Markets again weakened Friday putting a week to rest where both the S&P 500 and Nasdaq both lost 2.3%. The S&P 500 has now lost ground for 5 consecutive weeks. That has not happened since June-July of 2008. Friday brought a dismal employment report, which put the market on the defensive big time before the open. Other developments during the week, included another warning from Moodys concerns about US Debt, weak auto sales, poor retail figures, slowing ISM data, faltering consumer confidence all of which contributed to the market fragility. Indexes tried to rally midday but it was not to be. Sellers returned in the afternoon, with markets ending right at their lows for the session. The Nasdaq took the worst of it Friday dropping almost 1.5%. AMZN COST ALTR joined the list of leaders piercing their 50 day MAs Friday. NFLX, bucked Nazz weakness and hit an all time high Friday. Even some defensive names which have outperformed recently lost their mojo. GIS MKC lost their key 50 day MAs Friday as well. Educational stocks, is one defensive group that seems to be acting well. Sectors taking the brunt of the selling Friday were transports, retail and semis. Oil stocks held up relatively well. Not much on the earnings front or economic data Monday.
Again buying leading stocks breaking out of bases is a frivolous game. Same as the pundits saying buy defensive groups. Silly? A loss of 5% in a defensive name compared with a 10% loss in a higher beta security is still a loss. Better to build cash reserves and wait for a better market complexion. Obviously never abandon a watch list of leading stocks because the market can change its colors very quickly. Some to watch which have held up decently during this malaise are EXPE, which has a 3 week tight buy point of 28.40. WYNN 151.83 in a flat base, ABV 33.34 in a cup with high handle formation and ATW 45.20 in a double bottom base.
Stocks near 50 day support are WYNN 141.45, AET 40.75, AGP 66.10, BAX 57, HLS 26, HS 41, WPI 60.75, WLP 74.50, ZMH 64.55, ANF 70, FOSL 97.50, SCSS 15, YUM 33, CBS 25.75, VIAB 49, DPS 39.50, PM 68, WCN 30.35, BMC 51.95, CHKP 53.50, CTXS 79.40, FTNT 22.05, INFA 54, NUAN 20.50, QLIK 29.50, EQT 50, HAL 48.20, KEG 16, PTEN 29.10, HK 25.10, CL 83.50, TUP 62, BLL 37.50, VCLK 16.50, EMC 27.50, TDC 53, PCS 17.15, QCOM 55.95, VECO 51, SQM 58. Stocks that found 50 day support Friday were ALB PPO ITW TTWO CNI NSC UNP TEL COG CPX NFX OXY RES SWN ADP AVGP SMTX XLNX MON. Stocks that can be bought if they can reclaim their 50 day MAs and their buy stop spots are APC 78.25, CHK 32.25, EOG 112, NOV 74.50, SLB 87.25, WMB 31.30. UPL AEM both retook their 50 day MAs Friday.
Stocks near 2oo day support which are becoming numerous with this ailing market are PVH 62.60, APD 88, DOW 34.05, FMC 77.75, PPG 83, SOA 22, VPHM 17.10, ANN 25, DKS 35.25, JWN 42.10, WSM 36, KO 63.50, CBE 58.05, DOV 59.50, IR 44.05, JOYG 84, ROK 76, ADSK 39, ORCL 30.90, ROVI 54.50, VRSN 33.40, AVT 32.25, PKI 25.35, GTI 19.50, TKR 46.90, APA 115, CXO 88, COP 68, DVN 78.25, DO 70.20, FTI 42, HES 74, MDR 19.85, NBL 85.85, PXD 86, RDSA 67.10, MMM 89.10, UTX 79.50, CTSH 72, OPEN 80, CMCSA 22.25, ADI 36.90, MCHP 35.20, TXN 32.25, AA 15, BHP 88.45, POT 52.95, ARUN 25.65. Stocks that found 200 day support Friday were WCRX MDRX BP SU DD OMC PAYX NTAP RIO SLW ALV AGU. Stocks that lost their 200 day MAs Friday were JCP EXPD FDX UPS APH ETN TIN CMI DE. ANR BTU FCX all encountered 200 day resistance Friday. Stocks that can be shorted at 200 day resistance are LVS 43.15, BID 43, RHT 43.05, TROW 61, MTL 27.75, NUE 43, TCK 51.50, LRCX 48.10, SWC 20, JPM 42.50. Stocks that can be shorted as they lose their 200 day MAs and their sell stop spots are EBAY 29.45, DIS 37.70, BGC 35.75, PH 83.75, TTMI 14.30, AMP 56.75, KLAC 40, SPRD 17.50, BWA 66. SUN can be bought thru 40.60, its 200 day MA.
Stocks that can be shorted at 50 day resistance are DECK 90, HBI 30, UA 69.50, EMN 102, ABC 40.90, AN 34, EXPR 21.10, FAST 33, ARBA 32.75, CSX 77, COF 53, DFS 24.30, HP 64, NBR 29, WNR 17, IP 30.50. Stocks that found 50 day resistance Friday were PCLN TS HOC MRO MCP. Stocks that can be shorted as they lose their 50 day MAs and their sell stop spots are CE 47.75, ROC 49.50, WYN 31.70, KSU 54.75, ADS 88.75, AXP 48.05, EL 97, TPX 59, RKT 70, IRM 32.25, AAPL 341, DTV 48, WAT 93.40. Stocks that lost their 50 day MA Friday were ACN ADI MXIM OVTI B TRW JBL MOLX R CCK MWV NKE LYB COV SYK CHRW A.
Good luck.
The author owns HK TIBX.
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