On a day that combines a “Double-witching”
option expiration, continued Latin American woes, and Clinton’s interrogation, it’s interesting that
a “mysterious futures buyer” pushed up the overnight S&P 500 futures more than
a dozen points early in the morning. Maybe it’s Alice Rivlin from the Federal Reserve (maybe not).
For us, though, it just means there will be more opportunities today, most likely on the
buy side. Some of the “generals”
of
this market–Dell
[DELL>DELL], Cisco [CSCO>CSCO], Intel [INTC>INTC], and Microsoft [MSFT>MSFT]–aren’t looking
especially strong, but today watch for leading stocks
to open up, pull back, and return to the upside to end the week on a high note and make
everybody happy.
Target Stocks of the Day A couple of off-the-beaten-path momentum stocks to look
at: Sanmina [SANM>SANM] is coming off highs around 81 and could really move to the upside if it
breaks much above 66. Network Appliance [NTAP>NTAP], which closed at 49 7/8 yesterday, looks good
on a move above yesterday’s high.
Cisco [CSCO>CSCO] is down from it’s recent all-time highs, but it’s one of the top three or
four holdings in many select funds, so look for the institutions to run it back up. Home Depot [HD>HD]
has posted a 10-12 bar correction and looks like it’s positioning itself for a move above yesterday’s
high of 55 1/4.
Everyone seems to like Cardinal Health right now, which closed just above its 50-day moving
average yesterday. Analysts love to recommend stocks that have pulled back 10-15% from a major
high and then make a bullish move (or a consolidation) above a moving average like this. (They
won’t admit it, but they want to look good and they’re trying to time the market.)
Finally, watch for buy opportunities in EMC [EMC>EMC] on a pullback.