Wednesday, December 21, 2011

Thursday Game Plan

Markets ended a bit bifurcated Wednesday, as ORCL bruised the Nasdaq to the tune of 1%. It finished 33 handles of its low, and at one point was lower by 2.3%. The S&P 500 ended marginally higher. It bounced right after finding solid support at its 10 week MA. The Nasdaq is still swimming below that key line. Keeping an eye on breakouts, which would help solidify this rally attempt, were slim once again. The ones that did today, occurred in soft trade. They included BA (72.86 cup with handle), WMT (59.30 3 weeks tight pattern), PM (77.13 3 week tight pattern), and MJN (76.14 cup with handle). V did manage to fight back from earlier losses after coming close to retesting its 98.70 3 week tight pattern it emerged from yesterday. V demonstrates the need for more growth oriented names, instead of the dull, boring defensive issues that dominate the breakout list. GOOG may be one such name to add a little shine to the list. It is potentially forming a very bullish 3 week tight pattern. Stocks forming the right sides of their bases, which could become cup or cup with handle bases, are RTN XOM CPO. Keep them on your watch list. ORCLs big miss today wrecked havoc on the software sector and some old tech names. Leader SWI surrendered more than 5% and its 10 week, which looked very stable for months. EMC ACN both lost 4%, IBM 3%. VMW lost 10%, AMZN 5%. ETFs to watch include XLE which closed right up at 10 week resistance, and a buy stop can be placed above 69. IYT is readying itself for another battle with its 40 week line. Put a buy stop on that one above 90.30. GLD its butting right up against its 200 day MA here. A buy stop can be placed above 158.45, and if that is taken out a double bottom base may be on its way to being born. If not look out below. After hours action was mixed with TIBX up and BBBY down.

Stocks near specific buy points which can start to be bought here as the climate gradually becomes better are cup with handles JBHT 46.69, UNP 106.09, UPS 73.76, TMK 44.11, PLL 58.30, EXXI 32.90, NBL 99.27. Cup bases are HSY 61.00, BIIB 120.76, AET 45.49, ADP 55.12, SCSS 22.29 (base on base pattern), HXL 26.58 (base on base pattern). Flat bases are ABT 55.71, SPG 131.31, PSA 132.30.

Stocks that can be bought as they reclaim their 10 week MAs and their buy stop spots are NSC 72.20, CAT 92.25, CXO 94.50, COG 78.75, DVN 64.25, JAZZ 38.25, FE 44.60, JPM 32.70, FCX 38.25. Stocks that reclaimed their 10 week MAs today were ARO COST OXY GIS.

Stocks that can be bought at 10 week support are KLAC 45.95, BEAV 38.10, DPZ 32.05, LKQX 29, M 31, RATE 18.60, INTU 52.55, WCG 52, EL 108, ARW 35. Stocks that found 10 week support today were ASML HXL KSU MMM JWN SAPE NUAN CE EMN JEC AAPL DEO BR STLD ARW.

Stocks that can be bought as they reclaim their 40 week MAs and their buy stop spots are TRN 30.30, MWV 29.90, ASNA 30.30, DOV 59.75, EOG 99.80, HP 59, KEG 15.30, OXY 95.25, FISV 59, TROW 57.30, RJF 31.50, WFC 27.10, DHR 49.15, ENDP 35.60. COH APC PXD all retook their 40 week MAs today.

Stocks that can be bought at 40 week support are PII 54, WSM 37, RHI 26.10. Stocks that found 40 week support today were SPR CNI HON TYC WSM CTCT CBI CXO NUE.

Stocks that can be shorted at 40 week resistance are DECK 93.50, FDX 84.95, DKS 37.65, CERN 61.10, PPG 84, HLF 53.10. Stocks that found 40 week resistance today were ROK HP KEG AXP DFS WFC. UA NTGR both lost 40 week support today.

Stocks that can be shorted as they lose 10 week support and their sell stop spots are TSCO 71, ALXN 65.75. AKAM SWI IBM CSCO all lost 10 week support today.

Stocks that can be shorted at 10 week resistance are CY 18.05, INTC 24.10, OMC 43, PMTC 19.90, QCOM 54.05, MON 71.95. INTC JAZZ FE X QCOM all met 10 week resistance today.

Good luck.

The author owns V NUE PM. We bought PM through it 77.13 3 week tight pattern. Volume was soft however.