WFC -0.30, -0.85% following EPS Friday morning and MS releases on
Monday.
Five of nine sectors moved higher on Friday… XLP, XLK and XLE were the strongest sectors. XLI was
the weakest sector.
Breadth weakened on Friday as advancers
led decliners…1.12 to 1 on the NYSE and
1.01 to 1 on the NASDAQ…Breadth
strengthens as advancers
increase and or decliners decrease. Breadth weakens as advancers
decrease and or decliners increase.
Friday – weakened,
advancers led
Thursday – weakened,
advancers led
Wednesday –
strengthened, advancers led
Tuesday – strengthened, decliners
led
Monday – weakened, decliners led
This was really Bull Flag Week. Chart Signals listed 27 flag patterns: CTSH,
GMCR, NFLX, FFIV, IBM, YELP, SINA, NTES, WLT, SBAC, JNPR, ADI, PCAR, TXN, STX, WDC, REGN, EXPD, LMCA, QCOM, VIAB, ADBE, CRM, ADSK,
IWM, NUAN, CRUS that triggeed entry signals this week and only one of those entries
failed, WLT. While no one trader is
likely to enter all setups, with 26 out of 27 working it was simply a matter ignoring the chatter of opinion and exercising discipline to do
well this week.
The SPY stayed above
resistance on Friday. 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 down 1 cent at 147.07...volume 113.9 million
shares…
VIX down -0.13 at 13.36…
TNX down -0.19 at 18.75…
TNX down -0.19 at 18.75…
TLT up 1.06 at 119.85…
XLF down 4 cents at 17.11…volume 42.7 million shares
XLF down 4 cents at 17.11…volume 42.7 million shares
AAPL down -3.21 at 520.30…volume 12.5 million
shares …EPS Jan 23
FB up 42 cents at`31.72…on volume of 89.6 million shares…EPS Jan 30
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 may keep the SPY in a narrow range for the next several days.
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 may keep the SPY in a narrow range for the next several days.
Earnings to Watch Next
Week:
Monday – MS, FCX
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
potential hanging man as it stayed above horizontal. The SPY down just one cent trailed DIA +0.13% and QQQ +0.13%. CRUS
and RIMM broke through
resistance on Friday, while a CTSH, GMCR, NFLX, FFIV and IBM bounced off support and
gave fresh entry signals. FB
continued to climb from its recent breakout.
Disk storage stocks WDC -0.41% and STX -1.16% paused.
Coal stocks ANR, ACI, BTU, CNX, JRCC and WLT moved lower. Chinese
solar stocks TSL and LDK had another pause day in their
multi-week uptrend.
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 followed
up Thursday’s mega-bounce up another
74 pips to close at 1.3341 on Friday. A strong Euro is generally positive for U.S.
stocks.
The Market
Forecast Green Line is in the upper reversal zone.
____________________
Setups
Breakout: SINA,
JNPR, UNG, TXN, WDC, NUAN, CRM, QCOM, ADSK, IWM, CTRP, BRCM, RCL, NKE, EBAY, REGN,
ADBE
Bull Flag: GLW, JRCC, TRIP, CERN, ANR, ROST, DECK, FSLR,
COST, ZION, ADI
Moves
Breakout: NTES, RIMM, YELP, CRUS, SPY, EXPD, LMCA, VIAB, FAS, CTXS,
JOY, STX, FOSL, GILD, LIFE, FB, AMZN, TRIP, WAG,
EQIX, GOOG, SNDK
Bounce: CTSH, GMCR, UNG, NFLX,
FFIV, IBM, SBAC, PCAR
____________________
50 of 100 NDX stocks
closed higher and two unchanged on Friday…
Leading NDX 100 stocks included: ATVI, CTSH,
MNST, AVGO, FFIV, BIDU, SPLS, SNDK, NTAP, MU
Lagging NDX stocks included: PRGO, REGN, CTRX,
ALXN, CHKP, DELL, MYL, GOLD, ADBE, ROST
Leading stocks> +2% on Friday included: RIMM, GMCR, NFLX, GRPN, NTES, COH, UAL, GES
Lagging stocks < -2.0% included: CLF,
X, CIEN, TSL, AKS, ANR, VRSN
Stocks to Watch on Monday…
Holding Above 30 DMA = 80
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, LMCA, CTXS, CHRW, INTC, SIRI, BIDU, VRSK, ADP, AMZN, BRCM, CMCSA, DTV, EBAY, EXPE, LINTA, MU, MXIM, MYL, SRCL, SYMC, VRTX, WYNN, XRAY,FB, ALXN, CA, CELG, CERN, GILD, HSIC, INTU, LIFE, PCLN, QCOM, MDLZ, CTRX, ROST, SPLS, VOD, BMC, ESRX, MAT, REGN, AVGO
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, LMCA, CTXS, CHRW, INTC, SIRI, BIDU, VRSK, ADP, AMZN, BRCM, CMCSA, DTV, EBAY, EXPE, LINTA, MU, MXIM, MYL, SRCL, SYMC, VRTX, WYNN, XRAY,FB, ALXN, CA, CELG, CERN, GILD, HSIC, INTU, LIFE, PCLN, QCOM, MDLZ, CTRX, ROST, SPLS, VOD, BMC, ESRX, MAT, REGN, AVGO
Moving Above 30 DMA =1
ATVI
Moving Below 30 DMA = 1
PRGO
Staying Below 30 DMA
AKAM, AMGN, GRMN, NVDA, YHOO, NTAP, SHLD, ORLY, PAYX, WFM, MNST, MSFT, AAPL,
BIIB, DLTR, BBBY, ISRG, GOLD
Eight Week Intermediate
Term Market Trend: Up
Short Term Market Trend: Up
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