Tuesday, July 30, 2013

NDX Leads on Strength in AAPL, FB, MSFT, GOOG and CSCO...FB Second Highest Close on Increasing Volume as TSLA Takes a Breather...

Four of nine sectors moved higher on Tuesday… XLK, XLI and XLU were the strongest sectors…XLY was the weakest sector.

Breadth strengthened…advancers led decliners…1.04 to 1 on the NYSE and 1.07 to 1 on the NASDAQ…

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


SPY unchanged…volume 85.1 million shares
VIX unchangedat 13.39…
TNX up .18 at 26.03…
TLT down .04 at 107.31...
XLF down .05 at 20.48…volume 24 million shares

AAPL up 5.53 at 453.32volume 11 million shares
FB up 2.20 at 37.63volume 173.4 million shares

TSLA 131.74, -2.88, -2.14% on 13.1 million shares

Technical Commentary:
QQQ + 0.53%, IWM + 0.09%, DIA - 0.01%, SPY – 0.00%.

The NDX led the broad markets on strength from AAPL, FB, MSFT, GOOG, CSCO, AMGN, ALXN and CELG.  While the SPY and DIA were flat, positive earnings reactions included MTW, VRTX and WYNN.  After the close positive reactions occurred in QCOR, FISV and BWLD.  Tuesday saw negative reactions from ESRX, COH, DISCA and X.  After the close RVBD and AMGN joined the hit list.

FB closed at 37.62 just 61 cents below its IPO close at 38.23 on May 18, 2012.  July 25 is a day to remember in FB +2.19, +6.20% history.  FB proved last Thursday that they were making significant process monetizing both their one billion plus user base and the mobile app space.  In the past four trading sessions 799.68 million shares have traded hands at an average price of $35.35 representing total dollar value of $28.268 billion.  And to think that’s nothing compared to what the big money institutions have available to invest.  Who thinks that FB could trade as high as $133 per share in the next two years?  Time will tell.


Earnings announcements continue as the fourth week of earnings season begins on Monday.  Chart Signals is focusing on stocks with announcements and stocks that have had a positive earnings reactions over the past two weeks.


This Week Earnings of Interest
Monday – ESRX, MTW, SOHU, VECO, VRTX, WYNN
Tuesday – DDD, AET, AMGN, ACI, BWLD, COH, GLW, DISCA, FISV, MDC, NYX, QCOR, RVBD, X
Wednesday – CMCSA, CTRP, GRMN, HES, HUM, LRCX, MA, MCHP, SODA, WFM, YELP
Thursday – ATVI, AIG, APA, ADP, BZH, CME, CTRX, CHK, COP, XRAY, XOM, K, KRFT, LNKD, MELI, MYL, NUS, ZAGG, DTV
Friday – ANR, EAT, CBOE, CVX, VIAB, YOKU


Q2 Earnings Reactions
Positive Reactions – QCOR, FISV, BWLD, MTW, VRTX, WYNN, SWK, SBUX, ALK, AMZN, CELG, CB, CLF, GILD, IP, MXIM, RCL, HSY, UA, UAL, V,   FB, BIDU, TRIP, COG, CTXS, ETFC, FFIV, AKAM, AAPL, EA, VMW, DAL, LCC, EMC, LLY, MCO, AKS, FCX, BTU, UTX, HAS, TXN, GE, HON, SLB, STI, WHR, CHKP, CMG, JCI, KEY, MS, OSTK, SWKS, UNP, UNH, BAC, IBM, SNDK, XLNX, CSX, GS, URI, YHOO, C, WFC

Negative Reactions – RVBD, X, COH, DISCA, ESRX, SOHU, DLR, CERN, CRUS, DECK, DNKN, EXPE, KLAC, POT, PCP, SWI, TPX, EQIX, ABC, CROX, ANGI, ATI, CAT, WDC, PNRA, STX, NSC, USNA, TRV, MCD, MO, NFLX, ZION, BHI, AMD, GOOG, ISRG, MSFT, EBAY, INTC, MAT, SCSS, USB, AXP, KO, MOS


Chart Signals Strategy Guidelines
When the market is trending up Chart Signals looks for support bounce and resistance breakout entries. 

When the market is trending down Chart signals looks for resistance pull back and support break entries. 

When the market is sideways in consolidation Chart Signals will look for support bounce, diagonal breakouts and pull backs at resistance where price action stays between support and resistance

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.


The Market Forecast Green Line and is in the upper zone. 

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Setups
H Breakout: AAPL, AKAM, AMAT, AMGN, COST, CSCO, DTV, FAST, GRMN, ROST, SYMC,      WFM, ATI, GRMN, CMG, CREE, FIVE, LVS, RAX, RCL, SPY, TIF,

Diagonal Breakout: GOOG, INTC, NVDA, SHLD, WYNN, FSLR, GLD, JCP, SCTY, TLT,

Bull Flag: ADBE, AMZN, CMCSA, GILD, MNST, PCLN, SBUX, SIRI, ALK, C, ESI, FAS, GRPN, GS, NTES, PWRD, SOHU, SPLK, Z

Potential Bullish Divergence:  

Gap Up:  QCOR, FISV, BWLD

Gap Down:  RVBD, AMGN

Bear Flag:   

At Support: MU, ANGI,


Moves
New Highs: CELG, GME, SINA,  

Gap Up: CRM,   

Gap Down: COH, SNDK,   

H&D Breakout: QCOM,  

Breakout Test: 

Bounce: BRCM, MSFT, STX, WDC, MFRM, TPX,

MACD Divergence Bounce:  

Bear Flag:  

Support Break:  

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69 of 100 Leading NDX stocks closed higher on Tuesday.


Leading NDX 100 stocks included: ALXN, FB, WDC, EXPE, VRTX, FAST, STX, CTXS, SPLS, CERN

Lagging NDX stocks included:  DISCA, ESRX, TSLA, MDLZ, FOXA, CMCSA, SNDK, LMCA, ISRG, AMZN, MAT

Leading stocks > +2% on Tuesday included: TPX, CRUS, SINA, LVS, DECK

Lagging stocks < -2.0% included: MOS, COH, X, SSYS, LDK, ANR, UCO, GRPN, TSLA

Stocks to Watch on Wednesday
Holding Above 30 DMA= 75
TSLA, SPLS, CSCO, AMZN, DLTR, ADBE, INTU, BBBY, MCHP, PCLN, SRCL, ALTR, CA, LINTA, ORLY, PCAR, ROST, VOD, VIAB, FB, LBTYA, KRFT, LMCA,CMCSA, HSIC, VRSK, ADP, ALXN, CHKP, CTSH, FOSL, NTAP, SYMC, WFM, NFLX, BMC, CELG, ESRX, FISV, LLTA, XLNX, ADI, ATVI, CHRW, COST, CTXS, EXPD, GILD, LIFE, MYL, PAYX, XRAY, TXN, SIAL, AKAM, AMAT, GRMN, KLAC, YHOO, AMGN, REGN, ADSK, BIDU, FFIV, MDLZ, CTRX, GOLD, QCOM, AAPL, FAST, SBUX, MXIM, WYNN, SHLD

Moving Above 30 DMA = 1
CERN, NVDA, WDC

Moving Below 30 DMA =5
DTV, MNST, DISCA, SBAC, FOXA

Staying Below 30 DMA
BIIB, EXPE, NUAN, VRTX, GOOG, SNDK, EQIX, MU, STX, AVGO, SHLD, EBAY, MSFT,  BRCM, MAT, DELL, ISRG, INTC

Four-Week Intermediate Term Market Trend: Up
Short Term Market Trend: Neutral

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