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.