Wednesday, February 16, 2011

Wednesday Thoughts

Markets finished higher in good volume today, with energy, tech and retail leading the way. Before the open some good economic and earnings related data helped the indexes close near highs for the day. Breadth, merger activity and stocks such as AAPL DE DIS all hitting all time highs today contributed to the days broad gains. Equities moving on earnings were mixed today with DE moving higher while leading tech ROVI plunged. After the close CLF soared while NTAP whimpered. Earnings come Thursday from APA ABX HUN RS TRW WM before the open and ARUN INTU after the close.

Stocks near specific buy points are: Cup with handles AMAT 16.77, LDK 14.70, GD 78.31, HES 86.22, RIG 83.32, LEN 21.37, MS 30.97, CVX 98.33, ITW 56.46 (which found good 50 day support today). Double bottoms are AEM 77.48, EXPD 55.88, BBD 20.89. Flat bases are BBBY 51.05, EMN 94.52. 3 weeks tight is WM 38.68 and cup base is WAT 81.10. BHI broke out of a 70.09 3 weeks tight pattern, but finished just below it. X followed thru from yesterdays 61.50 cup with handle buy point. CNQ broke out from a 46.12 cup with handle buy point. SU broke out from a 43.49 cup with high handle buy point. AGCO broke out of a 56.28 cup with handle buy point, but also closed just below it. SKS had a nice move today after the 12.32 cup base breakout last Friday.

Stocks that can be purchased as they reclaim their 50 day MA are ALV thru 79.50, OVTI thru 28.80, SCHN thru 64, ABX thru 50, FCX thru 57.50, GFI thru 17.20, TTM thru 27.70. MUR EXPD BBD GS all reclaimed their 50 day MAs today. Stocks near 50 day support are CMI 110, GNTX 31, MGA 56, IRF 31, MTL 31, TEL 36, PH 88, APC 74.50, NBL 85.90, CLR 60.25, WLL 118, BHP 91, RIO 71, GR 90, SBUX 32.65, CE 42, SOA 24, CCL 46, CTSH 74, ADP 48, ORCL 31.90, REE 13. NOC found good 50 day support today.

Stocks near 200 day support are IBN 45, CBD 36.60. RIMM has been behaving real well ever since it retook its 200 day MA on 11/30/10 on solid volume. Stocks that can be purchased as they reclaim their 200 day MA are BUD thru 55.60, LO thru 79.

WFMI has now held its gap up for 4 days. TER HP finished nicely higher after recent gap ups. PXD broke thru par today. CXO OXY both up over $4 this week after taking out par. PX DE JOYG all nearing par now. JNS SHLD both building the right side of their bases. We now have to add PAG to a strong auto group.

Stocks looking soft today were ROVI which sliced its 50 day MA in heavy volume today post earnings. LLTC can be shorted under 35, its 50 day. Stocks that can be shorted at their 50 day are BRCM 44.80, MSCC 23.30, TCK 60, STT 47. FFIV BEAV have found recent 50 day resistance.

Good luck.

The author is flat.

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