Wednesday Recap

Markets all closed in the green today, however the Nasdaq outperformed big time. The Nazz finished up 0.7%, and the S&P 500 finished up 0.4%. More importantly the S&P 500 closed at its highest level since September 2008. Volume rose today to give conviction to the move. Strength in the IPO market also validate the days healthy move. NLSN DMD both were received very well today. Steel, energy related names, autos, chips were among the days big winners. Restaurants and solar underperformed. After the close both NFLX QCOM impressed while SBUX was down as I write. Tomorrow expect earnings from CAT CRUS ETN KSU LLL NUE POT before the open and AMZN KLAC MSFT RVBD after the close. Economic reports include jobless claims, durable goods and pending home sales.

As the markets demonstrate muscle more stocks are looking better near buy points. CRUS has a 19.17 buy point in a double bottom with handle buy point. It has earnings before the open. MSCC which also reports early tomorrow has a 25.06 flat base buy point. Other flat base patterns are MDR 21.13, RIO 73.10, COST 73.55, DD 50.64, TIBX 22.18. Cup with handles include PLL 51.26, SU 39.79, RIG 83.32, LEN 20.80. COP broke out of a 69.09 flat base buy point today and HAL broke out of a cup with handle at 41.83.

A recent trend that I see developing recently is the move in certain stocks that reported earnings and found strong 50 day support the day of the announcement. And after the support moved higher in a big way. Today HES OXY did it. On 1/20 FCS SWKS TEL PH UNP TPX did the same. If we can be fortunate to capture some early weakness tomorrow morning after reports from CAT ETN CY lets try and buy some at the 50 day if the support holds. CAT 92, ETN 101, CY 18.10 are the corresponding 50 day MAs. As we write SBUX is trading down at its 50 day MA in the after hours near 32.20. If that holds tomorrow could be a good entry point.

Stocks near their 50 day MA are ADI 37.50, BRCM 44.75, IRF 29.90, MRVL here, SIGM 13.75, SPRD 18, TXN 33, GSM 17.50, MTL 28.50, A 40, VSH 15, ANR 56, APA 118, BP 44.50, NBL 84, VALE 34.25, AGCO 49, EBAY 29.50, EL 80, WFMI 50, CE 40, DOW 34, HOT 60, KKR 14, NDAQ 23.25, AMTD 19, STT 46.25, CTSH 72, ADP 47, FOE 15, ADSK 38.25, BMC 47, PMTC 23, ROVI 60, FDX 92.50, UPS 72, PNC 59, ALB 56, REE 12. Stocks that bounced off their 50 day MA today were CLR, WLT, WLL, WFT, AGU, LULU, CHRW, RIMM. Stocks that can be bought as they reclaim their 50 day MA are FCX thru 112, LOGI thru 19.60, SQM thru 54.55, BUD thru 58.25, INTU thru 48.20. ALV reclaimed its 50 day today. It can be bought at 79 if it retreats and holds there. PTEN is back above its 50 day today too. Buy at 21 if it retreats there as well.

Stocks near their 200 day MA are OVTI 24, WHR 87, PVH 57.50, LLL 75, AKAM 46, ANN 21, LTD 27.50, MCD 73.50, BBT 26.50, BBD 18.40, IBN 44.50. PBR is right at 200 day support here. Looking better everyday now that it seems to be holding that line. SWN same scenario. Both AEM ABX found solid support at 200 day MA and rallied today.

Stocks showing weakness that lost their 50 day MAs today are MIPS SLAB CA NSC. WAT found 50 day resistance today. Stocks that can be shorted as they rise toward their 50 day MAs are JRCC 23.25, NFX 70.30, COH 55.75, RVBD 36, ARUN 22.50, AAP 66, AMZN 180, MAR 41, ABV 29, EXPD 54.30, SCCO 46.

Portfolio changes today include long BTU @62 as it reclaimed its 50 day MA.

Good luck.

The author owns IBN BTU.