TXN - first big decline in seven weeks

With the main markets seeing further weakness, Texas Instruments (TXN) closed -2.1% @ $35.87. There is near term support at the 50 day MA of 35.73, but if the main market fails to hold sp'1600, TXN is in danger of slipping back to the $33s


TXN, daily

Summary

TXN remains one of the better tech stocks out there. Very profitable, and it has been a market leader since last autumn, rising over 30%.

Today's drop of over 2% is clearly something of a major move, but it does nothing to dent the primary trend..which is still to the upside.

Only if TXN makes a few daily closes <$33, could the bigger picture perhaps be turning to the downside.

MRO - new highs look viable

With the main indexes seeing weakness as the day progressed, Marathon Oil (MRO) similarly saw weakness, closing -1.4% @ $34.94. Price action of the past two weeks could be a bull flag, and would be highly suggestive of at least a re-test of the recent high in the upper $36s


MRO, daily

Summary

MRO closed down today, but it importantly held above the low from last Friday. So, we have a reasonably secure near term floor, and now the issue is just how high can it go.

Underlying MACD (blue bar histogram) cycle is still in negative territory, and ticked back lower today. Yet, considering the main market, I'd expect that to go positive no later than early next week.

The big issue in my view is just how high can MRO go this summer? Largely of course, it will be dependent upon the main equity market. If sp' can manage new highs in the low 1700s, then MRO would surely break into the 37/38s, perhaps even test the next psy' level of $40.

Considering the quality of the company, I'd be looking for $50 in the mid-term, but as ever...one trading day.. at a time.
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*I am long MRO, seeking an exit in the low $36s, within the next 2-3 days.

F - battling towards the $18s

With the main indexes climbing into the close, Ford (F) closed +1.2% @ $15.88. Primary upside target is the peak from Jan'2011 - the low $18s. Baring a major down turn in the main market, Ford looks set for another 15% higher before the next wave lower.


F, daily

Summary

Yet another higher close for Ford, and it was an impressive close, after weakness earlier in the day.

With the main equity market seemingly now stabilising in the sp'1620s, Ford looks set to remain in what is a very strong...and consistent up channel.

Primary target is $18, which would appear very viable by late July.

*if the main market gets whacked (for whatever reason) in late summer, then the obvious pull back would be to the old resistance of $14.00.