Wednesday, July 24, 2013

SPY Goes Flat as VMW, AAPL, EMC, EA Soar...PNRA, CAT, STX Lower...After-hours FB, BIDU, TRIP, CTXS and FFIV Gap Up...

Only one of nine sectors moved higher on Wednesday… XLK, XLV and XYE were the strongest sectors…XLU was the weakest sector.

Breadth weakened…decliners led advancers…3.12 to 1 on the NYSE and 1.49 to 1 on the NASDAQ…


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



SPY down .62…volume 112.8 million shares
VIX up .52 at 13.18…
TNX up .72 at 25.88…
TLT down 1.38 at 107.52...
XLF down .15 at 20.64…volume 36.6 million shares

AAPL up 21.52 at 440.51volume 21.1 million shares
FB up .38 at 26.51volume 81.3 million shares


Technical Commentary:
 QQQ + 0.32%, IWM - 0.83%, SPY – 0.37%, DIA – 0.17%.

The broad market SPY pulled back on increased volume as individual stocks VMW, AAPL, EA, EMC, LLY, MCO soared.  After the close FB, BIDU, TRIP, CTXS and FFIV gapped up following earnings.    ATI, CAT, PNRA, NSC, STX and USNA dropped lower while after the close EQIX, ABC and CROX were crushed.

Coal stocks dove after WLT announced reduced production guidance for the current quarter.

Earnings announcements accelerate as the third 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 – HAL, HAS, KMB, MCD, NFLX, TXN, ZION
Tuesday – AKS, ALTR, MO, AAPL, DD, EA, FCX, JNPR, LLTC, NSC, PCAR, PNRA, BTU, RSH, RF, TRV, UPS, UTX, USNA, VLO, VMW
Wednesday – AKAM, ATI, ABC, ANGI, BIDU, BA, CA, COG, CAT, CTXS, CROX, DAL, ETFC, LLY, EMC, EQIX, FFIV, FB, LVS, MCO, ORLY, QCOM, RYL, STX, SAVE, LCC, V, WDC
Thursday – MMM, ALK, ALXN, AMZN, BIIB, BMY, CELG, CERN, CB, CRUS, CLF, DECK, DOWN, DNKN, EXPE, GILD, IP, ESI, KLAC, MXIM, POT, PCP, RCL, SWI, TPX, HSY, UA, UAL
Friday – DLR, SWK, WLB


Q2 Earnings Reactions
Positive Reactions – FB, BIDU, TRIP, CTXS, FFIV, AAPL, EA, VMW, 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 – EQIX, ABC, CROX, ATI, CAT, PNRA, 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. 

____________________

Setups
H Breakout: ATVI, BIDU, CSCO, FB, FFIV, NUAN, QCOM, TSLA, ESI, GS, SPLK, UAL,

Diagonal Breakout: ANR,  

Bull Flag: AKAM, AMAT, AMGN, AMZN, BBBY, CELG, CTSH, MYL, ROST, SNDK, WDC, WFM, WYNN, ANGI, CMG, CREE, FIVE, KKD, LNKD, NFLX, SINA, SOHU, YELP,

Potential Bullish Divergence:  

Gap Up: FB, BIDU, TRIP, CTXS, ETFC, FFIV, QCOM, RYL, V

Gap Down:  CROX, EQIX, ANGI, WDC

Bear Flag:   

At Support:  DELL, FAST, SHLD, YHOO, TLT, VECO,


Moves
New Highs: CIEN, JNPR, PWRD,

Gap Up: VMW, EA, AAPL, F, TBT, EMC, LLY, MCO,

Gap Down: BRCM, PNRA, ATI, MFRM, STX

H&D Breakout: SWI,   

Breakout Test: 

Bounce: INTC, GME,

MACD Divergence Bounce:  

Bear Flag:  

Support Break: SCSS,  

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27 of 100 Leading NDX stocks closed higher on Wednesday and four were unchanged.


Leading NDX 100 stocks included:  AAPL, BIDU, CHKP, CTXS, FFIV, BBIB, YHOO, FB, GILD, ATVI, ADSK

Lagging NDX stocks included:  BRCM, MU, NFLX, GOLD, ISRG, SPLS, STX, SNDK, MNST, LLTC, FAST

Leading stocks > +2% on Wednesday included: VMW, F, TBT, FAZ

Lagging stocks < -2.0% included: MCP, ANR, LDK, CDE, URE, FCX, UCO, ATI, CLF, AKS, ESI, FAS, TPX, ZAGG, X, MOS

Stocks to Watch on Thursday
Holding Above 30 DMA= 84
TSLA, SPLS, CSCO, AMZN, DLTR, ADBE, INTU, BBBY, EXPE, MCHP, PCLN,  SRCL, VRTX, ALTR, CA, FB, FOXA, KRFT, LBTYA, LINTA, LMCA, MNST, ORLY, PCAR, ROST, VIAB, VOD, CMCSA, DISCA, GOOG, HSIC, VRSK, ADP, ALXN, CHKP, CTSH, DTV, FOSL, NFLX, NTAP, SYMC, WDC, WFM, BMC, CELG, ESRX, ADI, FISV, LLTC, XLNX, ATVI, BIIB, CHRW, COST, CTXS, EXPD, GILD, LIFE, MYL, NUAN, PAYX, TXN, XRAY, SIAL, SIRI, AKAM, AMAT, GRMN, KLAC, YHOO, AMGN, EQIX, REGN, SBAC, ADSK, BIDU, CERN, FFIV, MDLZ, WYNN, CTRX, SNDK, GOLD, QCOM

Moving Above 30 DMA = 1
AAPL


Moving Below 30 DMA = 4
 FAST, MU, SBUX, STX

Staying Below 30 DMA
AVGO, SHLD, EBAY, MSFT, NVDA, MXIM, BRCM, MAT, DELL, ISRG, INTC

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

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