Tuesday, January 15, 2013

IWM, Financials, SPY Gain as AAPL Breaks Support...LEN Reports...Flags Continue to Fly...


Seven of nine sectors moved higher on Tuesday… XLY, XLE and XLF were the strongest sectors.   XLK was the weakest sector for the second straight day. 

Breadth strengthened on Tuesday as advancers led decliners…1.37 to 1 on the NYSE and 1.15 to 1 on the NASDAQ…

Breadth strengthens as advancers increase and or decliners decrease.  Breadth weakens as advancers decrease and or decliners increase.

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


The SPY stayed above resistance again on Tuesday gaining back the 10 cents it lost on Monday.  Volume has been very light both days this week as all eyes seem to be waiting for earning releases. 

Thursday’s SPY breakout was by only 47 cents so traders should continue to watch closely if prices rollover and be prepared to protect profits, However it appears that the uptrend is more likely to continue.


SPY up 10 cents at 147.07...volume 93.1 million shares…
VIX up 0.03 at 13.55
TNX down -0.26 at 18.31…
TLT up 55 cents at 120.07…
XLF
 up 7 cents at 17.13…volume 42.1 million shares

AAPL down - 15.83 at 485.92…volume 31.3 million shares on concerns of weak demand for iPhone 5…EPS Jan 23
FB down .77 cents at`30.95…on volume of 98.8 million shares…EPS Jan 30


As earnings season begins look for stock selectivity to increase as stocks with good earnings and guidance will likely rise and those with either weak earnings or guidance likely to fall in price.  This selectivity and the typical pause waiting for EPS announcements has so far kept the SPY in a narrow range and may continue to do so for the next several days.

Earnings to Watch this Week:
Tuesday – LEN
Wednesday – EBAY, GS, JPM, USB
Thursday – AXP, BAC, COF, C, FAST, INTC, UNH, XLNX
Friday – GE, JCI, SLB, STT, STI


__________________

Technical Commentary:

The SPY formed a white candle as it stayed above horizontal resistance for the fourth straight day.  IWM +0.43% led with DIA +0.14% and SPY +0.07%.  RIMM, NFLX and SHLD pulled back to horizontal resistance for a test.  FB moved lower following a media event in which the Company introduced new search capabilities.  YELP fell as a result of the news.

LEN fell after strong earnings improving prospects for home building, but TOL, PHM and XHB gained.  With earnings out of the way look at the bull flag pattern on LEN.

Trade what you see on the chart of your position.  If it is breaking out of resistance take the trade or stay with the uptrend according to your rules.  If the stock begins to rollover protect your profits.

The Euro dropped 76 pips to close at 1.3305 on Tuesday forming a bull flag patter in an strong uptrend.

Disk storage stocks WDC +0.31% and STX +1.44% paused.  Coal stocks ANR, ACI, BTU, CNX and WLT found support and appear ready to bounce after a 5-day slide.  Chinese solar stocks TSL and LDK are forming bull flag patterns in their multi-week uptrend.



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

____________________


Setups
Breakout:  TIF, DECK, SINA, NUAN, ADSK, RCL

Diagonal Breakout:  FFIV, SBAC,  

Bull Flag:  FB, ANR, RIMM, GOOG, BAC, ATI, X, AKS, PHM, LEN, ADBE, CTSH, CTXS, NTES, SPY, LVS, C, EBAY, REGN, TXN, JOY, BRCM, GILD, LIFE, EQIX, QCOM, TRIP, CERN, FSLR, COST, ADI, GMCR, IBM, VIAB, CRUS, YELP

Moves
Breakout:  JNPR, WDC, CRM, NKE, ANF, CTRP, UNG, COH, STRZA, EXPD, STX, FOSL, GILD, AMZN, WAG, SNDK, F, GES

Bounce:  ROST, FAST, FAS, TOL, IWM, STI, EXPE, NTAP, GLW, JDSU, APOL, MGM, ZION, PCAR,


____________________

51 of 100 NDX stocks closed higher and one was unchanged on Tuesday…



LMCA spin off Liberty Media resulting in symbols STRZA and LMCADNDX listed symbol is STRZA.

Leading NDX 100 stocks included:  DELL, SYMC, ROST, STRZA, FOSL, CELG, SPLS, MYL, DLTR, STX

Lagging NDX stocks included:  AAPL, FISV, FB, REGN, AMGN, AVGO, NVDA, CERN, ISRG, CTXS

Leading stocks> +2% on Tuesday included:  DECK, HLF, TIF, ATI, STI, ANF, AKS, GES, VRSN, ESI, CSTR, F

Lagging stocks < -2.0% included:  YELP, ZAGG, VECO, RIMM, RVBD, FB, SWKS, CRUS

Stocks to Watch on Wednesday…
Holding Above 30 DMA = 77
SBUX, CSCO, VMED, SBAC, EXPD, LLTC, PCAR, XLNX, TXN, ADI, SIAL, FISV, ADSK, DELL, FFIV, ORCL, COST, ADBE, GOOG, NWSA, DISCA, AMAT, CTSH, FOSL, KLAC, VIAB, NUAN, STX, LBTYA, WDC, ALTR, CHKP, FAST, MCHP, SNDK, EQIX, STRZA, CTXS, CHRW, INTC, SIRI, BIDU, VRSK, ADP, AMZN, BRCM, CMCSA, DTV, EBAY, EXPE, LINTA, MU,  SRCL, SYMC, VRTX, WYNN, FB, ALXN, CA, CELG, CERN, GILD, HSIC, INTU, LIFE, PCLN, QCOM, MDLZ, CTRX, ROST, SPLS, VOD, BMC, AVGO, ATVI, SHLD, YHOO

Moving Above 30 DMA =5
MAT, MSFT, MYL, NTAP, PRGO

Moving Below 30 DMA = 5
AKAM, ESRX, ISRG, PAYX, REGN       

Staying Below 30 DMA
MXIM, XRAY, AMGN, GRMN, NVDA, ORLY, WFM, MNST, AAPL, BIIB, DLTR, BBBY, GOLD

Eight Week Intermediate Term Market Trend: Up
Short Term Market Trend: Up

2 comments:

Stock Tips said...

I like the useful info you provide in your posts. I will book mark your weblog and check again here frequently. I am quite sure I will learn a lot of new stuff right here! Best of luck for the next!

Equity Tips said...

Hello ! I really appreciate your view and must tell you the blog topic is right in this era. It is very informative. I want to mention one thing that I like the way you write the post to the point. keep writing!