Wednesday, November 10, 2010

AM Musings

Stocks suffered a distribution day as volume climbed in heavy fashion. A dollar rally contributed to the fall especially in commodity related names. GOP voicing concerns over QE2, finance ministers around the world calling out Bernanke, and the CME raising margin requirements did not help the dollar. Although the market needed a break be vigilant to see if this could lead to an overdue healthy correction.

CRZO took out a 26.26 buy point in a cup with handle base on big volume. TKC did the same @19.48 bucking the markets weakness. Some software names held up decently today. VMW can be bought thru 82, its 50 day MA. Volume did not kick in yesterday to confirm the move. RIG still above its 200 day MA. Look for support there @65.50 to hold. APC looks like it could drift back to its 50/200 day MA @59.

Leaders 50 day MA that should hold at that line include: CVX @82, HOT @54, CHRW @70, ARUN @21, ISLN @25.25, COST @63, YUM @48, BUD @59. RADS needs to hold right here at its 50 day MA.

WFMI gap up had the stock bucking the weak day as well. ECA could challenge its 200 day MA @30.75 some point this week. See how it fares there. ANN looks to be forming a handle in its cup base. Remember it must be at least 5 days to be technically sound handle so be patient.

X was denied at its 200 day MA again yesterday. If it could ever get thru that line put in a buy stop. CIB needs to hold right here at its 50 day MA. CTSH could be shorted below 66, its 50 day. Same for OPEN which could be shorted under 62, its 50 day. SMG 50 day now resistance @52, its 50 day MA. Look for support near the 200 day @47.

Gold and silver miners really took it on the chin yesterday. Many had outside reversals. Other names that had outside reversals and should be watched carefully for they are bearish in nature are: EGO FCX ANV BVN NEM CLF SLW SWC VALE ROK SCCO EBIX SQM CAM FTI SLB WLT.

Good luck.

Sold my FCX for a 4 dollar gain and CAKE for a one dollar gain.

The author owns ORCL RADS.

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