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.
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