The SPX formed a white candle and closed +3.13 at 1,363.61. The SPX which had been down in the first 30 minutes of trading rallied as the Financials XLF -0.18% bounced up from its early low on Friday. Friday was a classic selectivity day where the broad markets inched higher, while breadth strengthened modestly and a fair number of stocks had significant moves. Earnings have been the primary factor in the larger percentage moves up and down this week.
SPX white candle +0.23%
INDU white candle +0.37%
COMPQ white spinning top, just above horizontal resistance, +0.04%
RUT spinning top above horizontal resistance +0.43%
Breadth strengthened on Friday as advancers led decliners 1.87 to 1 on the NYSE and 1.23 to 1 on the NASDAQ …
Exchange NYSE NASDAQ
Advancers 1,962 1,437
Decliners 1,045 1,162Index Chg. Close Direction Confirmation
VIX +0.13 14.75 Up No – SPX
SOX +2.02 449.56 Up Yes – COMPQ
Leading stocks > +2% on Friday included SWKS, CSTR, LDK, WLT, SINA, UAL, PCX, SWN, IL, NVDA, CAT, GMCR, FWLT, MOS, UNG, TSL
Losing stocks < -2.0% included DECK, CLF, SWK
As I stated last week if the SPY broke through horizontal resistance, I would place a new real time virtual trade. Conditional order entered to buy 50 May 135 calls at or above 134.25. Order filled Tuesday at 7:53:51 at 1.30 per contract. Call closed on Friday at 2.76 for a gain of $1.46 or +112.3%. Those 50 calls with an original cost of $6,500 gained $7,300 in 4 days.
I hope you have not missed the significance of what we did and what we forecasted on Monday April 18 with the SPY trade that filled on April 26 closed on Thursday before the three day weekend and with this trade from this past April 26. Both trades and exit were planned on April 18…you need to understand what we did to take your trading to the next level…
Positives – SPX, INDU, RUT, SOX, TLT, breadth positive
Negatives –TNX, NDX, VIX
Interest rates TNX -0.16 moved down and bond ETF TLT moved up 29 cents. Financial stocks XLF moved down 3 cents. The Euro moved down 14 pips to 1.4809 at 5 pm on Friday.
Five of nine sectors moved higher on Friday. Energy XLE +1.49% and Industrials XLI +0.42% were the strongest sectors.
Most of the major earnings are released but a few remain…
Key Earnings this week:
Monday – ADP
Tuesday – CEPH, CMCSA, FSLR, MYL, HSIC, VRTX
Wednesday – ERTS, EXPD, GRMN, NWSA, BMC, WFMI
Thursday – DTV, PCLN, MCHP
Friday – WCRX
SPX
Resistance: 1,367, 1,384
Support: 1,352, 1,344, 1,330
The short term 3 day trend is up.
The six-month trend is up.
The twelve-month trend is up.
The six-month trend is up.
The twelve-month trend is up.
Trade with the trend of the chart you are trading.
Bullish entry signal is a bounce off support and a break above the high of the low day or a break out of horizontal resistance.
Bearish entry signal is a break of short term support or a bounce down from the 30 DMA or other resistance.
AAPL +3.38 – white candle confirms inverted hammer
AMZN +0.74 – spinning top above S1
BIDU +0.27 – inverted hammer
GOOG +6.13 – white candle
NFLX -1.70 – doji
PCLN -3.02 – potential shooting star pullback to pennant breakout
QCOM -0.49 – spinning top confirms hanging man, inside day, forming bull flag
NDX 100 stocks stronger than the NDX include CERN, LINTA, NVDA, BRCM, ORCL, CTSH, INTC, EXPE, CSCO, KLAC, INFY, EBAY, GOOG, JOYG and YHOO.
Stocks weaker than the NDX include RIMM, WCRX, FLEX, MSFT, MRVL, DELL, XRAY, SBUX, ISRG, ATVI, NIHD, ERTS, SHLD, AKAM and MU.
Stocks to Watch on Monday
Holding Above 30 DMA
HUM, HLF, SINA, UCO, CSTR, WDC, DHR, MCP, A, WLT, ACN, SOHU, ANF, DLR, CRM, LVS, TIF, V, NDAQ, NYX, SNDK, CIEN, IL, VMW, URE, ATI, TLT, CF, AKS, ARUN, DOW, MHS, UNG, ZION, AMD, CAT, DE, F, FCX, GES, NETL, NVDA, SMH, ESI, JDSU, UNP, FAS, GLW, SWN, VECO, HAS, GMCR
HUM, HLF, SINA, UCO, CSTR, WDC, DHR, MCP, A, WLT, ACN, SOHU, ANF, DLR, CRM, LVS, TIF, V, NDAQ, NYX, SNDK, CIEN, IL, VMW, URE, ATI, TLT, CF, AKS, ARUN, DOW, MHS, UNG, ZION, AMD, CAT, DE, F, FCX, GES, NETL, NVDA, SMH, ESI, JDSU, UNP, FAS, GLW, SWN, VECO, HAS, GMCR
Moving Above 30 DMA = 9
AGU, ATW, IPI, LDK, RVBD, SLB, SWKS, TSL, UAL
Moving Below 30 DMA = 5
CLF, DECK
Staying Below 30 DMA
CHL, NTES, PCX, POT, SWK, CMG, FAZ, FWLT, JEC, VLO, JNPR, SLW, IAG, GS, CDE, STI, TBT, HAS, MOS, X, ICE, CAM , BAC, CRUS
Short Term Market Trend: Up
5 comments:
Aloha Dave
Going through my charts for month end analysis and next week setups, I noticed that on the weekly charts the XLV, XLU and XLP (safety sectors) are by far the strongest of all the sectors. Do you have any words of wisdom on this and it's meaning to the overall market and the weight of the evidence implications.
Hi Dave
I did take the SINA trade. I also entered on the first bounce a few days ago but got stopped out. Hopefully this one will go better.
Thank you for all you do.
Uwe and Dave--I did the same thing. Bull Flag entry on 4/25, stopped out on 4/27, re-entry on 4/29. Earnings are coming but the chart suggests that T1 is within reach in that timeframe. Happy May trading!
I took the trade right before the market closed on Friday. I did not take the trade on the 25th to wait for further confirmation--I know it was late but the 26th produced a Red Candle. On the 26th I did a Bull Put Vertical.
Susan
Dave,
I actually took the trade a few days ago and it is doing nicely.
Thanks.
Jim Ogle
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