Tuesday Recap

Markets rallied early Tuesday, more than 3% in some cases, only to give back a large portion of those gains by the close. Typical bear market action. Bottoms are normally put in over a long period of slow, rounded patterns. Tame action, not the volatility we are seeing today. Traditionally speaking at least. Today with programs and flash trading perhaps those long rounded bottoming out phases are a thing of the past. Today the Nazz itself finished up 1.2%, surrendering a 3% up move intraday. It hit 50 day resistance and was promptly repelled. The S&P 500 also came close to its 50 day MA and backed well off its highs for the day. Some leading stocks broke out today such as VFC, but for the most part the days action was very soft. Lots of stocks were stopped right at their 50 and 200 day MAs. BIDU TGT VMW KSU all met 40 week resistance today. XOM CMI GNC IP aal encountered 50 day resistance Tuesday as well. Negative reversals were plentiful today and included HSY CROX UA AMZN CMG DLTR JWN JPM. Even with decent early tape, new lows well outnumbered new highs Tuesday. Perhaps a tell was early on when the Nazz was traing near its highs for the day, that both AAPL AMZN were lower on the day. Some bright points could be drawn from the fact that the SMH managed to recapture its 50 day MA today. ACN JBL were both up after hours on an earnings beat. MOS reports after the bell tomorrow.

Although we remain in corrective mode, it is always a requirement to have a watch list of stocks forming valid buy spots. Double bottom with handles are ARMH 29.90, MXIM 25.82. Cup with handles are IACI 43.10, EBAY 34.00. Cup base is CPHD 41.08, and double bottom is INTC 23.38.

Stocks that can be bought as they reclaim their 50 day MAs and their buy stop spots are CHKP 55.50, FMC 77, HS 38.40. Stocks that retook their 50 day MAs Tuesday were DSW WSM RRC CMCSA QCOM TWC TIBX IRM BAX JBL ADI BRCM LRCX TXN. Stocks that are near 50 day support include NEM 61, KO 68.70, V 86.40, USB 23.50, TIBX 23, BIIB 95.50, AKRX 7.95, TXN 27.50. Stocks that can be shorted as they lose their 50 day MAs and their sell stop spots are CROX 27.40, LULU 55, GMCR 100, IRM 31.85. Stocks that can be shorted at 50 day resistance are RAX 37, FOSL 102, ABV 32, CVI 25.85, COG 71, XOM 74.70, HOG 68, WYNN 147, NTGR 30, UPS 66, NUE 35.05, DHR 45.05, ALTR 37.25, XRT 50. Stocks that met 50 day resistance Tuesday were RGLD AEM RAX FOSL BUD AXP TPX APC XOM WMB EXPE NTGR MTZ CHKP ADP MCO FMC PX MCK IP WAT CMI GNC.

Stocks that can be bought as they reclaim their 200 day MAs and their buy stop spots are PM 65.25, KLAC 42.10, MXIM 25.15, IT 37.55. DEO SM retook their 200 day MAs Tuesday. Stocks that can be shorted at 200 day resistance are MON 69.50, BIDU 130.50, B 22. Stocks that met 200 day resistance today were GG ABX CVS IFF HFC KSU. AN can be shorted under 33.50 as it loses its 200 day MA. K can be bought at 200 day support near 53.95.

Good luck.

The author owns CBOE.