Tuesday Recap

Markets responded very well to a new bailout for Greece Tuesday. The indexes almost always anticipate, and when they took out there 50 day MAs last week, and stocks were breaking out, it was time to take notice. The difference today was the solid volume that backed the move up. And it did so in the wake of poor economic reports. Consumer confidence, business activity in the Chicago area and housing data all were soft. Good action in response to bad news is reassuring. Markets lost steam midday, only to storm back in the last hour to close upon their highs for the day. More bullish behavior. Did end of the month buying contribute to the days gains? Who knows. Just respect the market and its actions. The Nasdaq led with a 1.4% gain, compared to the S&P 500s 1.1% gain. Dollar weakness, due to Euro strength, helped some commodity sectors. Ags did well, and SQM staged a breakout within the ag group. It also hit an all time high. Others hitting all time highs included NFLX PM UNP. AAPL, the 800 pound gorilla had a stellar day, rising more than $10, or 3%. PVH gained in after hours trading on earnings. Tomorrow not much on the earnings front with the stocks we follow, but economic reports include construction spending, car sales, mortgage applications, and the ADP employment report.

With the improving market leading stocks can now be bought as they emerge from bases in solid volume. They include 3 week tight patterns TWC 78.75, DTV 50.90, WYNN 151.83, EL 104.40, TPX 66.43, MWV 34.61, SAPE 14.88, WAT 100.04. Cup with handles are SYK 64.71, ABB 27.68, NSC 75.06, MOLX 28.20, TEL 38.16, HK 27.40, HON 62.38. Square box ALB 71.45, AGP 71.81, VIAB 52.03, CSX 79.59, ACN 58.31, TDC 56.68, CHKP 56.01. Double bottoms are APC 81.68, CLR 69.72, POT 61.90, MON 74.56, PLL 58.99, RRC 57.63. Flat bases are PX 108.55, SBUX 38.31, EMC 28.80, FAST 34.98. Cup bases are HOT 65.61, AN 36.32, CY 24.03. Double bottom with handles are EXPD 55.40, EXPE 28.19, TRW 59.04. Cup with high handles are VMW 99.29, AVT 38.10, XLNX 36.59.

Stocks which can be bought as they reclaim their 50 day MAs and their buy stop spots are VFC 100.25, ANR 55.25, ATW 43.60, FMC 85.25, CAR 18.15, VPHM 19.55, CBE 65, PLL 57, SAP 63.25, TRN 34.85, APH 54.60, TTMI 17.60, IVZ 25.25, KKR 17.65, TROW 64.50, ATI 68.10, APA 126, CHK 32.25, CVX 106, DO 75.20, EOG 111.50, XOM 84.25, FTI 45.60, HP 64.25, HES 80.75, NBR 29.15, NE 42.80, RDSA 73, SLB 87.25, SU 43.50, SPN 38.10, VLO 28.20, DD 54.50, ETN 53.10, ARMH 28.90, KLAC 44.10, SPRD 20.20, AA 17.10, BHP 96.75, RIO 71, CLF 93.50. Stocks that retook their 50 day MAs today were SOA PAG ORCL FDX GSM TS NBL SE TCK MMM PAYX APKT CMCSA TXN MCP GM. Stocks near 50 day support are HBI 29.70, APD 92, UNH 47.10, CHRW 77.75, ABV 30.50, WYN 33, ARBA 32.85, DHR 53.20, PKI 27.25, MXIM 26.45, LYB 41.50, PPO 61, ROC 50.50, LTD 38.45, YUM 53, WCN 30.25, TTWO 15.80, A 48, COF 53, BHI 72, HAL 48, IFF 63, CCK 39, TYC 48.50, PCS 17, AVGO 33, SMTC 26.80. Stocks that found 50 day support today were SBUX HUN JWN IR EXXI RRC SGY UPL WNR WMB IP TIN UTX JDSU MCHP OVTI.

Stocks near 200 day support are NKE 82.50, UA 58, DOW 34, BTU 59.80, ANN 25, JCP 32.95, JOYG 83, MDRX 19.60, VRSN 33.25, DE 84, JPM 42.45. WRC RHT JNPR all found 200 day support today while MUR SUN SWC all reclaimed their 200 day MAs. Stocks that can be bought as they reclaim their 200 day MAs and their buy stop spots are LRCX 48.25, VALE 32.85, MOS 72.25. Stocks that can be shorted at 200 day resistance are LVS 43, NUE 42.95, CAM 49.80, EMR 56, F 15.10, SWKS 27.10. MAR BID MTL RIG PAAS all encountered 200 day resistance today.

Stocks that can be shorted at 50 day resistance are RCL 39.60, STJ 52, LULU 93.50, EBAY 32, WFM 63, CAT 108, PH 92, ADSK 43.75, DFS 24.40, FCS 19, BRCM 37. Stocks that found 50 day resistance today were NOV WLL AEM SCCO RL VFC RDC FCX DKS DIS KO. Stocks that can be shorted as they lose their 50 day MAs and their sell stop spots are DECK 89, ABC 40.30, COV 54, BBBY 53, EXPR 20.60. TIBX lost its 50 day MA today.

Good luck.

We sold FCX just above 52 early today and for a time being looked great. We also sold BTU right about 62. We profited handsomely on both. Both rallied off their days lows but below were we sold them. We will look to reenter if they show continued strength.

The author owns HK TIBX.