Markets took a small pause Monday. Taking a look under the hood however, did show some groups that buyers were active. Energy, chips, autos led the way. A telling sign were how the energy and commodity groups bucked the stronger dollar Monday. Last Friday among stocks on their 52 week high list, and there were plenty, energy led the list. Buy strength.
In the energy sector RIG took out its 200 day MA @66. That line was resistance all last month. RIG has performed well since we flagged it popping above its 50 day MA in strong volume in early August. CNX also took out its 200 day MA @40 in good volume yesterday. These both can be bought here as long as they stay above that 200 day and close above that line. UPL took out its 200 day @44.50, although it was in lower volume. Look for RRC to challenge its 200 day @43 and SWN to do the same with its 200 day @38 this week. Buy stops can be put in for both RRC SWN above those lines. PBR remains above its 50 day MA @35. Look for it to gravitate toward its 200 day @38.
CRZO has a buy point of 26.26 in a cup with handle base. WLT has a 99.55 buy point in an 8 month cup base. May go on to form a handle however. NEM broke thru its 50 day MA @62. Look for it to make yearly highs above 65.50 soon. CAT broke out of a flat base last Thursday @81.30 and is still holding that breakout nicely.
Tech stocks that show my interest right now are: VMW. Put a buy stop @81.50 if it can regain its 50 day MA in strong volume. RIMM headed for a 200 day challenge @59. A (Agilent) is nicely building the right side of its base.
Retail has been popping back up the radar with plenty of leaders (COH TIF WFMI SBUX NKE) showing the way. GPS, although a laggard, can be bought here as long as it can hold its gap up above 20. Right now displaying 200 day support. Watch for 50 day support on BUD @59.
Gap ups still intact include BRCM WFMI COH GPC XXIA LTD HES.
ETFs doing well include FXI which blew thru a triple top on 10/13 and has not really looked back. XLF XHB both sectors that have not performed particularly well recently may be looking to play catch up. They both blasted thru their 200 day MA last Thursday.
Possible short candidates include: MRX, further losing its 50 day MA in big volume. Look for support now at 200 day @26 and resistance at the 50 day @29. DISCA, same chart. Support now at 200 day @27, resistance at 50 day @43.
Good luck.
The author owns FCX ORCL CAKE RADS.
Tuesday, November 9, 2010
Sunday, November 7, 2010
A New Look GOP
As someone who follows patterns, I noticed a relatively ignored trend that developed last Tuesday: the distinct mixture of race, ethnicity and gender of those running for public office. Republicans, who captured the House and came ever-so-close to seizing control of the Senate, will bring a much more diverse cast to Washington than in races past. African Americans, Latinos and Asian congressmen-elect will bring their fresh and contrasting visions to the Oval Office. A "change" is coming to the White House.
Not since the Reconstruction Era have more African American Republicans ran for Congress. At least 32 threw their hats into the ring this November. Ironically, most hit the campaign trail because of President Obama. Obama, who - to his credit - admitted to the shellacking the Democrats took on Tuesday, has confidence in potential black congressmen. Although no African American will be serving in the Senate come January (Ronald Burris retires the Illinois seat he was appointed to by Obama), the House of Representatives will greet two new members: Allen West of Florida and Tim Scott from South Carolina.
Other prominent GOP victories this past week include Tea Party favorite Nikki Haley. Of Indian descent, she becomes South Carolina's first female Governor. Marco Rubio, of Cuban heritage, will be Florida's next Senator. Susana Martinez, a Mexican, is set to become New Mexico's first female Governor. In Nevada, Harry Reid's son Rory lost his gubernatorial race to the Brian Sandoval. In January, he will assume the role of Nevada's first Hispanic governor. All these candidates possess a strong admiration of conservative values. They prefer small government, lower taxes and eliminating any burdening obstacles entrepreneurs face in trying to stimulate job growth.
The media silence surrounding the absence of a Republican African American in Congress since J.C. Watts of Oklahoma (retired in 2003) was disturbing. Maybe it didn't fit the far left image of Republicans as a biased, narrow-minded bunch. Was it coincidence that the media missed reporting almost all of the African American, Hispanic, Asian elect were endorsed by the Tea Party? I think not. They tried to portray the Tea Party as a racist, anti-immigrant organization. Maybe sometime soon we'll be lucky enough to have something other than the partisan media monopoly that exists today. But I'm not holding my breath.
Not since the Reconstruction Era have more African American Republicans ran for Congress. At least 32 threw their hats into the ring this November. Ironically, most hit the campaign trail because of President Obama. Obama, who - to his credit - admitted to the shellacking the Democrats took on Tuesday, has confidence in potential black congressmen. Although no African American will be serving in the Senate come January (Ronald Burris retires the Illinois seat he was appointed to by Obama), the House of Representatives will greet two new members: Allen West of Florida and Tim Scott from South Carolina.
Other prominent GOP victories this past week include Tea Party favorite Nikki Haley. Of Indian descent, she becomes South Carolina's first female Governor. Marco Rubio, of Cuban heritage, will be Florida's next Senator. Susana Martinez, a Mexican, is set to become New Mexico's first female Governor. In Nevada, Harry Reid's son Rory lost his gubernatorial race to the Brian Sandoval. In January, he will assume the role of Nevada's first Hispanic governor. All these candidates possess a strong admiration of conservative values. They prefer small government, lower taxes and eliminating any burdening obstacles entrepreneurs face in trying to stimulate job growth.
The media silence surrounding the absence of a Republican African American in Congress since J.C. Watts of Oklahoma (retired in 2003) was disturbing. Maybe it didn't fit the far left image of Republicans as a biased, narrow-minded bunch. Was it coincidence that the media missed reporting almost all of the African American, Hispanic, Asian elect were endorsed by the Tea Party? I think not. They tried to portray the Tea Party as a racist, anti-immigrant organization. Maybe sometime soon we'll be lucky enough to have something other than the partisan media monopoly that exists today. But I'm not holding my breath.
Saturday, November 6, 2010
Weekend Warrior
Indexes took a healthy pause after a big rally on Thursday. Volume was tame. Just what you want to see after a big run up. For the week the S&P led the way with a 3.6% gain. The Dow and Nasdaq both finished just under 3%. The jobs number premarket Friday was benign. A stronger than expected 159,000 jobs were created in October but the market failed to rally on the news. As a bull market should act it closed with a late round of buying to finish near highs of the day.
Semis have been strong as of late. TXN hitting 2 yr highs. Looking like its former leader self. Two small caps in the group that had nice earning gap ups recently include: AXTI ATML. Look for them to hold their gap up and move higher. MRVL MXIM looking strong as well. NVDA closing in on its 200 day MA @13. Put in a buy stop just above that line. ARMH continues to struggle with its 50 day line @18. If it can bump up and push thru it put a buy stop @18.25. If it fails there it can be shorted.
The metals are all looking bullishly on the charts here. NEM a buy stop can be put going thru the 50 day MA @62.40. If we can be fortunate to get some ABX @47 near its 50 day pick some up. Put a buy stop in on X @50, the 200 day. It has been stopped at the line in both July and August. Put in a buy stop on NUE @42, also its 200 day MA. Is it any surprise that a foreign steel maker is a little bit ahead of our own domestic steel producers. MT peaked its head above the 200 day line late this week. Purchase it near that line if you can.
A common theme I have repeatedly brought up these last couple weeks are the earnings reactions among leaders. Having negative response to the report (the day of the earnings report) only to find support at its 50 day, then proceed higher. Add AMT which found support @50, its 50 day MA, then finishing 2 dollars higher. DVA PPO CEDC did the same thing late this week. Other names that acted in similar fashion this week were CMI HLF HS CHRW SUN.
Stocks with specific buy points are: ROVI @53.10 (flat base), TKC @19.48 (cup with handle), WLT @99.55 (cup without handle, although it may go on to form a handle). HES broke out on 10/18 @64.78 from a cup with handle base. This week had a nice earnings related gap up. Watch that one closely.
SBUX had an earnings gap up. WFMI gap up still intact, but barely so. XXIA broke away from its recent gap up in big volume this week.
Other entry points for stocks are: CNX @40.50, UPL @45. Both buy stops thru their respective 200 day MAs. CEDC looks to challenge its 200 day this coming week. A buy stop can be put in just above 28, its 200 day.
JCG perked its head up above its 50 day MA ON Friday. BUD 50 day is 59. It should be bought there. CNI needs to hold its 50 day right here. Other stocks looking real strong now are AA GS KBR.
DISCA MRX both losing their 50 day MAs. Lets see if those lines act as resistance their now.
Good luck.
The author owns FCX ORCL CAKE RADS.
Semis have been strong as of late. TXN hitting 2 yr highs. Looking like its former leader self. Two small caps in the group that had nice earning gap ups recently include: AXTI ATML. Look for them to hold their gap up and move higher. MRVL MXIM looking strong as well. NVDA closing in on its 200 day MA @13. Put in a buy stop just above that line. ARMH continues to struggle with its 50 day line @18. If it can bump up and push thru it put a buy stop @18.25. If it fails there it can be shorted.
The metals are all looking bullishly on the charts here. NEM a buy stop can be put going thru the 50 day MA @62.40. If we can be fortunate to get some ABX @47 near its 50 day pick some up. Put a buy stop in on X @50, the 200 day. It has been stopped at the line in both July and August. Put in a buy stop on NUE @42, also its 200 day MA. Is it any surprise that a foreign steel maker is a little bit ahead of our own domestic steel producers. MT peaked its head above the 200 day line late this week. Purchase it near that line if you can.
A common theme I have repeatedly brought up these last couple weeks are the earnings reactions among leaders. Having negative response to the report (the day of the earnings report) only to find support at its 50 day, then proceed higher. Add AMT which found support @50, its 50 day MA, then finishing 2 dollars higher. DVA PPO CEDC did the same thing late this week. Other names that acted in similar fashion this week were CMI HLF HS CHRW SUN.
Stocks with specific buy points are: ROVI @53.10 (flat base), TKC @19.48 (cup with handle), WLT @99.55 (cup without handle, although it may go on to form a handle). HES broke out on 10/18 @64.78 from a cup with handle base. This week had a nice earnings related gap up. Watch that one closely.
SBUX had an earnings gap up. WFMI gap up still intact, but barely so. XXIA broke away from its recent gap up in big volume this week.
Other entry points for stocks are: CNX @40.50, UPL @45. Both buy stops thru their respective 200 day MAs. CEDC looks to challenge its 200 day this coming week. A buy stop can be put in just above 28, its 200 day.
JCG perked its head up above its 50 day MA ON Friday. BUD 50 day is 59. It should be bought there. CNI needs to hold its 50 day right here. Other stocks looking real strong now are AA GS KBR.
DISCA MRX both losing their 50 day MAs. Lets see if those lines act as resistance their now.
Good luck.
The author owns FCX ORCL CAKE RADS.
Thursday, November 4, 2010
After Hours
Markets exploded today in higher volume. Almost all groups were strong. The SOX had a wonderful day. Tomorrow we have the jobs report. Indexes have made big moves this week with a shift in power of the house and the announcement of QE2. Some stocks in the software sector were well soft. CRM FFIV VMW all finished well lower on the day.
Stocks with specific buy points include: MAN @58.09 TKC @19.48. Both cup with handles. Equities flirting with there 200 day MA are RIG which a buy stop can be put in at 66. UPL buy stop @45 as it goes thru the 200 day as well. MT is now above its 200 day and X seems headed to its 200 day @49.
Gap ups today include: QCOM RIO SLW PAAS AEM WFMI. Recent gap ups MXIM BRCM COH all display very bullish behavior. Breaking away from short term consolidation after recent gap up.
VMW failed at its 50 day MA today. A weak sign on such a positive day. ARMH looking weak as well as it finished lower and still remains below its 50 day MA.
On a totally different note TSLA screamed higher today on an announcement of a 2% ownership stake by Panasonic. For all the bad press it has received I wish the company luck.
Portfolio changes today were getting long FCX thru par and selling CRM SMG for no loss or gain. Poor relative performance today.
Good luck.
The author owns ORCL CAKE RADS FCX.
Stocks with specific buy points include: MAN @58.09 TKC @19.48. Both cup with handles. Equities flirting with there 200 day MA are RIG which a buy stop can be put in at 66. UPL buy stop @45 as it goes thru the 200 day as well. MT is now above its 200 day and X seems headed to its 200 day @49.
Gap ups today include: QCOM RIO SLW PAAS AEM WFMI. Recent gap ups MXIM BRCM COH all display very bullish behavior. Breaking away from short term consolidation after recent gap up.
VMW failed at its 50 day MA today. A weak sign on such a positive day. ARMH looking weak as well as it finished lower and still remains below its 50 day MA.
On a totally different note TSLA screamed higher today on an announcement of a 2% ownership stake by Panasonic. For all the bad press it has received I wish the company luck.
Portfolio changes today were getting long FCX thru par and selling CRM SMG for no loss or gain. Poor relative performance today.
Good luck.
The author owns ORCL CAKE RADS FCX.
AM Meandering
Stocks perked up and down and closed near highs of the day after the tepid reaction to election. After the fed announced its $600 B treasury purchase program the market found its legs. The Nasdaq closed to finish at a yearly high. Volume came in above average. The market continues its uptrend an the Nasdaq closed also at its highest levels since 2008. QCOM beat after the close which could help to further boost that index today.
RADS @18 and DISCA @42 both found solid support at their 50 day MA after earnings yesterday. We have flagged many of these opportunities recently. Stocks that are now challenging that 50 day MA are CREE EGO PBR. Buy stops can be placed on all of these as they push thru that line. CREE @53, EGO @18.85, PBR@ 35.15. VMW looks to be heading to that 50 day line soon and a buy stop can be place there @81.
SWN has been seeing some strong recent accumulation after breaking thru its 50 day. Perhaps anticipating a more friendly Republican majority. Buy back toward 34 if you can and watch to see how it challenges its 200 day MA near 38. MT is challenging its 200 day right here basically. Buy stop on MT @35.25. NEM, a laggard its the gold mining group behind leaders AEM ABX, could be testing its 200 day MA @56 soon.
SLB NBL continue to look strong. WLT building its right side beautifully. MXIM earnings gap up last week continues to hold up solidly. Very bullish. TRMB also continues to trade well after we flagged its breakout @33.66 on 9/20. Great earnings yesterday.
Good recent defense includes the covering of JKS AVGO much lower. WFMI broke out @40.43 yesterday but having earnings after the close was to risky. Trading much higher in the premarket now of course.
Good luck.
The author owns CRM ORCL RADS SMG CAKE.
RADS @18 and DISCA @42 both found solid support at their 50 day MA after earnings yesterday. We have flagged many of these opportunities recently. Stocks that are now challenging that 50 day MA are CREE EGO PBR. Buy stops can be placed on all of these as they push thru that line. CREE @53, EGO @18.85, PBR@ 35.15. VMW looks to be heading to that 50 day line soon and a buy stop can be place there @81.
SWN has been seeing some strong recent accumulation after breaking thru its 50 day. Perhaps anticipating a more friendly Republican majority. Buy back toward 34 if you can and watch to see how it challenges its 200 day MA near 38. MT is challenging its 200 day right here basically. Buy stop on MT @35.25. NEM, a laggard its the gold mining group behind leaders AEM ABX, could be testing its 200 day MA @56 soon.
SLB NBL continue to look strong. WLT building its right side beautifully. MXIM earnings gap up last week continues to hold up solidly. Very bullish. TRMB also continues to trade well after we flagged its breakout @33.66 on 9/20. Great earnings yesterday.
Good recent defense includes the covering of JKS AVGO much lower. WFMI broke out @40.43 yesterday but having earnings after the close was to risky. Trading much higher in the premarket now of course.
Good luck.
The author owns CRM ORCL RADS SMG CAKE.
Tuesday, November 2, 2010
Election Day
Stocks rallied again today surprisingly on Election Day. Tomorrow we get the amount of QE2 the Fed will incorporate. Estimates are far and wide with the lower end at $250 million to GS predicting $2 trillion. Volume was up on the Nasdaq but lower on other indexes.
CMI rallied today after finding support after a bad reaction to earnings last week. Much like CHRW and HS it found solid ground at the 50 day MA. HLF did it today. Bouncing off the 50 day near 60 the stock rallied to finish lower but close on the highs of the day. SUN is their now. Sitting at the 50 day after a poor reaction to earnings last week. Lets see what the future holds for SUN. MRX has rallied off the 50 day MA today.
Real estate sector continues to look good. BAM VNO SPG PSA all continue solid uptrends with support along the 50 day MA all along.
JKS had a huge earnings gap up. Probably acclerated by a short squeeze combined with a genuine good number. XOM SLB continue their recent stellar moves of late.
Stocks looking to challenge their 200 day MA include: MT @35, NVDA @13, RIMM @60. Buy stops can be placed on all of those if they can penetrate those numbers on solid volume.
ARMH continues to live below its 50 day @18. Did not show relative strength at all today during the rally. Not a good sign. Lets see how it reacts if it challenges that MA @18.
Good luck.
The author owns CRM ORCL RADS SMG CAKE.
CMI rallied today after finding support after a bad reaction to earnings last week. Much like CHRW and HS it found solid ground at the 50 day MA. HLF did it today. Bouncing off the 50 day near 60 the stock rallied to finish lower but close on the highs of the day. SUN is their now. Sitting at the 50 day after a poor reaction to earnings last week. Lets see what the future holds for SUN. MRX has rallied off the 50 day MA today.
Real estate sector continues to look good. BAM VNO SPG PSA all continue solid uptrends with support along the 50 day MA all along.
JKS had a huge earnings gap up. Probably acclerated by a short squeeze combined with a genuine good number. XOM SLB continue their recent stellar moves of late.
Stocks looking to challenge their 200 day MA include: MT @35, NVDA @13, RIMM @60. Buy stops can be placed on all of those if they can penetrate those numbers on solid volume.
ARMH continues to live below its 50 day @18. Did not show relative strength at all today during the rally. Not a good sign. Lets see how it reacts if it challenges that MA @18.
Good luck.
The author owns CRM ORCL RADS SMG CAKE.
Early Morning Thoughts
Stocks not surprisingly finished flat ahead of the big Election Day. They started off with a bang however after economic news from China and ISM here at home were released. Volume was tame, again waiting not only on today, but the start of the two day Fed meeting and Fridays employment report. Real estate equities were strong today.
Stocks showing specific buy points include: XRX @11.82, cup without handle, PPG @78.10, 3 wks tight pattern. IR @40.23, double bottom with handle. AMT @52.44, flat base. SOA @18.68, cup with handle.
NTGR can be bought @29, back to its breakout spot. XXIA @15, close to its gap up area. AKAM @48, its 50 day MA.
A buy stop can be put on NEM @62.25 as it breaks free thru its 50 day MA. MRX needs to hold its 50 day here. Keep an eye on BLL here. Pulling back after a monster volume move to an all time high for the stock. Buy it on weakness as long as it lives above its 50 day MA @60.
Good luck.
The author holds positions in: CRM ORCL RADS SMG CAKE.
Stocks showing specific buy points include: XRX @11.82, cup without handle, PPG @78.10, 3 wks tight pattern. IR @40.23, double bottom with handle. AMT @52.44, flat base. SOA @18.68, cup with handle.
NTGR can be bought @29, back to its breakout spot. XXIA @15, close to its gap up area. AKAM @48, its 50 day MA.
A buy stop can be put on NEM @62.25 as it breaks free thru its 50 day MA. MRX needs to hold its 50 day here. Keep an eye on BLL here. Pulling back after a monster volume move to an all time high for the stock. Buy it on weakness as long as it lives above its 50 day MA @60.
Good luck.
The author holds positions in: CRM ORCL RADS SMG CAKE.
Subscribe to:
Posts (Atom)