Markets were slightly bifurcated Tuesday, with the Nasdaq closing up, and the S&P 500 down. But both performed admirably overcoming weak starts. Volume picked up as benchmarks advanced. We even managed a few breakouts today with RAX taking out a 60.65 cup base trigger, and TSCO rising through a 97.33 cup with handle trigger. There were also numerous lower volume breakouts from the likes of CRI LIFE JAH LPX TCO LIFE. Volume can confirm in the coming days. As the Nasdaq outperformed today, and has YTD, we saw some strong moves in tech leaders like SNPS which had a bullish outside day today, SWI up 7%, RMD up almost 5% after its recent 35.23 cup base breakout 8/3. Some transports had a bad day, after receiving downgrades. They were NSC CSX. Both fell near 3%, and near 40 week support. Leader UNP found 10 week support and closed up almost 1%. Of course FDX slashed guidance after the close, so that alone should put at least the trannies under pressure tomorrow morning. One more troubling sign is the potential strength being seen in AMTD. A contrarian indicator is when the retail investor feels like they are missing out on gains and try to join the fray to late. A move above the 40 week could be ironically negative.
Stocks that can be bought as they take out the following triggers on firm trade are cup with handles DOX 32.68, BK 23.19, ALLT 28.18, SKS 12.07, BAX 60.08, SCSS 30.02, ORCL 32.40, HAR 46.94, AMP 55.89, TS 42.52, KSU 79.09, LAZ 29.44, GCI 15.90, EOG 111.82, TXT 27.75, MHK 75.23, CZZ 14.65, MYL 24.09. Flat bases are VAL 53.85, RTN 57.02, 3 week tight is HD 57.28, and BRCM 36.31 in a double bottom with handle. 4 week tight is FLS 130.25, 6 week tight is NWS 24.30.
Stocks that can be bought as they retest prior triggers and hold are GGC SKX IT. GGC took out a 37.34 cup base trigger on 8/16. It hails from the chemical sector which has group mates PPG LYB acting well. SKX took out its 21.60 cup base trigger 8/22, and it is among the retail sector which has been reestablishing itself. Stocks like PVH URBN GPS all acting well after recent gaps. IT took out a 3 week tight trigger of 49.64 on 8/28, which could have been used as an add on following its 44.34 cup with handle breakout 7/2. Had a solid day, rising 2.5% on a somewhat soft tape to an all time high.
Stocks that can be bought as they retake their 10 week MAs and their buy stop spots are VZ 44.30, JACK 26.90, FMX 86.50, TUP 54. SONC AMT CVS TTC all retook their 10 week MAs today.
Stocks that can be bought as they take out their 40 week MAs and their buy stop spots are WAT 82, ERJ 28.25, GPOR 27.25, H 38.60, OCR 33.25, NUAN 24.45, NTAP 36.30. EGO SINA both retook their 40 week MAs today.
Stocks that can be bought at 10 week support are HCP 45, DPS 44.45, ROP 100, TWX 40, AZPN 23.05. Stocks that met 10 week support today were NE HON EXXI SCCO BRO GE VCLK MAR TFM SPG TWTC COG SWK MWV MRK HSY APC DRI WFC BBT.
Stocks that can be bought at 40 week support are CSCO 18.45, SI 92.50, MCK 86, RL 155.25, MET 33.55, CREE 26.95. Stocks that met 40 week support today were PXP TER DRC NTGR SLB RDSA CIT ALTR NSC DUK HLX SU JEF.
Stocks that can be shorted as they lose 10 week support and their sell stop spots are NOC 65.50, CE 38.60, WYN 50.75, BRKB 83.70. MPWR LLL both lost 10 week support today.
Stocks that can be shorted as they lose 40 week support and their sell stop spots are ECL 61.75, DHR 51.50. ARMH GPC JBL all lost 40 week support today.
Stocks that can be shorted at 10 week support are CTRX 90.30, XRAY 37, NCR 23.05, MUR 52. PM KMB ABV all met 10 week resistance today.
Stocks that can be shorted at 40 week resistance are ETN 45.55, HAL 33, DNKN 30, CNW 32. JPM XLNX ARG all met 40 week resistance today.
The author owns FCX PXD DHI. Short FISV PII WWWW. We are most likely going to make some changes tomorrow. WWWW remains a disappointment for myself. We were up nicely, now we are barely up. Shame on me.