Tuesday Recap

Markets tried in vain for an afternoon comeback, but those efforts went unnoticed. Volume picked up adding another distribution day. Nasdaq leaders PCLN AAPL GOOG EBAY BIDU ARUN all performed weakly. Gold miners and restaurants were among the strong groups, while banks were among the worst groups. For the month the Nasdaq finished down slightly at 0.4%. Perhaps a healthy rest. With the number of bullish money managers is very high, I am starting to take a more bearish view on the markets. I have been small and neutral now for a few weeks.

Stocks near specific buy points are: BLL @66.36, CPX @29.23, GSM @17.30, all three week tight patterns. HAS @48.88, a flat base pattern.

Since I have become slightly bearish I will start with equities I am considering shorting. BIDU under 104, BVN under 50, both their 50 day MA. ARUN @22, AMT @51.50, both on a rebound to their 50 day. AVGO had a very bearish reversal today after hitting an all time high (a recent IPO that came public in 8/09). I will have in a buy stop on SDS (bearish index ETF) @27.85, if it can get thru its 50 day MA there. WCRX lost its 200 day MA Tuesday. Not a good sign at all.

That being said we must always be on the lookout for possible buy spots as I am a technician. Stocks that can be bought as they go thru there MAs are: CNI @65.25, RADS @18.70, both their 50 day MA. CRUS is holding its gap up thru 15, which is also its 50 day MA. VLTR thru 23.20, its 200 day MA. X thru 49.50, its 200 day MA also, which has proven to be resistance 4 times now since July of this year. NEM EGO both rallied off their 200 day MA this week as well. CREE RIMM both showed nice strength today on a weak tech tape, and both their 200 day MA providing nice support.

50 day MAs which better hold are: IPI @30, MOS @67, WYNN @101, DOW @30.25, NBL @80, RIG @65 (golden cross), AA @13, VMW @80, ARBA @19.25, EMN here, IBM @141, QCOM @45.75, DD @46, UNP @87, BHP @82.50, DOV @54, GPC @47, MCD @77, YUM @49, SCCO @41, XXIA @15, NTGR @30, LRCX @44, CCK @30.50, KO @61.75, SIAL @62, BMC @43, KBR @26, MRVL @18.50. If these 50 day MAs fail to hold they can be shorted.

200 day MAs are: CVX @78, SWK @58, MRX @26, PFE here, BUD @53.25.

ETFs TBT bounced off its 50 day near 34, JJC was strong, and FXI can be bought near 42, its 200 day MA. Other stocks I like are SOA @20.50, BKI a real illiquid stock, but whose chart has demonstrated excellent relative strength as of late. CRZO WLL both strong energy performers Tuesday.

Bought small positions in CHRW thru 73.42 flat base point, and GPS thru 21.15 as it broke thru consolidation hugging its 200 day.

Good luck.

The author owns CAKE ARMH NVDA GPS CHRW.