All nine sectors moved lower on Wednesday…XLU, XLB, and XLE were
the strongest sectors…XLV was the
weakest sector.
Breadth weakened …decliners
led advancers…3.62 to 1 on the NYSE and 2.86 to 1 on the NASDAQ…
Wednesday
– weakened, decliners led
Tuesday – weakened,
advancers led
Monday – weakened,
advancers led
Friday – strengthened,
advancers led
Thursday – weakened,
decliners led
SPY
down 1.24 at 165.93…volume 243.8 million shares
VIX
up .45 at 13.82…
TNX
up .82 at 20.26…
TLT
down 1.75 at 116.09...
XLF
down .21 at 19.83…volume 95.9 million shares
AAPL
up 1.69 at 441.35…volume 15.8 million shares
FB
down .50 at 25.16…volume 45.2 million shares
Technical Commentary:
IWM – 1.46%, QQQ – 0.88%, SPY – 0.74% and
DIA – 0.44%.
Bernanke’s testimony before
Congress along with the release on FOMC minutes set of off a wide range of
volatile trading on Wednesday. The SPY
climbed to a new high of 169.07 during the first hour of trading and just as
rapidly pulled back during the second hour of the morning. During the afternoon the SPY gave up all
gains and finished negative after FOMC minutes indicated some variant views on
the Fed’s asset purchasing strategy.
The SPY, IWM, QQQ and DIA
all formed bearish engulfing patterns on Wednesday. Sectors XLB, XLE, XLF, XLI and XLK
also formed bearish engulfing patterns.
Short-term trend shifts to neutral as today’s close is just below last Wednesday’s
close six trading days ago.
NTAP +65 cents gained following earnings after the close on Tuesday.
HPQ +2.96 gained
following earnings after the close on Wednesday. Look for a potential gap up on Thursday
morning.
Many stocks are still in bull flag
setups positioning for possible reentry.
See Bull Flag Setups below.
AAPL +1.69 gained while GOOG,
PCLN, AMZN, BIDU and NFLX had big selloffs.
GILD broke out
of resistance only to give back the gains by the close. TSLA -35 cents is in day five of a bull flag setup.
The Euro moved down 53 pips to
1.2852. TNX interest rates
jumped as TLT bonds -1.75 broke short-term support.
Traders that had been moving stops likely had many positions
stop out on Wednesday. Continue to move
stops up to protect profits on stocks
forming bearish candles.
Trade what you see on the chart of your position. The intermediate term trend is up with short-term trend turning neutral. 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 – 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 – 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
Key Earnings this week:
CRM, GME, HPQ, P, NTAP, ROST, SHLD,
The Market Forecast Green Line is
in the Upper Zone.
____________________
Setups
H Breakout: FAST, MNST,
NTAP,
Diagonal Breakout: AMGN, BBBY, CTSH, Z,
Bull Flag: AKAM,
AMAT, BIDU, BRCM, CELG, CMCSA, CSCO, DTV, EBAY, GOOG, GRMN, INTC, MSFT, MU,
ORCL, QCOM, SNDK, ANGI, ATI, BAC, CIEN, CRM, FIVE, GMCR, NTES, STI, TSLA, UAL,
Potential Bullish Divergence:
Gap Up: HPQ
Gap Down:
Bear Flag:
At Support: ADBE, FB,
SYMC, ALK, UAL, YELP,
Moves
New Highs: ESRX, MYL,
SIRI, STX, XLNX, CREE, GRPN,
Gap Up:
Gap Down: PCLN, SWI,
H&D Breakout: AMZN,
NFLX, RCL, SSYS,
Bounce:
MACD Divergence Bounce: GLD, NUAN
Bear Flag:
Support Break: TPX
______________________
19 of 100 NDX stocks closed higher
on Wednesday…
Leading NDX 100 stocks included: SPLS, MDLZ, ESRX, NTAP, STX,
INTU, MYL REGN, CTSH
Lagging NDX stocks included:
BIDU, CTRX, NVDA, FOSL, PCLN, ALTR, ISRG, CTSX, VOD, GRMN, CSCO, ORCL,
MU, SBAC
Leading stocks > +2% on Wednesday included: FAZ, TBT
Lagging stocks < -2.0% included: LDK, TSL, SWI, TPX, ESI, SSYS, HLF, YELP,
MCP, URE, ATI, GMCR, SOHU, JDSU
Stocks to Watch on Thursday
Holding Above 30 DMA= 74
ADP, GILD, BIIB, MAT, PAYX, YHOO,
SBAC, MSFT, SRC, REGN, LIFE, ROST, WYNN, INTC, DTV, NWSA, SBUX, VRTX, WFM,
COST, WDC, AKAM, AMAT, GOOG, NVDA, SIAL, SIRI, STX, TXN, BMC, BRCM, CA, ALXN,
ESRX, ORLY, PCAR, XLNX, CERN, AAPL, FOSL, KLAC, LINTA, CHKP, ORCL, SHLD, VIAB, VMED,
LBTYA, CELG, EXPD, GRMN, LLTC, MYL, PCLN, ADI, MU, NTAP, SPLS, ALTR, BIDU,
HSIC, FISV, SNDK, AVGO, FFIV, AMZN, ATVI, CSCO, FAST, QCOM, MNST, DISCA, BBBY,
CHRW
Moving Above 30 DMA = 1
MDLZ
Moving Below 30 DMA = 11
AMZN, CMCSA, CTXS, DLTR, EBAY, MCHP, VOD, XRAY, EQIX, VRSK,
STRZA
Staying Below 30 DMA
PRGO, ADSK, ADBE, AMGN, EXPE,
SYMC, MXIM, FB, GOLD, ISRG, CTRX, NUAN, CTSH, DELL INTU
Five Month Intermediate Term Market Trend: Up
Short Term Market Trend: Neutral
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