The Wrap 9/15/10


Stocks spent most of the session plodding along the neutral line until a late lift helped them settle with solid gains. However, the late climb couldn’t quite build enough momentum to make a move past key resistance levels.

Seven of the ten sectors were in positive territory, led by health care (+0.8%), consumer staples (+0.7%) and tech (+0.6%), while materials (-1.0%), utilities (-0.5% ) and energy (-0.2%) were in the red.

Tomorrow morning before the open, three economic reports are scheduled to be released: 1) Initial Claims (Consensus 460K) and continuing claims data (Consensus 4450K), 2) PPI (Consensus 0.3%) and core PPI (Consensus 0.1%) and 3) Current account (Consensus -$125.0).

RIMM reports after the close tomorrow. The chart is in trouble, so the number better beat expectations or we could see mid to upper 30’s in the name.

A top for this market may be getting put in, or maybe not. I have been very defensive with stops, but as the market pundits and traders  have a tendency to get amnesia, I stay an elephant, and remember how fast this market can take it away. Hence the stops being tight. I am Missouri as this market needs to show me and until I feel that we have broken through resistance…I will remain guarded and slightly conservative. We are having a great month and I want us to keep the profits. By the way, RVBD and FFIV (both lottery pix Sunday night) have popped big this week. Technology, in certain areas, is still on fire and could remain that way, especially with some of the takeout activity we’ve seen.

I had some charting issues tonight, but have added some more longs: RIG, QSFT, NZ, CAT, ACI, BVF, ASYS.  Please see the updated P&L for entry prices and stops. I also lowered the entry for WYNN, so please make sure you are current. FAZ and BGZ are still on, but if the market breaks through tomorrow they will come off. I have given some stops a little wiggle room, I suggest you do too, as this market will shake you out for no good reason. Example, SHOO hit the stop yesterday to the penny on light volume and then ran a point. This is common in light volume markets like we are in.

P.S. Some names that still look good are GMCR, and  APC. Let’s be real careful here.

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