Well it had to happen at some point. An actual honest to God down day in the market, I almost forgot what it was like. In the history of Wall Street selloffs Friday’s action was nothing. The SPY was down 1.44% Friday and actually closed only .16 lower than Mondays open so the week was basically a push.


GS was down 12.33% on heavy volume and closed below all the important MA’s. The low for the day in GS was 155.55 so keep an eye on that spot. There is some import support down around the 150 level (the February lows) keep an eye on that as well.

Away from GS the sell off was hard on commodities, financials and real estate but most of those groups found support on the 20 day MA. Individual financials had a nice bounce off the 20 day MA BAC &BBT are excellent examples of this action, and it may set the tone for next week.

I’m not sure what Monday will bring, but I think a gap down into support would probably be the best case scenario. We shake out the weak hands build a base and then grind em higher. A gap up open will probably be sold so be cautious there.

I will be very selective Monday until we sort things out but my plan is to try and pick up stocks on moving averages and prior breakouts which are now support. Be patient with this, if you start to see a stocks bounce off of MA’s, especially in the same sector, than give it a try. If one after another goes right through the MA like it wasn’t even there stay away. Remember don’t catch falling knives. If you are trying to buy on a support level or MA wait for the stock to go down through the level, vertically on light volume and then buy it on the way back up through the level. Use the bottom of that candle as a stop. Also you only do this the first time around; second touches on the MA or the support level are prone to failure.

The following ideas may be actionable on Monday but use caution.

apol 66 long

cern 90 long

driv 32 long

pnra 84 long

srcl 56 long

stx 20 long

syna 30 long

xec 65 long

aa 13.38 support/reversal buy on 200 day MA

abx 38.1 support/reversal buy on 200 day MA

aem 58 support/reversal buy on 20 & 50 day MA

agu 59.97 support/reversal buy on 150 day MA

ato 28.53 support/reversal buy on 150 day MA

biib 51.93 support/reversal buy on 150 day MA

gdx 44.69 support/reversal buy on 200 day MA

gww 99.57 support/reversal buy on 150 day MA

hig 26.34/25.78 support/reversal buy on 50 &150 day MA

mee 40.19 support/reversal buy on 150 day MA

pot 104.43 support/reversal buy on 200 day MA

spg 80.6 support/reversal buy on 50 day MA

sun 28.06 support/reversal buy on 150 day MA