Wednesday, March 30, 2011

Wednesday After Market

Markets displayed solidarity once again Wednesday. This time volume kicked in to boot. Though on average it was not the robust type of trade you would like to see. But the environment has changed in recent days making equity purchases a less hazardous proposition. Both the Nasdaq and S&P 500 are back above their 50 day MAs and leading stocks are breaking out more each day. Some leaders are hitting all time highs today such as PH TBL CVX CTSH WLL. CLR WAT CMI are extremely close to hitting their all time highs. Keep in mind tomorrow is the end of the quarter and possible window dressing could be in full effect. Powerful moves are traditional during these times. Perhaps we have already seen the move since it is so widely anticipated. Wednesday truck parts were among the strongest groups, with transports among the weaker. Semis can not seem to reclaim their luster as they hit a headwind at their 50 day MA for the fourth consecutive day. MOS was down slightly after the bell on earnings. KMX reports before the open and economic reports include factory data orders and Chicago purchasers index.

Stocks near specific buy points include: Cup bases are BWA 81.17, RS 60.05, CMG 275.10, CE 45.52, CHKP 51.71, UNP 99.60, TEN 46.91, WLT 140.06, CPX 32.82, MCP 62.90, SOA 25.84. Double bottoms are CMI 114.40, TRW 60.40, CAVM 46.08, MON 72.70, AMZN 191.50, ORLY 59.45, TIF 65.68, PMTC 24.53, BBD 20.89, IBN 51.61, QLIK 27.30. Flat bases are CTXS 74.09, DD 56.29, ANF 59.95, UA 70.79, DHR 52.31, URI 33.73. ATI 69.85 in a cup with handle pattern. RES has gained almost 20% since its cup with handle breakout at 21.67 recently. Interesting tidbit PCLN is near 11 year highs but stock still has to double to reach its almost $1000 price tag it hit during the dot com boom a little more than a decade ago.

Stocks that can be bought if they reclaim their 50 day MAs and their buy stop spots are ARMH 28, LLTC 34.50, NVLS 38.20, SWKS 33.50, JKS 27.75, WFT 23.15, LDK 12.95, BLL 36.05, AGU 92, MON 72, MOS 81.25 (reported after close), POT 58.60, COST 73.30, EBAY 32.25, LVS 44.30, AMP 62.25, PMTC 23.15, CHRW 74.25, EXPD 50.40, STT 45.75, QCOM 55.50, BEAV 36.25, GR 88.25, AMT 52.30. Stocks that reclaimed their 50 day MAs Wednesday were ADI AVGO MT RIO FWLT TROW OMC CRM WCRX SHLD JNPR NOC AMZN BBBY TIF ABV. Stocks near 50 day support are ALTR 41, KLAC 46.50, GSM 21, DOV 64, JOYG 92.75, PLL 54.30, APC 78.75, CHK 32, DVN 88.50, HES 82.10, SU 43.25, EXXI 31.75, OIS 71, ABX 50, PAAS 35.90, DKS 38, EMC 26.20, DE 91.95, TEX 35.10, MCD 75.10, JWN 43.85, YUM 50.10, DIS 42, LYB 38, BX 17.20, KKR 16.50, WY 24, BMC 49, ORCL 32.40, CNI 71.50, FDX 91.75, KSU 52.20, UPS 73.50, WDR 39, ARW 39.95, MMC 29.40, CCK 37.10, MWV 29, ROC 45, IL 25.50. Stocks that found 50 day support Wednesday were RJF FCS MTL CAM.

Stocks near 200 day support are SNDK 44, MS 26.75, GS 157, F 14.45, MGA 46.25, BRCM 39.50, MSCC 19.60, MIPS 10.95, VALE 31.50, SCCO 39.05, LOGI 17.75, RTN 47.90, BUD 56.40, LEN 16.75, ROVI 52, RIMM 56.20. BAC found 200 day support today and VMW TAP both reclaimed their 200 day MAs Wednesday.

Stocks displaying good relative strength today were SPN WFMI BBD AMT HUM CBS.

Stocks that can be shorted at their 50 day MAs are ADTN 44, ALV 75, ATML 14, CY 21, MXIM 26.30, SPRD 21, AVT 34.90, TEL 36, TCK 56.25, SWC 23, RVBD 39, AMTD 21, LAZ 43, CRUS 22.10. Stocks that met 50 day resistance Wednesday were ATML SWKS NUE RIG BLL RVBD ERJ POT RTN AMP AMTD CHRW STT XLNX LAZ. Stocks showing relative weakness Wednesday were ATML NVDA TXN X NOV RIG AAPL KKR LEN CSX GLW TTWO. LMT lost its 50 day MA today.

We purchased RAX today as it broke out from a 40.72 cup without handle pattern. We paid a little more than we would have liked ($41.80) but are still profitable and happy. At least for now.

Good luck.

The author owns FCX TTM RAX.

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