Wednesday, April 15, 2009

S&P Stocks Above 200-day MA

With more a more S&P stocks trading above their 200-day MAs (17% as of yesterday compared to sub-10% dating back to October 2008) it is looking increasingly likely the lows of March will mark a significant bottom for the rest of 2009 and maybe the bottom for the current cyclical bear market.

But what of the stocks making the grade?

S&P Stocks Above 200-day MA: 83
Daily ADX (14) greater than 20 (i.e. 'trending') &
Daily +DI for today is greater than Daily -DI for yesterday (='bull trend'): 64
Weekly Close for last week is greater than Max High over 4 weeks: 40
Close is less than Upper Bollinger Band: 39
Close is less than 3% but greater than 1% from 20-day MA: 2

The two stocks are?

Affiliated Computer Services (ACS)

I have entered a YourCall for a move to $54.99


Cintas Corp (CTAS)

I have entered a YourCall for a test of September resistance with a stop below the small handle lows of $23.95.

Given the overbought nature of the S&P in the short term there is a chance 20-day MAs will break which will give the next buying opportunity at the 50-day MAs.

Dr. Declan Fallon, Senior Market Technician, the free stock alerts, market alerts, and stock charts website