Tuesday, January 31, 2012

Wednesday Game Plan

Markets finished mixed today as the month ended with bulls giddy. The Nasdaq once again beat its counterpart S&P 500 again today, and clobbered it on a monthly basis. The Nasdaq gained 8% for the month. Leading stocks were quiet today. CBI once again held its 42.02 cup with handle buy point, almost to the penny. INTU retested its own 55.52 flat base trigger almost exactly and then proceeded to rally. Disappointments included TSCO which reversed after eclipsing an 82.08 3 week tight trigger. It can right itself in the next couple of days, but that is usually not a great sign. ADP is now below its 55.12 cup base buy point, and it illustrates the importance of demanding a big volume bump to validate the break out. Yesterday we mentioned as a big round number of 50 being the line in the sand for JBHT. Today I nominate KLAC as having that same big round number of 50, as its own line in the sand. As it busted through that 50 handle, 1/18 this year it was done so on very healthy trade, and has continued to defend that number 50. Stocks building the right sides of their bases and to be put on a watch list are DOV NUE CPO DHR ALB. Stocks putting handles on their cup bases, which need to be 5 days in duration, are BLL ASH JEC. Gap ups still looking good include TSS CA EMN CLR COH AAP AAPL. AMZN was down 8% after hours on a sour report.

Stocks near specific buy points include cup with handles SMTC 29.40, TWI 25.21, FDX 93.62, SWK 73.39, IP 32.68, EXXI 34.77, PXP 39.47, AMP 55.71. Cup bases are BIIB 120.76, CBS 29.78. Double bottom with handles are SPR 23.61, APC 82.57. 3 week tight patterns are TSCO 82.08, VRSK 41.11. Double bottom is UA 84.96, and ASNA 35.92 in a cup with high handle pattern.

Stocks that can be bought as they reclaim their 40 week MAs and their buy stop spots are LAZ 30.25, DO 64.40, WLL 52.25, VMW 92.75.

Stocks that can be bought at 40 week support are NSC 71, KBR 31.10, RAI 37.95, MMM 85, SGY 27, FCX 44.25, ESRX 49, ITUB 19.50. JPM MUR TIBX all found 40 week support today.

Stocks that can be shorted as they lose 40 week support and their sell stop spots are CNI 74.60, PH 79.50, CVX 101.75. TD lost its 40 week today. NTRS can be shorted at 41.75, its 40 week resistance. MWV met 40 week resistance today.

Stocks that can be bought as they retake 10 week resistance and their buy stop spots are MA 361, COST 83.15, NEM 63.25. RAX CPX HUM CL all retook their 10 week MAs today.

Stocks that can be bought at 10 week support are HXL 24.50, RTN 47, BUD 59.80, ARG 77.25, XOM 82.50, V 98.15, SO 44.55, EAT 25.25, DLTR 82. CFX TROW FTI BBBY SBH all found 10 week support today.

Stocks that can be shorted as they lose 10 week support and their sell stop spots are KSU 67.75, SIMO 20.30, ANN 23.75, BBBY 60.10, M 32.50, MCD 97.50, ORLY 79.50. ALGN lost 10 week support today.

Stocks that can be shorted at 10 week resistance are PM 75.70, ABT 54.90, PRGO 97.10, DPZ 33, GNC 28, TIF 66. NSC MA VFC GBX all met 10 week resistance today.

Good luck.

The author is flat.

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