Market not out of the woods
Last week was another down week for the market, confirming its negative intermediate-term trend picture. While technical and sentiment indicators are improving, and a bottom of some sort may not be far off in terms of time and/or price, it’s also best not to underestimate how far down a possible panic sell-off could further carry prices.
Key near-term downside support is now about 1410-1420 and 1390 for the S&P 500; 820 and 790-800 for the Russell 3000; 2475 and 2450 for the Nasdaq; and 13,000 and 12,800 for the DJIA. Overhead resistance is now about 1450-1460 and 1490-1500 for the S&P 500; 845 and 855 for the Russell 3000; 2530-2540 and 2580-2590 for the Nasdaq; and 13,300 and 13,450-13,500 for the DJIA.
New positions
No new positions this week.
Watchlists
The list of interesting new “upside strength” candidates continues to dwindle. This week’s includes Applied Materials (AMAT), Fortune Brands (FO), Harsco (HSC), Oceaneering (OII), Raytheon (RTN), Ryder System (R), Sigma Aldrich (SIAL), SPX Corp. (SPW), Tennant Co. (TNC), and Tupperware (TUP).
New “oversold” candidates of interest this week include Abbott Laboratories (ABT), American International Group (AIG), Avnet (AVT), BJ’s Wholesale Club (BJ), Brinks (BCO), Cabot (CBT), CACI Intl. (CAI), Dillard’s (DDS), Electronic Data Systems (EDS), Hasbro (HAS), Home Depot (HD), Hormel (HRL), International Paper (IP)*, Joy Global (JOYG), Lowe’s (LOW), MKS Instruments (MKSI), Nucor (NUE), Quanex (NX), R. R. Donnelley & Sons (RRD), Taiwan Semiconductor Mfg. (TSM), UnitedHealth Group (UNH), United States Steel (X), Vishay Intertechnology (VSH), Vulcan Materials (VMC), Wal-Mart Stores (WMT)*, and YRC Worldwide (YRCW).
* I currently own and/or have an options position on this stock.
