Tuesday Recap

Indexes surrendered a large portions of intra day gains Tuesday in higher volume. Blame it on whatever you like, media outlets attributed the lower move late in the day to disappointment over the Greek debacle. As a market technician we simply saw the move on the SDS move back to 200 day support. Will we be right? Who knows, but as traders we did the right thing. It was the hard trade, for we have recently seen many leading stocks break out (V broke out Tuesday from a 90.93 cup base), we have seen the Nazz reclaim its 50 day MA, and we have seen bearish investment advisers outnumber bullish advisers for the first time in over a year. All bullish traits indeed, but they came on lackluster volume at best. Tuesday many leaders saw intra day negative reversals. They included CMG LULU VFC DPZ GMCR COG LVS PCLN WYNN just to name a few. Even more bearish are outside reversal day and they occurred with FCX BIDU SINA. MCP gapped down 22% on a downgrade. There are some valid bases still developing now, and they are from the more defensive arena. Cup with handles in precious metal sectors are BVN 49.55, SLW 41.46. ADS 101.61 in a cup base pattern. As always demand volume to be at least 50% above the daily average volume to confirm the move. Keep an eye on stocks that show strong relative strength, especially on a poor tape and Tuesday that was displayed by ALXN JAZZ WPI CERN. ORCL ADBE were both up overnight on earnings and Wednesday brings reports from BBBY after the close. BBBY has been attempting to take out a 60.65 cup base buy point, which it did intra day Friday only to close back below it by the close.

Stocks that can be bought as they reclaim their 200 day MAs and their buy stop spots are PAAS 34.65, DEO 78.90, SWN 40.25, MCK 78.80, IP 28.50. APC retook its 200 day MA Tuesday. Stocks that can be shorted at 200 day resistance are DAR 15.40, K 53.85, HOG 38.50. Stocks that met 200 day resistance Tuesday were DEO FTI PENN QCOM NDAQ MCK. Stocks near 200 day support are CVS 35.40, TGT 51.65, HFC 29.10, ACN 53.75. Stocks that received 200 day support Tuesday were AEM CHK ADP. Stocks that lost 200 day support Tuesday were DAR MON SINA WNR VMW HS.

Stocks that can be bought as they reclaim their 50 day MAs and their buy stop spots are CVX 100.50, XOM 76.25. Stocks that reclaimed their 50 day MAs Tuesday were GG DKS PX BAX DHR. Stocks near 50 day support are COH 58, M 26.95, HLF 56, QCOM 52, IBM 172, JBL 17.05. ABV JBL CMI all received 50 day support Tuesday.

Stocks that can be shorted as they lose their 50 day MAs and their sell stop spots are CROX 27, ANN 23.80, KLAC 37.80, NVLS 29.15. MOS lost its 50 day MA Tuesday. Stocks that can be shorted at 50 day resistance are RAX 37.50, XRT 49.65, DSW 48, TPX 61.50, HS 38.30, ALTR 38.10. Stocks that met 50 day resistance Tuesday were AGCO AGU GOOG AN WSM CHK COP EXPE MTZ CRM VMW ACN PAYX FMC PPG QCOR KSU NSC UPS ALTR LRCX TXN XLNX.

Good luck.

The authot owns SDS CBOE. We sold our TGT for a small profit, and were stopped out of our MXIM at a small loss.