day support include JJC RSX MOO SPY.

COH was a standout on an otherwise relatively weak retail tape. Something to keep an eye on. RIMM can be shorted if it fails to break above its 200 day MA @59.

Portfolio changes include buying NVDA @13.20 as it enjoys 200 day support post earnings and BUD @60.25 as it passed back thru its 50 day MA.

Good luck.

The author owns ORCL BUD NVDA.

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