Wednesday, May 4, 2011

Wednesday Thoughts

Markets Wednesday flashed weakness, as they fell for the third consecutive day. Volume increased across the board. But they also cut their losses about in half. Perhaps its trading algorithms taking effect. The economic reports before the open were poor. ADP employment came up soft. Manufacturing data wasn't much better. This coming after we had a very feeble 1.8% GDP for Q1 this year. Most importantly leading stocks took a pounding once again. OPEN BEXP BID HES MCP all slumped today. Many more leaders, such as ARUN PPG JOYG CVX, are piercing their 50 day MAs to the downside. Retail and chips bucked the trend today while commodities once again sold off, today on a stable dollar. Earnings come tomorrow before the bell from TDC WNR EL HK and after the close from MCHP RBCN SPRD SUN. Thursday brings jobless claims, chain store sales and productivity.

Stocks near buy points, but once again, should be purchased very cautiously in this recent downtrend are: Cup with handles QCOM 58.56, AVGO 33.92, TXN 23.09, SPRD 23.09 (earnings after close Thursday). Double bottoms KMX 34.73, CXW 26.18. SBUX 38.31 in a flat base. XLNX 35.52 in a cup base. AAPL 355.23 in a double bottom with handle buy point. CBS broke out from a 26.27 cup with handle buy point on earnings.

Stocks near 50 day support are APD 90.75, EMN 98, HUN 18.05, LYB 40.75, PX 101, AME 43.15, CAT 107, STJ 51, ANN 28.20, DKS 40, FAST 64, YUM 51.40, APA 125, HLX 16.25, KEG 15.50, HK 23.60, ADSK 42.50, INFA 50.25, RHT 44, TIBX 26.75, KO 66, CPO 50.20, DFS 23.25, KKR 17.50, CNI 74, UPS 73.10, ATI 66, HON 58, ACN 54, AH 25.50, EMC 27, TDC 50.75, AMT 51.05, AGCO 53.95, FLIR 33.25, TKR 50.50. Stocks that found 50 day support VFC NFLX GES SBUX BHI CPX XOM HAL PTEN SUG WMB ARBA BX SOHU MT APKT BHP NXPI DE BIDU RAX BEAV HMC. KLAC can be bought through 46, as it reclaims its 50 day MA.

Stocks near 200 day support are VPHM 16.50, ANR 50.25, ACI 30.20, BEXP 26, FTI 41, MDR 19, BTU 58.25, TCK 50, CRM 125.50, ADM 33, FDX 89.75, RVBD 31, FCX 50, RIO 65.90, SWC 19.55, MON 64, POT 51.80, F 14.90. Stocks that found 200 day support today were MOS PAAS NKE CAM AGU SUN EMR. PBR RIG ABX all lost their 200 day MAs, while NOG MTL TTM all fell further below their 200 day MAs Wednesday. IBN found 200 day resistance Wednesday.

Stocks that can be shorted as they lose their 50 day MAs and their sell stop spots are RL 125, FMC 81.50, SOA 23.90, DOV 64.40, DIS 42, TSCO 47.70, XOM 83.75, MRO 50.75, OIS 75, SOHU 89, VRSN 35.75, CSX 75.75, DD 53.75. Stocks that can be shorted at 50 day resistance are DECK 87.45, CBE 65, MTW 21, PH 92, APC 80, NBR 29.20, BRKR 19.60, JBL 20.30, AMP 62, TRN 34, NUE 46.20, CTSH 79, JDSU 20.85, BWA 76, SWKS 30.70. Stocks that lost their 50 day MAs Wednesday were MTW PH BID EXXISD BMC IL TRN RIO JPM. JBL AMP BWA all found 50 day resistance today. LTD CMCSA both had negative outside days. Relative weakness was seen by ANR HES BUD today.

Good luck.

The author remains flat.

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