Wednesday, February 23, 2011

Wednesday Thoughts

Stocks fell again Wednesday but managed to finish off the lows. An oil spike and fear of contagion in the Middle East threw fear the markets way. Energy related names starred once again and retail, steel and transports fell. Volume came in higher for a second consecutive day. Stocks winners unrelated to energy were hard to find although AAPL managed to rally off its 50 day moving average in good volume. Leading stocks are not breaking out of bases and many are slicing through important moving averages. Some of finding support at long term trend lines. As always respect the markets price action whether it agrees with your beliefs or not. PCLN up 5% after the close on earnings. Tomorrow we have earnings from FWLT GM NEM SHLD TGT before the open and AMAT DECK OVTI CRM after the close.

Although we are not recommending buying stocks breaking out from bases while the market is in correction mode its always wise to keep your watch list handy because the rally can resume at anytime. Some stocks that remain above their recent buy points are BHI above its 70.09 3 weeks tight buy point. CVX above its 98.33 cup with handle buy point. SLW above its 40.10 double bottom buy point. Keep an eye on relative strength during correction mode.

Stocks near 50 day MAs are BWA 72, ARMH 25, AVGO 29.60 (had good earnings reaction after the close), MXIM 25.50, NVDA 21, TXN 34, ATI 61.75, GSM 19, NUE 45.80, DHR 48, WAT 78, CAT 96.75, DOV 61, JOYG 90, PLL 51.60, APC 76, BP 46.25, MDR 21, NBL 86.25, CLF 86, JNPR 39, OPEN 80, TDC 45, GD 73.60, BIDU 110, RAX 34, JWN 43, WAG 41, PPG 84.50, NFLX 200, ACN 50.60, IBM 155, CHKP 47, INTU 49, TIBX 22, CNI 68.25, KSU 50.40, ARW 37.20, GE 19, RJF 35.10, RIMM 62.25, PAY 42, CBG 22.50, CBS 20.30, TJX 47, MWV 27.90, ASML 40.50, AMAT 15, ERJ 32, ADS 74. Stocks that found support at their 50 day MA today were ADI ATML FCS SWKS TQNT RS VSH JKS BTU WFT BHP AAPL RVBD TEX LULU CMG COST FOSL BID WSM LYB WYNN KBR ORCL VRSN BLL TTMI LAZ AMT CCJ WM GGC WCRX.

Stocks near 200 day MAs ALV 66, F 14, MRVL here, MSCC 19, MIPS 10, MT 33.10, MTL 25, JRCC 19, PUDA 10.10, PVH 57.50, LOGI 17.10, NTAP 48, AAP 59, MCD 74, ORLY 53.75, MAR 36.70, ABV 25, INFY 65.50, ROVI 50, VMW 80, CHRW 69, FDX 86, STT 41.10, HXL 17.95, BEAV 32.40. BRCM ROVI EXPD UPL all found solid 200 day support today. LO has been moving higher and away from its 200 day MA. IBN lost its 200 day, and OVTI plunged below its 200 day MA today. OVTI has been a recent laggard in the semi space as the group has been among the strongest. Red flag on a plunge below the 200 day. Remember TGT.

PXD became a par member today. It originally broke through 100 on 2/16.

Stocks that showed weakness today slicing their 50 day MA were MGA TRW LLTC SPRD TKR X A AVT JBL TEL PH COH XXIA DE NOC BBBY PETM TIF HUN HOT CTSH FLR ADSK INFA BMC PMTC CRM JBHT UNP FWLT DKS MPEL WBC CBI QLIK SBUX. Stocks that can be shorted under their 50 day MA are JCI under 39.50, FCS under 17, LRCX under 51.60, ATU under 27.25, ANF under 54, FISV under 61, ADP under 48.10, ETN under 103.50, EMR under 58.65, AFL under 57, HON under 55. Stocks that can be shorted at their 50 day MA are ITW 54.30, SINA 80, ADSK 41, WFC 32. ANN had an outside day, RHT down 6% today after losing its 50 day Tuesday.

Good luck.

The author is flat.

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