Thursday, February 2, 2012

Friday Game Plan

Markets finished a slow day Thursday with the Nasdaq, again outpacing the S&P 500. The Nasdaq is now within 28 handles from 11 year highs. A look under the hood however, discovered some bullish action. More leading stocks broke out of bases today. They included RAX breaking out from a 45.55 cup with handle base, LTD from a 43.38 cup base, and COST from a 85.18 double bottom base. Each day as more leaders break out the rally gains credibility. BIIB retested its 120.76 cup base trigger it took out yesterday and succeeded in holding it. On the other hand ADP may require a visit back to its 10 week MA, near 53.25. It has been having problems staying above its 55.12 cup base trigger and volume has been heavy as it recedes. XLF is now getting comfortable living above its 40 week MA. JPM is as well. GS is having problems with its 40 week MA, but a decent jobs number tomorrow may do the trick. WFC in the group is swimming just above its 29.73 double bottom trigger, and MS popped in heavy volume above its own 40 week Wednesday after news of it capturing lead underwriter status for the FB IPO. Risk on, based upon the utilities, still seems to be in play. XLU again failed at 10 week resistance today. SO in the group pierced its own 10 week MA to the downside on decent sized volume. TCK has been hugging its own 40 week line in a healthy fashion. Look for further upside there. Stocks that could potentially form bullish 3 week tight patterns tomorrow include SBUX CELG ASNA FFIV. Stocks building the right side of their bases and to be put on a watch list include MMM STLD CE EOG SGY AVT ESRX. ASH needs on more day to complete a handle on its cup base. CMG TSCO both had negative outside days today.

Stocks near specific buy points include cup with handles NOV 78.55, DE 88.99, AGCO 53.79, MHK 66.17, PXP 39.47, IP 32.68, GD 72.99, BA 76.80, SWK 73.39, FDX 93.62. Cup bases are SWI 33.78, BUD 64.63, MA 385.09, CBS 29.78. FTI 54.98 in a flat base, BBBY 63.70 in a double bottom with handle, and ROST 52.81 in a 3 week tight pattern.

Stocks that can be bought as they reclaim their 40 week MAs and their buy stop spots are BIDU 134, X 33.50, DO 64.35, BHP 82.45. SLB FE both retook their 40 week MAs today.

Stocks that can be bought at 40 week support are MUR 58.25, FCX 44.10, WM 34. Stocks that found 40 week support today were TAP TCK VMW KO MWV.

Stocks that can be shorted as they lose 40 week support and their sell stop spots are NSC 70.95, PRGO 91.65. ARMH lost 40 week support today. COG can be shorted 34, 40 week resistance. GS DO LAZ all met 40 week resistance today.

Stocks that can be bought as they reclaim their 10 week MAs and their buy stop spots are AMZN 185.50, DPZ 33.25, NEM 63.20. GBX TGT both retook their 10 week MAs today.

Stocks that can be bought at 10 week support are RTN 47.05, XOM 82.80, OXY 95.30, UA 76, MRK 37, HUM 88.50, JWN 48.20, CL 90.10. CPX AMP ARMH ALGN all found 10 week support today.

Stocks that can be shorted as they lose 10 week support and their sell stop spots are ORLY 79.75, MCD 97.75, WLL 47.70, VRSK 39, KSU 67.75. ARG SO both lost 10 week support today.

Stocks that can be shorted at 10 week resistance are RAI 40.55, ARG 77.50, VFC 132.40, ABT 54.90, ED 59.35, SO 44.70, GNC 28, TIF 65.25. PM CVX DPZ all met 10 week resistance today.

Good luck.

The author is flat.

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