First I would like to apologize for not having posted since Tuesday. I was having some technical difficulties. On to Thursday.


Error or not that was one of the craziest things I had ever been a part of, what struck me was the speed at which things happened, in a word, scary. If you are a regular reader of this blog you know that I have been cautious/bearish since the SPY rolled below the 20 day MA back on April 27th. All weekend people have been asking me what do think about Thursday, my response has been that “error” took us where we were going just faster.

Friday morning stocks started to trade lower almost immediately and went vertically right to the 200 day MA on the SPY, bounced and then flat lined. I think that was about the best possible scenario. You shook out the weak hands, bounced on an important MA and now we have levels to shoot against. Make a note of Thursdays and Fridays lows in whatever you are trading it is important that they hold. The S&P stopped right on the 200 day MA almost to the penny this is now the number to watch 1095.74. SPY 109.76 is the 200 day MA 109.41 was the low on Friday.

The charts are a mess now and finding spots to trade is difficult. I have been looking for two things, stocks with untouched moving averages and stocks where Fridays low was a clean number and coincided with some kind of support from Thursday. I have found a number of these situations, but I will be trading very cautiously for the next few sessions to see if Thursday and Fridays lows hold or if we are going to take another leg down.

There are enough alerts on the list tonight that you can afford to let a couple pass and see what the action is like. Does the stock bounce; does it go right through like the level wasn’t even there, does it chop around and do very little? This is what we are going to have to determine. I think the next couple of sessions are going to be pretty choppy so don’t press unless a clear trend is evident. The short alert levels may also be used as a place to buy on a failed break down.

acl 145 short

agu 55 short

apc 57 short

apol 54 short

bg 50 short

bmc 35 short

ccj 23 short

cenx 11 short

cli 32 short

cog 31 short

crk 30 short

crm 76 short

dgx 54 short

esi 99 short

gva 29 short

gww 104 short

hoc 24 short

ibm 120 short

met 40 short

pru 57 short

rax 16 short

rost 51 short

scco 26 short

sina 32 short

spwra 14 short

abx 41.2 reversal/support buy on 20 day MA

alb 37.89 reversal/support buy on 150 day MA

amzn 116.24 reversal/support buy on 200 day MA

anf 36.68 reversal/support buy on 200 day MA

ccl 34.73 reversal/support buy on 150 day MA

ctxs 41.23 reversal/support buy on 200 day MA

dv 57.84 reversal/support buy on 200 day MA

har 37.15 reversal/support buy on 200 day MA

hum 42.26 reversal/support buy on 200 day MA

netl 25.04 reversal/support buy on 150 day MA

swks 13.61 reversal/support buy on 200 day MA

teva 55.56 reversal/support buy on 200 day MA

urbn 32.56 reversal/support buy on 200 day MA

var 48.65 reversal/support buy on 150 day MA