3 Similar Charts - Making Some Buys

With my newfound (ahem) optimism, and oodles of cash I am making some small purchases today since most of this week has been sales. I am not making huge buys... just toes in water additions. Totally unrelated to the rest of this post I added to my Research in Motion (RIMM) which is down 6% on "channel checks" blah blah downgrade.

For illustrative purposes on how I am allowing technical signs to guide the positions near term - I offer 3 stocks: CNH Global (CNH), McDermott (MDR), and National Oilwell Varco (NOV).

1) I mentioned McDermott (MDR) yesterday as a stock that was rising from below the 50 day moving average and was reaching important resistance (so I cut back since it had a pretty nice bounce from lows). Well it did break through later in the day, jumped up today, and now has fallen right back to resistance (from above instead of below). While still in (to me) a precarious position (it could go either way) just to make reader msb happy I did offer a small buy (see now that's an interactive mutual fund). Please note the word "small" (it is still a sub 1% position). I am not going to commit further until it either makes a more strong move upward and/or S&P 500 makes a push above 1490. Yesterday's close was the first time over the 50 day moving average and if it holds $53 today that would be a second day - if the market improves this is the type of position I'd then add to as it would be without any near term resistance to impede a run upward. But it could just as easily break down and bring reader msb to tears... So this is chart #1



2) CNH Global (CNH) an agriculture equipment play has been strangely week despite great news from competitor Deere (DE) and great earnings. Most likely the culprit is the strong euro which hurts exports and exposure to construction (just like Deere) in part of its business. But the chart improved tremendously the past week, and it also broke back above its 50 day moving average, and after spiking this AM has pulled back very nicely to its 50 day this afternoon (down 2%)... I actually like this chart more than McDermott since this is the 3rd day its held its 50 day moving average of $57. So I am adding here. So this is chart #2



3) National Oilwell Varco (NOV) an oil services stock is not faring as well. It was in a very similar setup to McDermott (MDR) yesterday but has failed to push through its 50 day moving average of $69 today. It is sort of just hanging around right at resistance. Really up to 4 PM yesterday the chart of McDermott and National Oilwell Varco were identical. Only difference is McDermott looks far stronger today. Again I like all these names fundamentally but I want to see technicals that confirm. National Oilwell Varco with a strong day or two should join the other two but for now I am holding off adding any. So this is chart #3.



So 3 charts, on 3 stocks I like, 1 strong buy (CNH Global), 1 touchy buy (McDermott) and 1 still waiting on (National Oilwell Varco). Love the long term fundamentals on each, I am just wanting the market to tell me they also love the fundamentals and are ready to put their money where their mouth is....

And away we go... I finally put some money to work on the long side. Thanks Ben!

Long all 4 names in fund; long none in personal account