Thursday, November 25, 2010

Happy Turkey Day

Markets came back back nicely as both retail and chip sectors caught nice bids. Leading stocks again outpaced the indexes, although in lighter volume. That is to be expected the day before Thanksgiving. The major indexes are continuing to find support at their 50 day MAs. Markets had to digest 3 economic reports before the open and they came in mixed. Durable goods missed the forecast, personal income rose and initial jobless claims were much better than expected.

Stocks that remain near buy points are: VECO @46.35, double bottom with handle and MCD @80.00, a flat base. SNDK now has a 46.70 buy point in a double bottom pattern. Although premature CREE which can be bought here as it surged past its 200 day MA, as long as it stays above that line. A potential add on buy point would be 76.24 in a double bottom base.

Stocks that can be bought as they break thru their MAs are: RADS thru 18.65 and CNI thru 65, both their 50 day MAs. VLTR thru 23.25 and GPS thru 21.20, both their 200 day MAs. ARBA has had two big volume moves thru 20 this week, to achieve 5 yr highs. It can be bought as long as it holds above 19, its 50 day. PSA VNO have both risen smartly off their 200 day MAs. BCSI ATHR exhibit long cup bases above both their 50 and 200 day MAs. I like both right here as long as those lines hold. ADSK PETM more recent examples of bad earnings reactions only to have their stock decline halted at their 50 day MAs. I also like BTU if it can break thru recent consolidation @60.

Keep an eye on GES. Nice earnings gap up Wednesday. If it can hold that here for 2-3 days consider buying. Make sure it holds 48. ETFs garnering attention are: JJC back to its 50 day. TBT looking to sniff out its 200 day MA @39. See how it reacts there. KOL XLE MOO have best looking commodity related ETFs to me.

OPEN had noticeable weakness on a strong tape Wednesday. An outside reversal day on 3X normal volume after hitting an all time high. I say all time high as it only came public in 5/09, but a rest looks well needed. DTV VZ both finished in the meekly on a strong day. Both continue to hover beneath their 50 day MAs in big volume. Until they can recapture that MA stay clear, or even short. And even in strong groups laggards can continue to disappoint. Case in point RBCN. A semi that has struggled evr since it lost its 50 day MA on 8/5 of this year.

Good luck. And above all Happy Thanksgiving. Enjoy your family and friends and let them know just how thankful you are.

The author owns CAKE ARMH NVDA.

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