HP, KSS, BMC, TCLP Among Charts to Watch

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It was turn-around Tuesday as the stocks had an abrupt change about after a very strong morning and midday. It turned around and plunged mid-afternoon taking back a big chunk of the losses, and even though they closed up on the day, the technicals look good, so it was a bit deceiving. We’re going to look over some of the shorts and see the progress these shorts have made.

Helmerich & Payne Inc. (HP) had a big top and a 5-wave decline that was followed by a bounce, but had an abrupt reversal on Tuesday, moving it down from 49 to 45.09, closing near the session lows. That’s an extremely negative indicator. A big gain was taken back, although the gap was filled. This could lead to a retest of the lows at about 42 1/2, and potentially a take out that would get it down to the mid 30s if this market does fall apart.

Kohl’s Corp. (KSS) had a snapback that occurred recently that took it right up to the declining topsline, lateral price-resistance, and moving average, and then reversed on Tuesday. It went from 49 to 47.46, and closed just pennies off the low at 47.67. It was a negative day for sure. This could lead to a test down at the 43 – 44 zone, and even much worse if it does fall apart, because it has lows at the bottom of the channel near the low 30s.

BMC Software Inc. (BMC) has been able to do very little except consolidate in what looks like a bear flag. Note that the move up to the 50-day moving average touched it and then backed away quickly before bouncing. It’s fairly balanced with no technical surge whatsoever. It could lead to lower levels. Look for some in the low to mid 30s.

TC Pipelines LP (TCLP) is in a nice little bear flag, and about the time it pulled back and broke down, it got to 43 1/2 – 44. Look for a rollover test at 39 1/2 – 40, and perhaps down to the mid 30s if the market gets ugly.

Other stocks in our Charts for the Day are ADTRAN Inc. (ADTN), Armstrong World Industries, Inc. (AWI), F5 Networks, Inc. (FFIV), Moody’s Corp. (MCO), FactSet Research Systems Inc. (FDS), Cabot Microelectronics Corp. (CCMP), Domtar Corporation (UFS), Microchip Technology Inc. (MCHP), Analog Devices Inc. (ADI).