On Wednesday the SPX had it largest daily gain since September. The SPX closed at 1,206, up +25.52 or +2.16%, the COMPQ moved up +51.20, the INDU rose +249.76. The RUT closed up +16.13.
As I said, in my AT Workshop in Houston with 230 traders on Wednesday morning at the open..."today is an entry day." If you have rules for trading a support bounce move, today was the day to enter positions.
As I said, in my AT Workshop in Houston with 230 traders on Wednesday morning at the open..."today is an entry day." If you have rules for trading a support bounce move, today was the day to enter positions.
Breadth strengthened on Wednesday as advancers led decliners 3.46 to 1 on the NYSE and 2.55 to 1 on the NASDAQ…
Exchange NYSE NASDAQ
Advancers 2,373 1,943
Decliners 684 760
Index Direction Confirmation
VIX Down Yes – SPX
SOX Up Yes – COMPQ
Leading stocks on Wednesday included ARUN, UCO, FAS, USD, FFIV, SNDK NDAQ BYI, MA, TIE, SINA, SLB, TBT, FCX, DOW, DECK, CAM, AGU, CRM, X, CAT, NETL, F, BAC, WLT, FDX, NYX, A, CLF, BA, AMD, VMW, LXK, STI, CF, IPI, ATI, ICE, LVS, UAL, CREE, PNC, INFA, FLS, PCLN, AKAM, VECO, JEC, ZION, SWK, AKS, NTES, DHR, MHS, PCP, DE
Leading stocks on Wednesday included ARUN, UCO, FAS, USD, FFIV, SNDK NDAQ BYI, MA, TIE, SINA, SLB, TBT, FCX, DOW, DECK, CAM, AGU, CRM, X, CAT, NETL, F, BAC, WLT, FDX, NYX, A, CLF, BA, AMD, VMW, LXK, STI, CF, IPI, ATI, ICE, LVS, UAL, CREE, PNC, INFA, FLS, PCLN, AKAM, VECO, JEC, ZION, SWK, AKS, NTES, DHR, MHS, PCP, DE
Losing stocks included FAZ, NFLX, TLT, GMCR, ESI, CSTR, NTRI, HANS, SKX
Interest rates jumped higher, bonds dropped, the Euro rose and the SOX closed higher +3.32% in a strong bull flag bounce and horizontal breakout. The SOX is a leading group at this time. The VIX moved down -2.18 to close at 21.36.
All nine sectors moved higher on Wednesday with Energy XLE +2.97% and Materials XLB +2.73% leading all sectors.
The four broad indexes bounced off the support in their consolidation pattern of the past three weeks on Wednesday. The SPX is above its 1,200 horizontal resistance of the past two weeks while the INDU broke above its 11,206 short term resistance. The RUT broke out to a new high.
Once again consolidation looks to be a trend continuation pattern. The support low of Nov 16 was NOT broken, and you saw this consolidation make a major to resolve to the upside. Have you been reading what Chart Signals has been stating about this consolidation pattern the last few days?
Strong Individual stocks from our watch list like AZO, CMG, NFLX and RIMM were relatively weaker today and NFLX and RIMM actually closed lower. CREE and DECK had above average moves to the upside on Wednesday.
Bull Flag Patterns including AMZN, CF, CRUS, CRM, FFIV, GES, GR, ILMN, INFA, NETL, ORLY, PCP, ROST, RVBD, SINA, SNDK, USD bounced higher on Wednesday. Flag patterns CSTR, HANS and NTRI closed lower today.
Stocks to Watch on Thursday
Holding Above 30 DMA
HLF, PCLN, LVS, CMG, SINA, CAKE, CAM, UNP, WLT, ATW, SLB, NDAQ, USD, DECK, GR, VECO, CSTR, RVBD, WFMI, NFLX, BYI, MHS, NETL, FFIV, SWN, CAT, NTRI, X, CREE, BUCY, GES, HAS, MCD, UNG, CLF, CRM, INFA, VMW, HANS, RMBS, SNDK, CRUS, GMCR, CF, AIV, AKAM, ATI, PCP, POT, SKX, FCX, FDX, AKS
Moving Above 30 DMA = 15
Intermediate Term Market Trend: Up – 2 months
Short Term Market Trend: Up
Continue to trade with the up trend and simultaneously be prepared for any break of support.
SPX
Resistance: 1,200, 1,209, 1,220
Support: 1,190, 1,182, 1,170
Enter bullish trades with a bounce off support and a break above the high of the low day or a break out of horizontal resistance. Thursday was an entry signal for many stocks.
Look for break of short term support for bearish entry signals or a bounce down from the 30 DMA.
The short term 3 day trend is up.
The two-month trend is up.
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.
The two-month trend is up.
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 +5.25 – white candle support bounce close above 30 DMA
AMZN +1.15 – black candle in bull flag
QCOM +1.07 – white candle bouncing off support in consolidation
GOOG +8.64 – inverted hammer bullish harami
BIDU +1.76 – black candle close above horizontal support
NDX 100 stocks stronger than the NDX include ALTR, SNDK, LRCX, HOLX, MRVL, KLAC, FWLT, NVDA, ESRX, CTAS, CERN, CMCSA, JOYG, MICC and EXPD.
Stocks weaker than the NDX: DTV, GENZ, TEVA, RIMM, EBAY and DISH.
Stocks to Watch on Thursday
Holding Above 30 DMA
HLF, PCLN, LVS, CMG, SINA, CAKE, CAM, UNP, WLT, ATW, SLB, NDAQ, USD, DECK, GR, VECO, CSTR, RVBD, WFMI, NFLX, BYI, MHS, NETL, FFIV, SWN, CAT, NTRI, X, CREE, BUCY, GES, HAS, MCD, UNG, CLF, CRM, INFA, VMW, HANS, RMBS, SNDK, CRUS, GMCR, CF, AIV, AKAM, ATI, PCP, POT, SKX, FCX, FDX, AKS
Moving Above 30 DMA = 15
A, AMD, AMX, ARUN, DHR, DOW, FLS, GME, ICE, MA, PNC, SPG, TBT, UAL, UCO
Moving Below 30 DMA = 2
Moving Below 30 DMA = 2
FAZ, TLT
Staying Below 30 DMA
SOHU, MOS, DE, ESI, GS, JEC, NTES, FAS, IPI, LDK, ZION, AGU, BAC, URE, V, ACN, CHL, NYX, STI, SWK, TSL, BA, HSY, WHR, LXK, TIE, DLR
SOHU, MOS, DE, ESI, GS, JEC, NTES, FAS, IPI, LDK, ZION, AGU, BAC, URE, V, ACN, CHL, NYX, STI, SWK, TSL, BA, HSY, WHR, LXK, TIE, DLR
Short Term Market Trend: Up
2 comments:
Yes Dave, we have been reading what your blog has been saying.
Someone told us just yesterday, that he didn't know why the market was still going up. He said he saw head and shoulder patterns (i.e. AAPL) and that the market would probably break support and make a significant drop. Although we didn't say anything to him -- we were thinking... That is sure not what Dave has been saying. Then we saw the inside day at support and thought -- hmmmm.....
Jamee and Sue
Dave,
Thanks for an amazing 2-day live workshop in Houston. It was a first for me, hopefully not the last. Hope the future for your 4-day presentation resolves to the upside. Just like the markets yesterday.
Many thanks for all you do. I study your blog daily, attend your online traderooms, AIT on Thursday and WSWU on Fridays.
You are helping me to become a better trader.
Again thanks, and God bless.
Fayburn Gage
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