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Markets Tuesday staged a strong rally, especially the Nasdaq which motored ahead by 2.2%. In the process, it retook its 200 day MA. Volume was heavy, however trade was tame by normal standards Monday. Breakouts, a rarity these days, occurred today. HS cleared a 45.21 flat base buy point. Others tried, but closed just beneath valid buy points. Those included TUP HOC. Retail was strong once again today with leaders in the group potent. LULU FOSL TIF all hit all time highs Monday. Gold and silver stocks surged today. AEM PAAS were both up 7%. SLW up 6%. ARUN was higher by more than 9%. The feel of the market to me was that of short covering, or a dead cat bounce. The violent move of the previous mentioned stocks as well as some big moves in the ag sector, are reminiscent of sharp, volatile bear market moves. Of course we are not in a classic defined 20% lower bear, but the poor action suggests strength should be sold into. That being said the move must be respected. Pick your spots on the charts, keep losses small, and let the winners run. Same as always. ADBE was down after hours, while JBL was flat. Greece Parliament gave their PM a vote of confidence as well after the close. Wednesdays economic reports include oil inventories and interest rate announcement from the Fed. Both are reported during market hours. Earnings announcements tomorrow include FDX before the bell and BBBY PAYX RHT after the close among the stocks we follow.

Buy points now exist for the following: Cup bases are UA 80.10, HOC 66.65, ENTG 9.74. Double bottoms are PX 106.33, ROC 52.86. Flat bases are ABC 42.60, ABV 33.34. EL 104.10 in a square box base.

Stocks near 50 day support are COH 59, COST 80, M 26.80, YUM 54, CBS 26.05, QLIK 30.50, NSC 71, KEG 16.30. Stocks that found 50 day support today were ERTS DAR. Stocks that can be bought as they reclaim their 50 day MAs and their buy stop spots are EMN 102.25, PPG 89.25, WYN 33.15, VIAB 49.30, ABB 25.95, PLL 55.60, NUAN 20.80, SAP 63, CHRW 78.75, PKI 27.35, BHI 72.25, CVX 103.75, CPX 31.85, COP 74.70, CLR 63.95, HAL 48.25, HP 62.40, NOV 72.45, PTEN 29.60, RRC 54, RDSA 71.90, SLB 85, SE 27.65, SUN 40.95, SPN 36.90, WNR 16.65, DD 53.20, HON 59.15, DHR 53.50, MWV 32.95, MMM 94, UTX 86.40, IBM 168, OMC 47.40, EMC 27.55, FCX 51, RIO 69.25, ALV 75.15, WAT 95.15, WSH 40.95. Stocks that reclaimed their 50 day MAs today were APD ALB PPO NFLX AMZN JWN PAG SBUX ARBA BMC CRM VMW CSX KSU A ADS AXP DFS CRZO DC EQT HLX MRO SWN IFF BLL VCLK MSI TWC AVGO XLNX AEM SWC TRW ACOM.

Stocks near 200 day support are PVH 63.25, CAR 15.05, VPHM 17.45, DKS 36, WM 37, ARW 36.70, ATI 59.10, CHK 27.85, VLO 24, CLF 82. Stocks that found 200 day support today were PH KKR RRC FCS MCHP NXPI. Stocks that can be bought as they reclaim their 200 day MAs and their buy stop spots are APC 72.75, NBL 86.50, SU 39.25, UPL 46.25, AGU 86.50. Stocks that retook their 200 day MAs today were SOA WSM JOYG RHT ROVI JBL TTMI TKR EOG OMC ADI MXIM AA BHP ARUN POT SWC. Stocks that can be shorted at 200 day resistance are EBAY 30.05, DIS 39.15, ADSK 39.30, FDX 91 (earnings before bell), UPS 71.60, APH 53, AVT 32.80, IVZ 24, PAY 42, GTI 19.75, TS 45.70, BP 44.10, CXO 89, DVN 79.50, FTI 42.50, HES 75, MDR 20.05, NBR 24.55, NFX 68.05, ETN 49.85, AAPL 329, OPEN 81, JDSU 17, KLAC 41, TXN 32.90, DE 85, DNR 20.05. Stocks that found 200 day resistance today were IR VRSN AMP NE CTSH RVBD.

Stocks that can be shorted at 50 day resistance are HBI 30, DOW 37.10, FMC 83.40, LYB 41, SOA 23.95, MAR 35.60, WYNN 140.75, AGP 66.50, COV 54.75, STJ 51, SYK 60.30, ZMH 65.10, ANF 70.60, ANN 29.05, BBBY 54.75, LTD 39, BID 43.50, KO 67, CBE 63, ITW 56.05, CTXS 80.50, MOLX 25.10, TEL 35.95, COF 52.25, GSM 21.35, MTL 26.75, ATW 42, CAM 49, SGY 31.20, CCK 39, EMR 55, ADP 53.25, DTV 48.20, QCOM 56, ALTR 46. Stocks which met 50 day resistance today were RL RCL HLS WFM GIS PM DOV CHKP OXY MCO IPI.

Good luck.

Still in cash. Although I have missed out on recent gains, I sold all my stocks from prices well North of here. Does not mean I am not kicking myself.

Markets rebounded Monday, albeit in weak volume. Not the type of action you would like to see. On the bright side the S&P 500 continues to find solid support at its 200 day MA, and has closed higher now 3 days in a row. The Nasdaq is living below its 200 day MA now, but the 2600 level seems to be providing ample support, for now. Health care and retail sectors were robust today. Many leaders that hail from the healthcare sector are looking solid (more on that in the next paragraph). Retail, which seems to be benefiting from lower oil, outperformed today. FOSL hit an all time high today, and EL LULU UA NKE all reclaimed their 50 day MAs today. CCL reports before the bell and JBL after the close. Economic reports Tuesday include existing home sales, Redbook, retail sales from major retailers. Tuesday also starts the FOMC meeting.

Some stocks are setting up valid buy points here mostly in defensive sectors. Even though new buys are hardly prudent here, the market can resume its rally at any point here and we must be open to that fact. I do not think that will happen but remember to check your opinions at the door. Health care related stocks that are setting up buy points are cup with handles AET 46.11, BAX 60.60, UNH 51.56. HS 45.21 in a flat base. 3 week tight patterns are HUM 80.93, WPI 65.15, TMO 65.96. Other buy stop buy points are M 30.10 in a cup with handle base. NSC 73.60 in a 3 week tight pattern. And flat bases are TUP 66.92, SAPE 15.05.

Stocks near 50 day support are EXPE 26, AGN 80.25, M 26.75, YUM 53.80. Stocks that found 50 day support today were COH WLP FAST SCSS PM KEG PLCM DISH SQM DAR. Stocks that can be bought as they reclaim their 50 day MAs and their buy stop spots are HLS 26.25, JWN 46.20, SBUX 36.30, DOV 64.50, BMC 52.45, CHRW 78.50, A 49.25, ADS 90.25, DFS 24.25, DRC 50.50, EQT 50.50, SWN 42.25, DHR 53.50, UTX 86.30, VCLK 17.10, TRW 54.40. Stocks that retook their 50 day MAs today were CE AN COST CBS ABV INFA QLIK UNP R IRM BWA B.

Stocks near 200 day support are DECK 77, HBI 26.80, FMC 78.25, LYB 34.50, PPG 84, CAR 15, ABB 23.10, CAT 95, CTXS 70.75, MOLX 24.10, PKI 25.55, GSM 19, KKR 15, CPX 28.10, HK 20.75, RDSA 68, CCK 35, APKT 59.80, CMCSA 22.70, SMTC 23.75, VECO 46, ACOM 32. Stocks that found 200 day support today were DOW VPHM ANN DKS CBE PH ORCL ARW APA CHK CLR SLB VLO QCOM FCS MCHP NXPI MON. Stocks that can be shorted at 200 day resistance are EBAY 30.05, WSM 36.25, DIS 39.15, IR 44.80, VRSN 33.75, JBL 18.50, PAY 42, GTI 19.70, AMP 57.50, IVZ 24, NBR 24.50, OMC 46, RVBD 34, ADI 37.30, KLAC 41, RIO 68, POT 53, ARUN 26, DNR 20.05. WCRX found 200 day resistance today. EOG lost its 200 day MA today. Stocks that can be shorted as they lose their 200 day MAs and their sell stop spots are SOA 22.25, ATW 38.50, RDC 35.50, SPN 33.75. Stocks that can be purchased as they retake their 200 day MAs and their buy stop spots are JOYG 86.20, ROVI 55.50, TTMI 15.20, TKR 47.75, DD 50.80, BHP 90.25. Stocks that retook their 200 day MAs today were NKE PVH WM TEL ATI IP CLF.

Stocks that can be shorted at 50 day resistance are APD 92.20, ALB 66.40, PPO 62, PX 103.75, ROC 50.15, RCL 38, WYN 33, AGP 66.45, COV 54.85, STJ 51, AMZN 192, BBBY 54.75, LTD 39, PAG 20.50, VIAB 49.10, ITW 56.05, CSX 25.40, KSU 55.10, MTL 26.80, BHI 72, HAL 48, EMR 55, ADP 53.50, TWC 76, XLNX 34, WSH 40.80. Stocks that found 50 day resistance today were RL NFLX ARBA BMC AXP BLL. ERTS can be shorted under 22, when and if it loses its 50 day MA.

Stocks that saw relative weakness on a decent tape today, and it must be noted just as relative strength is on a weak tape, were LYB PCLN LVS ABB TS KKR ANR RIG UPL APKT SWKS VECO TTM ACOM.

Good luck.

The author is still in 100% cash.

Markets Friday sang the same tune they have been singing all week. Opening up, and closing lower. Classic correction behavior. For the week the Nasdaq sank 1%, its 5th consecutive weekly decline. It closed more than 30 points off its intraday high Friday, repelled by its 200 day MA. That is the first time the Nasdaq has closed below that critical line on a weekly basis since last September. It now rests 9.4% from its recent highs, and is now down 1.4% on the year. The 800 lb gorilla of tech, AAPL, is certainly not helping. AAPL itself has now closed below its 200 day MA for a 3rd day in a row. The SMH lost its 200 day MA this week as well. Many in that sector now sit below their 200 day MAs as well including TXN KLAC. A quick look at a recent IPO in that sector shows FSL in free fall. Could Tom Petty have foreshadowed that move with his smash hit back in 1989? The S&P 500 seems to be finding support at its essential 200 day MA. It actually closed “up” 0.1% for the week. Not the type of bounce back you would like to see after 6 down weeks in a row. This week should provide some clarity technically with the S%P 500, for if it loses its uncomfortable flirtation with its 200 day this week, this correction which is becoming a little long in the tooth could get worse. Or could the 7.2% fall from its recent highs be enough of a wash out, and the 200 day support that is has received get stronger? Let the market itself answer that question. A big component of the S&P 500 is energy. Oil lost 6% on the week and the XLE is bracing itself for a 200 day MA battle near 70 as well. Should be an exciting week. All of this talk about the 200 day MA, is prevalent because lots of stocks and indexes are hovering around that line in the sand. It displays that long term secular trends (more on that below in the 200 day paragraph). A look at leading stocks, or should I say former leading stocks in this environment, always a good barometer of market health, looked shaky this week at best. MCO MOS down 12% on the week. CTXS APKT WLT TIBX down 7%. TDC gained 6% on the week hitting an all time high. Watch strong relative strength on a weak tape. When indexes rebound they often outperform handsomely. Not much to report on the earnings front or economic reports for Monday.

Stocks near 50 day support are CROX 21.05, EXPE 26, AET 41.95, AGN 80, CI 47.35, UNH 48.25, WPI 62, M 26.70, YUM 53.80, WCN 30.55. Stocks that found 50 day support Friday were BAX FTNT TMO EQT PLCM DISH SQM DAR. Stocks that can be bought as they reclaim their 50 day MAs and their buy stop spots are HLS 26.25, LULU 94.40, SBUX 36.25, INFA 54.75, A 49.25, AXP 49.25, TPX 61.75, UTX 86.30, TWC 76, BWA 72.85, B 23.45. Stocks that did reclaim their 50 day MAs Friday were FAST SCSS QLIK ROVI NSC KEG.

Stocks near 200 day support are DECK 77, HBI 26.60, APD 88.50, EMN 89.75, FMC 78.25, LYB 34.40, PPG 84, CAR 15, ANN 25.40, JWN 42.90, PIR 10.05, ROK 77, CTXS 70.75, NUAN 18.50, TIBX 23, CHRW 75.05, ARW 36.50, PKI 25.55, KKR 15, XOM 76.25, NOV 66.20, HK 20.75, CCK 35, HON 54, EMC 24.50, APKT 59.75, CMCSA 22.55, CY 18.45, SMTC 23.75, ACOM 32, RAX 34.05. Stocks that found 200 day support Friday were DKS CAT ORCL APA CHK CLR EOG RDSA FCS NXPI MCP TRW. Stocks that can be shorted at 200 day resistance are SOA 22.25, EBAY 30, WSM 36.20, DIS 39.10, IR 44.75, VRSN 33.70, IVZ 24, PAY 42, GTI 19.70, TS 45.55, APC 71.95, BP 44.05, CXO 88, DVN 79.30, FTI 42.50, NE 38.75, NBL 86.10, PXD 87.40, SU 39, SUN 40.55, DD 50.55, ETN 49.75, RVBD 34, JDSU 17, AA 15.25, ALV 74, RIO 68, ARUN 26, DNR 20. Stocks that met 200 day resistance Friday were PVH JOYG WM TTMI TEL ATI TKR UPL IP OMC AAPL ADI BHP POT. Stocks that can be shorted as they lose their 200 day MAs and their sell stop spots are DOW 34.25, SYK 56.20, CBE 58.50, PH 84.75, MOLX 24, ATW 38.50, RDC 35.75, SLB 80.50, SPN 33.75, VLO 23.50, QCOM 51.40, MCHP 35.30, MON 65.25. Stocks that lost their 200 day MAs Friday were VPHM JBL NBR MXIM CLF. To again demonstrate the importance of a stock losing its 200 day MA, look how poorly the following have performed after sinking below that line of support. ADSK AVT HES MDR WFT WLL JNPR OPEN KLAC LRCX SWKS TXN CMI TTM F DE JPM GS.

Stocks that can be shorted at 50 day resistance are NKE 82, ALB 66.25, CE 48.50, ROC 50.25, WYN 33, COV 54.80, STJ 51, AN 33.55, PAG 20.50, VIAB 49.10, ITW 56.05, ARBA 32, BMC 52.10, CSX 25.40, KSU 55.05, ADS 90, DFS 24, GSM 21.50, MTL 26.85, DRC 50.10, HAL 48, PTEN 29.45, IFF 62.85, ADP 53.25, VECO 51, XLNX 34, AEM 64, SWC 20, WAT 94.25, WSH 40.85. Stocks that met 50 day resistance Friday were CE COST CBS ABV PM VMW UNP R MRO OXY SWN EL TPX TUP BLL MSI XLNX BWA WSH. Stocks that can be shorted as they lose their 50 day MA and their sell stop spots are ABC 40.75, HUM 76, WLP 75.50, ERTS 21.80, NTGR 37.75. Stocks that lost their 50 day MAs Friday were UA NFLX AVGO VECO.

Good luck.

The author remains 100% in cash.

Markets gyrated Thursday after a nice open, a selloff following a negative Philly Fed, then rallying late in the session. The Nasdaq performed the poorest, as it now rests firmly below its 200 day MA. That index is now negative on the year. A tug of war seems to be developing with the S&P 500 and its 200 day. Today it found support on that line and finished in the black. Sectors that took a beating today included ags, semis (SMH lost its 200 day MA), and chemicals. The days outperformers included the defensive groups of food and utilities. When they rear their ugly heads it rarely is a good thing. Volume was soft. More former leaders are falling by the wayside. Today ACN EMC joined the list. Some stocks that showed solid strength Thursday were CROX COG. They both hit 52 week highs. RIMM fell 14% after hours on a dismal earnings outlook. Markets are on pace for a seventh consecutive decline. Tomorrow no earnings reports to talk about and consumer sentiment and leading indicators are reported just after the bell rings.

Stocks near 50 day support are AET 41.75, BAX 57.75, HUM 76.15, UNH 48.10, WPI 62, YUM 53.50, SAPE 13.50, BEAV 37.05. Stocks that found support at their 50 day MAs today were VFC NFLX HS M MCK WCN FTNT TMO KEG MCO PLCM DISH VECO. Stocks that can be bought as they reclaim their 50 day MAs and their buy stop spots are AGN 80.40, FAST 32.80, QLIK 30.60, DFS 24.25, OXY 103.75, UTX 86.30, VCLK 17.10, ACOM 37.60.

Stocks near 200 day support are DECK 76.50, APD 88.35, EMN 89.50, LYB 34.40, ROC 42.40, CAR 15, SYK 56.50, AN 29.60, JWN 42.80, PIR 10, PAG 17.50, KO 64, ABB 23.05, DOV 60, BGC 36.50, SAP 56, TIBX 23, CHRW 75, CSX 22.95, KSU 49.75, ARW 36.40, CHK 27.70, CRZO 32, COP 69, XOM 76.25, HLX 14, NBR 24.40, RES 19.50, SE 25.50, SPN 34, WMB 26.30, CCK 35, HON 53.95, MMM 89.50, APKT 59, CMCSA 22.55, QCOM 51.55, CY 18.40, SMTC 23.65, RAX 34. Stocks that found 200 day support today were HBI FMC PPG WYN VPHM CAT PH ROK PKI KKR APA CLR EOG RDC RDSA FCS MCHP CLF TRW MON. Stocks that can be shorted at 200 day resistance are SOA 22.25, IR 44.70, WM 36.90, VRSN 33.70, AMP 57.60, IVZ 23.95, TS 45.55, DVN 79.50, FTI 42.25, NE 38.70, NBL 86, PXD 87, SU 39, SUN 40.65, DD 50.55, IP 27.25, OMC 46, RVBD 34, OPEN 81, RIO 68, DNR 20. Stocks that met 200 day resistance today were PVH WCRX TTMI TKR UPL AAPL ADI BHP. Stocks that can be shorted as they lose their 200 day MAs and their sell stop spots are WYN 30.25, ANN 25.10, CBE 58.50, JBL 18.30, GSM 18.80, ATW 38.45, SLB 80.50, VLO 23.65, MCP 46.25, BWA 67. Stocks that lost their 200 days today were DOW DKS ORCL TEL PAY ATI APC MXIM POT.

Stocks that can be shorted at 50 day resistance are NKE 82, ALB 66.10, LULU 94, COST 80, CBS 26, ITW 56.05, ARBA 32, BMC 52.10, CHKP 54, INFA 54.25, ADS 89.85, AXP 48.90, MTL 27, BHI 72, DRC 50.25, HAL 48, PTEN 29.50, TPX 61.25, TUP 62.50, BLL 37.95, XLNX 33.95, SWC 20. Stocks that met 50 day resistance today were UA CE ROVI UNP MRO EL VCLK NTAP MSI AVGO. Stocks that can be shorted as they lose their 50 day MAs and their sell stop spots are NFLX 246, ERTS 21.80, N 33.50, TDC 53.50. Stocks that lost their 50 day MAs today were ABV CRM NSC WSH.

Good luck.

The author is still 100% in cash.

Markets plunged Wednesday as volume picked up. The losses were broad, and the market finished near session lows. No sector was immune. The Nasdaq finished clearly below its 200 day MA. The S&P 500 closed right upon that line of support. That 200 day MA is considered to be the long term trendline and a break below that line usually signals further weakness. More former leaders which charts look to have been broken today include EMN AGP COV EBAY NFX ADP CTSH. Economic news provided a perfect negative superfecta today. Housing data, CPI, Industrial Production, Empire State Index all disappointed. A silver lining to the days miserable action was sentiment among investment professionals. Bearish managers are rising quickly. A contrarian indicator can sometimes anticipate a market bottom. As always let the markets action and volume dictate your moves, and check your own opinion at the door. As I watch the market pundits on TV, a healthy majority are saying the market correction is over and its time to buy. Perhaps we are headed lower than we think! Thursday brings more economic reports with housing starts, jobless claims and the Philly Fed survey. PIR reports tomorrow morning, among the companies we follow.

Stocks near 50 day support are VFC 99.60, AET 41.50, BAX 57.50, HUM 76, WPI 62, M 26.55, TIF 69, ERTS 22, HOC 59.25, MCO 38, NTGR 38, PLCM 55.80, DISH 27.30, SQM 59. Stocks that found 50 day support today were YUM ABV WCN NSC KEG MON WSH. CE retook its 50 day MA today.

Stocks near 200 day MAs are HBI 26.75, APD 88.50, WYN 30.50, SYK 56.40, LTD 32.75, JWN 42.80, PAG 17.50, SBUX 32.50, WFM 52.10, KO 64, CAT 95, DOV 60, ITW 52.50, PH 84.25, SAP 56, TIBX 23, CHRW 75, KSU 49.50, ARW 36.40, MOLX 24, PKI 25.50, COF 46.05, KKR 14.95, ATI 59, CHK 27.75, COP 68.75, XOM 76.10, HLX 14, NBR 24.40, RDSA 67.85, SPN 34, CCK 35, HON 53.80, MMM 89.55, UTX 80.10, APKT 59, CMCSA 22.50, QCOM 51.50, MCHP 35.55, SMTC 23.60, CLF 81.90, POT 53. APC APA CLR DOW found 200 day support today. Stocks that can be shorted at 50 day resistance are DS 39.10, IR 44.75, RHT 43.50, APH 53, PXD 87, OMC 46, KLAC 41, TXN 32.70. Stocks that found 200 day resistance today were TTMI AMP NE DD OPEN AGU ARUN. Stocks that can be shorted as they lose their 200 day MAs and their sell stop spots are FMC 77.70, PPG 83, VPHM 17.20, DKS 35.50, CBE 58.25, ROK 76.50, ORCL 31, JBL 18.10, TEL 33.75, ATW 38.50, EOG 101.50, RDC 35.75, VLO 23.70, MXIM 23.80, TRW 51.75. Stocks that lost their 200 day MAs today were PVH SOA WSM JOYG WM VRSN PAY TS TKR DVN NBL SU SUN IP OMC RVBD AAPL JDSU ADI AA BHP RIO.

Stocks that can be shorted as they meet 50 day resistance are COST 80, VIAB 49.10, UNP 100.50, ADS 89.75, AXP 48.90, GSM 21.60, MTL 27, ARMH 29, CY 21.05. Stocks that met 50 day resistance today were LULU AMZN SCSS DRC HAL PTEN SLB TPX VCLK TWC XLNX IPI. Stocks that can be shorted as they lose their 50 day MAs and their sell stop spots are HS 41, UNH 47.70, WLP 75.35, TMO 60.50, FTNT 22.10. Stocks that lost their 50 day MAs today were ACN MSI CNI UNP A BHI OXY SWN EL TUP BLL ABB BMC CHKP CTXE INFA NUAN VMW COH NKE UA ALB AGN AGP CBS PM.

Good luck.

Author still in 100% cash.