Tuesday, May 3, 2011

Tuesday Recap

Markets again finished lower Tuesday accompanied by strong volume. They did manage to finish off their lows, but the damage that is developing looks ominous. The indexes remain well above their key 50 day MAs, and perhaps they are headed that way to test them for support. Stocks are getting hammered on bad earnings reports, that were previously being shrugged off. Leading stocks are exhausted and fragile. JOYG BIDU MELI HES are looking feeble. Many are below buy points they formerly surged past. Others that had been building solid charts look like their trends have changed for the worse. Commodities again took the brunt of the beating today. Retail and internet issues also were soft. Relative strength was seen by defensive groups such as healthcare and utilities. Not a great sign. After hours OPEN LVS were plunging while CBS was up 5%. Tomorrow earnings reports before the bell include DVN K NXPI PPO TRW, and after the close from BMC CXO CLR MELI MUR. ADP employment report comes Wednesday morning as well.

Stocks near specific buy points are minimial. Defense time. KO 68.57 in a 3 weeks tight pattern. AAPL 355.23 in a double bottom with handle base. QCOM 58.56 in a cup with handle pattern. Other stocks which have broke out and are now falling below those buy points are CPX APKT SOHU. Handles could be forming on PVH EBAY CHRW ADI. Handles to be considered proper need a minimum of 5 days to develop.

Stocks near 50 day support are ROX 18.50, FMC 82, HUN 18.05, PPG 91, CAR 17.25, AME 43.10, DOV 65, LLL 56.25, LULU 87, ANN 28, FAST 64, SBUX 35.55, TSCO 58, APA 125, BHI 71.50, CPX 30.25, XOM 84.25, KEG 15.50, PTEN 28.35, SUG 28.35, SE 27, SGY 31, WMB 30.95, INFA 50.10, IL 28.10, APH 55, BX 18.10, KKR 17.50, CSX 76, TS 47.85, BKI 26, DD 54.25, ACN 53.85, EMC 26.95, BHP 96, AGCO 54, DE 93, TRW 54.75. Stocks that found 50 day support today were CVX HAL MRO SD ARBA CRM FCX GG RIO TXN ARUN. Keep in mind if these 50 day MAs fail exit the position. Even consider shorting it if the volume on the pierce is significant. JPM retook its 50 day MA today and CCL can be bought through its 50 day with a buy stop of 39.30.

Stocks near 200 day support are NKE 81.25, VPHM 16.50, WCRX 22.35, ANR 50.15, ACI 30.15, CAM 48.50, SUN 39.90, TCK 50, ADM 33, EMR 55.75, RVBD 31, SLW 33, SWC 19.50, KLAC 39, AGU 84, MON 64, MOS 70.20, POT 51.75, RCL 39, HOT 56.75. PBR PAAS both found 200 day support today. Stocks which lost their 200 day MAs today, and which is a big red flag, were NOG RIG MTL ABX IBN BBD TTM LRCX.

Stocks which can be shorted if they lose their 50 day MAs and their sell stops are ARUN 31.50, RAX 39.75, RL 125, VFC 97.50, SOA 24, JOYG 94.75, DKS 39.70, EXXI 33.50, VRSN 35.75, TRN 33.50, OPEN 99 (had earnings after close Tuesday), APKT 72.50, AVGO 31.70, NXPI 30 (earnings before bell Wednesday), SPRD 19.75. Stocks that lost CBE APC CHK FTI HES NBR NBL PXD SU TCK BRKR VSH ADM PAY EMR CTSH SWKS BWA. Stocks that can be shorted at 50 day resistance are CXO 105 (earnings after bell Wednesday), CLR 68 (earnings after bell Wednesday), NBL 93.75, VLO 28.50, PAY 52, CLF 94.25. APC had a negative reversal after attempting to retake its 50 day intraday Tuesday. Former leaders whose charts now look to have changed from uptrend to now a downtrend are UA COP FTO IO NOV PXD SM ROK SWK. Look to short these near their 50 day MAs if they return there.

Good luck.

We remain flat.

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