Markets finished near the UNCH mark, coming off mid day lows. The Nasdaq did find support right at its 200 day SMA, and just below the psychological 3000 handle. The S&P 500 closed above its big round 1400 handle, but continues to battle 10 week SMA resistance. A move above 1420 with volume would give the bulls some fuel. Despite the sluggish day we did manage a couple of breakouts. ADBE took out a 34.88 flat base trigger in a long 8 month base, and by contrast recent IPO BSMX took out a 14.87 flat base trigger. Gold had a tough day as it closed under its own big round number of 1700. Many gold stocks look beat up, but as I always look hard for relative strength, two in the group pop out. AEM is one of the only ones in the sector still above its 10 week SMA. RGLD is just above its 8/21 81.07 flat base trigger. It looks like a long, staying above the 80 level could provide good risk/reward. Retail is looking softer, as some in the group have been struggling. Today GPS was down more than 10%, but did find precise 40 week support. URBN lost 10 week support today, and ANN’s chart looks “raggedy”. One rail that I am liking more everyday is CP. It had a bullish outside day on robust volume and is setting up potential nice looking flat base trigger by the end of the week.
Stocks that can be bought as they take out the following specific triggers on firm trade are flat bases ABC 43.57 (17 month base), ACGL 45.26. Double bottoms are TMK 52.46, ATU 29.18. Other flat bases are MPC 60.14, NCR 24.84, HSY 73.52, DKS 54.34, SI 105.24, FAF 25.08, BEN 134.01. Other double bottoms are ACN 69.35, FL 36.53. Cup with handles are MCK 96.18, VAR 71.49, XRAY 39.88, MXIM 29.68, ABV 42.22. TRIP has a 39.42 double bottom with handle trigger.
Stocks that can be bought as they retest prior breakout triggers are WNR ICON TUP. WNR took out a 28.14 flat base trigger on 11/23. The refining group has been acting well with VLO TSO PSX looking fine. DK in the group is working on a 27.68 flat base trigger at the moment. ICON took out a 20.09 flat base trigger on 11/28. That round 20 handle has been bothersome as it produced resistance there in mid Sept and again in early November. Now it seems like a floor. It has been acting well, while other retail has floundered. TUP took out a 63.69 cup with handle trigger on 11/19. NWL in the group has also been acting strong as it has traded tight since taking out a 6 month long flat base trigger of 19.59 on 9/14.
Stocks that can be bought as they reclaim their 10 week SMAs and their buy stop spots are FWLT 23.25, BGS 29.45, BRCM 32.95. NE can be bought with a buy stop above 36.25 as it reclaims its 40 week SMA. Others that can be bought as they reclaim their 10 weeks are NRG 21.60, AIG 34, HLS 22.45, LINTA 19.50. VRX ATW PAG PIR all retook their 10 weeks today.
Stocks that can be shorted as they lose their 10 week SMAs and their sell stop spots are SYY 30.75, WSM 44.80. Stocks that can be shorted as they lose 40 week support and their sell stop spots are CRI 51.60, PXD 100.55. MUR ROP lost 10 week support today, while CRUS CME lost 40 week support.
The author is long BSMX. We bought at the end of the day at 15, to make sure the stock would close above its 14.87 flat base trigger.