Sunday, December 12, 2010

Weekend Warrior

Markets ended the week Friday with decent gains, with the Nasdaq taking the lead with an .8% advance. Leading stocks continue to shine. Volume came in slower across the board. Both the Nasdaq and S&P 500 hit at least 2 year highs. For the week the Nasdaq outperformed the other major indexes with a 1.8% gain followed by the S&P 500 with a 1.3% gain and the Dow 0.2% gain. Next week carries a bevy of economic reports, with PPI, CPI, Fed decision, housing starts, jobless claims, and retail sales.

Stocks with specific buy points are: CCL @45.00, PMTC @22.97, JNPR @36.10, BIDU @115.14, QCOM @49.55, GR @87.64, ORLY @62.50, PETM @39.80, CPO @46.16, SKS @12.32, M @26.42, SCCO @47.58, TAP @50.55, BMC @47.05, KKR @13.85. All those previously mentioned were flat bases. Cup with handles bases are: FDX @96.33, GS @171.71, EFX @36.09. Cup without handle bases are: VMW @89.28, CTXS @72.03, CLF @76.27. 4 week tight is KO @65.06. Double bottom bases are: NETL @34.60, CREE @76.24. CREE we flagged as it broke above its 200 day near 65 on 11/24.

Stocks at or near their 50 day MAs and the corresponding prices are: MOS here, XRX @11.75, WSM @33.80, LTD @31, M @24.50, PM @58.25, ARMH @18, MCO here, CIS @19, LOGI @19.50, AGCO @44, MOTR here, LYB @28, BWC @23.80, MGA @47, WYN @29, CNK @17.75, NBL here, PXP @28.50, ERF @28, PX @92, EMN @79, DD @47, BAM @30, AAPL @310, NTAP @52, HRC @39, IBM @143, BIDU here, ARUN @22, NSC @61.50, CNI @65, UNP @89, RIO @67, VALE @32.80, JOYG @78, INFY @68, HS @27.50, JWN @40.25, KMX @32, YUM here. XXIA showing real volume support recently at its 50 day.

Stocks near their 200 day MA are: RGC here, EPD @38, VNO @81, STX @14.90, RIMM @58, NEM @58, EGO @17, MRX @26, MT @34, NUE @41, NYX @29.50, ZION @22.50, BLK @170, ITUB @22, SPLS @21, CVS @32.10. BBT can be bought thru its 200 day @27.90.

Stocks that held their 200 day and now have or are about to overtake their 50 day MA which demonstrates the importance of 200 day support are: PSA held its 200 day @95, now just above par and its 50 day. SWK 200 day held @58 and surged above its 50 day on 12/2 and now trades near 65. PFE held its 200 day @16, now trying to break thru its 50 day. Put in a buy stop on PFE @17.35, clear of its 50 day. BUD found 200 day support near 54, now is possibly looking to challenge its 50 day near 60. Put in a buy stop on BUD @60.25. WCRX found 200 day support @19 a couple of weeks after an earnings plunge on 11/8. Put in a buy stop on WCRX just above its 50 day @22.25. WM found 200 day support 2 weeks ago, and Friday bursted thru its 50 day in healthy volume.

LULU PLL gapped up this week. Always a bullish move. Recent gap ups that continue to perform well are; FNSR WFMI COH PSS EL FL DKS ANF MXIM PAY VSH ATML.

Energy stocks to keep an eye on are NOV SLB which are trading very tightly after moving past recent consolidation. Very bullish. Is WNR establishing itself as one of the premier refiners. Its chart is telling us that. Up 100% since October with strong upside volume. Could the company be on HES radar screen?

As for short ideas. SMG lost its 50 day and has been swimming under it since 11/8. Could be headed for 200 day support at 48. BVN lost its 50 day in big volume. TTM can be shorted if it gets back to its 50 day at 30. LVS can be shorted under 44.50, its 50 day. WYNN just above par. Is it going to its 200 day MA near 90, or is it forming a flat base with a future potential buy point of 117.60? Our opinions dont mean jack. Let the price action and not our emotion or opinion, guide us.

Portfolio changes are: Long VRSN as it cleared a buy point thru 35.73 in a flat base on big volume.

Good luck.


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