Thursday, September 15, 2011

Wednesday Stock Reflections

Markets saw some seesawing action Wednesday. Starting higher, losing ground around an hour into the session, then rallying furiously, until giving back a big chunk of gains in the last half hour. As usual the Nazz led the way with a 1.6% gain on good volume. The caveat was that it hit resistance around the 2600 level which has been a problem recently. It is nearing its 50 day MA near 2620. The S&P 500 gained 1.4% on average volume. Some stocks in this run up have reached impressive ALL time highs. They include RL CERN DLTR AZO. More and more leading stocks are setting up valid bases. Cup bases and their exact buy points include AMZN 227.55, V 90.93, BBBY 60.65, FAST 36.90, PCP 171.53, AAPL 404.60. Double bottom base are COST 83.55, ARMH 31.08, MXIM 26.33. Double bottom with handles are CVS 37.56, VPHM 20.38. 3 week tight patterns are DPZ 28.55, SBUX 39.49. And AN 41.65 in a cup with high handle pattern. Bearish advisers now outnumber bullish advisers for the first time in over a year. Perhaps there is too much negativity flowing around. Yesterday certainly had the feel of a short squeeze. More bullish behavior was exhibited by some old leaders. RIG, the focus of some bad news, regarding its responsibility with the Gulf spill last year, actually rallied retaking its 50 day MA Wednesday. Bad news, bullish action is a plus.

Stocks that can be bought as they reclaim their 50 day MAs and their buy stop spots are MCP 55.25, COH 58.75, CROX 27.50, DSW 48.55, M 27.25, JWN 46.80, TJX 54.25, EL 99.50, COG 71.25, ORCL 29.25, PX 100.15, BAX 56.40, GILD 40.10, HS 40.15, KSU 54.80, CRS 51.90, CMI 96.25. Stocks that retook their 50 day MAs Wednesday were AGCO NKE BIDU ANN CMG SCSS SBUX ADS TPX TIF RIG MTZ CHKP JBL ADI KLAC LRCX. Stocks near 50 day support are SLW 38, HSY 57, LULU 57, LTD 37, TIF 73, TPX 62, SM 76, AET 40, UNH 47.95, ADI 33.80. Stocks that found 50 day support Wednesday were KO LULU ABV EXPE PCLN CPHD HUM.

Stocks that can be bought as they reclaim their 200 day MAs and their buy stop spots are EBAY 31.25, TGT 52.10, PLCM 25.15, QCOM 54.05, CBS 24, VIAB 46.10, SMTC 24.55, XLNX 32.50. Stocks that retook their 200 day MAs Wednesday were IPI MON COH M TDC BAX NSC. Stocks that can be shorted at 40 week resistance are RAX 38, IFF 59.30, SWN 40, MCO 33, CBI 36. Stocks that met 200 day resistance Wednesday were RAX TGT CVX PENN QCOM VIAB PX GILD KSU. Stocks near 200 day support are B 22, CHK 30.25. Stocks that found 200 day support Wednesday were CDE WNR IBM TSU GSK HS VPHM.

Stocks that can be shorted at 10 week resistance are ANF 68, WSM 34, CVI 26, VLO 23, TDC 53.50, STJ 45. Stocks that met 10 week resistance Wednesday were CROX DKS MCD CMCSA ARBA VMW ADP UPS CMI NVLS XLNX. GG WYNN both lost 50 day support Wednesday.

Good luck.

The author owns CBOE PM. We sold WNR yesterday for a small loss as it lost its 200 day MA.

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