Monday Recap

Markets finished off a very strong October Monday in a very weak fashion. Both the Nazz and S&P 500 lost their respective 200 day MAs they just recaptured last Thursday. The Nazz lost 2% today while the S&P 500 lagged with a 2.5% loss. For the month the Nazz finished higher by 11.1%, and the S&P 500 by 10.8%. Volume was lighter than average today and leaders managed to escape serious damage. A stronger greenback because of Japanese intervention selling yen put a damper on commodities. XLE found stiff 200 day resistance with APC EOG NOV all fell by 6%. Ags were hit today with both POT MON down by 5%. Banks were seized lower, pun intended, with GS JPM B all lower by 5%. Semis were weak today with the SMH falling 2.5% and headed for a test of 200 day support near 31.35. ASML ARMH were both down 4%. KLAC AVGO XLNX showed strong action despite the weak tech tape. Retail did outperform with some in the group even finishing higher on the day. They included BBBY PIR TIF. Discount retailers also finishing in the green were ROST DG DLTR. Recent gap ups that outperformed today were ORLY SWI MCD. Today being the last day of the month could certainly had something to do with the days weakness. Some leaders consolidating recent gains is bullish price action. Also many could be in the process of forming handles. Potential double bottom with handles are ANN WSM YUM AXP AET RDSA. Potential handles forming in cup bases are DSW CHKP ASML MXIM BEAV PAG. HLF was lower after hours on earnings. APC FMC were up slightly after hours on their earnings. Tomorrow earnings reports come from AMT ABC BHI FE HSIC WPI before the open and EOG FISV JAZZ SIMO after the close.

Stocks that held up well displaying good relative strength today and near specific buy points include NC 25.96 in a double bottom with handle formation. MKC 49.94 in a cup with handle base. SBUX 43.53 in a 3 week tight pattern and AET 41.95 in a double bottom base. Many times stocks that breakout will fly ahead quickly only to retreat back to their original buy points. Stocks which have broken out very recently and are now back near buy points include PM which is now 1.5% below its 70.88 double bottom buy point. M is now a less than 1% below its 30.72 cup base buy point. TIF held its 77.94 double bottom breakout nicely today. TSCO is still 1% above its 70.20 cup with handle buy point. WMT is just above its 56.49 double bottom with handle buy point and COG is 1% below its 78.75 double bottom buy point.

Stocks near 200 day support which could pose a good buying opportunity are ABX 49, ANN 26, MON 69.90, BIDU 134, FFIV 98, R 49.30, CTXS 70, ORCL 31.70, SAP 58.40, ADP 51, MCO 34, AET 39.50, XRAY 36, CBS 24.75, AMT 54.15, VZ 36.50, LLTC 31.95, NVLS 33.55, XLNX 32.45, GRA 40.10, PPG 84.50, PX 100.45, APC 76, NBL 88.25, SWN 40.10, PAG 19.75, KMT 38.50, CBI 36, IFF 60. Stocks that found 200 day support today were NTGR AZN ARMH AVGO TYC. Stocks that can be shorted at 200 day resistance are JNY 11.95, BAX 55.50, DTV 46.35. JNY WLP BSFT CMCSA WYNN all met 200 day resistance Monday. A bunch of stocks lost their 200 day MAs today and included BUD DMND DFS FISV CRM ADI CE CLR FMC EXXI XOM HFC NOV OXY VLO WNR UPS DHR JOYG PLL PH CMI JBHT. ATHN can be shorted under its 200 day MA with a sell stop of 49.50. Buy stops can be placed on JOYG @88.20, PAY 44.15 if they can climb through their respective 200 day MAs.

Stocks near 50 day MA support are BHP 76.20, NEM 64, RIO 53.50, FCX 38.50, ED 57, FE 44.20, DE 73, CELG 62.50, BMY 31, NVDA 14, BBT 22, JPM 33, WFC 25, BTU 42. ABX KO MAKO HAL ABB FWLT X all found 50 day support today. HANS retook its 50 day MA today. Stocks that can be shorted as they lose 50 day support and their sell stop spots are LULU 53.75, IACI 39.75, QCOM 51, MMM 77.50. AA DAR WPI CVI CHK all surrendered 50 day support today. Stocks that can be shorted at 50 day resistance are HSY 58.50, WPI 67.70. GG AMZN DFS all encountered 50 day resistance today. CMG had an outside day and could have formed a double top with today and 9/20 day. Late stage bases more prone to failure.

Good luck.

The author owns FCX DE. We sold our CVX this morning in the pre market for a $2.40 loss. The first loss is usually the best one to take. Looking to add to FCX DE near 50 day support.

Weekend Warrior

Markets were basically UNCH Friday, but the full week told the full story. Thanks to Thursdays banner day, both the Nazz and S&P 500 recaptured their crucial 200 day MAs, and went positive YTD (the Nazz is up 3.2%, S&P 500 up 2.2% for the year). Interestingly both the Nazz and S&P 500 were up exactly 3.8% for the week. The simple fact that Friday saw no surrender of Thursdays enormous gains has to be painted bullish. Perhaps strength was demonstrated in front of Mondays normally bullish tone. More leading stocks broke out of bases this week, confirming the current market uptrend. They included this week HLF TIF JBL SWI UA. Stocks hitting all time highs Friday from such diverse sectors were COG DECK NKE ISRG ORLY SPRD. Overlooking the broad power of sectors participating in the rally are telling. First XLF had a wonderful 7% gain for the week. GS higher by 13%, JPM 10%. KKR was up 13%, PAY 11%. V has to be respected given its last 3 weeks of tight trading near all time highs. Even MCO had a 14% weekly gain. The IYT had a strong 4% upside move. The ETF is setting up for a 200 day test near 91. Put in a buy stop above that line. In the group KSU had a 9% upside weekly move. CNI up 8%, FDX 6%. The greenback came under pressure this week as the Euro rose back above its 200 day MA, as seen on the FXE, giving commodities a boost. Energy ETF XLE retook its 200 day MA Friday as oil was up 7% on the week. If XLE can hold its 200 day MA here has to be construed well. NOV was up 15% on the week, COG 14%, BHI 12%. SLX, illiquid as it is, rose 17% on the week. Thanks to X upside move Friday through its 50 day MA. JJC rose by 15% this week, giving giants like FCX a 17% weekly gain. Gold rose 7%, bringing up the miners with the metals advance. That has not happened in sometime but NEM is now nearing multi year highs and both GG ABX retook their 50 day MAs Friday. Global growth equities had a massive week. JOYG DOV up 11%, CAT 10%. Semis had a nice week with the SMH up 6% for the week and retaking its 200 day MA Thursday. KLAC rose 9%, ASML 8%. Retail lagged somewhat, giving other groups a chance to play catch up and diversify the breadth of sectors in the current move upward. XRT was up just under 3%, but some big movers in the group included UA up 17%, LULU 15%, DECK 14%, COH 10%. Stocks finding support on earnings at critical moving averages Friday included CERN SWN, which both found major support at their 40 week MAs before catching material bids. Earning reports Monday come from APC HLF FMC SM after the bell. ED BID also report.

Stocks near exact buy points include cup bases HSIC 75.08, CNI 81.36, ASML 44.89, MTZ 23.27, ACN 63.76, RAX 46.27, TIBX 31.55, COH 69.30. Double bottom bases are XOM 85.51, CVX 109.85, PPG 93.95, AET 41.95, SAP 64.93, ORCL 34.23, YUM 55.80, ANN 28.61, LULU 61.90. 3 week tight patterns are SBUX 43.53, CELG 68.35, AMT 57.38. Double bottom with handle is GNC 25.96 and FE is in a flat base with a buy point of 46.61. Stocks can often be purchased after they breakout as many retreat their original buy point before resuming higher. Therefore M can be bougth back near its 30.72 cup base buy point. TSCO can be purchased close to its 70.20 cup with handle buy point. A stock that demonstrated just this Friday was TIF which fell to its 77.94 double bottom base buy point only to find buyers and head back higher.

Stocks that can be bought as they retake their 200 day MAs and their buy stop spots are JNY 12.25, AGU 86.25, KKR 15.20, PAY 44.15, EMC 25.60, QCOM 54.40, ALTR 41.25, NVDA 17.25, BBT 25.25, PNC 57.25, WFC 28.40, DO 69.35, EXPD 48.50, FDX 87.25, HON 54.40, A 42.80, CAT 98.25. ETFs that can be bought through 200 day resistance are XLE 73.40, IYT 91.10. Stocks that retook their 200 day MAs Friday were GG DMND NTGR CRM CE CLR OXY WNR. Stocks that can be bought at 40 week support are BUD 56.40, WSM 36.85, NTGR 34, FISV 59.60, R 49.50, CTXS 70, AZN 48, CBS 24.60, ARMH 27.95, ADI 37.05, LLTC 32, XLNX 32.45, CLR 61.75, EXXI 30.30, XOM 80, NOV 72, UPS 70.60, DHR 49.60, JOYG 88, PH 82.60, KMT 38.45, JBHT 43, FMC 80. Stocks that found 40 week support Friday were ABX BUD CERN EXXI SWN PLL PH CMI. Stocks that can be shorted at 40 week resistance are GMCR 77, DTV 46.40, URI 25. Stocks that met 40 week resistance Friday were BSFT PXD PXP CAT URI. DFS can be shorted with a sell stop @23.70, as it loses 40 week support. Stocks that lost their 40 week MAs Friday were WLP DTV COP AVT.

Not much to discuss with stocks near their 50 day MAs. Ones that are and can be purchased at 10 week MAs are AA 10.95, ED 56.95, BBBY 58.05, BMY 31. GG ABX DFS X all retook their 50 day MAs Friday. Stocks that can shorted at 50 day resistance are HANS 87.75, HSY 58.55, LMT 77.50, POT 51.55, JAZZ 41.75. POT WYNN both met 50 day resistance Friday. Stocks that can be shorted as they lose 50 day MAs and their sell stop spots are IACI 39.50, MAKO 36.10. SWKS lost its 50 day MA Friday.

Gap up stocks are always imperatve to put on your watchlist. Once a stock gaps up strongly from a previous strong chart, let it consolidate and hold that gap up for 4 days. MCD is a great example of that. Stocks that had bullish gap ups this week and warrant inclusion on your radar are DECK ORLY SWI QCOR KSU SCSS.

Good luck.

The author owns FCX DE CVX. Bought a little CVX as it passed its double bottom buy point of 109.85. Volume was mediocre at best and we will flatten out of that one of weakness of 2%. It has bumped up against this 110 level now 4 times, so good chance it will take out that level soon.

Thursday Thoughts

Markets screamed higher today on GDP growth and European optimism. The S&P 500 sprung up 3.4% and the Nazz 3.3%. Volume rose significantly, and both indexes rose above their 200 day MAs. More breakouts today lend credence to the move higher. Today TIF JBL KSU all broke out. Many more stocks are setting up valid base buy points. Risk on is back on with the dollar plunging. Commodities rose smartly with FCX RIO both up 9%. BHP rose 7%. Banks exploded, a key component in a continuing strong market. MS alone was up 18%. GS 10%. Semis were strong with the SMH up 3.5%. ARMH was up 8%, ASML up 6%. Transports rose once again with the IYT up 4.3%, but meeting 200 day resistance. Put a buy stop in on that ETF above 91, if it reclaims that 40 week MA. NSC was up 8%, KSU 6%, UNP CNI 5%. UNP retook par. The healthy retail sector was up smartly, as the XRT was up almost 4%. Big gainers in the sector were FOSL up 9%, LULU 8%. Some stocks which met technical resistance today on earnings were LMT which met stiff 200 day resistance on a very strong tape. HANS which lost its 50 day yesterday, hit resistance again today despite the huge move upward. POT did as well after posting a smart earnings beat. Moral, pay attention to moving averages. ATHN again was lower as we flagged yesterday, today falling 1%. Also weak today was PCP which had a bad outside day from an all time intraday high, just like the aforementioned ATHN did 10/21. BIDU was up 8% after hours on earnings. Earnings tomorrow come from AON BIIB CVX WY before the open. BWA also reports.

Stocks near exact buy points are double bottoms LULU 61.90, ANN 28.61, YUM 55.80, ORCL 34.23, SAP 64.93, AET 41.95, WFC 29.73, CVX 109.85, DO 73.25, XOM 85.51, RDSA 75.66. Cup bases are COH 69.30, DSW 46.00, IFF 65.34. Flat base is FE 46.61. Cup with handle is DELL 16.75. 3 week tight pattern is BMY 33.30.

Stocks that can be bought as they reclaim 40 week resistance and their buy stop spots are AGU 86.25, ARUN 26.65, NTGR 34.25, PAY 44.10, ROVI 53, CRM 135.50, EMC 25.60, VIAB 46.50, QCOM 54.35, ALTR 41.25, TXN 32.25, BBT 25.30, PNC 57.30, PXP 34.20, EXPD 48.50, FDX 87.50, UTX 81.50, A 42.75, CAT 98.25, NUE 42.25, URI 25.50. Stocks that retook their 40 week MAs today were BUD BIDU RAX FISV NDAQ R CTXS MCO WLP ADI LLTC NVLS CE GRA COP CLR DO EXXI HFC NOV TOT UPS LVS TYC DHR JOYG PLL PH CMI HSIC KMT JBHT. Stocks near 40 week support are BUD 56.50, WLP 69.50, DTV 46.25, ADI 37, LLTC 32, COP 72.25, UPS 70.50, DHR 49.40, AON 49. Stocks that found 200 day support today were CBOE. Stocks that can be shorted at 40 week resistance are GG 49, DMND 67, KKR 15. Stocks that met 40 week resistance today were ABX DMND CRM BSFT TXN OXY PXD WNR WYNN HON AVT CAT. AVGO can be shorted below 32.75, its 200 day MA.

X can be bought as it takes out 25.50, its 10 week MA. Stocks that retook their 50 day MAs today were AA RIO LULU BID KO DAR BIDU DFS IBN CVI CHK HAL HFC BTU WNR LVS. Stocks that can be bought near 10 week support are AA 10.95, NEM 64, CELG 62. MA found 50 day support today. Stocks that can be shorted as they lose 10 week support and their sell stop spots are TAP 41.20, IACI 39.40, MAKO 36. HSY CERN both lost 50 day support today. Stocks that can be shorted at 10 week resistance are HANS 87.50, CERN 66.40, JAZZ 41.50. Stocks that met 50 day resistance today were ABX HANS POT WYNN X.

Gap up, which are extremely bullish are back. Says a lot about the health of the overall market. Watch for them to hold their gap up for 3 days. Recent gap ups include QCOR yesterday and today SWI COG both up 16%, XRAY up 10%, ORLY 9%, KSU 6%.

Good luck.

The author owns FCX DE.

Wednesday Thoughts

Markets displayed sweet resilience Wednesday after a pop at the open, the a fall, then a nice push into the close finishing near highs for the day. The S&P 500 closed higher by 1.1%, the Nazz by .5%, impressive given AMZNs 13% loss (its accounts for 3% on the Nazz composite). Volume which had been absent as of late came back yesterday. As we have always discussed here one of the keys to good market health is the action of leading stocks. Not only leaders, but ones that are breaking out and how they perform post break out. UA has now added to its 80.90 cup with handle breakout, and its RS line is at a new high before the stock itself was. Bullish. TPX has rallied further after its 64.70 breakout from a double bottom basis on 10/21 on a closing basis. TSCO keeps getting better after its 70.20 cup with handle breakout on 10/20. The days lagging groups were utilities and discount retail, just what you would like to see if the market is to have some strength behind it. The transports have continued to show muscle. CNI was the latest from the group to report solid earnings. UNP KSU NSC have previously. Other stocks which have proven the merits of technical analysis were PX which post earnings found exact 200 day support and rallied ahead. HES did the same except it was its 50 day MA. GS retook its 50 day MA in a big way Wed up 6%. FFIV retook its 200 day MA post earnings. AKAM continues to swim very comfortably above its 10 week line after reclaiming it 10/5. ATHN has been a disappointment down another 3% Wed on a strong tape. It has been acting poorly and hitting 50 day resistance ever since having a huge outside day 10/21 post earnings. Earnings Thursday include CTXS XRAY DOW XOM KMT MCO OXY SWI TWC before the bell and ARBA BIDU CERN CLF DECK EMN LVS NTGR SWN after the close. BMY also reports Thursday.

Stocks near exact buy points in double bottom bases are ANN 28.61, TIF 77.94, YUM 55.80, K 56.49, SAP 64.93, AET 41.95, RDSA 75.66.

Stocks that can be bought as they reclaim their 200 day MAs and their buy stop spots are HSIC 68.20, PLL 52.50, JOYG 88.50, DHR 49.50, AVT 32, COP 72.60, TXN 32.25, LLTC 32.40, ADI 37.25, XRAY 36.25 (earnings today), AET 39.25, MCO 34.25, R 49.75, FISV 60, RAX 39.40, BUD 56.75. Stocks that retook their 200 day MAs today were FFIV WLP VZ PPG XOM CBI IFF. Stocks that can be bought near 200 day support are SWI 23 (earnings today), AVGO 33, XOM 80.20, PAG 19.60. Stocks that received 200 day support Wednesday were AMZN ANN DKS YUM KO MDRX ORCL AZN CBS DTV PX APC SWN UNP AON. Stocks that can be shorted at 40 week resistance are ABX 49, DMND 67, DFS 23.70, HFC 31. Stocks that met 200 day resistance Wednesday were GG RAX NDAQ MCO LLTC GRA LVS TYC. Stocks that lost their 200 day MAs Wed were JNY EBAY and LMT ADP post earnings.

Stocks that can be bought as they reclaim their 50 day MAs and their buy stop spots are AA 11, DAR 14.30, EXXI 30.50, BTU 42.25, SLB 70.50, COP 72.50. Stocks that retook their 50 day MAs Wed were FCX SCCO AGU VIAB TCK FWLT. Stocks near 50 day support are FE 44, IACI 39.50, AAPL 390, NVDA 14, JPM 33, WFC 24.90, TCK 36.75. Stocks that received 50 day suport Wed were BHP EBAY YUM DE NDAQ QCOM SWKS CE DOW BHI CRZO SUN. Stocks that can be shorted at 50 day resistance are LULU 53.60, JAZZ 41.25. RIO LULU BID BIDU COG MMM all met 10 week resistance Wed. Stocks that can be shorted as they lose 10 week support and their sell stop spots are MAKO 36, BSFT 31.75. HSY lost its 50 day Wed and 3% in the process.

Good luck.

The author owns FCX DE.

Tuesday Recap

Markets gave back some recent gains Tuesday on some poor earnings reports and continued focus on Europe. The Nazz lost 2.26%, and its 200 day MA it had recaptured the day before. The S&P 500 lost 2%. Volume was softer on the Nazz, and up a tad on the S&P 500. The market may perhaps retreat, which is healthy, until the SDS approaches 200 day resistance to the upside near 22. Earnings news dominated the day with MMM falling 6%. CMI lowered gudiance and fell 5%, but found solid 50 day MA support. X plunged 10% on a weak earnings report, while rival NUE gave up just 3%. NUE recently recovered its 50 day MA, while laggard X has not. Weakness is to be sold among poor performers. YTD NUE lower by 25%, while X is lower by 65%!!. Chemicals had a bifurcating day as ALB was up 5% on upbeat earnings, while GRA EMN were lower by 5%. Refiners got destroyed with oil prices rising. HFC lost 10%, and its 200 day MA. CVI lost 9%, and its 50 day. WNR lost 10%, and its 200 day as well. Regarding WNR, that is why technicians wait for price confirmation to pull the trigger and not before. It had a 17.87 double bottom with handle buy point. Big integrated oils continue to have trouble with 200 day resistance including XOM COP. Some relative strength to take note of on a bad tape were the semis. The SMH was able to hold its 200 day MA, and many semis were actually up on the day. They included INTC ARMH KLAC NVLS. Transports bounced off 200 day support today and came off their lows. They were CNI NSC UNP. Some individual names that have now given you definitive stops if you care to go long them are UPS BTU. Both came smartly off their lows Tuesday in a soft market. Put sell stops ion Tuesdays lows. GNC managed to finish up as well, not surrendering its 24.90 double bottom buy point. Nice job. AMZN was lower after hours by 13% Tuesday on earnings. It is right near critical 200 day support. Todays earnings include ADP BEAV COG COP EXXI GMCR HES NSC NVLS ORLY PX SO JNY V WLP.

Stocks near 200 day support are SWN 40 ANN 26, PIR 10.75, WSM 36.60, LMT 77.50, ORCL 31.55, SAP 58.20, ADP 51, ABC 39.05, CMCSA 23.70, DTV 46.15, MTZ 19.25, ASML 39, AVGO 33, PX 100, APC 76, RDSA 69.40, CHRW 74.10, JBL 19.35, PAG 19.70. Stocks that found support at their 40 week MAs were JNY JNJ CBS SWN CNI NSC BWA BEAV. Stocks that can be shorted at 40 week resistance are GG 49, ABX 49, DFS 23.60. Stocks that met 40 week resistance are AET BAX PPG COG XOM TYC CBI URI. Stocks that can be shorted as they lose 200 day support and their sell stop spots are KO 66.40, CVI 22.40. Stocks that can be bought as they retake their 40 week MAs and their buy stop spots are ADI 37.25, LLTC 32.20, NVLS 33.90, JOYG 88.25. ARMH retook its 200 day Tuesday.

Stocks near 50 day support are NEM 63.60, ED 56.55, FE 44, SO 42, EBAY 31, SBUX 39, AKAM 22, V 88, NVDA 13.95, BBT 21.60, JPM 33, MS 15.95, WFC 24.90, APA 93, EOG 84.50. Stocks that found 50 day support Tuesday were BHP DE VZ CE BHI CRZO DOV. Stocks that can be shorted as they lose 10 week support are AAPL 389, MA 326, CERN 65.75, MAKO 35.75, WPI 66.75, BSFT 31.75, QCOM 50.90, DOW 26. Stocks that lost their 10 week MAs Tuesday were RIO FCX BID BAX VIAB CBOE EMN COG MMM FWLT. Stocks that can be shorted at 10 week resistance are LULU 53.10, HANS 87.30, VIAB 43.50, IBN 36.20. Stocks that met 10 week resistance Tuesday were SCCO TAP AGU BIDU ATHN GS SLB TCL LVS.

Good luck.

The author owns FCX DE.

Monday Thoughts

Markets resumed their rally ways with "Merger Monday" today. ORCL CI were some of the latest acquirers who just felt that equities were mispriced and undervalued, and proceeded to take advantage of the dislocations. The Nazz led the way today with a 2.3% gain, recapturing its 200 day MA in the process. The S&P 500 rose 1.3%, and volume on both exchanges was lower compared to Fridays elevated levels due to options expiration. Breadth was strong today and we continue to see more breakouts each day. The true barometer to the health of any market is how its leaders and breakouts are progressing. Today saw M break out from a 30.72 cup bas, and GNC take out its 24.90 double bottom buy point, which it attempted to do Friday. Todays laggards were stocks which hailed from defensive groups such as utilities and tobacco. Good signs indeed. Also safer names like WMT KO were both down today as the risk appetite returns. JJC rose 6.66%, today enabling 8% gains from FCX. More good things to see today included CATs stellar earnings report, and even TXN which was trading slightly up in the after market, even as it lowered guidance. Good action to bad news always must be considered bullish behavior. The SDS and UUP continue to move farther away from the 200 day lines they breached not to long ago. Tomorrow we get earnings from AMZN CHRW CE CBI COH FFIV NOV BTU QCOR RRC R TROW UA UPS X GRA.

Stocks at exact buy points include cup with handles UA 80.90, ACN 58.93. Cup bases are DSW 46.00, CHKP 61.56 KSU 62.86. Double bottoms are ANN 28.61, TIF 77.94, AXP 50.63, ORCL 34.23, AET 41.95.

Stocks that can be bought as they reclaim 50 day resistance and their buy stop spots are AA 11.15, IBN 36.60, CHK 29.25, BTU 42.15, SLB 70.30, TCK 37.40, X 26. Stocks that retook their 50 day MAs today were NEM BHP RIO FCX BID AGU DE DFS GS CE EMN PCLN FWLT. Stocks near 50 day support are FE 44, CERN 66. CBOE ALB BHI COG all found 10 week support Monday. Stocks that can be shorted as they lose their 10 week MAs and their sell stop spots are LULU 53, CVI 25, HFC 31.60. JAZZ can be shorted at 41.25, its 10 week MA.

Stocks that can be bought as they retake their 40 week MAs and their buy stop spots are BUD 56.80, FISV 59.90, R 49.60, CRM 135.50, MCO 34.20, AET 39.40, XRAY 36.20, WLP 69.75, QCOM 54.25, ARMH 28, ADI 37.25, LLTC 32.25, PPG 85.15, COP 72.60, CLR 62.15, EXXI 30.50, XOM 80.65, AVT 32, DHR 49.60, JOYG 88.40, PLL 52.50, HSIC 68.15, URI 25.40. Stocks that retook their 40 week MAs Monday were JNY FOSL LMT RAX DFS TWC GRA SWN UPS BWA BEAV KMT CBI. Stocks that can be bought at 200 day support are JNY 12, GRA 40.25, NBL 88.25, RDSA 69.40, SWN 40.15, UNP 96, BEAV 36.20, CBI 36. ANN EBAY NDAQ SAP DTV MXIM IFF all found 200 day support today. Stocks that can be shorted at 200 day resistance are GMCR 76, BIDU 133.50, BSFT 36.25. Stocks that met 40 week resistance Monday were ARMH PPG COP XOM TYC JBHT URI. FOSL can be shorted under 95, its 200 day MA.

Good luck.

The author owns FCX DE. We sold WNR for a 5% profit early in the day, and we sold KLAC today as well. We locked in a 5% gain on that as well. Did not like the lack of volume accompanying the breakout from its 44.69 double bottom with handle breakout.

Weekend Warrior

Markets finished the week strong Friday heading into a weekend looking toward Europe. The S&P 500 rose 1.1% for the week. It cleared and closed above recent resistance near the 1235 on good volume, most likely due to options expiration. The S&P 500 s now down 1.5% YTD and is lower 9.7% for the year. The Nazz finished the week lower by 1.1% (exact bifurcation from the S&P 500), but managed to close in the upper half of its weekly trading range. That 2600 level looks to have become support as it had been in mid March and mid June. It is now down .6% YTD and is 8.7% off its 52 week high. The S&P 500 displayed better strength than the Nazz this week because of four strong sectors. The financials look to have been resurrected as the XLF gained more than 4% this week, and has now been living comfortably above its 50 day MA which it has not done since losing it for good back in early March. MS gained 12% for the week, BK 9%, JPM 5%, as all regained their 50 day MAs in the process. AXP was up 5% for the week regaining its 200 day MA. Energy and the XLE, which has now gained 10% in 3 weeks looks poised for a 200 day test soon near 72.50. EOG gained 8% on the week and DVN 6%, as both retook their 50 day MAs. APC gained 12%, NBL 8% as both of those recaptured their 200 day MAs. The transports had a nice week as the IYT was up close to 3% on the backs of good earnings buy UNP KSU. Even FDX was up 4% Friday, on a downgrade (not a typo). And finally the utilities had a great week. XLU hit a 2 1/2 year high Friday. SO broke out from a 43.19 3 week tight pattern this week. FE on the weekly chart looks to be constructively building the right side of a long cup base dating back to June of '08. Both these pay a sweet dividend. Their yields are SO 4.3%, FE 4.8%. Concerning the Nazz's relative weakness we lok at the weekly losses for the heavyweights of the index. AAPL down 10%, BIDU 11%, WYNN 7%, QCOM 6%, AMZN EBAY 5%. And all these were down or basically UNCH (AMZN was up .5%) on a strong tape Friday to boot. Concerning indeed. We had some breakouts this week which were lacking and desperately needed. DPZ MCD TSCO SO ISRG all broke out from and hailed from some diverse sectors. Stocks hitting all time highs this week were BBBY NKE MCD ED TSCO. Copper rallied 5% Friday, a dead cat bounce or a bottom? Maybe FCX will make the final call, as it was UNCH for the week as JJC was lower by 5%. Earnings reactions are more and more positive this week with the nice action of CMG MCD KSU UNP. Of course AAPL IBM were off and Friday leader ATHN had a very bearish outside day on massive volume, post earnings. Earnings announcements Monday include CAT HXL TXN VFC.

Stocks near exact buy points include double bottoms AXP 50.63, CNI 75.02, SM 80.92, RDSA 75.66, TIF 77.94. Cup with handles are ACN 58.93, KSU 59.77, JBL 20.74. Double bottom with handles are KLAC 44.69, WNR 17.87, SWI 24.77. CHKP 61.56 in a cup base, HXL 25.78 (earnings Monday). BMY 33.30 in a 3 weeks tight pattern. M is building a handle in its potential cup base. Wait for confirmation. Buy point may be 30.47. TGT continues to look great building its right side. Watch list candidate.

Stocks that can be bought as they reclaim their 50 day MAs and their buy stop spots are BHP 76.50, KO 68.70, DE 72.75, CE 40.25, EMN 37.80. Stocks that retook their 50 day MAs Friday were MA ALTR JPM APA CRZO A ABB. Stocks near 50 day support are ABV 32.70, CERN 65.80, XRAY 32.95, QCOM 51, NVDA 13.95, DOW 26.25, COG 68.50, DO 60, HFC 32.10, SU 29, MMM 78. Stocks that can be shorted at 50 day resistance are TAP 42, BID 33.80, ATHN 60, JAZZ 41.70, PCLN 500, FWLT 21.25. Stocks that met 50 day resistance Friday were NEM KO AET ALB BHI. AAPL must hold near its 50 day here or it could be shorted under 387 on its way to 200 day support.

Stocks that can be bought as they reclaim their 200 day MAs and their buy stop spots are BUD 56.85, LMT 77.75, CRM 135.50, TWC 71.65, LLTC 32.25, GRA 40.30, PPG 85, COP 72.25, CLR 62, XOM 80.50, JNY 12.20, BWA 72.50. Stocks that retook their 200 day MAs Friday were WSM MDRX SAP ABC AZN CBS BRCM MXIM NBL CHRW. Stocks near 200 day support are SWI 23, ORCL 31.60, ADP 50.90, AZN 48.10, DMND 67, CMCSA 23.75, MTZ 19.25, AVGO 33, PX 100, CNI 73.05. Stocks that received 200 day support Friday were DTV CMCSA. Stocks that can be shorted at 200 day resistance are FOSL 95.40, GMCR 75.50, DFS 23.80, BSFT 36.30. Stocks that met 200 day resistance Friday were ANN RAX TWC COP XOM SWN UPS PCLN BWA. LULU can be shorted under 48, its 200 day MA. BSFT lost its 200 day Friday.

Good luck.

The author owns FCX DE KLAC WNR.

Thursday Recap

Markets put in a decent session Thursday as indexes managed to finish well off their lows and near highs for the day. The Nazz finished basically UNCH as it recovered more than 40 handles from its intra day low. The S&P 500 closed higher by .5%. Since it retook its 1200 level which proved trouble previously it has closed above that level ever since. Volume increased on the Nazz and fell on the S&P 500. Some positives are coming about with the 200 day MA on SDS becoming a nuisance. It has repeatedly found resistance their in recent days. Breakouts are emerging slowly. Today TSCO broke out from a 70.20 cup with handle base on 3X normal daily volume. Some stocks are starting to act in a benign way to earnings. Today RVBD rose 9%, UNP 4%, NUE 3%. Before we were seeing negative reactions even to good reports. The XLF found 50 day support today. 200 day support on the XRT is starting to look concrete. The Nazz's comeback was impressive since 3 of the heavyweights were lower today. AAPL PCLN and WYNN was down 5% alone. You would think we would be considerably lower considering the recent earning disappointments from the like of AAPL WYNN HAL WFC. But the fact that we are still holding up relatively well, more impressive since the huge run up we have had, has to bode well. Earnings Friday include MCD DOV KSU SLB VZ GNC.

Stocks near exact buy points (more on previous blogs) are NDAQ 26.06 in a double bottom with handle buy point. CHKP 61.56 in a cup without handle base. TIF setting up a double bottom base with a buy point of 77.94. KSU 59.77 in a cup with handle base. KSU reports before the bell Friday and if its as good as UNP was today, could potentially be a sweet breakout. GNC is also reporting Friday and its chart has firmed up nicely since retaking its 50 day MA. It is sporting a 24.90 double bottom buy point. BMY is one day away of forming the very bullish 3 week tight pattern where a stock closes on a weekly basis within 1% 3 consecutive weeks.

Stocks near 50 day support are ABV 32.60, BBBY 57, AKAM 22, IACI 39.05, AAPL 389, IBM 173, MAKO 36, QCOM 51, ADI 33. Stocks that received 50 day support today were UA EBAY GNC DELL ADS ATHN CRM XRAY WPI CBS NVDA BBT BK CBOE GRA CVI EOG HES HFC PXP SU WNR CAT DOV JOYG CMI. Stocks that can be bought as they reclaim their 50 day MAs and their buy stop spots are APA 93.50, A 34.25. Stocks that retook their 50 day MAs today were PM DVN RIG DO. DO did so on huge volume. Stocks that can be shorted as they lose their 50 day MAs and their sell stop spots are MCD 88, MCO 30.50. BAX lost its 50 day today. AET can be shorted at 38, its 50 day MA. MA JPM both met 50 day resistance today.

Stocks that can be bought as they reclaim their 200 day MAs and their buy stop spots are WSM 36.90, MDRX 19.65, ORCL 31.80, ABC 39.20, CBS 24.75, CMCSA 24.15, COP 72.30, XOM 80.25, NBL 88.30, SWN 40.45, UNP 96.30, UPS 71. NSC retook its 200 day MA today. Stocks near 200 day support are BIG 36, TIBX 25.20, BSFT 36.25, ASML 38.80, CVX 100.50, RDSA 69.25. Stocks that found 200 day support today were KO ADP HS MTZ AVGO KLAC PX APC RDSA. Stocks that can be shorted at 200 day resistance are LMT 77.50, RAX 39, SAP 58.20, JNJ 63.50, BRCM 37, CHRW 74.50. UNP met 200 day resistance today. LULU can be shorted under 47.75, its 200 day MA. ANN DELL DTV BRCM MXIM CNI JBL all lost 200 day support today.

Good luck.

The author owns FCX DE WNR KLAC. KLAC WNR were both bought at 200 day support today.

Wednesday After Market

Markets lost ground Wednesday, displayed bearish behavior by closing hard upon the lows. The Nazz lost 2% on higher volume, but did manage to close above the 2600 level. A small solace. The S&P 500 lost 1.2% on lower volume closing above the closely watched 1200 level. A good gauge to determine market health is the action of its leaders. Today AMZN MA were both down 5%. QCOM V both lower by 4%. JAZZ is now down 12% in the last 2 days and surrendering its 50 day MA in the process. Of course other recent leaders which have acted poorly are the two 800 lb gorillas AAPL IBM. When you lose the generals its hardly ever a good sign. Even more bearish has been the action of stocks reporting earnings. Its been very hard to find stocks that have acted well. One exception among the 200 stocks we follow was DPZ. Up another 4% today after yesterdays 7% pop post earnings. More familiar however are the stories after hours of CRUS 13%, WYNN EBAY both 4%. Today's strength came from defensive sectors such as utilities and alcohol. Not the growth engines we need to power ahead. A quick suggestion for a alcohol pair, could be long DEO/short TAP. The banks hit concrete walls at their 50 day MAs. They included GS JPM. NTRS PNC both had negative reversals. Copper was weak with JJC down by 5%. Would love to blame that on the late day weakness after the Beige Book, but it was lower well before 2pm. FCX in my opinion held up well today. Full disclosure, I own it. Chemicals were weak today with ALB down 8%, CE EMN both down 5%. Gold miners were slaughtered as well with GG ABX both down 5% or more. Even group leader NEM pierced its 50 day MA today and closed below it for the first time since August. Tomorrow companies reporting and therefore headed for the firing squad are ALXN ADS ALTR ATHN BAX BBT CMG DHR DO NBL NUE PENN PM TPX UNP.

Stocks near exact buy points which should be bought obviously on very strong volume and with a little trepidation in this environment are cup with handles AMT 56.43, KSU 59.97, JBL 20.74. Double bottom with handles are WMT 56.49, KLAC 44.69. ACN looks like its putting on a handle to its cup base. Needs to more days to form. Be patient and wait for the breakout.

Stocks near 50 day support are UA 69, SBUX 38.60, AKAM 22, ARUN 21, IACI 39, AAPL 378, CBS 23, VZ 36, ARMH 26.80, AVGO 33, SWKS 20.50, BBT 21.30, EOG 85, HFC 32.05, NOV 62, EXPD 43, FDX 74, UNP 88.25, UTX 72, DHR 43.50, CAT 82.50, DOV 52, JOYG 75, BWA 66.25, NUE 33.75. Stocks that found 50 day support today were GNC PLCM KKR SU CMI. DVN can be bought with a buy stop of 62.70 as it reclaims its 50 day MA, which it did today intra day. XRAY retook its 50 day MA today. Stocks that can be shorted as they lose their 50 day MAs and their sell stops are CMG 309 (earnings Thursday), MCD 87.75, ADS 91.75 (earnings Thursday), ATHN 59.50 (earnings Thursday), CERN 65, FTNT 18, WPI 66.10, DOW 26.10, CMI 89.65. Stocks that lost 50 day support today were MA XLNX ALB BHI COG ABB. Stocks that can be shorted at 50 day resistance are TAP 42, MA 327, JAZZ 41, A 34, FWLT 21. Stocks that met 50 day resistance today were TAP PM BIDU AET VIAB ALTR GS IBN SLB WYNN A FWLT.

Stocks near 200 day support are ANN 25.75, BIG 36, K 54.10, MON 69.80, SWI 22.90, INTU 50, TIBX 25.05, VMW 90, ADP 50.80, BSFT 36, MTZ 19, ASML 38.65, PX 99.80, APC 75.90, CVX 100.25, RDSA WNR both here. Stocks that found 200 day support today were BIG ORCL DTV BRCM MXIM CBOE RDSA WNR CNI JBL. Buy stops for these two as they retake their 200 day MAs are XOM 80, SWN 40.30. Stocks that can be shorted as they lose their 200 day MAs and their sell stop spots are LULU 47.75, KO 66.15, ARBA 30. Stocks that lost their 200 day MAs today were GMCR YUM RAX JNJ CMCSA QCOM NSC LVS. Stocks that can be shorted at 200 day resistance are FOSL 95, GMCR 74.75, WSM 36.50, YUM 52, LMT 77.50, DFS 23.50, SAP 58, CHRW 74.50. Stocks that met 200 day resistance today were DKS FOSL WSM NDAQ SAP ABC GRA CHRW PCLN.

Good luck.

The author owns FCX DE.

Tuesday Recap

Markets surged higher Tuesday, an opposite of the "turnaround Tuesdays" we had become accustomed to not to long ago. Indexes displayed bullish action as they closed strongly into the close. The S&P 500 led the way with a 2% gain, and the Nazz was higher by 1.6%. Most importantly the volume rose across the board, although it was below average. The XLF had a big day up 5% and recapturing its 50 day MA in the process. GS was higher by 5% on earnings. MS was up 9%, BK 8%. Both retook their 50 day MAs as well. The noise of financials needing to support any sustainable rally may be coming to fruition. But we know we have an administration the hates the banks, so time will tell. The SMH has been trading very tightly and looks poised for a 200 day MA test as INTC rose 4% after hours to levels that stock has not seen in 3 years. Retail has been a stalwart group as of late, with the XRT again reclaiming its 200 day MA today. Many in the group had sweet upside reversals today. They include RL NKE DECK UA PIR. JWN had a bullish upside day, and TGT continues to build a nice round base. The IYT had a nice move with the old salty veteran traders insisting on the importance of that group contributing to overall market health. XLE was up 3% today after finding solid 50 day support. That group saw 2 breakouts today from double bottom bases. CVX @100.68 and APC @77.55. CVX volume was very mediocre at best however. Some leading stocks broke out today including PENN breaking out of a double bottom base buy point of 40.52. We had a rare upside earnings move today from DPZ, up 7%, hitting an all time high in the process. One leader that suffered today was JAZZ, down 6% losing its 50 day today. Tomorrow should be interesting with the obvious miss of AAPL. It had its first EPS miss in almost 8 years. The market went higher without IBM which cost the Dow 62 points today, but AAPL is the 800 lb gorilla. If the market can shake that off that would be ultra impressive. Earnings tomorrow include BK MS before the open and after the close from AXP CRUS RVBD TSCO WYNN. EBAY FCX PNC also report tomorrow as well.

Stocks near exact buy points are double bottoms ANN 28.61, YUM 55.80, K 56.49, SWI 25.72, ORCL 34.23, BSFT 41.00, KLAC 44.70, WNR 18.51, CNI 75.02, PLL 52.34. SO 43.19 in a 5 week tight pattern. Cup bases include M 30.72, CHKP 61.56. DSW 51.97 in a cup with handle base. WMT needs one more day to complete a valid handle (must be 5 days in duration) in a double bottom base with handle. Buy point would be 56.49. KSU needs one more day to complete its handle in a cup base @59.77.

Stocks that can be bought as they reclaim their 50 day MAs and their BUY stop spots are SCCO 29.50, DE 72.50, XRAY 33, GS 105.50, JPM 33.60, IBN 37.25, EMN 38.45, CRZO 26.45, DVN 63, SLB 71.15, A 34. Stocks that retook their 50 days MAs today were GNC BK MS DO EOG PXP. Stocks near 50 day support are NEM 63, ED 56, GNC 22.40, RVBD 22.50, ATHN 59.25, EOG 85. Stocks that found 50 day support today were FE CMG MCD PLCM RVBD R CRM BAX WPI WLP CBS XLNX WFC DOW HFC NOV OXY PXD SU EXPD FDX UTX DHR CAT DOV JOYG. Stocks that can be shorted as they lose their 50 day MAs and their SELL stop spots are ADS 91.50, CERN 64.50. PM lost its 50 day MA today. Stocks that can be shorted at 50 day resistance are LULU 53.60, BID 33.75, BIDU 134, CE 40.20, PCLN 500, WYNN 140, FWLT 21.50. Stocks that met 50 day resistance today were BHP TAP AXP XRAY VIAB ALTR BHI SLB.

Stocks that can be bought as they reclaim their 200 day MAs and their BUY stop spots are LMT 77.50, NDAQ 25.40, MDRX 19.75, CRM 135.75, ABC 39.10, AZN 48.15, CBS 24.30, LLTC 32.30 (earnings disappointment after the close), TXN 32.15, GRA 40.25, XOM 80, SWN 40.35, UPS 71, TYC 45.50, BWA 72.25. Stocks that retook their 200 day MAs today were BIG MKC ORCL SAP VMW BAX CMCSA QCOM RDSA CNI NSC. Stocks near 200 day support are DEO 79, BIG 36, GMCR 74.70, XRT 50.15, ORCL 31.55, SAP 58, ADP 50.80, QCOM 54, ASML 38.60, BRCM 37.20, MXIM 25.05. Stocks that found 200 day support today were PVH PM ANN PIR K ADP HS HUM JNJ DTV ARMH BRCM CRUS PX WNR JBL. Stocks that can be shorted at 200 day resistance are GG 48.50, ABX 49, BUD 56.60, FOSL 95, AXP 47.25, DFS 23.50. Stocks that met 200 day resistance today were DKS WSM NDAQ CHRW TYC. KO can be shorted with a sell stop @66.20, as it loses its 200 day MA.

Good luck.

The author owns FCX DE.

Monday Recap

Markets were slammed to start the new week today. Both the Nazz and the S&P 500 lost 2% on slightly increased trade. The S&P 500 and Nazz both were able to keep their head above the water near prior resistance areas. The Nazz held 2600, the S&P 500 1200. However with the earnings action after the close we certainly should be at least piercing those levels to start the day. China data tonight may, I repeat may, soften the blow tomorrow AM. The tone today changed with the dismal tape and heightened volume. As the quote goes, "when the facts change I do sir, what do you do?". So we should look to sell into strength for the time being. The SDS managed to reclaim its 200 day MA, which has been very accurate at predicting market tops since early August. The VXX jumped more than 10% today reclaiming its 50 day MA in the process. The dollar ETF UUP found 50 day support Friday and today continued its constructive action retkaing its 200 day MA. Commodities therefore took it on the chin. AA X were both lower by more than 7%. BHI was down 6%, in reaction to poor earnings from HAL. Opportunity? Perhaps. Chart in no mans land though. More bearish action was the bad price movement to decent news. CAT had an ugly outside day and in the process losing its 50 day MA, despite a Goldman upgrade. CMI lost 6% in sympathy. Banks were lower today on WFCs poor earnings report. However MS GS both finished higher on the day. GS reports tomorrow morning. TGT held up well also on a horrible tape as well. Good relative strength. BID lost 6% today. Are the rich abandoning their art purchases? Are we in the midst of a bear market rally? Let the markets action guide you as always. Earnings has certainly got off to a rough start today and continued with both IBM VMW falling after hours. Tomorrow we hear earnings from CHKP KO FRX HOG JNJ PII before the open and AAPL INTC CSX after the close. LLTC DPZ also report Tuesday.

Some stocks near buy points include cup bases M 30.72, PII 61.60 (earnings before open). TSCO 70.20 cup with handle. Double bottoms are K 56.49, SWI 25.72, APC 77.55 (upgraded by Raymond James, and met resistance intraday at 200 day MA), PENN 40.52. SO 43.19 in a 5 week tight pattern.

Stocks near 50 day support are ABV 32.10, DPZ 27, TJX 55, RTN 41, AKAM 22, IACI 39, NTGR 27.50, PLCM 21.80, KKR 11.25, TROW 50.10, R 42.75, ATHN 59, FTNT 18.10, JAZZ 41, WPI 66.30, DIS 32.05, SMTC 22, SWKS 20.30, XLNX 29.60, BBT 21.25, PNC 48, HFC 32, OXY 81,NUE 33.75. Stocks that found 50 day support today were PM BIDU RVBD CBS ALB DOW SM DOV JOYG. Stocks that can be bought as they reclaim their 50 day MAs and their BUY stop spots are GNC 22.70, FRX 32.85. COG retook its 50 day MA today. Stocks that can be shorted as they lose their 50 day MAs and their SELL stop spots are MCD 87.60, BIDU 133.50, ADS 91, MA 326, CRM 123.75, HUM 74, HUM 74, NOV 61.75, EXPD 42.75, UNP 88, UTX 71.75. Stocks that lost their 50 day MAs today were BHP LULU YUM ABC XRAY ALTR WFC CE EMN BHI FDX MMM ABB. Stocks that can be shorted at 50 day resistance are AXP 46.60, AET 38, ABC 38.05, CE 40.25, EMN 38, DO 60, A 34, FWLT 21.20. Stocks that met 50 day resistance today were TAP AET VIAB IBN CRZO DO PXP PCLN A.

Stocks near 200 day support are PVH 64, UA 68, DEO 79, ANN 25.75, PIR 10.75, TIF 68, WMT 53.50, KO 66.25, K 54.10, MON 69.75, GOOG 560, DELL 15.25, INTU 50, TIBX 25, ADP 50.70, JNJ 63.40, BSFT 36, MTZ 19, V 36.40, ARMH 27.50, ASML 38.60, KLAC 42, MXIM 25.05, PX 99.50, WNR 16, KSU 54, JBL 19.50. Stocks that found 200 day support today were RAX DTV BRCM CRUS PCLN JBL. Stocks that can be bought as they reclaim their 200 day MAs and their BUY stop spots are BIG 36.25, MKC 48. Stocks that can be shorted as they lose their 200 day MAs and their SELL stop spots are ARBA 30, HS 39, LVS 43.80, PCLN 490. Stocks that lost their 200 day MAs today were FOSL WSM DFS NDAQ ORCL BAX CMCSA QCOM GRA CVX RDSA CNI. Stocks that can be shorted at 200 day resistance are GG 48.50, ABX 49, DKS 37.05, YUM 52, DFS 23.50, NSC 68. Stocks that met 200 day resistance today were GG DKS YUM NSC WYNN BWA.

Good luck.

The author is long FCX DE. We sold XRT as it lost its 200 day MA for a very small loss. That was our catalyst to get in. Discipline.

Weekend Stock Reflections

Markets showed enormous gains for the week, gaining more than they have in a weekly period since July 2009. The Nazz gained 7.6% and is now UP .6% YTD. The S&P 500 motored ahead 6.1% and is still down 2.6% YTD. Compare that to any other major world index and it seems quite impressive. Only 2 other indices are down less than 10% YTD, and they are UK down 5.5% and Australia down 8.3%. The Nazz has been outperforming and seems poised for a test of its 200 day MA just under 2700. Both indexes reclaimed their important 50 day MAs Monday. That important 10/4 intraday now looks like the capitulation day. If not certainly some individual stocks did capitulate that day. FCX AGU APA CHK FCFS all did to name a few. Adding more credence to the recent rally is the emergence of some leading sectors. Tech and retail have muscled their way higher, replacing some defensive groups like utilities. Even some financials seem to have broken their downtrends this week. BBT TROW PNC R all look decent on the charts. KKR itself is up almost 40% from its intra day low last week. Amazingly a large number of investment advisers still remain bearish. The number stands at 46.3%, very close to its 5 year high of 54.4%. Stocks hitting all time highs Friday were AMZN BBBY HANS IBM SBUX. AAPL was pennies from its all time high. Its a good sign when leaders act well. Markets are now shaking off bad news and going higher, another positive development. AA JPM PEP have been recent disappointments, while GOOG JBHT shined. Oil was up 5% on the week, as the XLE reclaimed its 50 day MA Friday. With that action along with the construction and mining equipment groups action, perhaps a nail can be put in the recession coffin. Retail also performed admirably with XRT closing above its 200 day MA near 50 for 4 consecutive days.SDS lost its 200 day MA Friday for the first time since early August and the VXX lost its 50 day MA Friday. Another sign of a possible continuation of the recent uptrend? Maybe markets are pricing in a Republican victory in 2012 (although markets generally discount 6-9 months in advance). Is the insanity regarding the Occupy Wall St. demonstrations a sign of public capitulation? No one knows for sure, and as always let the indexes and their price and volume action be the true gauge. Right now its hard to ignore the benign tape. One caveat is the lack of volume. That should be taken care of this week, with a huge number of companies reporting earnings. IBM VMW HAL WFC all report Monday.

Stocks near exact buy points are: Double bottom bases LULU 61.90, ANN 28.61, K 56.49, BIDU 150.56, SWI 25.72, BSFT 41.00, EL 106.52, TPX 64.70, KLAC 44.70, APC 77.55, GTLS 56.98, CVX 100.68, EP 20.00, HFC 38.32, WNR 18.51, CNI 75.02, PENN 40.32, WFC 29.73. Cup bases are (handles may form) M 30.72, HXL 25.78, DELL 17.70, CHKP 61.56, ADP 55.12, ACN 63.76, KSU 62.86, PII 61.60. SO 43.19 in a 5 week tight pattern.

Stocks that can be bought as they recalim their 50 day MAs and their buy stop spots are RIO 54.50, GNC 22.75, KO 68.50, DE 73.10, AET 38.15, FRX 32.90, BK 20, IBN 37.60, MS 16, EMN 38.50, APA 95, COG 68.75, CRZO 26.30, DO 60.55, EOG 85.50, PXP 28, SM 71.95, TCK 38.25. Stocks that retook their 50 day MAs Friday were BHP PM LULU AGCO RVBD PLCM ALTR CE APC BHI CXO HES NBL OXY PXD SU FDX ABB CAT. Stocks near 50 day support are ABV 32.05, DPZ 27, TJX 55, HSY 57.90, RVBD 22.60, PLCM 21.90, XRAY 32.80, JAZZ 41, BBT 21.30, EXPD 43, DOV 52. Stocks that found 50 day support Friday were CROX XRAY HUM XLNX. Stocks that can be shorted at 50 day resistance are GG 49.80, TAP here, GMCR 100, POT 52.05, WYNN 140, A 34. Stocks that met 50 day resistance Friday were RIO TAP GNC BID KO AET FRX VIAB COG PXP SM SLB PCLN A. DFS lost its 50 day MA.

Stocks that can be bought as they reclaim their 200 day MAs and their buy stop spots are BUD 57, BIG 36.20, DKS 37.50, FOSL 95.75, MKC 47.95, MDRX 19.75, FTNT 21.10, INFA 49.70, SAP 58.30, CRM 135.50, ABC 39.10, AZN 48.20, LLTC 32.25, SMTC 24.35, TXN 32.25, XOM 80, SWN 40.25, CHRW 74.80, BWA 72.25, NSC 68.60, HOG 38.75, TYC 45.50, AVT 32.10. Stocks that retook their 200 day MAs Friday were ANN WSM ORCL VMW CMCSA QCOM BRCM GRA RDSA SM CNI. Stocks near 200 day support are ANN 25.70, TGT 51, TIF 68, WMT 53.50, RAX 38.50, NDAQ 25.05, ARBA 30.10, ORCL 31.50, ADP 50.70, VCLK 16, JNJ 63.35, DTV 46, MTZ 19, QCOM 54, ECL 51, IFF 59.60, PG 63.55, ARMH 27.50, ASML 38.60, BRCM 37.20, KLAC 42, GRA 39.90, PX 99.50, CVX 100, RDSA 69.25, JBL 19.55. MXIM LVS both received 200 day support Friday. Stocks that can be shorted at 200 day resistance are ABX 49. GG DKS FOSL MKC LMT AXP SAP CBS TWC all encountered 200 day resistance Friday. DFS can be shorted with a sell stop of 23.30, its 200 day MA.

Good luck. Did not catch a single fish at Montauk Point the 3 days I was gone. Still had a blast though.

The author owns FCX DE XRT. We bought XRT just above 50 Thursday, its 200 day MA.

Tuesday Recap

Markets were basically calm and flat today with the exception of the Nazz which outperformed and was up .7%. And Nazz volume was up from yesterdays levels, but still below normal. The simple fact that both the Nazz and the S&P 500 held there huge gains from yesterday, and in the case of the Nazz gained further, was impressive. The Nazz is approaching the 2600 level which has proved troublesome in the past. The S&P 500 is nearing its own big round number of 1200. The SDS is approaching its 200 day MA at 22, which has proved as strong support recently. Leading stocks were as bifurcated as they Nazz and the Dow, with AAPL up 3% (clearing 400), and ATHN UP 4%. However BIDU met 200 day resistance, and WYNN 50 day resistance. More stocks are sporting potential double bottom bases which should be included on your watch list. We mentioned a few yesterday (CVX EP KLAC), today a few more are in the process. WFC 29.73 (yes a bank stock!!), CNI 75.02, SWI 25.72 all double bottom buy points. The retail ETF XRT reclaimed its 200 day MA today as some stocks in that group are building the right side of their potential bases. M TGT come to mind. TWC also is building its right side. The energy ETF XLE is nearing its 50 day MA. Will be interesting to see how that transpires. It will be affected certainly by the moves in the US Dollar ETF UUP. Stocks that hit all time highs today were ALXN DLTR ROST. AA disappointed after the close. May be a buying opportunity for some other commodity stocks if they sell off since aluminum has been a serious underperformer as of late. PEP reports before the open tomorrow. GOOG JPM report Thursday.

Stocks that can be bought as they reclaim their 50 day MAs and their buy stop spots DE 73.25, LULU 54.25, HLF 55.50, HFC 31.35, NBL 82.25, EXPE 28.90, HOG 36.25, MS 16.25, QLIK 25, EMN 38.50, XRAY 33.25, IP 25.80, CBI 32.75, A 34.25. Stocks that retook their 50 day MAs today were GOOG CMG MA CVI CRM DOV WAT AKRX KKR. Stocks near 50 day support are ANN 23, DPZ 26.95, TIF 68, CVX 96, COP 65.50, EP 18.25, RRC 61, RDSA 64.25, QCOM 50.50, PPG 74.25, WPI 66, WCN 33. Stocks that found 50 day support today were BUD ABV DIS WPI ETN. Stocks that can be shorted at 50 day resistance are CROX 27, GMCR 100.50, COG 68.50, HES 57, WYNN 141, ALB 48.25, AET 38, CAT 83, DD 45. Stocks that found 50 day resistance today were CROX LULU CVS TAP HLF CLR HES NOV OXY EXPE WYNN MS QLIK CBS DOW CSX JOYG CBI WY A XLNX. WSM can be shorted with a sell stop of 31.50, its 50 day MA.

Stocks that can be bought as they reclaim their 200 day MAs and their buy stop spots are RAX 38.40, CMCSA 23.75, ORCL 31.70, TIBX 25.25, VMW 91.25, ADP 50.80, UNP 96.25, BWA 72.25, BRCM 37.60, MXIM 25.25. Stocks that retook their 200 day MAs today were K WNR PCLN. Stocks near 200 day support are KO 66.40, COH 57, TGT 51, PX 99.50, GTLS 46.25, BAX 55, JBL 19.55, ARMH 27.25, AVGO 32.50, KLAC 41.95, INTU 51. Stocks that found 40 week support today were PM IFF HFC PENN WYNN MTZ ARBA HS HUM UNH. Stocks that can be shorted at 40 week resistance are GG 48.50, ABX 49, BIDU 131, PAG 19.50, AXP 47.10, EL 95, SM 69, IRM 30.50. Stocks that met 200 day resistance today were TIBX VMW ADP IRM NDAQ NSC. LVS can be shorted with a sell stop of 44, its 200 day MA.

Good luck. Will be in Montauk surf fishing for the next 3 days. Posts will resume on the weekend.

The author owns FCX DE.

Monday Recap

Markets exploded to the upside on Columbus Day, perhaps because the credit markets were closed and there was no capital competition. Perhaps because of easing European concerns. Both the Nazz and the S&P 500 reclaimed their 50 day MAs today. The caveat was the absence of volume, however with the holiday thats understood. Some clear positives are developing. Indexes rallied hard into the close, closing upon their highs for the day. More leading stocks are setting up valid base buy points. Double bottom buy points are TPX 64.70, CVX 100.68, EP 20, PENN 40.52, KLAC 44.70. DSW ACN KSU are all patiently building the right side of their potential bases. We had some M&A activity in the oil group with SPN acquiring CPX. More leading stocks are hitting ALL time highs such as IBM QCOR VFC. Banks were strong today with the XLF nearing 50 day test @12.60. Today MS was up 7%, WFC BK 6%, JPM 5%. Transports were higher after the IYT also retook its 50 day MA. Sector mates NSC UNP EXPD all retook their 50 day MAs as well. AAPL regained its 10 week line too. That all being said the market is still in correction, and looks near term overbought. SDS should catch a bid near 22, its 200 day MA. Lets see how that test unfolds in the coming days. AA reports after the bell Tuesday.

Stocks that can be bought as they reclaim their 50 day MAs and their buy stop spots are LULU 54.30, CVI 25.20, COG 69.90, CLR 53.60, OXY 82.25, CBS 23.25, XRAY 33.25, IP 26, WY 17.25, A 34.30, XLNX 30. Stocks that retook their 50 day MAs today were IACI ANN MCD TIF WSM BUD PCP TPX COP FTI RRC RDSA LVS ATHN DIS PPG UNH EMR HON NUE DHR BWA. Stocks near 50 day support are ABV 32, TPX 58. DPZ MTZ QCOM all found 50 day support today. Stocks that can be shorted at 50 day resistance are BHP 77.50, CROX 27, CVS 34.75, GMCR 101, MA here, HLF 55, CXO 83, HES 57.50, NOV 63, EXPE 28.50, WYNN 142, DOW 27, AET 38, GNC 22.95. Stocks that met 50 day resistance today were CROX GOOG LULU AN CMG TAP MA CRM NLSN XRAY CSX DOV ETN XLNX.

Stocks that can be bought as they retake their 40 week MAs and their buy stop spots are CVX 100.20, CMCSA 23.80, TWC 71, QCOM 54.25, ORCL 31.80, ADP 50.80, NDAQ 25.40, MXIM 25.15, XRT 50.25. Stocks that retook their 200 day MAs today were KO COH PETM PM CBOE IFF HFC LVS WYNN ARBA PX HUM UNH JBL AVGO SWI INTU. Stocks near 200 support are TGT 51, PX 99.75, HS 37.95, JBL 19.60, AVGO 32.50, KLAC 41.95, INTU 49.80. EBAY found 200 day support today. Stocks that can be shorted at 200 day resistance are GG 48.50, ABX 49, BIDU 131, RAX 38.25, ANN 24.95, PAG 19.50, AXP 47.05, SM 69, WNR 16, PCLN 494. Stocks that found 200 day resistance today were K TIBX VMW IRM NDAQ.

The author owns FCX DE.

Weekend Warrior

Markets zig zagged between gains and losses Friday before settling in the red. For the week the Nazz was higher by 2.7%, the S&P 500 by 2.1%. The Nazz is down 6.5% YTD, with the S&P 500 lower by 8.1%. With the indexes still in correction (Nazz 14% off its 52 week high, S&P 500 16%), their was some constructive action on a weekly basis. Both indexes managed to close near the very highs of their ranges for the week, although they both were rebutted by their 50 day MAs. The ETF SDS hit 50 day resistance as well on Friday. That weekly chart shows a possible double top (this week along with the 8/12 week), which could be bullish for the markets. A broader look at the averages however shows leading stocks vastly under performed this week. A negative for sure. WYNN was repelled at its 200 day MA, while 800lb gorilla was hampered by 50 day resistance. Semis had a banner week, and indeed INTC KLAC NVLS TXN were higher on a 1% plus lower Nazz tape Friday. Good relative strength. Commodities were mostly higher for the week with copper up almost 6%, crude by 5%, on the backs of a slightly weaker greenback. FCX had a weekly gain of 12% on its biggest weekly volume in over a year and a half. Important groups, such as the rails saw UNP NSC WAB all meet strong resistance at their 50 day MAs. The ETF IYT looks poised for a 50 day test of its own soon, as that chart is mired in a downtrend. Machinery stocks that met 50 day resistance Friday included ETN CMI EMR HON. It is hard to paint a bullish picture on the markets until the major averages muscle through their respective 50 day MAs. Investment advisers are now predicting some very big up moves, a bad contrarian sign. Banks were assaulted again Friday with both GS JPM down 5%. That is all too familiar. Can PAYX be trying to tell us something about the future job situation? I doubt it could be positive at all, but I let the charts do the talking. And it was up over 1% on a weak Nazz tape Friday. JWN continues to be my favorite retail stock, as it gained 7% for the week. VFC in that group is another favorite and continues to sport a 132.92 cup with high handle pattern. The traditional earnings season kicks off this week with NVLS Monday, then AA JPM GOOG later in the week.

Stocks near 50 day support include NEM 61.50, HSY 57.45, BBBY 56, FAST 33, M 26, SBUX 38, WFM 64, XOM 73, CHKP 54, NDAQ 23.15, UPS 64.95, AKAM 21.75. Stocks that received 50 day support Friday were SCSS ABV V NTGR WFC SAP PX JAZZ. Stocks that can be bought as they reclaim their 50 day MAs and their buy stop spots are IACI 39.25, CVX 96.30, PPG 75. SCSS retook its 50 day Friday. Stocks that can be shorted as they find resistance at their 50 day MAs are RAX 36, LULU 54, AN 36.30, CVS 34.75, DPZ 26.80, GMCR 101, TIF 68, WSM 32, BUD 53.40, TAP 42.10, HLF 55, TPX 58, COP 65.75, RDSA 65, AAPL 383, MTZ 19.20, DHR 43.80, BWA 67, ATHN 58.50, CRM 126, DIS 32.50, EXPD 43, NUE 34, WY 17. Stocks that encountered 50 day resistance Friday were CROX IACI RAX ANF ANN MCD TIF WSM PCP CVX EP RRC RDSA PENN QCOM NLSN PPG NUE ARMH. Stocks that can be shorted as they lose their 50 day lines and their sell stop spots are HANS 83, COST 78.25, CERN 64, JAZZ 40, WPI 65.50. Stocks that lost 50 day support Friday were DPZ CBOE MTZ.

Stocks near 200 day support include MON 69.25, RGLD 59, UA 67.50, CMG 279, COST 77, TGT 51, CVI 21.90, EP 18, EXPE 26.05, ACN 54.25, BAX 54.95, KSU 53.75. ANF TGT BAX AVGO all found 40 week support Friday. Stocks that can be bought as they retake their 40 week MAs and their buy stop spots are K 54.10, PM 65.40, TIBX 25.25, HS 38.10, JBL 19.60, KLAC 42, MXIM 25.15. Stocks that can be shorted at 40 week resistance are GG 48.50, ABX 49, KO 66.50, COH 57.15, BIDU 131, PETM 42.15, EL 95, HFC 29.75, LVS 44, PCLN 490, WYNN 135, VMW 90, IRM 30.50, UNH 46. Stocks that met 40 week resistance Friday were KO COH EBAY PETM PM IFF EL HFC WYNN ARBA VMW PX HUM SWI.

The author owns FCX DE.

Thursday Recap

Markets rallied for the 3rd consecutive Thursday, but a drop in volume dampened the spirit. The past three days saw the indexes have softer volume than the previous day. Not exactly bullish. Some positives are developing with the fact that markets are rallying strongly into the close. Three days in a row now. The Nazz and the S&P 500 both rallied 1.8% today. The Nazz is less than 1% from its 50 day MA, (2520) where resistance has proved formidable. The S&P 500 is closing in on its 50 day MA (1180) as well. The ETF SDS lost its 50 day MA today and is approaching its 200 day MA near 22, where support has proven firm. That could all change with the jobs report tomorrow morning before the bell. Banks were up again smartly today with JPM MS both up 5% and GS 4%. The bank ETF XLF is also approaching its 50 day MA about 50 cents away. The retail ETF XRT reclaimed its 50 day MA with the help of TGT strong same store sales report. Many in that group have rallied strongly off 200 day support for three days now and include BBBY JWN CROX DECK.

Stocks that can be bought as they retake their 50 day MAs and their buy stop spots are RAX 36.10, LULU 54.30, CVX 96.40, COP 66.25, EP 18.60, QCOM 51.25, SAP 52.95, NLSN 28.20, PPG 75, EXPD 43.25, EMR 45.25, NUE 34.20, WY 17.25, A 35. Stocks that retook their 50 day MAs today were MON HANS RL BBBY DPZ PAG SBUX ABV ADS V WFC CMCSA MTZ CHKP ADP MCO PAYX WPI WAT NVLS and XRT a retail ETF. Stocks near 50 day support SBUX 38, ABV 31.85, XOM 73, NTGR 28, WFC 24.75, MTZ 19.10, CERN 64, UPS 65, TXN 27, AKAM 22, XRT 47.95. Stocks that found 50 day support today were COST FAST TJX ED NDAQ JAZZ UPS BRCM MCHP MXIM.

Stocks that can be bought as they reclaim their 200 day MAs and their buy stop spots are DEO 79, PM 65.20, IFF 59.85, ARBA 30.25, TIBX 25.20, VMW 90.45, PX 99.80, NDAQ 25.30, JBL 19.60, SWI 22.80. Stocks that retook their 200 day MAs today were MON ANF AN EBAY TPX CVI EP EXPE BAX AVGO. Stocks near 200 day support are M 25.60, TGT 51, CVI 22, EXPE 26.05, ACN 54.25, KSU 54, INTC 21.45. Stocks that can be shorted at 200 day resistance are GG 48.50, ABX 49, KO 66.50, BIDU 131, PETM 42.15, EL 94.75, WYNN 135, IRM 30.50, HUM 71, UNH 45.90.

Stocks that can be shorted at 50 day resistance are CROX 27, IACI 39, ANN 23.10, AN 36.40, GMCR 101, MCD 84.75, TIF 68.40, WSM 32, CSX 21, ETN 40, HON 46, DHR 44, ARMH 26.50, GNC 22.95. Stocks that met 50 day resistance today were K RAX ANF ANN SCSS BUD EP RRC QCOM CRM GTLS HS CNI UNP EMR ARCO.

Good luck.

The author owns FCX DE.

Wednesday After Market

First and foremost, lets all begin tonight with an immense respect, admiration and condolences for a truly one of a kind, Steve Jobs. Our world will never be the same. Thank you for making all our lives easier and more enjoyable. RIP.

Markets forged ahead for the second consecutive day Wednesday. And for the second straight day the markets closed strongly into the close. This type of behavior has been rare recently. The S&P 500 outperformed the Nazz by a 2.3% to 1.8% margin. The Nazz is now 60 points away from its 50 day MA which has posed problems for the index repeatedly for the last month. Speaking of round numbers like we did yesterday the Nazz rallied from a low of basically 2300 and now sits just over 2460. 160 handles in 2 days. The S&P 500 now rests just under 40 points from its 50 day MA. Commodities regained the spotlight today as risk seems to have come back on for the last couple of days. Lets see if that trend continues. Copper stocks were up handsomely today with SCCO up 10%, FCX 7%. Ags rose again with POT AGU DE all up over 4%. BHI rose 8%, SU 9.5%, wll 10% in the energy sector. SDS is once again nearing a 50 day test around 24. VXX, a fear indicator has backed off now 12% in the last couple of days. As we still remain in a correction, remember bear market rallies are swift and volatile, a couple of stocks must be included in your watch list building valid bases. They are VFC 132.92 in a cup with high handle base, and DLTR 79.45 in a 3 week tight pattern. DSW is in the process of structuring its right side of its base. Can this rally be the start of something different? Who knows. As always let me indexes, and their leading stocks and volume be the best guide as to when to begin allocating capital. We did retest the lows. Perhaps plenty of stops were taken out and now things may be for real. About the only sector that lagged today were the gold/silver miners group.

that can be bought as they reclaim their 50 day MAs and their buy stop spots are RL 136, BBBY 56.25, DPZ 27.10, SBUX 38.45, TGT 50.20, BUD 53.95, ABV 32.30, ADS 92, V 86.50, NTGR 28.40, WFC 25.15, MTZ 19.50, QCOM 51.10, ADP 48.85, HS 36.50, WPI 66.45, NUE 34.25, WAT 78.40, NVLS 28.90, XRT 48.30. Stocks that retook their 50 day MAs today were UA WFM XOM USB TWC TIBX PX NDAQ BIIB JAZZ UPS ADI BRCM MCHP LLTC WPRT AKAM FFIV. Stocks near 50 day support are ORLY 64.25, XOM 73.40, UPS 65, AKAM 21.80, FFIV 80. Stocks that found 50 day support today were NEM DECK NKE COST FAST ROST TSCO ED QCOR. Stocks that can be shorted at 50 day resistance are MON 68, COH 55.50, IACI 39, RAX 36, ANF 65, CMG 310, MCD 87.50, PAG 18, PETM 42, SCSS 14.95, CVX 96.40, PENN 37, AAPL 385. Stocks that met 50 day resistance today were HANS K ANN PETM SBUX CMCSA ATHN MCO BAX WPI FE.

Stocks that can be bought as they reclaim their 200 day MAs and their buy stop spots are CBOE 25.50, CVI 22, EP 18.15, EXPE 26.30, ARBA 30.25, TIBX 25.15, PX 99.85, JBL 19.65, KLAC 42, SWI 22.90. Stocks that retook their 200 day MAs today were PCP MTZ KSU INTC. Stocks near 200 day support are ACN 54.25, KSU 53.60. UA LULU M CHKP all found 40 week support today. Stocks that can be shorted at 40 week resistance are EBAY 31.05, IFF 59.60, TPX 56, HFC 29.75, IRM 30.45, UNH 45.85. Stocks that met 200 day resistance today were ANF AN SCSS CVI EP IRM HUM.

Good trading.

The author owns FCX DE.

Tuesday Recap

Turnaround Tuesday certainly lived up to its name today. After the S&P 500 intraday touched bear market territory, both the Nazz and S&P 500 flew higher late in the day. Volume actually rose smartly to boot. Intraday reversals were too many to mention but two that come to mind is AAPL which ran ahead almost 20 handles as it found 200 day support almost to the penny. GS surged 10 points off its intraday low. Other stocks, primarily retail, that found almost exact 200 day support today were DECK BBBY DSW TSCO WFM COG. XRT rallied 5.5%, taking many in the group higher. Stocks that found exact 50 day support today were VFC COST LTD JWN ED JBL CHD. We mentioned recently the importance of just simplifying your strategies and seeing how stocks would react around their 50/200 day MAs has proved true. A few rare situations are blooming with stocks showing excat buy points in valid bases. CPHD 41.04 in a cup with handle base, and RAI 38.53 in a double bottom with handle base. Interesting to see how some stocks bounced off nice real round numbers. AMZN 200, PCP 140, PX 90 AGU DE 60, RAX NUE 30.

Stocks that can be bought as they reclaim their 50 day MAs and their buy stop spots are TGT 50.25, BUD 54.10, XOM 74.25, WFC 25.15, TWC 66, CHKP 54.25, UPS 65.25, FFIV 80.40. Stocks that retook their 50 day MAs today were DSW TJX TSCO QCOR LRCX SMTC TXN. Stocks that found 50 day support today were HSY ORLY ROST CERN IBM WCN KLAC. CELG can be bought at 59, its 50 day MA. Stocks which can be shorted at 50 day resistance are HANS 83.50, COH 55.75, IACI 39, RAX 36, CMG 310, GMCR 101, MCD 87.50, XRT 48.05, SBUX 38, AKAM 22. Stocks that met 50 day resistance today were UA NKE DPZ M USB ATHN ARBA TIBX JAZZ WPI AVGO LLTC. MXIM lost its 50 day MA today.

Stocks that can be bought as they reclaim their 200 day MAs and their buy stop spots are ABV 30.85, MTZ 19.10, ACN 54.80. Stocks that can be shorted at 200 day resistance ANF 64, AN 34, PETM 42.20, SCSS 14, IFF 59.50,EP 18, EXPE 26.05, BAX 55, HUM 70.50. Stocks that found 200 day support today were GOLD ADS HLF WPRT.

Good trading.

The author owns FCX DE. We bought both today early in the session.

Monday Recap

Markets slumped today to begin Q4. Volume expanded across the board, and the S&P 500 undercut its August low by the slimmest of margins. The Nazz is barely above its 2331 level. Not much escaped the rout today. Commodities took some of the worst beatings. WLL down 13%, BTU 7%, X 8%. FCX broke 30 after struggling to stay afloat after an upgrade. AAPL fell further below its 50 day MA, as more leaders were taken out back and slapped silly. HANS lost 9%, slicing its 50 day in the process. Others that surrendered their 10 wk lines today were IACI DPZ FAST BBBY WFM ATHN. Some stocks are trying to build valid bases (CPHD IBM formed cup with handles) but in this type of environment, buying is not prudent. Banks were beaten down with MS JPM GS all down better than 5%. Healthcare fell with such stocks in that sector JAZZ down 10%, UNH 7%, WPI AET 5%. With no valid bases out there its best to see how stocks react around their 50/200 day MAs. AMZN found exact 50 day support today, for now at least. CROX found exact 200 day support, until tomorrow at 931am most likely. Retail leaders NKE RL LULU lost 200 day support today. YUM reports after the bell Tuesday.

Stocks near 50 day support are NEM 61, HSY 57.40, VFC 116.50, COST 78.90, LTD 37.05, ORLY 64, ROST 75.50, CERN 64, IBM 172, ED 55.05, ALXN 57.50, CHD 42, CELG 59. MAKO FE found 50 day support today. Stocks that can be shorted as they lose 50 day support and their sell stop spots are WCN 32.50, MXIM 22.95, MAKO 32.40. Stocks that lost 50 day support today were M MCD PETM TJX TSCO TDC USB ORCL NDAQ BAX JAZZ WPI AVGO KLAC INTC. Stocks that can be shorted at 50 day resistance are HANS 83.25, K 53.50, DPZ 26.80, WFM 64, V 86.40, IFF 57.10, BAX 54.90, JAZZ 40, LLTC 28.40. Stocks that met 50 day resistance today were K DSW BUD CBOE MA V ARBA TIBX ACN HS VPHM LRCX TXN.

Stocks near 200 day support are BBBY 53, SBUX 35.50, TSCO 58.50, WFM 60, ADS 86, HLF 47, COG 55, RRC 54, AMT 52, BIIB 85.25. Stocks that found 200 day support today were DECK FAST IRM. Stocks that can be shorted as they lose 200 day support and their sell stops are CROX 21.75, DECK 86.35, DSW 43.75, JWN 44.75, IRM 30.10. Stocks that lost 200 day support today were M PETM SCSS ABV PCP TDC CHKP BAX HUM UNH CLH AVGO. Stocks that can be shorted at 200 day resistance are ANF 63.75, AN 34, CVI 21.60, EP 18, HUM 70.50, AVGO 32.50. UA met 40 week resistance today.

Good luck.

The author is flat.

Weekend Warrior

Markets closed out a miserable 3Q Friday in true bear market form. They have not yet met the classical defintion, but they are getting there as quickly as indexes are slumping. The S&P 500 is now more than 17% off its 52 week high. It was basically UNCH, this week, and its down 10% year to date. The Nazz is more than 16% off its 52 week high, and fell 2.7% this week. Markets are now down for 5 consecutive months. The Nazz net 50 day resistance on Tuesday and Wednesday this week. The S&P 500 200 day MA, a good long term gauge of market health and direction is now starting to slope downward. Not a good sign. Technicians will be keeping a close eye on the August lows next week. They are 1101 on the S&P, and 2331 on the Nazz. A look at some more leaders losing key 50 day support this week, were 2 of the market generals. MA AAPL lost their critical support lines. More talk of recession heated up Friday, but as always stocks themselves are the best indicators. The sector which is forecasting recession loudly this week was retail. Of course we know the consumer accounts for 2/3rds of GDP. Weekly losses included TIF FOSL CROX all down 14%. LULU 13%, RL 11%. Big cap Nazz stocks whose weekly losses were large included WYNN down 17%, PCLN BIDU 13%, GMCR 11%. 52 week lows in the energy sector include APA HAL NOV BTU RIG DD. More evidence of global slowdown fears. Some areas that have been escaping, and they are few, are the dollar and some real defensive names. HSY ROST finished higher on a horrible tape Friday. NEM finished higher Friday as well, as it continues to demonstrate leadership in the gold mining group, and enjoys repeated 50 day support. Follow the leaders. UUP has blasted away from its 200 day MA, and looks healthy. SDS found repeated 50 day support this week as well. Earnings for Monday are quiet.

Stocks near 50 day support include NEM 61, HANS 83.10, DECK 92, VFC 116, IACI 39, AMZN 212, BBBY 56.05, DPZ 26.75, FAST 33, MCD 87.50, ORLY 64.05, RAI 36.05, ATHN 58.30, ORCL 28.15, IBM 171.50, BAX 55, WPI 66.40, JBL 16.65, KLAC 37.50, CHD 42, FE 43.50. Stocks that can be shorted at 50 day resistance are RAX 36.25, CVS 35, EBAY 30.80, GMCR 102, BUD 54, HLF 56, XOM 74, WFC 25.10, CMCSA 21.75, ADP 48.90, MCO 31.60, QCOR 28.75, KSU 53, ARMH 26.80, ADI 32.90, BRCM 34.50. Stocks that met 50 day resistance Friday were CMG EBAY SBUX HLF IFF XOM WFC CHKP TIBX CLH LRCX SMTC TXN. Stocks that can be shorted as they lose their 50 day MAs and their sell stop spots are TSCO 62.10, WFM 63.80, TDC 51.75, ARBA 27.50, JAZZ 39.75, MXIM 23, MAKO 32.50. Stocks that lost 10 week support Friday were KO K NKE UA PCP IRM PAYX UAN NDAQ HUM LLTC AKRX IT.

Stocks near 200 day support are KO 66.30, CROX 22, NKE 84.50, RL 126.50, LULU 46.75, M 25.80, JWN 45, SBUX 36, PCP 151.50, COG 55, RRC 54.20, CHKP 52, HUM 70.40. Stocks that found 200 day support Friday were ABV UNH INTC. Stocks that can be shorted at 200 day resistance are AN 34, EP 18, EXPE 25.10, ACN 54, HS 37.70, CRS 47. K ANF AN CVI MTX GTLS HS all met 40 week resistance Friday. Stocks that can be shorted as they lose their 40 week MAs and their sell stop spots are DSW 43.75, PETM 42.05, SCSS 13.70, UNH 45.35. Stocks that lost their 40 week MAs Friday were UA ANF EXPE.

Good luck.

The author is flat. We sold POT CBOE for small losses. Cash is king.