The market took off to the upside Friday after opening higher, but has since come off and is near flat for the session. Bulls continue to wrest back control of this market from the bears, having reclaimed the all-important 50-day moving average. However, intraday the market stalled out at resistance from the breakdown of the wedge pattern, and we may need to digest some of this move before ultimately heading higher. The fact that the market has been able to bounce in the face of continuing negative headlines shows its relentless strength.
While the market has bounced nicely over the past few days, the moves in individual stocks highlighted in the T3Live.com Morning Call have been even more potent. Yesterday we saw a list of more laggard type stocks play some catch-up. Las Vegas Sands Corp. (LVS) and JDS Uniphase Corporation (JDSU) were two stocks we highlighted for oversold bounces, and they were in the first wave to go. Today’s action has included more leading stocks making big moves.
For a special weekly recap, watch Scott Redler’s video below, shot live from the Ski Lift in Park City Utah.
Ags End Drought
After being in the doghouse for the past month, agricultural stocks finally got a meaningful bounce today. PotashCorp./Saskatchewan (POT), our favorite fertilizer stock, broke out from a week long consolidation, gaining as much as 3.5% before pulling off somewhat. The strongest in the group today, though, has been CF Industries Holdings, Inc. (CF). Now that this sector is out of the penalty box, we believe stocks like POT should get back to highs over the next few months.
Priceline Negotiates Higher Prices
A stock we highlighted in today’s Morning Call was priceline.com, incporated (PCLN). The stock had an outstanding pattern. After breaking out of a shallow mini downtrend, PCLN was sitting at the highs. Combine that with a major upgrade from Citigroup (Price target $610) and PCLN was poised to explode today. The stock finished up more than 2% on the day at all-time highs.
Baidu Follows Through Early
Baidu.com, Inc. (BIDU) followed through to the upside again this morning after a positive write-up in IBD, but came off on news that the company may be facing court action after negotiations with chinese writers collapsed. We still believe BIDU has a strong future and further upside.
Freeport-McMoRan Holding in Strong
Freeport-McMoRan Copper & Gold Inc. (GLD) was another potential long we highlighted early in the week as it consolidated after breaking a long-term downtrend. FCX has not seen a great deal of follow-through after its breakout Wednesday, but has held in well and looks like a buy again above $55.25.
*DISCLOSURE: Scott Redler is long FCX, JDSU, AMZN, VLO, SOHU, LEI, NYX.
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