Thursday, March 29, 2012

Thursday evening thread



Big green bars on the chart mean something. Big green bars on the chart accompanied by big volume bars mean something. MCP gapped down on earnings. Then it gapped up on an acquisition and consolidated above the earnings move. When a stock does this ... "I'm giving you pearls here."

Thursday Afternoon

S&P Futures Hourly Chart
The S&P futures have pulled back into an important support zone today. The 1380-1390ish area is where we saw a heavy volume exchange on March 13th. I put arrows on the chart above showing the March 13th push up and the corresponding volume. It's premature to suggest a head and shoulders topping pattern, but it almost looks like we could use a right shoulder rally up to that 1403-1406 area. Either way, the bulls have some work to do in order to hold support around 1380.

Thursday Morning Thread

Gator's Chart of the Day: FCX
Last time we looked at Freeport McMoRan was following the action on 3/20 (in the ellipse) where it printed a pretty green candle with a tail on increasing volume.  I said the support line looked good and I was looking for a move higher.  It didn't last long.  Now that support has failed on the highest volume since January or maybe all the way back to October a new plan seems appropriate.

The news from China now suggests they could be slowing more than expected and the hard landing phrase is being used again.  With that in mind it could be the right time to short or buy some puts.  A fall to 35 or lower seems to fit the picture.  That would require a close outside of the lower Bollinger band if it is to happen soon so it could take a few days to complete.  My record with puts is not exactly stellar but I may try again with FCX.

Edit: A "buy stop" or sell the puts would be appropriate if the stock moves back above the lateral white line.