Monday Thoughts

Markets rebounded Monday, albeit in weak volume. Not the type of action you would like to see. On the bright side the S&P 500 continues to find solid support at its 200 day MA, and has closed higher now 3 days in a row. The Nasdaq is living below its 200 day MA now, but the 2600 level seems to be providing ample support, for now. Health care and retail sectors were robust today. Many leaders that hail from the healthcare sector are looking solid (more on that in the next paragraph). Retail, which seems to be benefiting from lower oil, outperformed today. FOSL hit an all time high today, and EL LULU UA NKE all reclaimed their 50 day MAs today. CCL reports before the bell and JBL after the close. Economic reports Tuesday include existing home sales, Redbook, retail sales from major retailers. Tuesday also starts the FOMC meeting.

Some stocks are setting up valid buy points here mostly in defensive sectors. Even though new buys are hardly prudent here, the market can resume its rally at any point here and we must be open to that fact. I do not think that will happen but remember to check your opinions at the door. Health care related stocks that are setting up buy points are cup with handles AET 46.11, BAX 60.60, UNH 51.56. HS 45.21 in a flat base. 3 week tight patterns are HUM 80.93, WPI 65.15, TMO 65.96. Other buy stop buy points are M 30.10 in a cup with handle base. NSC 73.60 in a 3 week tight pattern. And flat bases are TUP 66.92, SAPE 15.05.

Stocks near 50 day support are EXPE 26, AGN 80.25, M 26.75, YUM 53.80. Stocks that found 50 day support today were COH WLP FAST SCSS PM KEG PLCM DISH SQM DAR. Stocks that can be bought as they reclaim their 50 day MAs and their buy stop spots are HLS 26.25, JWN 46.20, SBUX 36.30, DOV 64.50, BMC 52.45, CHRW 78.50, A 49.25, ADS 90.25, DFS 24.25, DRC 50.50, EQT 50.50, SWN 42.25, DHR 53.50, UTX 86.30, VCLK 17.10, TRW 54.40. Stocks that retook their 50 day MAs today were CE AN COST CBS ABV INFA QLIK UNP R IRM BWA B.

Stocks near 200 day support are DECK 77, HBI 26.80, FMC 78.25, LYB 34.50, PPG 84, CAR 15, ABB 23.10, CAT 95, CTXS 70.75, MOLX 24.10, PKI 25.55, GSM 19, KKR 15, CPX 28.10, HK 20.75, RDSA 68, CCK 35, APKT 59.80, CMCSA 22.70, SMTC 23.75, VECO 46, ACOM 32. Stocks that found 200 day support today were DOW VPHM ANN DKS CBE PH ORCL ARW APA CHK CLR SLB VLO QCOM FCS MCHP NXPI MON. Stocks that can be shorted at 200 day resistance are EBAY 30.05, WSM 36.25, DIS 39.15, IR 44.80, VRSN 33.75, JBL 18.50, PAY 42, GTI 19.70, AMP 57.50, IVZ 24, NBR 24.50, OMC 46, RVBD 34, ADI 37.30, KLAC 41, RIO 68, POT 53, ARUN 26, DNR 20.05. WCRX found 200 day resistance today. EOG lost its 200 day MA today. Stocks that can be shorted as they lose their 200 day MAs and their sell stop spots are SOA 22.25, ATW 38.50, RDC 35.50, SPN 33.75. Stocks that can be purchased as they retake their 200 day MAs and their buy stop spots are JOYG 86.20, ROVI 55.50, TTMI 15.20, TKR 47.75, DD 50.80, BHP 90.25. Stocks that retook their 200 day MAs today were NKE PVH WM TEL ATI IP CLF.

Stocks that can be shorted at 50 day resistance are APD 92.20, ALB 66.40, PPO 62, PX 103.75, ROC 50.15, RCL 38, WYN 33, AGP 66.45, COV 54.85, STJ 51, AMZN 192, BBBY 54.75, LTD 39, PAG 20.50, VIAB 49.10, ITW 56.05, CSX 25.40, KSU 55.10, MTL 26.80, BHI 72, HAL 48, EMR 55, ADP 53.50, TWC 76, XLNX 34, WSH 40.80. Stocks that found 50 day resistance today were RL NFLX ARBA BMC AXP BLL. ERTS can be shorted under 22, when and if it loses its 50 day MA.

Stocks that saw relative weakness on a decent tape today, and it must be noted just as relative strength is on a weak tape, were LYB PCLN LVS ABB TS KKR ANR RIG UPL APKT SWKS VECO TTM ACOM.

Good luck.

The author is still in 100% cash.