TXN holding on

Not for a second would I trust any level of support to hold these days but if I had to pick one stock that looked like it had a fighting chance, it would be TXN. If nothing else, it is setting up a low risk entry for a bounce - which we are becoming quite due for.


EVO - risking 0.60 (stop at 11.00) to make 3.00 (price target 7.50)

TXN - low risk setup

TXN is back to long term support and there's a descent chance it will hold for a short term trade (with a stop below the high 13s). Plus it has the added benefit of tech stocks being strong this week. Be conscious of earnings on the 26th.

In the intermediate term (1-5 months) there is no reason to believe that any support levels (not just TXN) will hold so consider going short south of 14 or if/once TXN starts rolling over - perhaps mid to high 15s where there is considerable resistance.

long-term TXN


short-term TXN

Apple

Couple points of interest with regards to AAPL:
50 day MA = resistance
Magic orange line = resistance
Selling pressure in the 105-120 range = resistance
17% bounce off of intermediate term support = ready for pullback

The news about WalMart selling the iPhone is old news and this will not happen before Christmas anyway. I would be more inclined to short AAPL, ignore the news, and place a stop above the magic orange line in case this half-assed bear market rally makes another run for it.

RIG: leading the pack?

I think there is a good chance it is. Even though it appears that OIH, OXY, and DVN will bounce off of support as they have been, don't be surprised if they don't - see RIG. Also, often times when stocks snap back to their trendline steeply/abruptly, said trendline is unable to hold up against the momentum.

RIG

OIH

OXY

DVN

Volume By Price

Volume by price (a horizontal histogram that overlays a price chart. The histogram bars stretch from left to right starting at the left side of the chart. The length of each bar is determined by the cumulative total of all volume bars for the periods during which the closing price fell within the vertical range of the histogram bar - stockcharts.com) can be a useful indication of where price feels most 'comfortable'. More specifically, it can be used as a way to determine support and resistance levels.

You can see in this 20 day view of SPY (click left) that price is not very comfortable around 142, signifying overhead resistance at that price. Conversely, based on volume by price (VBP), there is support at 138.5. SPY continues to be range bound yet at a critical level - I'm still mostly on the sidelines waiting for a breakout.



Notice how different things look on SPYs yearly chart.