Tuesday, October 18, 2011

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.

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