Stocks On Pullback Watch List

Well, we finally got it – the market move to the downside we’ve all been anxiously anticipating. You know the rule – if you wish for it hard enough, it’s bound to happen. I personally don’t think the Fed’s report yesterday or the latest actions out of China warranted the sell-off. But, the market is, and has been, nervous for some time. It takes minimal effort to make sellers out of everyone. Many needed an opportunity to take some profits, as well. 


Tomorrow’s open will likely be a continuation of today’s action thanks to CSCO’s less than impressive results.. They weren’t bad, just not comforting that the market is moving in the right direction. Now we hear ‘double dip’, ‘deflation’, etc. in every headline and from every talking head on TV.


In the morning, I figure we’ll gap below SMA50. The question is whether we’ll have a mid-day retrace back up or if we continue down. It is hard to say at this point. MACD could possibly go negative and volume selling could come in (today’s volume was up from recent, but not indicative of a panic run for cash). If we fall, I don’t see strong support until the 1060 range.



The Plan:


Tomorrow morning I’ll likely sell my SPY puts and pocket some profits. Then I’ll wait – have some breakfast, maybe go to the pool, etc. Around lunch time, I’ll jump back in the saddle and look for the oversolds and stocks sitting on support. If the market holds up, this might be a good time to swing or scalp long into the afternoon. We’ll need to confirm the market stability however. If the market is still looking heavy, I might load up on shorts again.


Here are a few stocks I’m watching for possible support bounces over the next two days:


CRUS – All of the technology stocks were taken down hard today and will likely gap down in the morning. However, this company rocks and I will look to find an entry along the second trendline support – 18.20 range. Chart looks like a knife about to fall, so it needs market support and AAPL support soon or I won’t enter.



ARMH – there are a lot of gaps in this chart, but I’ll possibly be interested if it gets down around the SMA50 area.


SLW – Gold is interesting again. One of my favorites, SLW, will be on my watch list tomorrow. GMO is worth a watch, as well, as it sits on SMA200. It’s used SMA200

support numerous times in the past.

NLST is still very interesting. They reported earnings this afternoon and they appeared pretty darn good to me. If I’m interpreting the report correctly, this stock could boom in the afternoon.. being a tech stock, I figure it will be down early, however.



SONS might be interesting around 3. Notice the volume accumulation on the daily chart over the last few months. If the market recovers by Friday, this could leg back up. Again, looking for pullback first.


That’s all for now.. see you in the boom factory and be prepared for the gap down. Watching gold, the big pullback in solars and how the SPX trades an hour after open.



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