Wednesday Recap

Markets from the outside looked to have a decent day. A mid day rally off the lows in decent volume. But a look under the hood and you will find poor action from leading stocks. OPEN had a nasty reversal from an all time high for example. Stocks such as WLT JOYG DE all of which have recently broke out closed slightly below their break out buy points. Not that this is uncommon, but it is certainly not welcome. And worse off was the days best performing sectors hailed from recent laggards. Banks and chips were strong. China raised interest rates, talks of interest rates here at home, and fears of a government shutdown are hanging over the market here. Energy stocks had plenty of reversals and the sector as a whole performed poorly. The Nasdaq has now had problems closing above the 2800 level since 2/22. It has knocked on that 2800 door 9 times since then. The market does seem to be stalling here as the new earnings season kicks in next week. Today MON had a negative reaction to its earnings report. Much like MOS last week. BBBY screamed higher after hours on a good earnings forecast. Nothing in the way of earnings tomorrow, and Thursday brings up jobless claims and chain store sales.

Stocks near specific buy points are SWN 44.06 in a cup with handle pattern. PETM 43.49 in a square box pattern. VRSN 37.67 in a flat base. Double bottoms are TAP 48.51, PMTC 24.53, CHRW 78.74. Cup bases are AAP 69.61, DD 56.29, LTD 35.58.

Stocks that can be bought if they can reclaim their 50 day MAs and their buy stop spots are LLTC 34.30, MXIM 26.30, MSCC 21.90, TXN 35.35, AVT 34.85, LDK 12.85, GS 162.60, LAZ 43.50. PMTC reclaimed its 50 day MA Wednesday. Stocks near 50 day support are BWA 75.50, ARMH 28, ALTR 41.25, FCS 18.10, LRCX 54, MCHP 37.05, ATI 65.75, MTL 30.80, NUE 47, A 43.55, DHR 50.50, DOV 65, JOYG 94, ROK 88, APC 79.75, FTI 46.25, BEXP 33.50, CHK 32.50, COP 76, DVN 89.50, XOM 83.75, HAL 46.25, MDR 23.60, PTEN 26.75, BTU 66.75, PBR 39, PXD 98, CLR 66.20, RDC 40.20, SLB 90, TCK 56, SPN 37.50, COF 50.50, CVLT 36, ARBA 31, ASML 43.15, BGC 42.25, HON 57.05, WLP 67, AET 36.65, CBS 23, CMCSA 24.50, ATW 44, WMB 29.40, OIS 72, SWC 23, ETN 54, SCCO 39.50, BLL 35.95, RL 122, TPX 48, TDC 48.10, ADM 36, AGCO 53, AGU 92, POT 58.50, ARUN 29, EL 91.95, JWN 44, ROST 70.10, SBUX 34.20, TIF 61.25, EMN 95, SOA 24, LVS 44, KKR 16.60, IBM 162, SWK 74.30, ADSK 42, ORCL 32.35, RHT 43, CTXS 69.80, CSX 74.50, EXPD 50, UPS 73.50, UNP 95.85. Stocks that found 50 day support Thursday were AVGO FCS CXO BP VALE DIS KSU MMC TER.

Stocks near 200 day support are MGA 46.50, NVDA 15, SWKS 25.20, X 50.10, TEL 31.70, JKS 24.50, APH 50.15, RVBD 29.60, GOOG 560, HOT 55.50, LEN 16.80, GLW 19.05, CRUS 18, AMT 50.10. Stocks that found 200 day support Thursday were ROVI BAC MS FNSR. RIMM found 200 day resistance today.

Stocks showing good relative strength today were ANF ADP NXPI BEAV. RDSA was a strong out performer in a weak energy group. BHP RIO also demonstrated good action Thursday among their peers. Stocks that should be put on a watch list as they build the right side of their bases are BUD ABV BBD TTM.

Stocks that can be shorted at their 50 day MAs are ADI 39.35, ATML 13.95, KLAC 47, NVLS 38, JBL 21, CAM 58, EMR 59.25, COH 54.20, EMC 26.50, PAYX 32.55, XLNX 33, ADTN 44, SYK 61.05. Stocks that can be shorted as they lose their 50 day MAs to the downside and their sell stop spots are ALV 74, CXO 102, BHI 69.50, HES 82, NOV 77.75, OXY 100, SU 43.75, CPX 28.10, PLCM 47.50, AMP 61, WY 24, CCK 37.40. Stocks that lost their 50 day MAs Thursday were MON (earnings), MOS CRM IL. Stocks that found 50 day resistance today were WFT EMR EBAY LAZ GR. Bearish outside reversals Thursday included DNR FTO MCP FWLT OPEN TEX.

Good luck.

The author owns FCX TTM RAX F.