Thursday, January 6, 2011

COMPQ, NDX New High Close...SPX, INDU and RUT Pause...

Improve your trading in 2011

Take the opportunity to read the January 1 post, if you have not already done so, and send your email, which can be the first step to making 2011 your best year yet!  Don’t miss out

The SPX closed down -2.71 or -0.21% at 1,273.85.  The SPX reached 1,278 intraday just 3 points below its 1,281 December breakout price target.
(click image to enlarge)
SPX spinning top potential bearish harami
INDU spinning top potential bearish harami inside day
COMPQ spinning top new high close
RUT spinning top

Breadth weakened on Thursday as decliners led advancers 1.55 to 1 on the NYSE and 1.27 to 1 on the NASDAQ…

Exchange       NYSE          NASDAQ
Advancers      1,177              1,162
Decliners        1,831              1,479
(click image to enlarge)
Index Direction     Confirmation
VIX      Up                  Yes – SPX
SOX    Up                  Yes – COMPQ

Leading stocks > 1% on Thursday included TSL, POT, NETL, TIE, HUM, HANS, SOHU, VECO, RVBD, HSY, SINA, CMG, PCX, BA, DOW, F, USD, LXK, CRUS, DISH, UAL,V , GMCR, DLR, FWLT, ARUN, SWN, FAZ, MHS

Losing stocks < -1% included FAZ, GME, UNG, TLT, MCP, JEC, LDK, NDAQ

Four of the big seven NDX stocks BIDU, GOOG, PCLN and QCOM closed higher while AAPL, AMZN and NFLX moved lower.
  
Interest rates moved lower on Thursday and bonds closed slightly higher.  The Euro fell 153 pips to 1.2999 at 5 pm ET. 

The SOX rose +7.68, making a new high close at 424.77 on Thursday and the VIX moved down +0.38 and closed at 17.40.

Three of nine sectors moved higher on Thursday with Technology XLF +0.58% and Healthcare XLV +0.41% leading all sectors. 

Moves on Thursday
Continuation – POT, CRUS, F, GOOG, XLF, C, WYNN, VMW, X, DOW, GS, WFC, BAC, GR, WLT, BYI, CF, FAS, NUE, STLD, A, V,  
Resistance Breakout PNC, NETL, ILMN, AMZN
Bull Flag Bounce –USD, UNP, CAT
MACD Divergence Bounce
Support Bounce – FFIV, JASO
Bear Flag Break – SPG, TLT
Break of Support – GES, AZO, ICE, GME, ATW, WFMI

Setup Charts to Watch
Bull Flag Setups – SNDK, ATI, STI, NYX, CLF, SWK, AMD, DHR, JEC, ZION, NDAQ, AGU, URE, FLS, FCX, AIV, SLB, IPI, DECK, WHR
Horizontal Breakout – LVS, DE, MOS, TSL, HSY, SINA, NTAP, AKS, UNG, X,  TBT
MACD Divergence – CMG, CREE, CAKE, NFLX, CSTR, AKAM, BIDU, LDK
Bear Flag Setups –ACN, SKX

Continue to trade with the trend of the chart you are trading.

SPX
Resistance: 1,281, 1,300
Support: 1,256, 1, 241, 1,220

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.

Enter bearish trades on a break of short term support or a bounce down from the 30 DMA.
 
The short term 3 day trend is up.
The six-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 -0.27spinning top
AMZN -1.56spinning top, potential bearish harami
NFLX -1.74spinning top at support and MACD bullish divergence
QCOM +0.64white candle new high close
GOOG +4.43potential shooting star
BIDU +0.53spinning top and MACD bullish divergence

NDX 100 stocks stronger than the NDX include NVDA, MRVL, MYL, MSFT, DELL, TEVA, FSLR, ESRX, BRCM, ROST, XLNX, ILMN, CTRP, CTXS and MXIM.

Stocks weaker than the NDX: CHKP, ORLY, SHLD, MAT, WFMI, ISRG, GRMN, VRTX, DLTR, EXPE, SBUX, FAST, SPLS, JOYG and EBAY.

Stocks to Watch on Friday
Holding Above 30 DMA

SINA, WLT, NDAQ, USD, GR, RVBD, BYI, CAT, X, FWLT, PCX, CLF, INFA, VMW, SNDK, CRUS, HOLX, FCX, FDX, AKS, A, AMD, DHR, DOW, FLS, PNC, UCO, DE, FAS, JEC, STI, SWK, WHR, ZION, ACN, BAC, NYX, ESI, IPI, MCP, ATI, CF, AIV, GS, URE, AGU, MOS, POT, UNP, BA, SWN, UNG, ARUN, NETL, LVS, VECO, CRM, PCP, TBT, TSL
Moving Above 30 DMA = 8
DLR, GMCR, HANS, HUM, HLF, HSY, TIE, UAL
Moving Below 30 DMA = 6
CHL, CREE, DECK, GME, ICE, SLB
Staying Below 30 DMA
CAM, LDK, SPG, ATW, GES, TLT, HAS, MHS, CAKE, MA, SKX, V, CSTR, CMG, SOHU, MCD, FAZ, NTES, LXK

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

1 comment:

Anonymous said...

Last night's AIT's, "level of detail & speed" (more for "the more seasoned" students) was Wonderful!! I personally, can't
get enough of your view of the charts, charts & more charts!
And also can't wait to hear & see more on our short term/active trades, specifically, exits using our stop-adjustments.
And lastly, I'll miss you when you give-up your Wed ATA Capstone soon...
Dave, You Make A Difference!!!
Sincerely,
Scott L of Nashville