Markets put in a second consecutive performance Tuesday, and volume backed up the move. The Nasdaq was the days winner rising 1.2%, and reclaiming its 10 week in the process. It was stopped at the round number of 3100, where stocks or benchmarks sometimes pause. Is today’s move a tech dead cat bounce? Time will tell but the bulls seem to be back in control. We recorded some more breakouts today as MUR blasted through its 59.89 cup with handle trigger advancing more than 8% on huge trade. RKT took out a 74.10 cup with handle trigger, and NLSN took out a 31.28 cup with handle trigger. With more stocks breaking out of bases, the recent rally seems to be intact. Other stocks we are watching include JBHT, which has now held its gap up for 3 consecutive days. As a rule I like to see a gap up hold for 4 days in a row to confirm its validity. TSCO is a recent breakout that is exactly what you do not want to see. After taking out a 101.38 cup with handle trigger on 10/5, the stock has fell for 7 straight days. Today it lost 10 week support on a pretty benign tape. After hours both IBM INTC fell which could weigh on the Nasdaq at tomorrows start. Perhaps they can shed some bad news, reminiscent of todays move in C. After a weak start, following the shocking announcement of Pandits resignation. The stock fell initially, but reversed and rose 2% on the day. Bad news, good price action is very bullish, as we all now.
Stocks that can be bought as they take out the following specific triggers on firm trade are cup with handles AGCO 48.82, MSI 52.02, RY 59.46, AMX 26.60, IAG 16.98, MTZ 21.81. Double bottom is HCP 47.36. Flat bases are CHS 19.53, HNZ 58.41, and IPG 12.04 in a double bottom with handle base.
Stocks that can be bought as they retest prior breakout triggers are KKR IRM SYY. KKR took out a 15.05 cup with handle trigger back on 9/14. In the group BX is acting well and is sporting a decent cup with handle trigger, and CG which went public this spring is basking in the glory of 10 week support. IRM took out a 35.89 flat base trigger on 10/11. It was a long, 15 month base, which are normally less failure prone. Within the sector both MCO EFX are holding their own prior recent breakout triggers. SYY took out a 30.88 cup with handle trigger on 9/19. The stock is of course defensive in nature, but the chart looks solid as the stock advanced volume backed up the move, and fell when the stock retreated.
Stocks that can be bought as they reclaim their 10 week MAs and their buy stop spots are APH 60.85, CBE 74.75, FRAN 31.60, PWR 24.75, ETN 46.40. Stocks that retook their 10 week MAs today were NOV NKE UNP EOG LII NE UA CNK FL DIS EMN DOX COV ESV BIIB KSU SNPS DO CRUS APC MIXM TYC NTRS.
Stocks that can be bought as they reclaim their 40 week MAs and their buy stop spots are HP 51.80, DNR 17.05, PCAR 41.85, RIG 47.40, AVP 17.75, WLL 48.50, ITT 21.20. Stocks that retook their 40 week MAs today were NXPI RDSA BA CSCO.
Stocks that can be bought at 10 week support are AMP 56, PHH 19.10, APS 54.75, RRC 68, LCC 10.90. Stocks that met 10 week support today were TOL AJG TV BECN.
Stocks that can be bought at 40 week support are OMC 49.45, BBG 24, OCR 33.15. RHT found 40 week support today.
Stocks that can be shorted at 10 week resistance are TSO 40, GRMN 41.05, DOV 58.25, NUAN 24, COST 98.70. Stocks that met 10 week resistance today were SLB TXT BMC HAL BDX EXPE CMA ZMH ORCL TMK USB JACK CF GGC SJM VZ DPS CERN CAM CXO RTN FMC. CVS can be shorted with a sell stop of 46.40 as it loses 10 week support.
Stocks that can be shorted at 40 week resistance are UTX 78.40, SBH 25.15. Stocks that met 40 week resistance today were OIS FAST CHRW RIG HAR AKRX WLL EMC. PNC lost 40 week support today.
The author owns XXIA TWTC EWW.