Weekend Stock Reflections

Markets again recovered from early losses to close upon their highs for the day. Volume was mixed, as the BLS reported a mere 36,000 jobs were generated in January. However leading stocks continued to show the validity of the current rally. Leaders are building new bases or finding support at key moving averages. BIDU UA SRCL all broke out of bases this week and JDSU AET FNSR all had sweet gap ups Friday. Semis and retailers were strong once again, while solar, truck parts makers struggled.

Stocks near specific buy points are. Flat bases are JBL 21.88, PH 93.25, APC 80.70, TCK 65.47, LYB 37.54, BMC 49.28. Cup with handles are CNX 54.20, AGCO 56.28, FLR 72.91, LEN 20.80, MS 30.35. MTL 34.84 in a cup with high handle. CMG 262.87 in a cup base. HPQ 47.93 in a double bottom with handle. TIF 62.91 in a double bottom. TROW 69.08 in a 3 weeks tight pattern. LULU broke out of a 74.70 flat base buy point Friday, and EXXI broke out of a 29.46 flat base buy point on Thursday and continued higher Friday.

Stocks near their 50 day MAs are AXL 13.50, GNTX 29.80, MGA 55, TRW 55, ADI 38, ATML 13, IRF 30.25, LLTC 34.60, MXIM 24.90, AXTI 10, TQNT 12.80, X 56, TEL 35.10, ATU 28, CXO 88, BP 45, BEXP 27.50, CNQ 42.50, ESV 52, HES 77, NBL 85, OXY 96, BTU 62.50, CLR 59.50, SU 38, SPN 34.50, RIO 70, OPEN 75, AGU 87, BBBY 48, WAG 39.50, CE 41, HUN 16.25, PX 94, SOA 23.50, CCL 45, AMTD 19.25, CTSH 73, ADP 47.50, FOE 15, ORCL 31, CSX 66, CNI 67, KSU 49, UNP 94, ALB 56.15, BLL 70, BRKR 17, ACM 28, FWLT 34.50. Stocks reclaiming their 50 day MAs on Friday include CMI TKR DECK RL XXIA RVBD ARUN JWN TIF WSM YUM PM. Stocks that can be bought as they reclaim their 50 day MAs include MT thru 36.75, AEM thru 75.25, FCX thru 57.75, COH thru 55.50, NKE thru 86.15, ORLY thru 59.50, BID thru 44.10, WYN thru 30.25, CRM thru 140. CMG is now up $16 since reclaiming its 50 day MA Thursday. SUN A both had strong rebounds in big volume after testing 50 day MA intraday Friday. FISV found support Friday right at its 50 day MA after bad earnings. AMP did the same on Thursday and found continued support their Friday.

Stocks near their 200 day MA include PCAR 58, OVTI 24, ABX 46.25, RTN 46, AKAM 46.10, DLTR 48, TAP 46.15, ABV 24.50, INFY 65, NSC 59, BAC 13.80, TEVA 53. MCD BUD both holding 200 day support right here. ANN PVH both have had great moves off the 200 day recently. BBD lost its 200 day Friday in big volume. A red flag as IBN did the same thing recently and has continued to struggle. TGT is struggling with its 200 day right now.

As I have learned from great traders before me, a rule regarding gap up stocks is if the gap up holds for 4 days after the gap up it can be safely bought. Good examples of this are UA NFLX TPX GLW, all which rallied smartly Friday. Recent gap ups that have held for 4 days now and to keep an eye on include CCK QCOM XOM SWK HP GE BHI PLL ROK.

Stocks closing in on 100, aka "par stars" include CAT. CVX which is less than $8 from an all time high. Remember stocks that surpass 90 very frequently travel to 100. Some to keep an eye on are JOYG UNP DE EMN.

Stocks which have had trouble with resistance near their 50 day MAs are APA SQM RCL BEAV CA VMW GS. Until that line can be reclaimed they must be viewed as short candidates. Stocks that can be shorted at their 50 day MA are BWA 69.40, JCI 39, TEN 42, MSCC 23.50, WAT 78, ICON 20, AAP 65.50, MAR 41. SCHN which has struggled with its 50 day MA recently fell more than 3% Friday, demonstrating its laggard status. WLT lost its 50 day MA for the first time since August but managed to close above that line. If it violates that line again it can be shorted under 122.

Portfolio changes include buying LULU at 74.70 as it broke from a flat base, and BUD as it found support at 200 day MA.

Good luck.

The author owns FCX LULU BUD.