Thursday, September 1, 2011

Thursday Recap

Markets turned tail Thursday, after showing some early strength, finishing upon their lows before the big employment report tomorrow morning. Bearish action indeed. The Nazz was lower by 1.3%, the S&P 500 1.2%. One bright spot was volume was well below average. The Nazz seems to be losing the 2600 resistance battle. That level proved to be support in both mid March and mid June this year. It attempted to break above this number both Wednesday and today, and did so intraday but could not manage to hold on by the close. Leading stocks were quiet Thursday. Some are in the process of building the right side of their bases and showing constructive action. Only problem is that they hail from defensive groups. They include NEM BVN SLW CHL. Some are providing valid buy points, a rarity for a few months here. Double bottom buy points, still in the works are seen in DAR 18.82, COST 83.55, EP 21.28. ABX is forming a cup with handle pattern with a 52.88 buy point. We believe we are still in a bear market rally, since we flagged the SDS roaring through its 200 day MA on 8/04, and proceeded to run up smartly from there. Guess what its right back at both 50 and 200 day support right now. Could the downtrend be ready to assert itself here? Who knows. The market has been down for the last 3 consecutive employment reports so perhaps thats in the cards. As always pay attention to the indexes, leading stocks and volume. Both IBM LULU met 50 day resistance today. We should still be in for a bumpy ride according to the VXX, a fear gauge. That ETF flew through its 200 day MA on 8/06, and gapped higher on 8/18. It is now consolidating tightly after the bullish gap up. Usually a signal the the upward trend will resume. Not much on the earnings front tomorrow.

Stocks near 50 day support are DE 78.10, POT 56.30, SCCO 32.85, KO 68, GIS 37, HANS 80, HSY 56.95, IACI 38, SWI 23.45, BBBY 56.20, COST 78, DPZ 26, TGT 49.60, DEO 79.35, PM 68.50, AXP 49.10, SM 75, EXPE 29.15, AAPL 370, LOGI 10.05, MTZ 20, TSU 28.75, CPHD 34, COV 51, MRX 37.15, VPHM 18.45, CLH 52.15, BRCM 34. Stocks that received 50 day support today were AGU CROX BIDU SINA CVS HLF OKE NLSN GSK HUM WPI. Stocks that can be bought as they reclaim their 50 day MAs and their buy stop spots are EL 100.75, EP 19.60, NVS 59.50.

Stocks near 200 day support are IPI 33.25, AEM 68, SLW 37.05, ABX 49.15, CDE 27.20, MCP 53, BGS 16.90, DECK 85, NKE 84.30, FAST 31.55, M 25.55, ROST 72, DISCA 41.05, LVS 44.25, PENN 37.20, CHKP 51, VMW 90, CBS 23.50, VIAB 45.50, CE 45, HS 36.50, GDI 76, ARMH 26.10. Stocks that found 200 day support today were MON CAM SOHU GILD B. Stocks that can be bought as they reclaim their 200 day MAs and their buy stop spots are CBOE 25.40, CPX 30.60. Stocks that retook their 200 day MAs today were SPRD TD. Stocks that can be shorted at 200 day resistance are RAX 37.80, EAT 23.50, DRI 48.50, IFF 59, HAL 45.80, HP 59, SWM 40, SGY 27.50, WMB 28.25, ARBA 29, FTNT 20.60, BDX 82.95, XRAY 36, XLNX 32.05. Stocks that met 200 day resistance today were AGU COH DRI EBAY TGT INTU PX HSIC STJ NSC CBI BWA. Stocks that can be shorted as they lose their 200 day MAs and their sell stop spots are ANF 61.75, TDC 49.75, AVGO 31.30. Stocks that lost their 200 day MAs today were ACOM PETM GR HOG ACN KSU.

Stocks that can be shorted at 50 day resistance are BG 66.25, UA 71, GOOG 550, LULU 56.40, ANN 24.80, LTD 37.20, JWN 46, PETM 43.10, TIF 74, TSCO 64, TAP 49, RDSA 68.75, RIG 58.40, VLO 23.20, WFC 26.55, CMCSA 23, VRSN 31.75, BAX 57, IP 28, JBL 17.95. Stocks that met 50 day resistance today were AGCO DKS SCSS ATW CVX CXO NBL SUN ADP IRM AET GILD NVS UNH CNI PLL CREE MXIM. Stocks that lost their 50 day MAs today were CMG LTD ROST SBUX TJX ADS HFC.

Good luck.

The author owns WNR DE. We bought DE Monday as it retook its 50 day MA.

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