Wednesday, January 12, 2011

Wednesday Recap

Markets showed great strength Wednesday in mixed volume. The days winners hailed from the ag and bank space although many sectors performed well. For example LULU soared due to the companies positive outlook. Chip stocks performed well too. News from Europe helped as Portugal had what was seen as a successful bond auction. The beige book offered some encouragement too. PPI and weekly jobless claims are out Thursday AM. INTC also reports after the close.

Stocks near specific buy points: Cup with handles are NTRS @56.96, MSCC @24.78, GTI @21.21, ATU @28.35, HAL @41.83, WLL @118.90, BK @31.97, USB @27.50. Cup bases are MCHP @36.51, RS @55.67, GOOG @630.95, NYX @34.92, AMTD @20.68, LEN @21.89. Flat bases are TXN @34.03, DOV @59.92, NOV @68.71, SLB @84.65, SPN @36.09, RIO @73.10. Cup with high handles are APC @79.08, BBBY @51.05. 4 week tight bases are DHR @48.06, IR @47.91. 3 weeks tight are CMI @113.98, CAT @94.99, JOYG @90.56. 5 week tight patterns are LLTC @35.48, AVT @34.02. Double bottom is CRUS @19.17 and double bottom with handle is CREE @72.95.

Stocks near 50 day MAs are BWA @66, PCAR @56, AVGO @27, MIPS @15, ROK @70, ACI @32, BTU @61, SU @36, DECK @78, ICON @19, ARUN @22.50, SMSI @15.20, FL here, SBUX @31.80, MAR here, HOT @59, ABV @29, ADSK @39, INFA @43, SNPS @26.20, UPS @71, EXPD here. Stocks that can be bought as they burst thru their 50 day MAs are AKAM @50.25, BUD @58.60. JKS was up 6% today after breaking thru its 50 day MA on Tuesday. RIG which has found continuous 50 day support since breaking thru on 8/2/10 is now building its right side of its base.

Stocks near their 200 day MAs are LTD @27.25, HPQ @44.25, PVH @58, RTN @49, DRI @44.50, GES @40, MCD @73.20, TAP @46. PBR was up 4% today. It has been rock solid since breaking above its 200 day 12/29. BP has looked good since it pushed above its 200 day on 12/14/10. SWN seems to be freeing itself from its 200 day MA that was resistance for some time. BAC IBN both seem to be enjoying time above their 200 day. BAC just broke thru its 200 day on 1/5 and IBN found 200 day support Monday. On the downside both LO NEM have lost their 200 day lines recently. An ominous sign.

Stocks showing weakness are CVS OMC which both had outside reversal days Wednesday. Stocks that found resistance today at their 50 day MAs were OVTI RL PTEN KMX COH WSM. INTU is falling further below its 50 day MA. X was a notable laggard in the steel space today. Stocks that can be shorted as they approach their 50 day MAs are WAT @78, ABX @51.75. ANF can be shorted under 52, its 50 day.

Portfolio changes today were selling VRSN for a 50 cent loss. Stock acting poorly the group is trending lower. We shorted PAAS @38 after it showed resistance there at its 50 day MA. We also shorted FOSL @69.05 as it lost its 50 day and is among the weakening retail space.

Good luck.


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