August Options Expire...Stocks Mixed...Oil & Gold Down

DJIA + 43.97, +0.38% SP500 + 5.27, +0.41% NASDAQ Comp. - 1.15, -0.05% Russell 2000 - 1.01, -0.13% Exchange NYSE NASD Advancing 1,630 1,358 Declining 1,442 1,495 Oil $113.77 -$1.24 Gold $792.10 -$22.40 $SOX 376.43 -0.18 Strongest Sectors: XLY +1.17%...XLV +0.99%...XLP +0.98% Weakest Sectors: XLE -1.87%...XLB -0.63%...XLU +0.13% The RUT +19 and the Nasdaq +38 made the largest moves for the week although they were essentially flat on Friday. The SPX +2 flat and the DJIA -75 down for the week were up more on Friday than their net gain for the week. Ironically, the SOX, +9 for the week, was also flat on Friday. Oil and gold continued to fall on Friday as did oil, gold, coal, steel, and Ag-related stocks. While there will likely be counter trend support bounces in the days ahead, the technical evidence on the chart as of Friday points to a continued down trend in the stocks. The strong gains in the SOX, semiconductor stocks, created a strong foundation for the rising Nasdaq. AMD moved up 6.42% on Friday on heavy volume. For the week XLK and XLP were strongest followed by XLY, XLV and XLB. XLI, XLF, XLE and XLU were down for the week. Sector Watch Up Trending: XLI, XLK, XLP, XLV, XLY Sideways: XLB, XLF, Down Trending: XLE, XLU, Index Commentary The DJIA bounced through its 50 DMA and closed above last Friday’s S1 level…breaking out of its bull flag…did not quite close above the high of the low day which was Thursday. The SPX broke through its bull flag and did close above the high of the low day, the hammer, which formed on Wednesday…Thursday was a bullish engulfing pattern…closed for the second day in a row above its 50 DMA. The Nasdaq which formed a white candle moving up for the fifth week in a row on its weekly chart pulled back and formed a black spinning top on its daily chart…did form a higher high and higher low…watch on Monday to see if Friday was the pause that refreshes or the beginning of a short-term pull back…key short-term support is the S1 on Thursday’s large white candle…closed for the second day in a row above its 200 DMA. The SOX formed a white candle on its weekly chart and rose for the second week in a row….formed a small black spinning top on Friday net moving sideways for the fourth day in a row…still a horizontal bull flag…closed for the fifth straight day above its 50 DMA…still trading below its 200 DMA. The RUT formed a large white candle on its weekly chart and was up for the sixth week in a row…rose to the 765 horizontal resistance area on Friday before closing down a point with a spinning top…did form a higher high and a higher low…watch to see if this is the pause that refreshes or the beginning of a short-term pull back…watch if Monday’s price action moves below Friday’s low or moves higher through resistance…closed above its 200 DMA for the sixth day in a row. Stock Commentary Up Trending RIMM pulled back on Friday…stayed above bull flag low AAPL bearish engulfing bounce down from resistance at 180 AMZN black candle in horizontal bull flag holding above Monday’s S1 level NIHD dark cloud cover after two up days holding above 20 DMA…this could be a continuation of a trading range or a potential head and shoulders formation? ESRX breakout of long term horizontal resistance of 74 area…intermediate term chart target of 87 UAUA bull flag and breakout as oil falls…short-term chart target 16.67 if breakout holds NDAQ spinning top after resistance breakout…if breakout holds short-term chart target of 37.17…watch S1 level of Thursday’s large white candle WRC shooting star at horizontal resistance area of 53 following bull flag bounce ONXX pullback that holds above Thursday’s S1 level following horizontal breakout…chart target 50 HANS pullback that holds above Thursday’s S1 level after bull flag support bounce and horizontal breakout AMLN pullback that holds above Thursday’s S1 level after horizontal resistance breakout…chart target 42 Down Trending POT, MOS, X, FWLT, CNX all confirmed Thursday’s bearish harami on Friday and broke below support in bear flag breakouts to the downside AGU broke below Thursday’s low in bear flag breakout SCHN bear flag breakout NUE bear flag breakout BTU confirmed Thursday’s hanging man pattern…closed above Thursday’s low and bear flag support line Sideways Trending CF confirmed its bearish harami and broke the rising support of its bear flag FSLR gapped up and formed a shooting star in the area of its 20, 30 and 50 DMA CLF formed a bearish harami near its 20 DMA after rising for three days Friday’s Action Moving Up: FSLR, MA, ESRX, UAUA, PCLN, LDK, GET, FMCN, LAMR, JASO, SINA Moving Down: POT, CF, MOS, X, BIDU, ANR, AAPL, BUCY, GS, SCHN, AGU, DRYS, CLF, CNX, BTU, FWLT, MOM, RIMM, STRA, AMZN, IPI, MTL, CELG, HANS, ONXX, EXM, USO, NIHD, MEE, SOHU Intermediate Term Market Trend: Up Short Term Market Trend: Up