Markets fell Monday, and were in the red basically all day long. Volume was muted, softening the blow. Both benchmarks I follow, the S&P 500 and the Nasdaq, we have to remember are up huge. The S&P is up 16%, the Nasdaq 22%. 9/6 was a big day for both, as with leading stocks breaking out (INXN broke out from a 20.37 cup with handle trigger), indexes can to. That day the Nasdaq took out a 3134 cup base pivot, and the S&P 500 a cup with handle pivot just above 1426. Can they fall back to those prior triggers? Of course. But most of us buy individual stocks, and a few that have caught my eye besides the ones in the following paragraphs, is ALKS. It is a biotech, which are prone to greater volatility, but a look at the chart has some positive technicals developing. Three separate times the stock was stopped cold the round 20 handle. The week of 7/18/11 it hit 20.00 precisely. The week of 2/3/12 it hit a high of 19.87, and the week of 7/27/12 hit a high of 19.99. A flat base trigger should be set at 20.09, which would put it at a 6 year high. Stocks taking  a healthy breather, and perhaps constructing handles on their forming cup bases are  ZION PNC SLW DISH TROW. They must be 5 days in duration to be considered valid. GPS had a very bullish outside day. Stocks hitting all time highs today included AAPL GILD GOLD CVX ADS, a diverse collection. Some defensive names acted well today like PM CL, perhaps individual dead cats, or the start of some short term risk off trades being favored?

Stocks that can be bought as they take out the following specific triggers on firm trade are flat bases TXT 29.28, SPG 163.85, BLL 43.80. Cup bases are HOT 60.91, SAP 72.62. DK 27.51 in a 3 week tight pattern, LTD 50.85 in a cup with handle base, and double bottoms are SI 105.50, CA 27.42. Double bottom with handle is CTXS 81.88.

Stocks that can be bought as they retest prior breakout triggers and hold are TRMB LPX PWR. TRMB took out a 49.88 double bottom trigger 9/6. GRMN in the group recently retook its 40 week MA, and is in the process of developing the right side of its base. LPX took out a 13.86 3 week trigger on 9/4. WY, a group mate in the strong building sector has built, pun intended,  an almost 50% YTD gain. PWR took out a 25.26 flat base trigger on 9/13. FLR, a fellow infrastructure play is acting well. Remember its important that a stock you are eyeing for a purchase, has stocks that come from strong groups and has others in its group working well.

Stocks that can be bought as they retake their 40 week MAs and their buy stop spots are XEC 64, FAST 45.60, NTAP 36.50, QLIK 26, COL 54.25, VCLK 17.85. Stocks that can be bought as they retake their 10 week MAs and their buy stop spots are KO 38.95, POT 43.30. FIS PM both retook their 10 week MAs today.

Stocks that can be bought at 10 week support are IP 33.10, SDRL 39.55, SKS 11.05. VZ SEM SBUX PFE DVA MRK all found 10 week support today.

Stocks that can be bought at 40 week support are APD 84.60, STT 42.20, ETN 45.50, PCAR 41.15. Stocks that found 40 week support today were CCJ RVBD GRMN NYX FDX.

Stocks that can be shorted as they lose 10 week support and their sell stop spots are IACI 50.70, WNR 25.30, EW 102, AMT 70.40, SBAC 58.50. MBT lost 10 week support today.

Stocks that can be shorted as they lose their 40 week MAs and their sell stop spots are APC 73.35, MCK 85.80. Stocks that lost 40 week support today were NUE NDAQ OXY PXP.

Stocks that can be shorted at 10 week resistance are CNC 38.50, DPS 44.70, SBH 26.95, DG 51.50, PETM 69.20. Stocks that met 10 week resistance today were FRAN FB ROST CL PDCO TFM.

Stocks that can be shorted at 40 week resistance are ARG 83.30, ALK 35.20. Stocks that met 40 week resistance today were BMY XRAY DVN CERN.

Good luck.

The author owns JACK XXIA.

 

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