Thursday, December 22, 2011

Friday Game Plan

Markets that we follow, the Nasdaq and S&P 500, both finished up by the same .83% gain on soft trade. Impressive since the big gains on Tuesday. The S&P 500 closed higher for the third consecutive day and 6 handles below its 200 day MA. A move above that line, which many are skeptical of, would be very bullish. The Nasdaq closed a hairline below its 2600 level which has been a battleground since early in the year. More importantly it is nearing a 10 week challenge in the near future. We were on the lookout for more breakouts, but were saddened to not discover much. HSY pushed past a 61.00 cup base, but volume was scant. Others hovering right near their trigger points include SBUX 45.10 3 week tight, WMT 59.30 3 week tight, ABT 55.71 flat base. M is retreating back near its 30.72 cup base breakout from 10/24. It also has found solid support right at its 10 week support near 31. It also has formed a 3 week tight pattern from the weeks of 10/28-11/11 at 32.77. It obviously hails from the retail sector which has been under pressure as of late. DECK BBBY were both lower by 6% today, with BBBY down on earnings but managing to find 40 week support. More stocks to keep on your watch list as they build their right sides are HON MWV FMC VAL PXP AAPL. Stocks in the process of completing 3 week tight patterns are RAX ABV and GOOG which we discussed yesterday. Banks were up smartly today as the XLF retook its 10 week MA. JPM was up 3.5%, reclaiming its own 10 week today. WFC retook its 40 week, and recent IPO FRC was up 3% today as well as it rounds out its right side. Transports were strong as well as IYT closed right at 40 week resistance today. It is the third time this ETF has done this and the more times it knocks the less dependable that resistance becomes. Group mates JBHT UNP UPS are all near cup with handle trigger points. As we discussed recently, our bullish narrative must be supplied with more quality break outs from growth minded companies. There are many set ups right under our noses, but let the confirmation be exposed before diving in.

Stocks near specific buy points are KLAC 49.49, JBHT 46.69, UNP 106.09, UPS 73.76, TMK 44.11, PLL 58.30, CBI 42.02, NBL 9.27. Cup bases are RTN 50.35, SCSS 22.29, ADP 55.12, NUAN 27.07, XOM 85.51, EFX 40.00, VRSN 37.83. INTU 55.53 in a flat base and RS 51.02 in a double bottom with handle.

Stocks that can be bought as they reclaim their 40 week MAs and their buy stop spots are ASNA 30.30, SAPE 12.50, CBE 56.20, DOV 59.50, ROK 75.40, CE 45.50, JEC 41.80, EOG 99.60, HP 59, KEG 15.45, OXY 95.20, FISV 59.25, TROW 57.60, RJF 31.75, DE 80.75, ENDP 35.70. Stocks that retook their 40 week MAs today were MWV AKAM PXD WFC.

Stocks that can be bought at 40 week support are SPR 20, HON 53.50, EXXI 30, NUE 39.45, WFC 27, NEM 59.50. Stocks that found 40 week support today were TRN BBBY APC KEG NTGR.

Stocks that can be bought as they reclaim their 10 week MAs and their buy stop spots are INTC 24.30, COST 84.25, ALB 51.35, APC 78.25, COG 78.80, DVN 64.25, CLF 66.40. Stocks that retook their 10 week MAs today were CNI OMC JAZZ X QCOM FCX.

Stocks that can be bought at 10 week support are LKQX 29, M 31, RATE 18.55, RAX 41.95, PAYX 24, CXO 94, EL 107.50. Stocks that found 10 week support today were NKE WSM CXO BIIB.

Stocks that can be shorted as they lose their 10 week support and their sell stop spots are BIIB 109, DPZ 31.85, DLTR 79.75, ALXN 65.70. TSCO lost 10 week support today.

Stocks that can be shorted at 10 week resistance are ARMH 29.75, RIO 52, IBM 185.50, SWI 29.15, MON 72. Stocks that met 10 week resistance today were CSCO FE DHR CLF COST SWI CAT NOV.

Stocks that can be shorted at 40 week resistance are UA 72.10, DFS 37.35, CERN 61, WDC 32.60, AXP 48.10, HLF 53. Stocks that met 40 week resistance today were FDX SAPE HP FISV TROW HLF ARW ENDP. RL can be shorted as it loses 40 week support with a sell stop of 134.50.

Good luck.

The author is flat. We have become adapted recently to becoming swing traders as opposed to position traders. We sold V at 100.80 today for a 2.10 gain, PM at 78.30 for a 1.17 gain and NUE for a small .60 gain. We will look to reenter all three of these on weakness, which means thay will scream higher leaving me behind.

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