Markets were red most of the day, and briefly the S&P 500 went green, but all closed in the red. The Nasdaq did take the brunt of the selling today. We all have come to know that Mondays are not particularly friendly to benchmarks. The action of the indexes lately can be confusing. Does it resemble consolidation or churning? I fell the former, as volume has been muted for some time. We managed a breakout today as IBN barely took out a 40.06 cup base trigger, and although I do not follow the small names, a small paper and packaging company BZ took out a 8.69 flat base pivot. FXE looks poised to test its 40 week MA just below 128, and see if prior resistance will become support there. That could put the risk trade back on, which has looked rather putrid as of late. Concerning risk I was looking at the tale of the tape with two copper plays and why it is imperative to buy strength. Dr. Copper had a nice move the second week of September, and FCX SCCO both benefited. A look at how they have fared recently clearly puts SCCO as the more energetic name. It is just 6% from its 52 week high, and reversed and closed in the black today, while FCX lingers 18% from its own 52 week high. It has liked the round number of 40 in the last few sessions however.
Stocks that can be bought as they take out the following specific triggers on firm trade are cup with handles PH 87.81, HAR 49.68, TROW 66.07, IVZ 26.35, ZION 21.77, PNC 67.14, BEN 128.30. Flat bases are GET 41.27, T 38.38, MRK 45.27, WMT 75.34, VZ 46.51, GPS 36.70, XXIA 16.50. Cup base is CVS 48.79, 3 week tight triggers are DK 27.51, HLSS 16.54, RMD 40.09.
Stocks that can be bought as they retest prior breakout triggers are ITW HUN MON. ITW broke out from a 58.36 flat base trigger back on 8/16. It has been trading very tightly since then, with HON DOV both acting well in the group. HUN broke out from a 15.05 cup with handle trigger from 9/11. It comes from the chemical group , with ASH EMN both acting well in the sector. MON broke away from a 89.83 flat base trigger on 9/19, and hails from the strong ag group, with CF AGU both displaying strength. Stocks that have recently found bids and held since retesting prior triggers are ALGN HST PKG.
Stocks that can be bought as they retake their 40 week MAs and their buy stop spots are BEAV 43, INFY 49.25, XRAY 38, PBR 24.25, SMG 45.95, LUK 24.25, MCD 94.45, AU 37.50.
Stocks that can be bought as they retake their 10 week MAs and their buy stop spots are ECL 65.60, PXP 40.15, NOC 67.25.
Stocks that can be bought at 40 week support are PSSI 22.75, GME 21, VMW 96, KBR 29.80, WRC 50.50, TIF 62. Stocks that found 40 week support are BEAM MCK PMTC TRMB ROC PCAR CERN MBT PTEN ODFL CLR.
Stocks that can be bought at 10 week support are SLB 72.75, TFM 58, CA 26. Stocks that found 10 week support today were WAG TYC KSU TS TXT NUE A CP LMT AIG APH BHI.
Stocks that can be shorted as they lose 10 week support and their sell stop spots are NCR 23.20, ESV 55.30, ADI 39.30, R 39.70. Stocks that lost 10 week support today were MCHP FB NE GNC JWN.
Stocks that can be shorted as they lose 40 week support and their sell stop spots are CSCO 18.40, CTXS 74.50, EMR 48.75. ALTR lost 40 week support today.
Stocks that can be shorted at 40 week resistance are CROX 17.75, NVDA 13.95, CBI 40.15. NTAP met 40 week resistance today.
Stocks that can be shorted at 10 week resistance are CNI 90.15, COH 57.25, UNP 122.25, SPG 159. DNKN HSY INTU OXY FRAN all met 10 week resistance today.
The author owns JACK XXIA.