Wednesday Thoughts

Markets shook off early weakness to end near their highs of the day. A signature bull move. The feeling continues to be a market that will not let people in. Another hallmark of a bull. Volume was mixed and indexes reacted to a tremendously strong private sector job number. The 297,000 number was the best in the ten year history of the ADP.

Stocks near specific buy points are: 3 week tight patterns for CBE @59.75, IR @47.60, HLF @69.57, ILMN @66.69. Cup with handles are FDX @96.33, JWN @44.05, BEAV @38.73. Cup bases are WYNN @117.60, PCP @145.50. Flat bases are KSU @50.17, VSH @15.72. 4 week tight patterns are UPS @74.04, ADI @38.70, PLL @51.11. Double bottom is BBD @21.00. PCLN blasted out of a 428.20 flat base buy point in huge volume.

Stocks near their 50 day MA are WYN @29.80, MAR @40.25, NOV @62, CAM @48, FTI @83.50, HAL @38, BTU @60, WLL @111, INTU @48, QSFT @26.90, RHT @45, TXN @32, ALTR @35, SIAL @65.30, VNO @83.25, EXPD @48.30, UNP @91.50, BHP @88, DOV @56.50, KBR @28.25, ROP @74, SBUX @31.50, PETM @39, CPO @45, TGT @57.25, FL @18.40, DHR @45, ALB @54, MKC @45.50, ATU @25. Stocks that have found support and rocketed off that line in big volume in the last week are RIG CRM OPEN GOOG FFIV RIMM PCP. Stocks that can be bought as they reclaim their 50 day MAs are BIDU thru 106.50, EPD thru 42.25, VIT thru 36.40. MCO made a nice upward move thru its 50 day MA on good volume today.

Stocks near their 200 day MA are UPL @45, MCD @73, URBN @35, LOGI @17, DISCA @39.25. Stocks that found 200 day support today are SMG PBR EGO LO. NEM lost 200 day support today. A red flag.

ETFs near buy spots are FXI thru 44.60, its 50 day MA. XLF with a 17.22 cup base buy point. TBT bolted off 200 day support today, GLD closed under its 50 day MA.

Stocks showing weakness and losing their 50 day MAs today are ABX KO TAP KLAC LRCX FOE. LTD is falling further under its 50 day and nearing 200 day support @ 27.50. Stocks that can be shorted as they move back toward their 50 day are CPX @28, KMX @33, OVTI @29. Dollar store stocks were weak today. FDO had a weak earnings report and affected others in the group like DLTR.

Portfolio changes were long JCI @40.25 as it broke out from a flat base in big volume. Long BBT @27.25 as broke thru its 200 day MA.

Good luck.

The author owns ARMH CHRW DE VRSN KKR QCOM TRW BBT JCI SDS. Short TTM EBAY.