Wednesday, December 19, 2012

SPY, AAPL, Financials Pause, ORCL, STX, WDC Continue to Rise...



All nine sectors moved lower on WednesdayXLB, XLK, and XLI were the strongest sectors. 

Breadth
weakened on Wednesday as decliners led advancers 1.01 to 1 on the NYSE and advancers led decliners 1.02 to 1 on the NASDAQ…

Tuesday – strengthened, advancers led
Monday – strengthened, advancers led
Friday – strengthened, decliners led
Thursday – weakened, decliners led

NDX 100 annual changes prior to the open Monday, Dec. 24, 2012:
Additions:  ADI, CTRX, DISCA, EQIX, LBTYA, LMCA, REGN, SBAC, VRSK, WDC
Deletions:  APOL, EA, FLEX, GMCR, LRCX, MRVL, NFLX, RIMM, VRSN, WCRX

A bearish candle day is a typical time for moving stops on short term trades to protect profits.


SPY down -1.08 at 144.27...volume 150.8 million shares…
VIX +1.79 at 17.36
TNX -0.27 at 18.00…
TLT up 40 cents at 120.91…
XLF
down 10 cents at 16.47…volume 73.7 million shares

AAPL down -7.59 at 526.31…volume 16 million shares
FB down 30 cents at`27.41…on volume of 61.4 million shares…

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Technical Commentary:

Bearish candles appeared on many charts including SPY, DIA, QQQ, FAS, the Euro, AAPL, AMZN and PCLN to list just a few.  Many charts also continued to rise as advancers and decliners were near even on Wednesday.  This is an indication that many use to move stops up on short-term trades.
 
The SPY formed a dark cloud cover which could be either a breakout test or day one of a new bull flag.  SPY closed below T1 at 144.29 and still maintains a flagpole target at 146.82.  The VIX closed higher and did confirm the SPY move down today.

The ES closed down 7.75 at 1,432.75 and NQ futures closed down 10.25 at 2,692.75 as AAPL pulled back.  Trading has shifted to the H3, March contract.

While Wednesday’s price action could be the first day of a new flag pullback, the weight of the evidence continues to suggest that the current 4+ week uptrend is likely to continue.

The Euro rose another hundred pips before reversing intra-day and forming a tombstone doji.  The Euro closed down 4 pips at 1.3225 on Wednesday.  TNX dropped, TLT, bonds rose 40 cents and XLF moved down 10 cents to 16.47.


WDC, VRSN, ORCL, STX and FSLR were among SPX and NDX leaders on Wednesday.


Digital disk storage stocks STX and WDC had big gains again today.  Coal stocks ANR, ACI, BTU, CNX and WLT pulled back on Wednesday.

SPY – dark cloud cover, flag pull back
AAPL bearish harami, MACD divergence, below 30 DMA
FB – black spinning top in channel, BO target 29.63
FAS – dark cloud cover, breakout test, flag pull back
AMZN – dark cloud cover, breakout test, flag pull back
EXPE – dark cloud cover, pause at resistance at T1
STX – gap white candle, breakout
VIAB – black candle, bull flag bounce pause
RIMM – spinning top, bull flag setup, EPS Dec 20
CRUS – spinning top, potential evening star, bear flag setup
F – gap black spinning top, above T1
PHM – black spinning top, breakout test
SWK – bearish harami, breakout test
SWI – black spinning top at 30 DMA, bounce setup
RAX – bearish harami, breakout test
URI – doji, breakout test
YELP – bullish harami at support, close below 30 DMA
XHB – black spinning top, diagonal breakout test
XRT – tombstone doji at resistance, above30 DMA

BO = breakout, DBO = diagonal breakout, CT = counter-trend, IT = intermediate term, ST = short term


The Market Forecast Green Line is in the upper reversal zone.

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Chart Targets:
SPY = 146.82 short-term resistance flagpole target
ES =
1,449 161% Fib extension
1,459 = 200% measuring
EUR/USD = 1.3281 161% Fib extension

Short-term support at
1.3126 = Euro
144.55 = SPY
90.09 = SPXL
1,428, 1,405 = ES
2,691 = NQ


Setups:
Bull Flag:  MCP, AMGN, CELG, MNST, MXIM, DELL, DECK

Moves:
Bull Flag Bounce:  AMAT,

Bounce Continuation:  WDC, STX, DLR, VMW, ALTR, TRIP, EXPD, STI, NTAP, MRVL, XLNX, URI, TSLA, SMH, ADI

Pause:  VECO, C, X, AKS,EBAY, FB, SNDK, BRCM, VIAB, PCAR, LLTC, BIIB, SIAL, SWK, GLW, SBUX, SPY, DIA, IWM, FAS, AMZN, BAC, V, LNKD, GILD, GRMN, COST, XRAY, URE, IBM, DISCA


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27 of 100 NDX stocks closed higher and one unchanged on Wednesday…


Leading NDX 100 stocks included: GMCR, FFIV, APOL, STX, AKAM, VRTX, MRVL, FB, LIFE, FOSL

Lagging NDX stocks included: VRSN, ORCL, STX, BIDU, GMCR, MU, ADBE, AMAT, ALTR, CHKP

Leading stocks > +2% on Wednesday included:  LDK, TSL, NTES, WDC, UCO, SSYS, YELP

Lagging stocks < -2.0% included: HLF, DECK, ANR, ESI, GRPN, CROX, ANF

Stocks to Watch on Thursday…
Holding Above 30 DMA = 83  
YHOO, MYL, RIMM, XRAY, SBUX, HSIC, GILD, FB, CSCO, NTAP GMCR, VMED, EA, EXPD, LLTC, MXIM, PCAR, TXN, XLNX, AMGN, BIIB, CELG, EBAY, LIFE, SIAL, AMZN, FISV, ADSK, DELL, FFIV, MAT, MRVL, MU, ORCL, BRCM, COST, MNST, ADBE, GOOG, GRMN, NWSA, SYMC, WYNN, AMAT, CTSH, PAYX, ADP, APOL, FOSL, INTU, KLAC, NFLX, VIAB, FLEX, NUAN, STX, AKAM, ALTR, CHKP, DTV, FAST, MCHP, SNDK, CTXS, ALXN, CHRW, LRCX, MDLX, NVDA, BBBY, ESRX, EXPE, INTC, SPLS, SIRI, BIDU, WCRX,
BMC, CMCSA, CERN, VRTX, CA, LINTA, MSFT, ORLY, QCOM, WFM

Moving Above 30 DMA = 0


Moving Below 30 DMA = 3
DLTR, ISRG, SRCL

Staying Below 30 DMA
ATVI, VOD, AVGO, PCLN, AAPL, SHLD, GOLD, PRGO, VRSN, ROST


Fifteen Week Intermediate Term Market Trend: Neutral
Short Term Market Trend: Neutral

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