Wednesday, December 7, 2011

Thursday Game Plan

Markets again displayed some up and down action as usual, but if you saw the closing prices of the averages you would have that it was a quiet day. The S&P 500 again found sturdy resistance at its 40 week MA today. Even if it does take it out like it did 10/27 on robust volume, it quickly retreated back below it. Both the Nasdaq and S&P 500 did show some positive action intraday, closing in the upper ranges for the day (the Nasdaq fought back nicely, closing 37 handles off its lows for the day). Volume grew from yesterdays levels. Some sectors which displayed some telling action was energy. The XLE continues to clubbed with a 2x4 each times it touches its 40 week MA. Leaders in that group COG FTI looked vulnerable today, although they are still ahead of recent break out points (FTI 50.30 cup w/handle and COG 78.75 double bottom). But then again other leaders in the group are trading very tightly after recent moves upward. They include CXO CLR EOG APC. As the adage goes, as goes energy as goes the markets, so it is important to keep an eye on energy prices. IBM GIS MCD all hit all time highs today, although IBM GIS both broke out from recent bases in soft trade. INTC hit a multi year high today. Stocks building the right side of their bases and warrant inclusion on your watch lists are UPS BUD AMGN CBS. Two names that need one more day to complete their handles in their respective double bottom bases are CBI GDI. CBI trigger would be 42.02, GDI trigger 87.01. NUE has recently undergone a tidal change as it has now spent 4 days above its 40 week MA, after it flew past that line last Friday. Its been up 9 days in a row and a little pullback would be a wonderful opportunity to establish a position near 40 week support, which previously was resistance. CVLT retreated back to its previous 47.66 cup base buy point and bounced today almost to the penny. Would love to see HD retreat to its previous 38.85 double bottom w/handle. Do not forget about WSM which is showing a inverted head and shoulders pattern. Buy stop to be precise is 40.17. COST reports Thursday.

Stocks near specific buy points include cup bases ABV 36.40, UPS 75.90. Cup with handles are AAP 71.10, INTU 55.53, RAX 45.56, PXP 37.01. Double bottom with handles are CNI 80.54, JKHY 33.83, USB 26.74. Flat bases are DEO 86.10, ED 59.99.

Stocks that can be bought as they reclaim their 40 week MAs and their buy stop spots are FDX 85.75, TRN 30.30, ADSK 36.30, AKAM 29.55, BBT 24.70, SCCO 33.75, DE 81.90, DD 50.20. PNC retook its 40 week MA today.

Stocks that can be bought at 40 week support are CPO 50.10, XRAY 35.80, EMR 51.50, PNC 55.85, EOG 99.75, EXXI 30.10. Stocks that found 40 week support today were CTXS CPHD IP HON DFS TROW COP OXY WERN.

Stocks that can be bought at 10 week support are COH 61, DLTR 78.75, SCSS 18.50, ED 58, ACN 57, TIBX 27, NEM 66, BHP 74, EMN 38. Stocks that found 10 week support today were RL HXL WFM QCOM CTSH EMC NUAN SAP HSY AXP GS RRC SU DHR PII. Put a buy stop in on CELG as it climbs above 10 week resistance at 64.25.

Stocks that can be shorted at 40 week resistance are AMZN 202, TIF 70.45, ARMH 27.90, ADI 36.60, AVGO 33, PAY 43.25. KO SWK both met 200 day resistance today.

Stocks that can be shorted as they lose 40 week support and their sell stop spots are PPG 83.95, PH 81. CE surrendered 40 week support today.

Stocks that can be shorted as they lose 10 week support and their sell stop spots are JAZZ 38.45, RRC 67, PII 58.50. JNPR MDRX both gave up 10 week support today.

Stocks that can be shorted at 10 week resistance are CPHD 36, WYNN 120, HLF 56. AAPL met 10 week resistance today.

Good luck.

The author owns JEC ROK GIS. Short CERN. Covered ALXN for a dollar gain. Will look to re short near 66, its 10 week resistance line. We shorted CERN at 60.12, as it fell below its 40 week once again.

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