Friday, May 24, 2013

Indexes Pause as TSLA, ISRG, BIDU, XLP, PG Move Higher...SHLD, CRM, P Finish Lower...

Two of nine sectors moved higher on Friday…XLP, XLF and XLK were the strongest sectors…XLU was the weakest sector.

Breadth weakened…decliners led advancers…1.23 to 1 on the NYSE and 1.08 to 1 on the NASDAQ…

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


SPY down .14 at 165.31volume 151.5 million shares
VIX down .08 at 13.99
TNX down .12 at 20.11
TLT up .16 at 116.80...
XLF up .02 at 19.73volume 50.4 million shares                 

AAPL up 3.01 at 445.15volume 9.8 million shares
FB down .75 at 24.31volume 58.7 million shares


Technical Commentary:
IWM – 0.02%, QQQ – 0.05%, SPY – 0.09% and DIA 0.00%.

The broad ETFs finished the week lower for the first time in five weeks. 

The SPY, IWM, QQQ and DIA are still in bull flag patterns and we will look for a potential bounce entry on Tuesday.  Sectors XLB, XLE, XLF, XLI, XLK, XLV and XLY have formed bull flag patterns. XLP gave a bull flag bounce entry on Friday.  XLU continues as a MACD bullish divergence setup.

P gapped up at 19.10 then reversed -73 cents, -4.25% following earnings after the close on Thursday.

SHLD -7.92, -13.62% and CRM -2.44, -5.34% closed lower following earnings after the close on Thursday.

ISRG +23.07 and PG +3.18 both gapped up on Friday.

Many stocks and ETFs are in bull flag setups positioning for possible reentry.  See Bull Flag Setups below.

AAPL +3.01 continues to inch upward in a flag bounce, BIDU made a bull flag bounce entry and NFLX gained, while GOOG, PCLN, AMZN and BIDU moved lower in in bull flag patterns.

GILD bounced in a bull flag pattern.  TSLA +4.35 formed a bullish breakout setup following a bull flag bounce entry on Thursday.  Big money loaded up on volume of 16.1 million shares at an all-time closing high.

The Euro moved up 78 pips to 1.2932TNX interest rates slightly lower as TLT bonds +55 cents formed an inverted hammer candle.


Trade what you see on the chart of your position.  The intermediate term trend is up with short-term trend neutral in a bull flag pattern.  Traders should lock in profits when targets are reachedAs always look for re-entry according to your rules.  Friday was a re-entry day on stocks like BIDU and XLP while many others are setup for potential entry on Tuesday.


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 –  HPQ, NTAP, AZO, MDT, CSCO, A, MCP, WCRX, NVDA, PCLN, GMCR, GRPN, TSLA, EA, DVA, WFM, CTSH, DTV, LBTYA, AIG, ADP, CBOE, REGN, FB, BZH, EXPD, GM, MDC, STX, V, YELP, ICE, JRCC, VIAB, CMCSA, DDD, AVP, HLF, CERN, CVX, DHI, TWC, ANGI, AKAM, ALXN, ALTR, BIIB, COG, CLF, CROX, DOW, ESI, FFIV, HOG, LRCX, LVS, MO, PHM, RCL, SIAL, XLNX, BA, BRCM, GLW, HES, DAL, COH, DD, NFLX, ILMN, VECO, LCC, RF, ZION, TRV, LMT, CAT, CHKP, HAL, HAS, CMG, GOOG, KMB, STI, MSFT, BTU, PEP, UNP, VZ, MAT, AXP, JNJ, INTC, KO, C, APOL

EPS Losers – CRM, GME, SHLD, DISH, XRAY, ATVI, RAX, MNST, Z, LNKD, TPX, ZAGG, CTRX, GRMN, MRK, SWI, AMZN, BIDU, CRUS, DECK, EXPE, HSY, KLAC, MXIM, QCOM, PTEN, ABC, MMM, AMGN, T, JNPR, PNRA, VMW, GE, IBM, ISRG, MCD, MS, PM, UNH, SNDK, EBAY, BAC, USB, GS, LLTC




The Market Forecast Green Line is in the Upper Zone.

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Setups
H Breakout:  ATVI, ESRX, FAST, GILD, ROST, CNX, GRPN,

Diagonal Breakout: AMGN, CMCSA, BBRY,

Bull Flag: AKAM, AMAT, BRCM, CELG, DTV, FFIV, GOOG, GRMN, MAT, MNST, MSFT, NTAP, NVDA, ORCL, PCLN, SBUX, WYNN, ALK, CIEN, CMG, CREE, CRM, FAS, GMCR, LVS, SPLK, SPY, SSYS,

Potential Bullish Divergence:

Gap Up:

Gap Down: 

Bear Flag:  

At Support:  CLF, LNKD,

Moves
New Highs:  COST, MU, SIRI, WDC, WFM, TSLA,

Gap Up: ISRG, PG,

Gap Down: SHLD,     

H&D Breakout:  

Bounce:  BIDU, CSCO, SNDK, YHOO, BAC, NFLX, NTES, SINA, ZION,

MACD Divergence Bounce:

Bear Flag:  

Support Break:    

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42 of 100 NDX stocks closed higher on Friday…two were unchanged…


Leading NDX 100 stocks included: ISRG, BIDU, MU, EXPE, YHOO, ROST, BIIB, COST, SIRI, LBTYA, PRGO

Lagging NDX stocks included:  SHLD, FB, GOLD, EXPD, MYL, REGN, MNST, INTU, CHRW, CHKP, NTAP, BBBY,

Leading stocks > +2% on Friday included: TSLA

Lagging stocks < -2.0% included:  ANF, CRM, ATI, CSTR, CREE, GES, CRUS

Stocks to Watch on Tuesday
Holding Above 30 DMA= 69
ADP, GILD, BIIB, MAT, PAYX, YHOO, MSFT, SRCL, REGN, LIFE, ROST, WYNN, INTC, DTV, NWSA, SBUX, VRTX, WFM, COST, WDC, AKAM, AMAT, GOOG, NVDA, SIAL, SIRI, STX, BMC, BRCM, CA, ALXN, ESRX, ORLY, PCAR, XLNX, CERN, AAPL, FOSL, KLAC, LINTA, CHKP, ORCL, VIAB, VMED, EXPD, GRMN, LLTC, MYL, PCLN, ADI, MU, NTAP, SPLS, ALTR, BIDU, HSIC, SNDK, AVGO, FFIV, ATVI, CSCO, FAST, DISCA, BBBY, CHRW, DLTR, EBAY, GOLD

Moving Above 30 DMA = 4
CMCSA, ISRG, PRGO, LBTYA

Moving Below 30 DMA = 7
CELG, FISV, GOLD, MNST, SHLD, MDLZ, SBAC

Staying Below 30 DMA
QCOM, TXN, AMZN, CTXS, MCHP, VOD, XRAY, EQIX, VRSK, STRZA, ADSK, ADBE, AMGN, EXPE, SYMC, MXIM, FB, CTRX, NUAN, CTSH, DELL, INTU

Five Month Intermediate Term Market Trend: Up

Short Term Market Trend: Neutral

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