Tuesday Game Plan

Markets closed basically UNCH today in quiet volume. Tomorrow awaits "Turnaround Tuesday", with a few heavyweights reporting. They include AAPL MCD COH. We had another breakout to add to the list in the energy sector. NBL took out a 100.08 cup with handle trigger. Recent breakout V today held its 98.70 3 week tight trigger today to the dime. Remember it is very common for leaders to retest their prior triggers. A successful retest can be construed as bullish. To remind my readers of my favorites, they include CBI 42.02, FFIV 117.40, SCSS 22.29, WFM 74.55, EXPE 30.52, TSS 20.60. XLF displayed some relative strength today, as it closed above its pesky 40 week line for 3 consecutive days. We bought some JPM as it distanced itself a little more from its own 40 week line. TD gained almost 2% after piercing its 40 week to the upside. No we are in full blown earnings season, and remember that MAs are normally where euphoria ends, following an event. Last week FCX TIBX both were reprimanded at their respective 40 week MAs. UA was slapped today at its 10 week MA, following a GS upgrade today. Tomorrow I am watching two. VMW had a sweet report after the close, and approaching its 40 week MA at 92. See how it responds there. KSU was lower after hours on its report and is approaching its 10 week MA. I will buy that at 67.50, its 10 week if it proves stout. Chemicals have been back in vogue and many in the group constructively building their right sides of their cups include CE DOW EMN GRA ASH SIAL ALB. Others building their right sides to be included on watch list are AMP MSCC ENDP CPO DHR DE AGCO. Handles, which need 5 days to be considered valid, are being formed on FDX TRN KMT BLL PX KLAC AET MHK MWV. Monitor those and demand soft volume as the price recedes. I am keeping a close on recent gap ups which bullishly holding them. LULU TSCO FFIV are the ones that interest me the most.

Stocks near specific buy points include cup with handles CNI 80.60, NSC 78.60, EOG 107.37, PXP 39.47, TROW 60.86, VRSN 36.55, DIS 40.35. CBS 29.78 in a cup base, FTI 54.98 in a flat base and JAZZ 49.24 in a cup with high handle base.

Stocks that can be bought as they reclaim their 40 week MAs and their buy stop spots are FCX 45, ARMH 28, SOA 19.15, TCK 43.15.

Stocks that can be bought at 40 week support are DOV 58.50, KBR 31.20, TAP 43.30, MMM 85, NTRS 42, CPX 31.55, MYL 21, COST 81, CL 87.80, ESRX 49. JOY MMM TPX all enjoyed 40 week support today.

Stocks that can be shorted as they lose 40 week support and their sell stop spots are PH 79.50, JOY 84.70.

Stocks that can be shorted at 40 week resistance are COG 67.50, RRC 60.50, WLL 52.10, FE 43.25, TGT 50.60, VMW 92 (had good reaction after hours, tight stop as always), NEM 60.25. Stocks that met 40 week resistance today were COP TCK SOA TGT NEM.

Stocks that can be bought at 10 week support are KSU 67.50 (poor reaction to earnings after close), AKAM 30, SWI 30.10, ATI 48, VRSK 38.70, APC 77.90, FTI 50.50, ABT 54.75, HUM 88, ORLY 79.10. GBX found 10 week support today.

Stocks that can be shorted at 10 week resistance are RAX 42.80, PM 75.20, ED 59.25, SBH 20.35. SBH BIDU RAX PM RAI ANN all met 10 week resistance today. VFC can be shorted with a 131.50 sell stop as it loses 10 week support. DGX AMZN both surrendered 10 week support today.

Good luck.

The author is long CL XOM JPM WFC. Short DPZ RAI. We covered KO today with a .75 cent loss. Tight stops and the catalyst of being short below the 40 week was no longer valid. We bought JPM as it closed further ahead of its 40 week at 37.54.