SPY | FLR | MMM | RIMM

Friday has left us overbought; however, a breakout scenario still seems imminent.

If (SPY) can in fact overcome 140 (should earnings continue to meet lowered expectations) 144 may be much tougher. To the right is a five year chart that helps illustrate why - basically 144 represents a key breach in an otherwise seemingly healthy 5 year trend.




Here is a
chart showing
the number of
S&P stocks trading
above their 200 day
moving average.



Below are some more stocks worth watching.

Fluor (FLR) - nice reverse head & shoulders pattern.
If this looks like a bullish opportunity to you, consider debit spreads or calls with an expiration of JUL or OCT and an initial price target of 170 (all-time high set back on Nov 26, 2007).









3M (MMM) - broke out to the upside and closed above 200 day moving average. Potential to revisit 86.







Research in Motion (RIMM) - might be getting ready to have another go at resistance.







Keep in mind some of these are currently overbought so you might want to be patient.


Here is a short clip I recommend watching. It provides a little insight into Dan Sheridan's thought process and how he might have played Google (GOOG) before earnings.
http://www.cboe.com/tradtool/webcast.aspx?movieid=36693&channel=1252