Markets finished well off session lows as benchmarks were down more than 1% early on following weak overseas action. The Nasdaq fell .35% and the S&P 500 lost .3% and the bullish action going out on highs was exactly the opposite of Mondays bearish behavior. The averages are doing what they do best, confounding the most. Takeover Tuesday continued after merger Monday with VZ cozying up with AOL. VZ currently sports a 51.83 double bottom trigger and today found 200 day SMA support after falling back into a bullish ascending triangle breakout above the round 50 handle. PLL, which I worked for in the summers a long, long time ago saw DHR swallow it. Energy after being the worst performer yesterday flipped the script and was the only major S&P sector in the black. Crude rallied back above 60 ignoring at least for now the bearish calls by many, most notably GS. With the ROSE takeout yesterday by NBL, many are speculating on which name could be the next to go. Of course that is a fools game, but I have seen OAS mentioned quite a few times. Below is precisely how we examined the name in our Tuesday 12/16/14 Game Plan. The bullish engulfing candle on 12/12 which rose almost 12% called the bottom in the name and it has been gradually trading up ever since. Even with todays move of 7% it still is off almost 70% from recent 52 week highs. Our 12 target was never hit and a good example why not to let a name get away from you over a couple pennies best expressed in this blog piece by Greg Guenthner, CMT with help by Michael Batnick.
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