The Wrap 1/4/10

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Sellers sent stocks from a positive start to a sizable loss by midsession, but their efforts eased in the afternoon so that the major averages ended the day with varied results. After the close, MOS, SONC, LNDC, ANGO and TISI are the most notable names that reported after the close. MOS is higher in the aftermarket after a good report.

Six of the ten sectors were in negative territory, led by consumer discretionary (-0.6%), energy (-0.6%) and materials (-0.5%).

Tomorrow morning before the open, a few economic reports are scheduled to be released, including MBA Mortgage Purchase Index. (Consensus NA), Challenger Job Cuts (Consensus NA) and ADP Employment Change (Consensus 100K). ISM # and DOE Crude.

Tomorrow before the open look for the following companies to report: FDO and UNF.

I took some more profits today, and a couple of early stops on CXO and TSCO. You may find that on occasion I shoot first and ask questions later, hence the early exit, that doesn’t happen often, but I would rather be safe than sorry, we an always reenter.

Oil was weak as the dollar moved up and materials took a thumping, all the daily charts are still bullish for now. I have added one long ( CENX) and one potential short (FSLR). Please go to the P&L for entry prices and stops. Also, I have updated the P&L so please check it out.

Have a great night and I will see you tomorrow.

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