Tuesday, May 28, 2013

Stocks Gap Higher After Asian & European Central Bank Comments...TSLA Revs It Up to All-time High as Big Money Pours In...

Eight of nine sectors moved higher on Tuesday…XLE, XLF and XLV were the strongest sectors…XLU was the weakest sector.

Breadth strengthened… advancers led decliners…1.38 to 1 on the NYSE and 2.37 to 1 on the NASDAQ…

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


SPY up .99 at 166.30volume 143.6 million shares
VIX up .49 at 14.48
TNX up 1.24 at 21.35
TLT down 2.96 at 113.84...
XLF up .20 at 19.93volume 47.8 million shares                 

AAPL down 3.71 at 441.44volume 13.8 million shares
FB down .21 at 24.10volume 50.1 million shares


Technical Commentary:
IWM +1.30%, DIA +0.73%, QQQ +0.65%, and SPY +0.60%.

Futures were higher overnight following the Memorial Day holiday as central bankers in Japan and Europe indicated they would maintain their accommodative monetary policies.  The SPY, IWM, QQQ and DIA gapped open in a bull flag bounce. 

Sectors XLB, XLE, XLF, XLI, XLK, XLV and XLY had a bull flag bounce entry.  XLP which had a bull flag bounce entry on Friday pulled back after hitting horizontal resistance.  XLU broke support as bond yields jumped.

TSLA +13.65% as big money revved up buying on 19.6 million shares, more than $2 billion total value on Tuesday.  TSLA made another all-time high.

AAPL -3.71 opened higher and closed back in the consolidation area of the past week between 435 and 445.

AMZN gapped up and pulled back after touching horizontal resistance.  Watch for a potential horizontal breakout.  GOOG made a bull flag bounce entry while PCLN and BIDU gained.  NFLX -6.36% slumped after disappointing viewer reaction to the release of the “Arrested Development” season.

GILD gained in its bull flag pattern. 

The Euro moved down 80 pips to 1.2852TNX interest rates jumped to 21.35 its highest level in over a year and TLT bonds -2.96 broke support.


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 bounce.  Traders should lock in profits when targets are reachedAs always look for re-entry according to your rules.  Tuesday was a re-entry day on many stocks like IWM, C and F.  See our Bounce List below.


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:  GRPN, HUM, SCTY, STI, ATVI, FAST, GILD, ROST, CNX

Diagonal Breakout: AMGN, CMCSA, BBRY

Bull Flag: GLW, GMCR, PHM, SOHU, YELP, BRCM, DTV, MAT, MNST, NVDA, PCLN

Potential Bullish Divergence:

Gap Up:

Gap Down: 

Bear Flag:  

At Support:  CLF, LNKD

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

Gap Up: TIF, SCSS, VECO

Gap Down:  

H&D Breakout:  NTES, TBT, TRIP, VECO, ESRX,

Bounce:  SPY, A, BAC, C, CIEN, CMG, F, FAS, GMCR, GS, IBM, ICE, JNPR, LVS, MCD, MOS, NKE, SMH, SPLK, SSYS, STI, SWK, TRIP, TSL, URI, VECO, ZION, AKAM, AMAT, CELG, CSCO, EBAY, FFIV, GOOG, GRMN, MSFT, NTAP, ORCL, SBUX,  WYNN

MACD Divergence Bounce:

Bear Flag:  

Support Break:   TLT, FB,

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


Leading NDX 100 stocks included: NTAP, STRZA, ADSK, FFIV, AMAT, BIIB, XRAY, MSFT, AMZN, INTU, ALXN

Lagging NDX stocks included:  SHLD, EQIX, CHRW, BRCM, GOLD, YHOO, SBAC, FB, AAPL, MNST

Leading stocks > +2% on Tuesday included: TSLA, TSL, VECO, TBT, TRIP, LDK, TIF, CIEN, F, SSYS, AKS, NTES, SWI, CREE, C, GRPN, JDSU, FAS, UCO, ZION, YELP, LVS, HUM

Lagging stocks < -2.0% included:  NFLX, CRM, LNKD, TLT, FAZ, URE

Stocks to Watch on Wednesday
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, ADI, EXPD, GRMN, LLTC, MYL, PCLN, MU, NTAP, SPLS, ALTR, BIDU, HSIC, SNDK, AVGO, FFIV, ATVI, CSCO, FAST, DISCA, BBBY, DLTR, EBAY, ISRG, LBTYA, PRGO

Moving Above 30 DMA = 7
AMZN, CELG, FISV, MCHP, MDLZ, STRZA, TXN

Moving Below 30 DMA = 2
CHRW, CMCSA


Staying Below 30 DMA
GOLD, MNST, SBAC, SHLD, QCOM, CTXS, EQIX, VOD, VRSK, XRAY, 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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