Markets were for the most part UNCH Tuesday, and volume was again below average. Action among leaders which have taken out recent triggers, that we keep an eagles eye on, were a bit worrisome today. When a stock breaks out, the time immediately following the move is imperative to watch. Remember the best breakouts work right away. PII took out an 83.53 cup base trigger 9/13, and fell on huge trade losing that trigger. LPX lost 7% today on wood weakness, no pun intended, on big trade falling below its recent 13.86 3 week tight trigger it took out 9/4. INXN on the other hand rose 4.5% today on healthy volume following yesterdays 20.37 cup with handle breakout. Guess FDX did not shout loud enough 9/4 the first time it lowered guidance as the market shrugged it off, but today the market took them at their word. Yesterday we talked about how the 20 handle was important for ALKS, today we will talk about GOLD and the importance of its 120 handle. GOLD for the last 3 days has closed above that level which was a nemesis in November of 2011, and this February. An all time high, a nice gap, and a solid breakout from a 119.83 cup base trigger on 9/14. If you want to buy a gold stock, buy the best of breed GOLD. Although oil has had a rough couple days, I am wondering if the recent action of the airlines is prognosticating further oil strength. Former airline stalwarts, ALK SAVE can not seem to get out of their own way, even with the 2 day slump in crude. Makes you wonder.
Stocks near specific triggers that can be bought as they take them out on firm trade are flat bases MON 89.83, T 38.38, TXT 29.28, ALKS 20.09, MRK 45.27. Cup with handles are EL 62.08, LTD 50.85. Cup bases are SLW 40.46. Double bottoms are CA 27.42, double bottom with handle is CTXS 81.88, GPS 36.70 in a square box, and TGT 65.09 in a 4 week tight pattern.
Stocks that can be bought as they retest prior triggers and hold are HD MAR BBT. HD took out a 57.28 3 week tight trigger on 9/13 (volume confirmation came that day). It strength emanates from a solid housing sector, and it has been eating competitor LOW’s lunch as of late. MAR comes from the lesiure/hotels group and took out a 39.97 double bottom trigger on strong trade 9/7. Stocks acting firm in the group include HOT H WYN. BBT took out its 32.83 flat base trigger on 9/7. Many financials have come back to life as of late including WFC USB among the regionals.
Stocks that can be bought as they retake their 40 week MAs and their buy stop spots are LUK 24.25, INVN 14, QLIK 25.90, NTAP 36.40, COL 54.20. Stocks that can be bought as they retake their 10 week MAs and their buy stop spots are ENB 40.20, AMX 26.20, FB 22.90. CL retook its 10 week MA today.
Stocks that can be bought at 10 week support are JWN 55.25, TV 23, CP 81.75. Stocks that met 10 week support today were IACI SBAC PM NUE SKS NOC SWKS NSC.
Stocks that can be bought at 40 week support are WRC 50.50, IPI 23, WLL 48.40. Stocks that found 40 week support today were RVBD CCJ CXO MCK DNR APD BHP.
Stocks that can be shorted as they lose 10 week support and their sell stop spots are WMT 72.80, TMK 50.70, VRSN 45.75, WNR 25.30. HCP lost 10 week support today.
Stocks that can be shorted as they lose 40 week support and their sell stop spots are KLAC 49.75, BEAM 56.60.
Stocks that can be shorted at 10 week resistance are CHKP 48.25, TYC 55, HSY 72, DPS 44.75, DG 51.30, SBH 26.95. MBT KO DNKN all met 10 week resistance today.
Stocks that can be shorted at 40 week resistance are CHK 20.50, CNX 33, OXY 91. ABV SPR POT NDAQ all met 40 week resistance today.
The author owns JACK XXIA.