Wednesday, August 24, 2011

Interest Rates Jump, Gold and Bonds Dump...Financials Lead SPX Higher...

Interest rates moved higher TNX +1.23, bonds TLT -3.11 moved lower and Financials was the leading sector XLF +0.33.  Gold GC -79 collapsed for the second straight day and is down $146 in two days.

Behind the back drop of falling interest rates, gold and bonds and rising financial stocks the SPX rose +15.25 and closed at 1,177.60.

After the market close AAPL announced that Steve Jobs would step down as CEO and continue as Chairman of the Board.  AAPL fell -19.08 or -5.07%.


NDX white candle, below 30 DMA +0.74%
SPX large white candle, below 30 DMA +1.31%
INDU large white candle, below 30 DMA +1.29%
COMPQ white candle, below 30 DMA +0.88%
RUT large white candle, below 30 DMA +1.39%

Breadth weakened as advancers led decliners 2.27 to 1 on the NYSE and 1.97 to 1 on the NASDAQ

Exchange       NYSE        NASDAQ
Advancers      2,105           1,698
Decliners          924              859

Index         Change    Close    Direction    Confirmation
VIX               -0.37       35.90       Down          Yes – SPX
SOX             -0.40      345.69      Down          No – COMPQ

Leading stocks > +2% on Wednesday BAC, FAS, TBT, FWLT, ANR, C, ZION, A, DECK, DHR, ESI, DE, GS, HLF, CLF, V, NDAQ, MOS, TSL, STI, CAT, NKE, COH, IL, KKD, LDK, URE, CROX

Losing stocks < -2.0% included FAZ, ZAGG, SINA, SLW, SOHU, CREE, TLT, IAG, UNG, VECO, CY, RVBD

All nine sectors moved higher on Wednesday.  Financials XLF +2.68%, Utilities XLU +2.16%, and Industrials XLI +2.02% were the strongest sectors.

Interest rates TNX closed +1.23 at 22.60, bond ETF TLT fell -3.11 and Financials XLF was up 33 cents.  The Euro moved down 30 pips to close at 1.4412 at 5 pm on Wednesday.

SPX
Resistance: 1,173, 1,200, 1,225
Support: 1,160, 1,146, 1,134

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

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 +2.58 spinning top, below 30 DMA
AMZN +0.18 – doji, below 30 DMA
BIDU -2.68 – black spinning top, below 30 DMA
GOOG +4.47 – white spinning top, below 30 DMA
NFLX -3.51 – hammer, below 30 DMA
PCLN +8.89 – white candle, below 30 DMA
QCOM +0.08 – hammer, below 30 DMA

NDX 100 stocks stronger than the NDX include ADSK, RIMM, JOYG, LIFE, ALXN, SIRI, WCRX, ISRG, NWSA and LINTA.

Stocks weaker than the NDX include MU, URBN, GILD, BIDU, GMCR, NFLX, YHOO, NVDA, ALTR and VRTX.

Stocks to Watch on Thursday
Holding Above 30 DMA = 5
FAZ, TLT, CF, CHL,
Moving Above 30 DMA = 3
MOS, NDAQ, V
Moving Below 30 DMA = 2
CDE, SLW
Staying Below 30 DMA
IAG, LDK, ZAGG, CREE, GMCR, NGLS, NTES, CROX, MCP, CDE, DECK, LVS, SOHU, HLF, CAM, CMG, IAG, MHS, SNDK, SWKS, TPX, WTW, ESI, ANF, ATW, COH, FCX, GS, POT, SLB, WLT, NKE, SINA, SWN, ACN, AGU, DOW, UCO, UNP, VMW, CLF, ANR, ATI, CAT, CIEN, CRM, CRUS, CY, DLR, FAS, ICE, JNPR, SMH, STI, TIF, URE, WDC, AKS, CSTR, DE, PCX, TBT, X, ZION, KKD, NETL, DHR, FFIV, SWK, UNG, ARUN, RVBD, HUM, ENTR, INFA, A, F, GES, HAS, BAC, TSL, UAL, VECO, NVDA, FWLT, JDSU, GLW, IL

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

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