Monday Game Plan

Markets concluded the week Friday quietly. The Nasdaq led the way with a weekly gain of 2.7%, and more importantly found good support its 200 day, after recapturing it Thursday. The S&P 500 finished the week basically UNCH. Strong employment and manufacturing data contributed to the market strength. Leading stocks, a key missing ingredient, were once again subdued. AAP took out its 71.10 flat base buy point Friday (actually took it out Thursday, but the volume confirmation kicked in Friday). Much like RS did but on Wednesday it took out a 51.02 double bottom with handle formation, but volume jumped a day after on Thursday. RS continued its move Friday with a 1.3% advance. Leaders on the downside to take note of were QCOR MA. Both stocks pierced their 50 day MAs in big volume and fell 6 and 8% respectively for the week. We mentioned the bifurcating action of MA and V this week. V refuses to give up par, was basically UNCH on the week, and remains above its most recent 3 week tight trigger of 98.70. Other leaders which are hovering near previous buy points, that is not uncommon, are PM which was downgraded and found support near its 77.13 3 week tight buy point. CELG came very close to its own 65.92 double bottom trigger, before finding support. Retail names were volatile this week on the back of sales results. M ROST were both up more that 7% for the week, clearly outperforming the benchmarks. LULU ran forward by 15%, after a GS conviction list add, and reclaiming its 200 day MA. An interesting scenario playing out in BBBY. After a recent earnings miss, and finding 40 week support it is approaching its 10 week MA. An initial buy through that line with a buy stop of 60.75, then an add on buy from a double bottom buy point of 63.48. The XLE was up 2% on the week, oil and gold were up 3%, and the greenback as measured by the UUP was up as well. Very interesting because they usually go in inverse directions. Of course all will say their is an Iran premuim, but we all know that. Something else bigger might be brewing here. Utilities displayed some disturbing action this week as both SO ED were lower everyday this week. Both remain just above 10 week support here though. IYT is trying valiantly here to remain north of its own 40 week MA. FDX had a good looking day Friday, retaking its 40 week MA. KSU reversed slightly after hitting an all time high Friday. UNP is holding its own near an all time high. Could be developing a cup with high handle base here. Also potentially forming that pattern is RATE. Stocks potentially developing patterns in there cup bases are PLL BA RTN COP EXXI PXP GRA VAR VRSN. XOM may be establishing its own handle in a double bottom base. Handles to be considered valid must be 5 days in duration. Have to admit I like this tight trading action in AKAM here after the gap up 10 sessions ago. Very bullish. AAPL is regaining some of its mojo here too. Nice cup base in the works. Earnings season traditionally kicks off Monday with AA. Markets are slowly, grinding out a wall of mountainous worry in my opinion. Constructive but leaders need to step up and break out. Is that to much to ask for?

Stocks near specific buy points include cup bases VAL 40.70, TYC 50.69, FMC 93.10, ADP 55.12, BIIB 120.76, ASNA 35.35, WFM 74.55, AAPL 426.80, CBS 29.78, NUAN 27.07. Cup with handle bases are JBHT 46.69, NSC 76.59, AME 43.83, CBI 42.02, DGX 59.49. 3 week tight patterns include GPC 62.61, OKE 8.23, MCD 101.69, AMT 61.03. EAT 27.45 in a cup with high handle base, and BBBY 63.48, COH 64.08 in a double bottom bases.

Stocks that can be bough as they reclaim their 40 week MAs and their buy stop spots are CAT 96.50, ETN 46.30, STLD 14.70, WLL 53.95, DOW 31.75, DHR 49.20. FDX TAP both retook their 40 week MAs Friday.

Stocks that can be bought at 40 week support are CNI 74.60, GD 67, RAX 40.45, HON 53.40, PPG 84, COP 71.20, MYL 21.10, KMX 29.70, COST 80.50, NEM 60, DE 80, AGCO 45.95. Stocks that found 40 week support Friday were FLS JEC GD BLL NOV OXY RRC AMP ARM MCHP UA AVT.

Stocks that can be shorted at 40 week resistance are DOV 59, TXN 30.90, TGT 50.55, TIF 70.50, HLF 53.50, TPX 60. CAT ETN STLD WLL all met 40 week resistance Friday.

Stocks that can be shorted as they lose 40 week support and their sell stop spots are RL 135, WSM 36.70. CE SGY surrendered 40 week support Friday.

Stocks that can be bought at 10 week support are JBHT 43.90, TRN 28.50, PLL 54, TMK 42.05, HXL 24.25, BUD 58.05, X 26, BK 19.90, APC 78, BP 42.95, COG 80, CPX 33.75, SGY 26.05, TCK 36.10, NKE 95, ABT 54.35, ALGN 23.15, SO 44.05, JWN 48.50, ORLY 78, WMT 58.10, CPO 51, FCX 38.50. Stocks that found 10 week support Friday were CFX CBE CBI ABV RAI ATI ASML PRGO GNC ULTA.

Stocks that can be bought as they retake 10 week support and their buy stop spots are BBBY 60.75, PII 60. COH retook its 10 week MA Friday.

Stocks that can be shorted as they lose 10 week support and their sell stop spots are CBE 53, ABV 34.25, CE 43.50, OMC 43.05, KLAC 46.50, VFC 133, DG 39.75, DLTR 80, DPZ 32.75, GNC 27, SBH 20, EL 110.20. CNI CL NUS all lost 10 week support Friday.

Stocks that can be shorted at 10 week resistance are PH 80, IBM 186, RL 147, LTD 40, MELI 83, TSCO 72, NUS 48. FFIV TXN SNPS BHP all met 10 week resistance Friday.

Good luck.

The author is long IYT NUE KEG BLL. Short DPZ.