Wednesday, November 2, 2011

SPX, Euro, Financials Higher, Fed Stays Course, QCOM Gaps Up After-hours...

 All nine sectors moved higher on Wednesday. XLE +3.01%, XLF +2.95% and XLB +2.48% were the strongest sectors.

The Euro was up 50 pips to 1.3744 at 5 pm EDT on Wednesday.  TNX closed up +0.05 at 20.06.  TLT was down -1.49.  Financials XLF was up 38 cents.

The broad indexes moved higher with the RUT +2.71%, SPX +1.61%, INDU +1.53%, COMPQ +1.27%, and NDX +0.87 %.  The SPX moved up +19.62 to close at 1,237.90.  The RUT formed a bullish engulfing while the SPX and INDU formed a bullish harami.

(click image to enlarge)

The SPY and many individual stocks closed above the high of the low day creating an exit for short-term bearish trades and an entry for support bounce bullish trades.  Many of the hammers, doji, bullish harami and other bullish candle patterns that we observed Tuesday evening confirmed on Wednesday.

The Fed announced they are staying on their current course of a low interest rate accommodative policy.  Stocks moved higher following the announcement.

The adjusted HON paper-trade order filled on Wednesday and the call option finished up 5 cents. E = 52.28, S = 50.16, T2 = 56.25

Our X paper-trade order also filled with the NOV 26 call option closing up 24 cents.  We also sold weekly puts at 45 cents which dropped almost 30 cents with very nice results for the day. E = 25.39, S = 23.14, T2 = 31.80

Flag Setups for Thursday paper-trade:
MOS E = 57.59, S = 53.89, T1 = 62.65
HAL E = 36.68, S = 33.67, T1 = 39.62

(click image to enlarge)
 
AAPL, AMZN, BIDU, GOOG, PCLN and QCOM moved higher on Wednesday.  After the close QCOM +4.97, 9.52% gaps up after reporting earnings.  WFM -3.06, -4.34% gaps down after reporting earning.

The VIX moved down -2.03 to 32.74. 

Breadth strengthened as advancers led decliners 6.41 to 1 on the NYSE and 3.47 to 1 on the NASDAQ.

Exchange       NYSE        NASDAQ
Advancers       2,542           1,958
Decliners           396              563          

Leading stocks > +2% on Wednesday JDSU, FAS, ENTR, CF, RVBD, PCX, UCO, GES, BAC, URE, TBT, X, ANR, TSL, CIEN, STI, SLW, SWK, AKS, C, RCL, HUM, CRUS, POT, ZION, CREE, DOW, V, LVS, TPX, GS, NGLS, KKD, SOHU, SINA, A, HAL, ATI, SWN, DHR, FFIV, CDE, MOS

Losing stocks < -2.0% included FWLT, FAZ, ESI

NDX 100 stocks stronger than the NDX included NIHD, ERTS, GRMN, AKAM, NFLX, BIDU, QCOM, FFIV, CTRP and CHKP.

Stocks weaker than the NDX include SIRI, QGEN, VRTX, XLNX, RIMM, NVDA, ALTR, CTSH, AMGN and APOL.

Eight NDX stocks including AAPL, DELL, ERTS, EXPE, PCLN, QCOM and WYNN moved above their 30 DMA making 73 NDX stocks above the 30 DMA. 

Stocks to Watch on Thursday
Holding Above 30 DMA = 67
IBM, ARUN, DECK, FFIV, SNDK, F, NKE, ANF, COH, ENTR, UNP, DHR, DOW, SMH, SWK, TIF, TPX, VMW, C, JNPR, NGLS, RCL, ZAGG, CAT, DLR,  HLF, LNKD, SWN, NTES, WLT, RVBD, SLB, UCO, AKS, FAS, GLW, GS, ZION, A, BAC, CIEN, URE, ATI, CF, CMG, DE, FCX, FWLT, GES, HUM, ANR, HAL, PCX, STI, CDE, CLF, CRUS, MCP, SLW, SOHU, TSL, CRM, JDSU, LDK, LVS, X, TLT
Moving Above 30 DMA = 7
CHL, IL, INFA, MOS, NDAQ, V, WDC
Moving Below 30 DMA = 0

Staying Below 30 DMA
CSTR, ICE, KKD, NVDA, CREE, ESI, POT, SINA, TBT, VECO, SWKS, UAL, CROX, FAZ, GMCR

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

2 comments:

TraderBobb said...

Dave:
Thanks much for the review and the paper trade ideas.
I'm having many BGO's
Gratefully,

Robert
CANI_212

PENNY STOCK INVESTMENTS said...

Great moves