Thursday, January 17, 2013

IWM, SPY New High Close While BAC, C Pull Back, EBAY Gains Following EPS...


Eight of nine sectors moved higher on Thursday… XLI, XLY and XLV were the strongest sectors.   XLF was the weakest sector. 

Breadth strengthened on Thursday as advancers led decliners…3.13 to 1 on the NYSE and 2.06 to 1 on the NASDAQ…

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

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


The SPY formed a new high close as trend keeps rising as earning reports continue.  Volume increased but was still light as earning releases increase. 

Last week’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 95 cents at 148.00...volume 133.8 million shares…
VIX up .15 at 13.57
TNX up .51 at 18.75…
TLT down 1.20 at 119.12…
XLF
 down 1 cent at 17.14…volume 56.6 million shares

AAPL down 3.41 at 502.68volume 16.2 million shares
FB up 29 cents at`30.14on volume of 40.2 million shares…EPS Jan 30…bull flag


As earnings season continues 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

BAC -0.50, -4.24%
C -1.24, -2.92%

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Technical Commentary:

The SPY broke above resistance and made a new high close.  IWM, +0.93%, DIA +0.70%, SPY +0.65% and QQQ +0.48% as AAPL shares moved lower.  BAC and C closed lower keeping financials neutral.  FB formed a small spinning top in its bull flag pattern.


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 up 83 pips to close at 1.3372 on Thursday bouncing to resistance in its bull flag pattern in a strong uptrend.

Disk storage stocks WDC -0.20% and STX +2.10% continue their strong trends.  Coal stocks ANR, ACI, BTU, CNX and WLT held support and started to bounce.  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. 

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Setups
Breakout:  TIF, QCOM, STI, ZION, MGM, NTAP, SINA, NUAN

Diagonal Breakout:  DECK

Bull Flag:  FB, NFLX, CTXS, GOOG, AMZN, ANR, ATI, X, CRM, VMW, ADBE, NTES, LVS, C, REGN, JOY, GILD, TRIP, CERN, FSLR, VIAB, YELP, TSL, EXPE, BAC, GES, GLW

Moves
Breakout:  ADSK, FFIV, BRCM, RIMM, TOL, SBAC, IWM, RCL, SHLD, JNPR, WDC, NKE, ANF, CTRP, UNG, COH, STRZA, EXPD, STX, FOSL, WAG, SNDK, F

Bounce: AKS, EBAY, ADI, GMCR, EQIX, LIFE, SPY, IBM, LEN, PHM, CTSH,  CRUS, RIMM, COST, JDSU, FAS, ROST, FAST, APOL, PCAR


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76 of 100 NDX stocks closed higher and one was unchanged on Thursday…


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

Leading NDX 100 stocks included:  KLAC, AMAT, ISRG, SNDK, INTC, LIFE, CTRX, EBAY, ADI, XRAY

Lagging NDX stocks included:  MNST, BIDU, BBBY, PRGO, GOLD, CELG, AAPL, VMED, COST, GRMN

Leading stocks> +2% on Thursday included: VECO, GMCR, CMG, AKS, CROX, UCO, ICE, SMH, CSTR, CLF, RCL, TBT 

 Lagging stocks < -2.0% included:  BAC, LDK, DECK, HLF, C, MCP, GES, SOHU

Stocks to Watch on Friday…
Holding Above 30 DMA = 79
SBUX, CSCO, VMED, SBAC, EXPD, LLTC, PCAR, XLNX, TXN, ADI, SIAL, FISV, ADSK, DELL, FFIV, ORCL, COST, ADBE, 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, GILD, HSIC, INTU, LIFE, PCLN, QCOM, MDLZ, CTRX, ROST, SPLS, BMC, AVGO, ATVI, SHLD, YHOO,MAT, MSFT, MYL, NTAP, MXIM

Moving Above 30 DMA =5
CERN, ESRX, ISRG, WFM, XRAY               

Moving Below 30 DMA =1
GOOG                                 

Staying Below 30 DMA
VOD, PRGO, AKAM, PAYX, REGN, AMGN, GRMN, NVDA, ORLY, MNST, AAPL, BIIB, DLTR, BBBY, GOLD


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

3 comments:

TraderBobb said...

Dave:
Thank you for this blog and the overtime last night.
I appreciate it all!
Robert
CANI_212

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