The markets are getting crushed today on the back of a negative outlook issued by Standard and Poor’s on the United States credit rating. Stocks are getting smacked across the board on this market weakness. While many stocks are taking a hit, some key names are hitting master support levels and may see a bounce for the remainder of the week.
JPMorgan Chase & Co. (NYSE:JPM) is taking a hit today after reporting earnings late last week. The stock is trading at $43.69, -1.20 (-2.67%). While it may look ugly now, JPMorgan is coming into significant support at $43.40. This is a perfect double bottom from March 17th, 2011. Look for a bounce off this level into the end of the week.
Bank of America Corporation (NYSE:BAC) reported earnings last week that did not thrill Wall Street. The stock has been punished accordingly and is trading at $12.39, -0.43 (-3.35%). Should the stock continue to fall to $12.00, a key gap fill will be hit stretching back to December 8th, 2010. This will be a prime level to buy at for a short term bounce.
LDK Solar Co., Ltd (NYSE:LDK) is seeing some downside today on the back of weaker oil. This solar play finds weakness when oil is weak. When oil is stronger, often, solar stocks will rally as well on alternate energy hopes. Today, LDK hit the 200 moving average on the daily chart at $10.46. In addition, this level is a double bottom from March 14th, 2011 and a master gap fill from January 7th, 2011. The combination of these three levels should signal solid support for the rest of the week.
Whether the market is up or down, there are always great swing trades. The charts will show you the master levels and high probability longs and shorts.
Gareth Soloway
InTheMoneyStocks.com
