QQQ, SPY, AAPL Bounce...NFLX +43% in After-Hours Trading...ILMN, VECO Higher After EPS...

Eight of nine sectors moved higher on Monday…XLE, XLB, and XLK were the strongest sectors…XLU was the weakest sector…

Breadth strengthened…advancers led decliners 1.38 to 1 on the NYSE and 1.01 to 1 on the NASDAQ…

Monday – strengthened, advancers led

Friday – strengthened, advancers led

Thursday strengthened, decliners led

Wednesday – weakened, decliners led

Tuesday – strengthened, advancers led

SPY up .69 at 156.17…volume 106.5 million shares

VIX down .58 at 14.39…

TNX down .05 at 16.98…

TLT up .09 cents at 122.92…

XLF up .02 cents at 18.10…volume 43.8 million shares                 

AAPL up 8.14 at 398.67…volume 15.3 million shares

FB up 24 cents at 25.97…volume 25.6 million shares

Technical Commentary:

QQQ +1.03%, IWM + 0.29%, SPY +0.44% and DIA +0.12%.  NFLX +24.68 and ILMN +7.26% gapped up in after-hours trading after releasing earnings on Monday afternoon.

                          

QQQ, SPY and IWM formed white candles as momentum continued to the upside.  DIA form a dragonfly doji as weakness in IBM and GE continued.  SPY and QQQ made an entry bounce on Monday.

The Euro was up 9 pips and closed at 1.3062.   The Euro stayed above support for the ninth straight day.

AAPL moved up +8.14 on 15.3 million shares confirming Friday’s inverted hammer.  AAPL EPS are on Tuesday.  FB formed an inverted hammer inside day in a potential flag setup on volume of 25.7 million…FB closed below its 30 DMA.

Trade what you see on the chart of your position.  The intermediate term trend is up with a bull flag setup.  Some stocks gave entry signals on Friday.  Look for potential entry on Monday.  Traders should lock in profits when targets are reached.  As always look for re-entry according to your rules.

Chart Signals Strategy Guidelines

Technical setups for short-term option trades be in and out by earnings release.

Over earnings release use earnings option strategies such as straddles, strangles, OTM calls or puts.

After earnings look for bullish setups in positive reaction stocks and bearish setups in negative reaction stocks.

EPS Reaction Summary

EPS Gainers – NFLX, ILMN, CAT, CHKP, HAL, HAS, VECO, CMG, GOOG, KMB, STI, MSFT, BTU, PEP, UNP, VZ, MAT, AXP, JNJ, INTC, KO, C

EPS Losers – GE, IBM, ISRG, MCD, MS, PM, UNH, SNDK, EBAY, BAC, USB, GS, LLTC

Key Earnings this week:

Monday – CAT, CHKP, HAL, HAS, ILMN, LIFE, NFLX, TXN, VECO, ZION

Tuesday – AMGN, AAPL, ACI, T, BRCM, COH, CREE, DAL, DD, JNPR, LMT, PNRA, RF, TRV, LCC, LCC, UTX, VMED, VMW

Wednesday – AKAM, BA, COG, CLF, GLW, FFIV, DAVE, F, HES, LRCX, QCOM, NDAQ, TSCO, WDC, WHR, XLNX, ZNGA

Thursday – MMM, ALK, ALXN, ALTR, MO, AMZN, ABC, BIDU, BIIB, CELG, CERN, CRUS, CROX, DEC, DOW, EXPE, HOG, ESI, KLAC, LVS, MXIM, PTEN, PHM, RCL, SIAL, SBUX, HSY, TWC,

Friday – CVX, DHI, GT, WLB, WY

The Market Forecast Green Line is below the upper zone and is pointed down.

____________________

Setups

H Breakout:  WYNN, HD, DTV, Z, RCL, NKE, ADBE, MNST, SPLK

Diagonal Breakout: CMCSA, XLNX, AKAM, TPX, COST, SYMC, SWI

Bull Flag:  UNG, SPLK, ROST, C, GRPN, GMCR, LNKD, BIDU, SBUX, YELP, FB, MU, NVDA, ORCL, YHOO, SSYS, DDD, NTES,

Potential Bullish Divergence:  EXPD, CSCO, AMAT, FFIV, FIVE, ADSK, ESRX

Gap Up: NFLX, ILMN, VECO

Gap Down:

Bear Flag: PM, QCOM

At Support:  GRMN

Moves

New Highs:  GILD, TSLA, ABC, JNJ, KO, PEP, UNP, MSFT

Gap Up:  VRTX

Gap Down:  IBM, DELL, EBAY, UNH

H&D Breakout: INTC, CELG, AMGN, BIIB, MSFT, STX, LVS, AMZN, SIRI, DTV, ATVI, GOOG, VZ

Bounce:  SPY, CREE, BIIB, WFM, NTAP, TPX, NUAN, TXN, WDC, PCLN, YHOO, BRCM, AKAM, COST, PM, AAPL, QCOM, FAS, WYNN, FSLR, Z,

MACD Divergence Bounce: FAST, MYL, ZION

Bear Flag: 

Support Break:  SNDK, SHLD, CTSH, ATI

______________________

74 of 100 NDX stocks closed higher on Monday…

Leading NDX 100 stocks included: BIIB, GOLD, CELG, MSFT, NTAP, NUAN, EXPE, STRZA, BRCM, AKAM, AAPL, YHOO, MXIM, INTC, AMGN

Lagging NDX stocks included:  VRTX, CTRX, ALXN, ISRG, CTSH, FOSL

Leading stocks > +2% on Monday included:  NFLX, TSLA, CREE, UCO, TPX, CRUS, SWKS

Lagging stocks < -2.0% included:  ESI, ZAGG

Stocks to Watch on Tuesday

Holding Above 30 DMA = 36

VMED, STRZA, ADP, GILD, BIIB, MAT, PAYX, YHOO, AMGN, SBAC, ADBE, CELG, MSFT, SRCL, MDLZ, LBTYA, VIAB, REGN, VOD, BBBY, LIFE, NUAN, ROST, MNST, WYNN, CTRX, DLTR, INTC, KLAC, DTV, FISV, NWSA, SBUX, VRTX, WFM, PRGO

Moving Above 30 DMA = 6

AMZN, ATVI, COST, EXPE, EQIX, WDC

Moving Below 30 DMA = 1

HSIC

Staying Below 30 DMA

BIDU, EBAY, ISRG, NTAP, NVDA, PCLN, SNDK, ALXN, AMAT, BMC, CERN, CSCSA, MU, MXIM, STX, XRAY, TXN, FB, DISCA, AKAM, CHRW, CSCO, GRMN, PCAR, QCOM, SHLD, SPLS, VRSK, AVGO, CTSH, MCHP, ORLY, SIRI, ADSK, BRCM, DELL, SYMC, XLNX, FAST, GOLD, ESRX, GOOG, INTU, ALTR, CA, LLTC, SIAL, ADI, AAPL, LINTA, MYL, ORCL, CTXS, FOSL, CHKP, FFIV, EXPD

Twenty One Week Intermediate Term Market Trend: Up

Short Term Market Trend: Up