Friday, September 17, 2010

SPX on Touches 1,130 and Pulls Back...

The RUT and COMPQ led the broad indexes...
(click image to enlarge)


Exchange      NYSE     NASDAQ
Advancers     1,779       1,560
Decliners       1,223       1,122


Index     Direction     Confirmation
VIX            Up              No – SPX
SOX           Up              Yes – COMPQ


SPX
Resistance: 1,130, 1,148
Support: 1,115, 1,100, 1,086

Leading stocks on Friday included DE, ESI, ZION, WHR, IPI, SKX, DECK, GR, WFMI, ATW, PCP, BUCY, CAN, A, CAT, MA, RVBD, DHR, MHS, VECO, UNP, DOW, CAM, GES, PCLN, SPG, CMG, NETL

Losing stocks included SINA, TSL, CLF, CSTR, SNDK, NTES, CRUS, UCO, TIE, NTRI, SWN, UAUA, ICE, BAC, CREE, UNG, USO, MOS, FAS, HANS, GS, POT, GMCR, BYI

The COMPQ has broken through its August horizontal resistance on the strength of AAPL, AKAM, AMZN CTXS, INTU, ORCL, PCLN and on the rebound in GOOG. The SPX is right at its August resistance. The INDU and RUT are both below their August resistance levels.


With the September quarterly options and futures expiration complete we will look for signs of buyers or sellers gaining control on Monday. This key resistance level is a pivot point, meaning price can pivot or move higher by breaking out of resistance or can pivot or move down by bouncing down from resistance.

The VIX did not confirm the rise in the SPX on Friday by moving lower.

We’ll be watching the Euro, interest rates and the VIX on Monday for confirmation of Monday’s move in either direction.

Look to enter bullish trades with a breakout of horizontal resistance or a bounce off support and a break above the high of the low day. There are numerous stocks in our list that have already broken resistance and have paused or pulled back over the past one to three trading days.

Wait to exit short term trades according to your rules with a break below the low of the high day. A few charts may have given exit signals on Friday. Wait on bearish entry signals for a bounce down from resistance or a break of the low of the high day.

The VIX rose +0.29 to 22.01, and is still below the 25 benchmark level.

The short term 3 day trend is up
The three-month trend is neutral.
The twelve-month trend is up.

Continue to focus on and trade setups on the charts of the stocks you watch. Trade with the trend of the chart and follow your rules.

AAPL -1.20 – black spinning top
QCOM +0.56 – white candle
GOOG +9.09 – large white candle
BIDU -0.36 – bearish engulfing

NDX 100 stocks stronger than the NDX include: ORCL, EXPE, MRVL, WCRX, NIHD, WYNN, ALTR, GOOG, JOYG, CTXS, LBTYA, APOL, LINTA, EBAY and QCOM.

Stocks weaker than the NDX: BRCM, SHLD, YHOO, URBN, PDCO, BBBY, LOGI, VRTX, HSIC, ILMN, CHKP, FLEX, STX, GILD and LIFE.

Stocks to Watch on Monday
Holding Above 30 DMA
HANS, HLF, PCLN, RVBD, AGU, MCD, POT, FFIV, LVS, NFLX, VMW, CMG, CRM, TSL, CLF, FCX, SINA, SPG, VOD, AIV, BUCY, CAM, DE, DHR, DLR, DOW, NYX, PCP, SWK, UNP, UPS, URE, WLT, WMT, A, BYI, GMCR, HAS, IPI, JEC, LXK, AKS, CAT, ICE, BAC, FAS, FDX, FLS, GS, MHS, ATW, STI, ACN, ATI, AMX, GES, PNC, RMBS, ZION, NDAQ, UAUA, USD, VECO, DECK, MA, NETL, TBT, ESI, GME, HSY, WFMI, X
Moving Above 30 DMA = 2
GR, PNC
Moving Below 30 DMA = 3
HANS, CLF, FDX
Staying Below 30 DMA
NTES, TLT, UCO, USO, CHL, V, FAZ, CSTR, SNDK, BA, CRUS, CREE, TIE, SWN, UNG, SKX, AMD, NTRI, WHR

Intermediate Term Market Trend: Neutral
Short Term Market Trend: Up

1 comment:

Anonymous said...

Dave, because of your coaching/mentoring, on this latest 3week rally, my skills, overall are MUCH Improved;
My entries were only a little slow (my fault), my stops were good & my trade-risk at SPX resistance (entering new trades & closing old trades) has made all the difference this time!!
Thank you for covering the smallest of the small details...
I'm still lacking the discipline to stay with the full-position on each trade all the way thru... But I'm learning that I prefer to take profits/remove risk along the way up.
I just LOVE this stuff! Thank you, again,
Scott L of Nashville