Monday Recap

Markets Monday surged higher on reports Europe may look to rectify their current economic woes. The S&P 500 led the way with a 2.3% gain, compared to the Nazz 1.4% advance. Volume was not as impressive as the days price action. Some of the better performing sectors of the day were banks and retail. JPM advanced 7%, MS 6%, USB WFC both 5%. Retail winners included JWN up 6%, LTD WFM both up 5%. Laggard groups were casinos. WYNN LVS both lost 200 day support intraday, but WYNN managed to reclaim it by the end of the session. Some leaders are in the process of developing bases. 6 that need one more day for a legitimate handle (handles must be at least 5 days in length) are IACI TSCO CBOE CPHD DECK VFC. Of course we already identified cup with handles UA 80.90, EBAY 34.00. Cup with high handle is BBBY 61.01. Some individual stocks are giving you good setups with definitive stops. DE is one which has now found support at 66 twice recently. A move below that number would be your out. Even with todays move, a skeptical stance must be maintained. The amount of negativity is pervasive, which is a concern, but the clearly defined trend is downward. Lets not get in front of a moving train here. If the market wants to move higher, let it prove it on solid volume. If not look for spots of resistance to initiate shorts soon. ACN PAYX report earnings after the close Tuesday.

Stocks that can be bought as they retake their 50 day MAs and their buy stop spots are DSW 48, CMCSA 22.15, QCOM 52.05, TWC 67.25, CHKP 55, TIBX 23.20, IRM 32.20, VPHM 18.65, JBL 17, BRCM 34.90, LRCX 39. Stocks that retook their 50 day MAs today were KO COH ANN M SCSS TGT ADS HLF USB IBM AET CLH WCN LLTC ARCO. Stocks near 50 day support are M 26.50, CLH 52.60, AVGO 33, AKRX 7.90. Stocks that received 50 day support today were CROX CMG GMCR MCD JWN PETM SBUX ARBA UAN UNH KLAC. Stocks that can be shorted as they lose their 50 day MAs and their sell stop spots are EL 93.10, GMCR 99.45. Stocks that can be shorted at 50 day resistance are LULU 56.25, WSM 33.05, BUD 54.10, EXPE 29.05, MCO 32, ADI 33.05, NVLS 29.10, TXN 27.55. Stocks that met 50 day resistance today were TIF EL PCLN CMCSA BRCM TXN.

Stocks that can be bought as they retake their 200 day MAs and their buy stop spots are TGT 51.60, MTZ 18.95, ARBA 30, VMW 91, NDAQ 25.20, BAX 55, IT 37.50. Stocks that retook their 200 day MAs today were COH ANF AN M AXP LVS CRS. Stocks near 200 day support are AMT 52, CHKP 51.95. Stocks that can be shorted at 200 day resistance are K 54, BIDU 130, ANN 26, DKS 37.50, DEO 78.60, EP 18, HFC 29.35, SM 68, ARMH 27.

Good luck.

The author owns CBOE.