Markets once again finished lower Tuesday, but slightly off the lows. The Nasdaq continues to hold like a magnet to its 3100 handle. The digestion process for both the Nasdaq and S&P 500 persists. MDCO had a huge breakout today from a 26.94 flat base trigger. Two others I really like right now which have not experienced volume confirmation yet are LKQ RJF. LKQ took out a flat base tigger of 22.38 on Monday and RJF took out a 40.09 flat base trigger of its own on 1/4. Look for volume confirmation in the next few sessions. Some other names that caught my eye today were NTI SGEN . IPOs have been acting well in general, and this one was no exception today, as it registered a bullish outside day, as it reversed off of 10 week support. SGEN is now up 6 days in a row, as the right side is starting to take shape. It is a holding of Bill Gates to boot. Stocks holding their gap ups 4 consecutive days now, a rule I like to follow to make sure the move is valid, are CAT TEX PPG ASH, to name a few. The move was especially strong from PPG today, which hit an all time high, recording a bullish outside day in the process. The aforementioned names are suggestive of a stronger economy this year. Going forward call me a fundamental bear on the economic thesis, but a technical bull on the stock movements. As technicians we respect the tape above all else, until it lets us know not to.
Stocks that can be bought as they take out the following specific triggers in firm trade are flat bases JAH 55.87, AXP 61.52, PIR 21.34. Double bottom is HES 56.06. Other flat bases are NBL 105.56, SLM 18.09, OII 58.63, LINTA 21.05, MTB 105.43. Other double bottoms WFC 35.29. Cup with handles are VCLK 20.25, HRS 50.45, NKE 53.22, CNI 92.64.
Stocks that can be bought as they retest prior breakout triggers are E WHR MYL. E took out a 49.23 flat base trigger on 1/2. The energy group as we know is starting to catch a bid, and the best of breed names are separating themselves from the pack. HP is one, which is just ahead of its 56.23 cup with handle trigger it took out on 12/18. GPOR also continues to impress, and it is now well above its 34.93 cup with handle trigger it took out on 11/28. WHR took out a 104.31 flat base pivot on 1/2. It has certainly benefited from a stronger housing market. In the group a name today that bucked the trend today was SHW. It took out a 159.90 flat base trigger, on light trade. Look for volume confirmation in the coming days. MYL took out a 3 week tight trigger of 27.64 back on 12/10. NVS in the sector hit an all time high today, and WPI is looking to reclaim its 50 day SMA.
Stocks that can be bought as they reclaim their 50 day SMAs and their buy stop spots are. Stocks that can be bought as they reclaim their 200 day SMAs and their buy stop spots are.
Stocks to be viewed as short possibilities are CHL BDBD BUD. CHL can be shorted with a sell stop below its 50 day SMA at 56.50. It is now below its 58.16 cup with handle trigger from 12/20. A move below that line could send it toward a 200 day test where the stock has found support 4 times. BDBD can also be shorted with a sell stop below its 50 day SMA at 11.75. It is also below its former double bottom with handle trigger of 13.00 it took out 12/18. It did boast an impressive reversal off its 50 day SMA today, but I am leery of its recent name change from Smart Balance. BUD can be shorted with a sell stop below its 50 day SMA at 85.70.
The author owns BSMX NRG TTM INXN. I am keeping a very close eye on INXN. We are still well above our entry from its double bottom trigger of 22.95 on 12/18. Volume was very concerning however.