Buy: Stocks Hitting Key Support
Many stocks have fallen sharply over the last week as the Dollar made a dramatic low and surged higher. Today, the Dollar is ripping higher, forcing the stock market lower. The PowerShares DB US Dollar Index Bullish (NYSE:UUP) is currently trading at $21.64, +0.10 (+0.46%). This is another big move for the Dollar ETF. In response, the SPDR S&P 500 ETF (NYSE:SPY) is trading at $134.36, -0.72 (-0.53%).
As the markets have fallen sharply this past week, some stocks are nailing massive support levels and may see a short lived bounce next week. These plays may be optimal swing trades and great for capturing gains in a short amount of time.
The first stock nailing a major level is Goldman Sachs Group, Inc. (NYSE:GS). After being downgraded yesterday, the stock has tumbled into the $140.00 level. This represents a massive support level and should signal a bounce early next week.
The second stock hitting support is Morgan Stanley (NYSE:MS). This is another financial firm that has been under pressure almost all of 2011. While the stock has tumbled from a high in 2011 of $31.04, it now is slamming into major support at $24.25. Look for a bounce early next week.
Lastly, Yahoo! Inc. (NASDAQ:YHOO) has hit a level that may represent the best bounce of all. This stock is down sharply today after major miscommunications surfaced between Alibaba. With such confusion, the stock is getting pounded, down -1.17 (-6.81%) t0 $16.00. This level happens to be a major pivot low from mid March as well as the 200 moving average on the daily chart. A easy $0.50 bounce is likely next week and maybe more.
Gareth Soloway
InTheMoneyStocks.com
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