Markets found a bid around mid afternoon, and managed to finish marginally higher. Volume was soft. Concerning the recent slew of earnings misses, I find it pretty impressive that the S&P 500 is only 2.5% off of its 52 week high. The misses have come from a myriad of sectors, which is troublesome. Whether it was tech with IBM or APPL, to industrial like GE (which is down 5% last couple of days, both coming on 2X average daily volume), or retail like VFC, the market flexes its muscles. It must be noted that CAT did shrug off a disappointment today and GE did finish off its lows. A look at the latest bull/bear surveys shows bullish managers running somewhat scared. The figure was in the upper 50s just a couple months ago, and now is in the low 40s. That can be considered bullish. But the most important factor in determining how we invest is the tape. Friday seemed pretty damaging to me. Some groups that caught my eye today were the pipelines and semiconductors. Pipeline equities sitting on 40 week support are KMI ENB. As for the semis it was interesting to me when I took a look at the SMH on a weekly chart. It is hovering near the round 30 handle where it received support twice this year. TXN a big component missed the mark after hours, and could affect that ETF tomorrow. But a look at its weekly chart I thought it was telling, looking at volume. There has been a clear lack of volume in 2012, when compared to that of 2011. Could this be an indication of a bottom with such lack on interest?

Stocks that can be shorted as they lose 10 week support and their sell stop spots are NOV 79.30, CFX 34.60, CCI 63.75. Stocks that lost 10 week support today were FL DPS N EOG ANN AON MMM HOLX CAM CLR DNR MMC OAS ENB WLL NKE URBN EMN NSR.

Stocks that can be shorted as they lose 40 week support and their sell stop spots are AXP 55.75, AME 32.75, HOT 54.75. Stocks that lost 40 week support today were ROST DHR XEC KO ADI NCR.

Stocks that can be shorted at 10 week support are ANN 36.05, MMM 93, RTN 56.50, TSO 40. Stocks that met 10 week resistance today were QIHU CFN PNRA DOV ITT WFC UTX.

Stocks that can be shorted at 40 week resistance are SWK 71, NXPI 23, MXIM 27.15, BRCM 34.90, MPWR 19.10. Stocks that met 40 week resistance today were RDSA BRO CHRW HP.

Stocks that can be put on a watch list and bought as they take out the following specific triggers on firm trade are cup with handles GME 24.59, CBD 49.18, MSI 52.02, IAG 16.98. Double bottoms are IR 47.41, AWK 37.96. 3 week tight triggers are MHP 56.74, FNF 23.37. Flat bases are CHS 19.53, LL 54.10, BLL 43.80.

Stocks that can be bought as they retest prior breakout triggers are JBHT NWL ECL. JBHT took out a 56.19 double bottom trigger on 10/12. It hails from the transport group where stocks like UNP KSU TRN FDX have all been acting well. IYT has been struggling with its MAs. Thursday found 40 week resistance, and today 10 week resistance. NWL took out a 19.59 flat base trigger on 9/14. The conglomerate has some company with CLX just above its 73.75 flat base trigger from 10/8. ECL took out a 69.06 flat base trigger on 10/17. The right side of its base went fairly quick and vertical which is sometimes failure prone, but volume was exceptional.

Stocks that can be bought as they reclaim their 10 week MAs and their buy stop spots are MBT 18.30, CRUS 40.50, ZMH 64.50, MR 34.90, QIHU 22.45, HLS 23.35. CHL reclaimed its 10 week MA today.

Stocks that can be be bought as they reclaim their 40 week MAs and their buy stop spots are ERJ 28.60, IMAX 22.60, FAST 46. OCR TX both reclaimed their 40 week MAs today.

Stocks that can be bought at 10 week support are DEO 110.50, WMB 34, PVH 92.25, AMX 25.60, MET 35, PSX 44.05. Stocks that met 10 week support today were GG IACI MDT TWTC CCE CLGX.

Stocks that can be bought at 40 week support are RIG 47.50, LNKD 100, ALKS 17.95, PNR 41.05, MYGN 24.85. Stocks that found 40 week support today were TTM BA TSS ARUN MAR.

Good luck.

The author is flat.

 

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