Monday, December 12, 2011

Tuesday Game Plan

Markets slumped somewhat Monday, but managed to finish off their lows for the day. The Nasdaq found support at its 10 week MA, and closed above the psychological 2600 level, which has proved a battleground. The composite found almost exact support their 3/16 and 6/16 this year. After breaking through that level to the downside in huge trade 8/4, it met resistance their in late August and September. The S&P 500 also continues to coil up tightly between its 10/40 week MAs. It is going to move hard once a direction is established upward or downward through one of those previously mentioned MAs. Today volume was once again muted, and leading stocks escaped lots of the days malaise. In fact many displayed solid relative strength. They included CMG DPZ GNC LKQX SBUX PLL all of which finished in the black Monday. Some leaders managed to test old buy points only to rebound and close above them. MELI (90.09 cup w/handle) was one of them. INTC was another that tested both its 10 week MA and its 23.49 double bottom buy point, closing above both of them. We even had a breakout today as DG climbed above its 40.81 flat base buy point in almost double average daily volume. Other individual names to watch include UPS which continues to build the right side of its cup base and can be putting in a handle. ARG is holding its gap up above 75 nicely. ETFs looking decent today were XLE as it bounced off 10 week support and closed off its lows for the day. COG APC OXY all found exact 10 week support today and EOG XOM PXD 40 week support. XRT closed on its highs for the day as COH VFC found excat 10 week support and DSW DKS managed to climb off 40 week support. This market continues to be technically driven, with both the benchmarks and individual components, and ETFs. As we have said before we need to see more break outs from leading stocks and moves above key MAs before we get too excited. Until then keep your powder dry and your positions reduced.

Stocks near specific buy points include cup w/handles JBHT 46.69, NSC 76.59, UNP 106.09, SAH 16.32, WSM 40.17, FFIV 117.40, RAX 45.56, PXP 37.01, BUD 61.08, MRK 36.35, GIS 40.35, MJN 76.14. Flat bases are ABT 55.71, DEO 86.10. Double bottom w/ handles are WRC 54.05, CBI 42.02. Cup bases are ABG 22.10, SCSS 22.29. SBUX 44.79 in a square box pattern.

Stocks that can be bought at 40 week support are BEAV 36.15, BA 69.15, KMX 30, ADP 51.05, PAYX 29.50, TMK 41, VMW 92, TIBX 26.05, JEC 41.50, VAL 35.10, NBL 89, DGX 54.80, BR 22.05, NUE 39.65, QCOM 54. Stocks that found 40 week support today were TYC DSW DKS JEC EXXI PXD AET.

Stocks that can be bought as they reclaim their 40 week MAs and their buy stop spots are SPR 20.20, ARO 17.45, TRV 56.50, KEG 15.25.

Stocks that can be bought at 10 week support are NKE 93.50, ASML 39.60, KLAC 45.10, HXL 23.95, RTN 43.70, FDX 79, KSU 63, TRN 27.05, UNP 97.80, EMR 48.60, MWV 27.95, SCSS 19, WMT 56.95, RATE 18.10, ACN 57.25, ADSK 32.50, CAT 90, DOV 54, CE 41.60, APC 76.50, CSCO 17.95, RAI 39, BIIB 108, RJF 29, SO 43.15, ED 58, STLD 12.20, X 25, WFC 25.50, EL 105.75, CPO 48.20, HSY 58, ARW 34.15, CLF 65. Stocks that found 10 week support today were HXL ASNA INTU ATU PH SLB UPL FCX.

Stocks that can be bought as they reclaim their 10 week MAs and their buy stop spots are DSW 49.20, JWN 49.10, NUAN 24.50, CELG 54.15.

Stocks that can be shorted as they lose 10 week support and their sell stop spots are CBE 52.30, ALB 49.80, FISV 56.80. Stocks that lost 10 week support today were GS JPM DHR BHP CY EMN APA BWA EMC FE.

Stocks that can be shorted at 10 week resistance are DECK 105, CY 18, BIDU 131, ALXN 66. NUAN CELG both encountered 10 week resistance today.

Stocks that can be shorted as they lose 40 week support and their sell stop spots are JAZZ 35, HLF 52.20. Stocks that surrenedered 40 week support today were HON HP TROW CPO ABX.

Stocks that can be shorted at 40 week resistance are ARMH 27.85, HON 53.50, TIF 70.40, CERN 61. PMTC WDC AXP all met 40 week resistance today.

Good luck.

The author owns EOG. We bought some at 40 week support at 99.70. We took very small losses, which were decent gains on GIS JEC ROK. May look to reenter.

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