As I stated in my morning stock report that a fall for the NASDAQ under 2300 should lead to a rough day overall, and that is just what we got.

Both major indices fell on increasing volume today suggesting the market may need more work. The NASDAQ tumbled 1.87%, and the S&P 500 lost 1.15%. What’s worse is that we are now back under the 50 day moving average and once again have made another lower high.

Caution is always emphasized in these times, and keeping stops tight is a must.

Tonight I have a variety of stocks from different sectors and feature the potential comeback of commodities.

Nasdaq Composite

S&P 500 (SPY)

DB Commodities Tracking Index (DBC)

I have this chart of the DBC which is the ETF tracking the Deutsche Bank commodity index just to show you the recent rebound of commodities overall.

As far as trading this ETF goes I would wait until some sort of base can form. The ETF received good support at its 50 day moving average and really shows that oil and like cannot be ruled out yet long term.

First Solar (FSLR)

Alternative energy stocks have begun popping back into my scans recently and First Solar is the leader. The stock had a phenomenal run in 2007 and for the most part has struggled thus far in 2008.

Recently though FSLR has seen some decent accumulation and the group overall is starting to come back into favor. I think FSLR needs to build some sort of base, but is definitely worth adding to your watch list.

LDK Solar (LDK)

Same group as FSLR, LDK has potentially made a long term bottom. After hitting $30 resistance the stock retreated today which suggests a break may be in store. Keep a close watch on LDK though for a strong break past $30 on strong volume could mean much higher prices to come.

Desarrolladora Homex (HXM)

I mentioned this past Sunday that Home Builders were coming into favor, and HXM is one of my favorites out of the group. The uptrending 50 MA support alongside strong accumulation suggests this stock may have a strong run ahead of it. Next buy point is $59.50 on good volume. Stops should be 4 - 7% below purchase price.

Mastercard (MA)

MA has trended back near its all time highs on light volume, and may be setting up a short term base before trying to make a push to new highs.

Buy point for MA is $230.50. On break out day the stock should surpass 6 million shares traded, otherwise I would be skeptical.

Intuitive Surgical (ISRG)

Low volume consolidation after such a huge move on Monday from ISRG suggests the stock may be ready to run again. Next buy point for ISRG would be $335.50, or if you are lucky you could try grabbing a few intraday around $316 support and add to your position with the next break.

Bard (BCR)

This small base suggests Bard is setting up for a big push past $100 a share. Next buy point is $100.50 with very heavy volume. 3 - 5% stop should be efficient after breakout.

Perrigo (PRGO)

Horizontal channel seems to be forming for PRGO which could lead to higher price around the corner. Next buy point is $39.50.

See you back here tomorrow.

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