SPY 105 was the level that a lot of people were watching; it was the low of the flash crash and the level where the market bounced in February. We held it Friday morning and SPY 105 is now the line in the sand. My opinion is the market bounced because we were in a deeply oversold condition and that there was a lot of options expiration short covering going on not because of any change in market fundamentals. Never the less 105 is now the bottom end of the range and it needs to hold.


The alert levels I post here for each stock are significant spots on the chart for that stock. (top/bottom of a range, moving average etc.) I may have it tagged as a long or a short but the stock could easily reverse at that level and do the opposite of what I thought might happen. Quick versatile thinking is critical in trading and when you see alert after alert trigger and fail it may be time to take the other side that is what happened Friday. My short alert levels turned out to be great support buy spots. It doesn’t always work that easily but it is important to know your levels and have the flexibility to flip sides if the market warrants it. Here are two examples. I had NITE 14 short and CRK 28 short look what happened.

Fridays bounce off of the 105 level left a number of stocks with very nice clean support levels. The stocks need time to digest Fridays move but if we go back down and test that support the following levels could be important. Again these stocks need time to consolidate any test of the following levels tomorrow is likely to be sloppy and prone to failure. Keeps these alerts on your platform but they need time.

dow 25

dvn 60

enr 55

flr 44

ges 34

hig 23

jec 40

jpm 37

kmb 60

mon 53

mos 44

mur 50

oii 49

pcln 176

pot 99

prgo 54

pxp 21

rimm 59

teva 29

wlt 65

x 45

These could be support buy spots or short alerts we won’t know until we get there.

I think tomorrow will be probably be quiet and choppy as the market tries to figure what the new range is but who knows what kind of news may come out overnight.

The following ideas may be actionable tomorrow but don’t press and keep an eye on that SPY 105 level.

avp 26 short

bucy 46 short

fslr 105 short

sina 34 short

wfsl 17.5 short

abx 39.15 reversal/support buy on 200 day MA

adsk 26.53 reversal/support buy on 200 day MA

ccl 34.16 reversal/support buy on 200 day MA

ceco 26.9 reversal/support buy on 150 day MA

chd 63.27 reversal/support buy on 150 day MA

foe 8.25 reversal/support buy on 150&200 day MA

hrs 43.6 reversal/support buy on 200 day MA

infy 53.14 reversal/support buy on 200 day MA

ir 34.28 reversal/support buy on 200 day MA

nem 50.06 reversal/support buy on 150 day MA

netl 25.49 reversal/support buy on 150 day MA

ups 60.56 reversal/support buy on 150 day MA

var 47.27 reversal/support buy on 200 day MA