Thursday, November 11, 2010

Mid Morning Thoughts

Stocks performed admirably Wednesday after an early morning selloff. They staged a nice afternoon rebound although the volume was not above average. The miners recovered some of the previous days outside reversals. That battle is far from over. Techs could be in the spotlight after CSCO plunge after hours regarding Chambers comments. The Nasdaq could obviously see some repercussions due to the fact that although the company is a laggard it still has a big chunk of the indexes market weighting.

Stocks looking for 50 day support are: CHRW @70. BBD @20.50, WYN @28. BUD bounced right off its 50 day yesterday and for all you Speedo lovers out there lets see if WRC can hold its 50 day @52. As far as retail goes the luxury names are proving that the wealthy are still spending from the looks of charts on COH TIF SKS WSM. RL had a montser earnings move yesterday in the group and JWN is building the right side of its base.

Networking names that may fall due to CSCO today include ARUN NTGR. ARUN should find support @21, its 50 day. NTGR should find support @29, its previous breakout point.

Software names were strong today. CRM continues to hold its 50 day. CTXS VMW also continue to do well.

MRVL is starting a handle thats 3 days long now in its double bottom base. Potential buy point is 20.10. RIMM was stopped at its 200 day yesterday. If it can get above 60 put in a buy stop there. If not steer clear. LOGI near 20 looks good on a pullback. PFE looking for 200 day support @16.50.

Energy behaved decently today. CRZO is holding above its 26.26 buy point. CNX held above its 200 day. SWN is battling with its 200 day MA. MT held its 200 day. If X can print a 50 handle it would bode very well technically. Same for NUE AT 42. Buy stops on those right above the 200 day seem very good. EWZ near 76 its 50 day looks good. PCP near 135, back to its previous breakout point looks good to. See how it trades there.

Good luck.

The author owns ORCL RADS.

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