Wednesday Morning

Markets for the second consecutive day finished off their highs of the day. Volume was on thew slow side, but the action among leading stocks was worrisome. PCLN CRM NFLX OPEN FFIV APKT were among the leaders that were wounded. Are markets getting frothy here? Perhaps. By the look of actions on downgrades recently, maybe. VECO WNR, recent recommendations were both hammered on downgrades in last couple of days. We were fortunate not to enter those positions. However the market has been sleeping the last week. As the adage goes never short a dull market. As always let the price action of the market guide us, not our opinions or emotions. Consumer prices, Empire Index, industrial production and capacity utilization will all be out today. JOYG reports earnings.

Stocks showing specific buy points are: IBM @147.63, GR @87.64, ORLY @62.50, TAP @50.55, KKR @13.85, all flat bases. EFX @36.09 a cup with handle formation and JBL @17.58 a double bottom with handle formation.

Stocks nearing their 50 day MAs and where they need to find support are: HOT @57, CCL @42, NBL @81.25, AA @13.75, ERF @28, PX here, NTAP @52, TDC @40, KSU @45, UNP @89.50, RIO @67, JCI @36, FDO @48, TSLA @26, KO @62.25, PM @58.50, LTD here, MCO @26, CIS @19, FOE @14.25, BX @13.50, MIPS @13, MCHP @33, OVTI @27.75. CMH HS both found 50 day support Tuesday. SMG can be bought if it moves thru 52.25, its 50 day MA and WCRX can be bought thru 22.25, its 50 day MA also. It found recent support at its 200 day MA.

Stocks near 200 day MA and there corresponding prices are: RGC @14.50, STX here, RIMM @58, PFE here, GPS @20.60, CRUS @14.75, CREE @64, NYX here, ZION @22.50, GCI @14.50, ITUB @22, PNC @58, SPLS @21. BBT can be bought thru 27.75, its 200 day MA.

Par stars CMI WLT acted admirably today. CVX COP stubbornly holding onto gains and ORCL continues to act strongly. Stocks building the right side of their bases and to be watched closely are: CVS PAYX AMTD MTL. ETFs near MAs are: MOO @50.25, its 50 day MA. EWZ can be bought thru 78, its 50 day MA. FXI 200 day is 42. TBT now firmly above its 200 day in big volume. A sea change for that ETF. XHB is building its right side.

Stocks showing weakness are: LVS which can be shorted back toward its 50 day @45. Same goes for VIT @36 and TTM @30.25. If the stocks break thru those numbers cut the losses very quickly. SUN can be shorted under 38.50, its 50 day. BIDU AKAM YUM all clinging to their 50 day MAs and need to hold here. WYNN under par now and can it be headed for 200 day support @90? Recent action in the REIT space looks troubling. VNO needs to hold 81, its 200 day. SPG PSA losing their 50 day MAs.

Good luck.

The author owns CAKE ARMH NVDA CHRW GPS X DE VRSN SDS.