Tuesday, September 6, 2011

Tuesday Recap

Markets fell following the holiday weekend, but put together a decent late day rally to minimize losses. The Nazz outperformed losing .2%, but climbing 60 handles off its lows of the day. The S&P 500 lost .7%, rallying 25 handles off its bottom of the day. Volume was higher compared to Fridays soft levels. Of course the stocks that demonstrated the best relative strength were the leaders. Stocks such as HANS IACI ORLY WFM EXPE AAPL ATHN ALXN all were in the black nicely by the end of the day. Even in this volatile environment selective trades are still there to be made. Since virtually no stocks are producing valid buy points in any type of base (cup with handle, flat base, double bottom), we have instead focused on the moving averages. Today, stocks such as AN DPZ RAI MA CVI QCOR PLCN all found 50 day support to the penny. Stocks that found almost exact 200 day support today were DAR SINA LTD ROST TSCO EL TPX CHK EP CHKP IBM . So do your homework and be ready when the trade presents itself to you. One stock that seems to be a rarity, and in the process of developing a proper buy point in a double bottom with handle base is COST. Remember though the handle must be 5 days in duration. So it needs 3 more days to be considered legitimate. Gold reversed today, possibly giving the markets some ammunition to fight higher in the short term. Earnings announcements for Wednesday are quiet.

Stocks that can be bought as they reclaim their 10 week MAs and their buy stop spots are BIDU 145, SINA 105, ADS 93, HLF 56.50, CHK 31.50, HFC 35.40, WNR 18.30, WYNN 150, CPHD 34.30, VPHM 18.60, CLH 52.75. Stocks near 50 day support are AG 21.95, MCD 86.60, ABV 32.05, MTZ 20. Stocks that found 50 day support today were MOS POT IACI AMZN COG EQT RRC AAPL CERN WCN.

Stocks near 200 day support are AEM 68, CDE 27.40, UN 31.55. Stocks that found 200 day support today were BGS UA DSW PCP AXP AMT MHP AET CRS. Stocks that can be bought as they reclaim their 200 day MAs and their buy stop spots are AGU 87.75, MOS 73, CBOE 25.30, TDC 50.25, AVGO 31.90. IPI retook its 40 week MA today. Stocks that can be shorted at 200 day resistance are ACOM 35, RAX 37.70, ANF 62.25, EBAY 31, PETM 41.90, TJX 50.25, SOHU 79, VMW 90, CBS 23.55. TDC ARMH both met 40 week resistance today. K lost its 40 week MA today.

Stocks that can be shorted at 50 day MA resistance are AGCO 44.25, DE 78, SCCO 32.95, CROX 27.20, DECK 90, LULU 56.50, CMG 314, SCSS 16, SBUX 38.50, TAP 44, SM 75, VLO 23.05, IRM 32.75, COV 50.95, STJ 45.25. SUN WYNN WPI IP all met 10 week resistance today. GIS LOGI TSU BRCM all surrendered 10 week support Tuesday.

Good luck.

The author owns WNR. We sold DE for a small loss today as it lost its 50 day MA today. That was the reason behind the purchase. Discipline.

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