Wednesday, December 14, 2011

Thursday Game Plan

Markets fell for the second straight day, with volume also accelerating. Today the S&P 500 lost its 10 week MA, a day after the Nasdaq did the same. Today was the first day where leading stocks, which we know is a very accurate way to gauge market health, suffered. Many pierced 10 week support with big downside moves and volume to boot. They include HXL down 4%, NUAN 4%, SCSS 6%. Other leaders which slumped but managed to stay afloat above their respective 10 week MAs were DPZ SWI both down 5% on the day. Energy stocks were drilled today, pun intended, as OPEC came out with headlines that affected oil prices. OPEC taken seriously. Come on now. Crazy. But nevertheless, chart action is what we pay attention to, and the charts were rattled. XLE lost its 10 week in heavy volume. COG fell almost 4% on heavy trade. APC lost its 40 week which was pretty supportive as of late. CXO, a recent stalwart punctured both 10/40 week MAs losing 6% on the day. The transports were railed today, again pun intended. This group has been climbing the list of outperforming sectors, so to see this weakness was disturbing. IYTs 10 week also was compromised, with several peers acting poorly. KSU fell more than 3% as its 10 week gave way. When the generals fall, take notice. CNI JBHT both lost 40 week support today. NSC UPS both remain above 40 week support if thats any consolation. Some techs have been bruised lately too. TIBX, a former leading has lost more than 15% in the past two days. Its V shaped cup base, should have raised some red flags, as they are more prone to failure. Some stocks displayed encouraging action were V which was up today and continues to trade in a tight range. ABT the same action. Both ABT V can finish the week, with a 3 weeks tight pattern. A bullish pattern where stocks close on a weekly chart within 1% of the previous 3 weeks. Both these are near all time highs as well which adds to the bullishness. ABV looks to be forming a handle on its cup base. Keep an eye on it. Some M&A action took place after the close with NVLS being taken out by LRCX.

Stocks near specific buy points, which should be put on a watch list in this corrective period and not purchased until this market gains some legs and some follow through. They are some of the best technically sound charts I could find. All are cup with handles. UPS 73.76, TMK 44.11, MRK 36.35.

Stocks that can be bought near 40 week support are DECK 93.10, ASML 38.10, INTC 22.05, BA 69.15, UPS 70, COST 80, LKQX 25.95, FMC 80.30, VAL 35.10, COG 65, BUD 56.95, FE 42.75, NEM 59.20. Stocks that found 40 week support today were COH UA NSC KMX WSM ACN RHI MENT XOM NTGR BR.

Stocks that can be bought at 10 week support are RTN 43.90, SPR 18.05, AAP 65.95, DG 39.50, DLTR 79.60, DPZ 31.55, FAST 38.50, GNC 25.50, PETM 46.95, PIR 12.40, SBH 19.25, SBUX 42.45, TJX 60, WMT 57, RATE 18.25, RAX 41, CTCT 23.20, IBM 185.15, DOV 54.15, JEC 39.05, FTI 46.90, DEO 83.05, RAI 39.05, ABT 53.45, MA 352, TROW 53.60, SO 43.20, ED 58.05, GIS 39.25, HSY 58. Stocks that found 10 week support today were NKE JBHT UNP M SAH SWI ADP X CE GRA KEG INT CSCO WFC CPO MJN.

Stocks that can be shorted as they lose 10 week support and their sell stop spots are NKE 93.50, WRC 47.75, KLAC 45.15, EMR 48.50, ARO 14.80, AET 39, BIIB 108.50, HUM 81.75, WCG 50.15, ADS 97.50, FISV 56.85. Stocks that lost 10 week support today were MMM CMG COST OMC SAPE ADSK INTU PMTC ALB CXO CRZO DVN EXXI NOV PXD PXP FE STLD NUS FCX DE.

Stocks that can be shorted at 10 week resistance are VFC 134, FDX 79.75, PII 60, EMN 38, ALXN 66, PAY 41.25, KO 68, CLF 66.

Stocks that can be shorted as they lose 40 week support and their sell stop spots are COH 58.55, RL 134.50, ACN 53.70, UNH 47.10. Stocks that lost 40 week support today were CNI JBHT PAYX ROK CBI APC PXP JAZZ HLF QCOM.

Stocks that can be shorted at 40 week resistance are JAZZ 35.15, DFS 24.15, QCOM 53.95, MON 69.50. Stocks that met 40 week resistance today were TRV AET DFS NUE.

Good luck.

The author is flat. Covered VFC for a $3 gain. Sorry for the abbreviated post today. Girl planned a nice meal for the birthday author!!

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