Thursday, October 31, 2013

Broad Indexes Pullback From New Highs in Bull Flag...EXPE, MCHP Gap Up as FB, SBUX, CMCSA Open Lower Close Higher Following Earnings...

Two out of nine sectors moved higher on Thursday…XLY, XLI and XLB were the strongest sectors…XLF was the weakest sector. 
 
Breadth weakened… as decliners led advancers…1.53 to 1 on the NYSE and decliners led advancers 1.58 to 1 on the NASDAQ.
 
Thursday –weakened, decliners led
Wednesday – weakened, decliners led
Tuesday – strengthened, advancers led
Monday – weakened, decliners led
Friday – weakened, advancers led
 
 
SPY down .50 at 175.79…volume 133.7 million shares
VIX up .10 at 13.75…
TNX up .15 at 25.42…
TLT up .23 at 107.64...
XLF down .22 at 20.57 volume 48.8 million shares
 
AAPL down 2.19 at 522.70…volume 9.8 million shares
FB up 1.20 at 50.20…volume 248.8 million shares…huge volume
 
Technical Commentary: 
QQQ – 0.23%, SPY – 0.28%, DIA – 0.37%, IWM – 0.58%.
 
The broad indexes pulled back in some not so scary Halloween action forming a bull flag price pattern.  Weakness is not unexpected as QQQ is at its S&R measuring price target, IWM is at and SPY is near its 161.8% Fib target and DIA is near horizontal resistance.
 
There were a large number of positive and negative earning reactions on Thursday.  NDX stocks EXPE and MCHP had large gaps to the upside while KRFT, GRMN, CTRX and MYL moved lower.  Add to the earlier anomaly reaction on NFLX, FB which originally gapped up last night as much as 18% in after-hours trading only to close down 2 cents and then open lower this morning before reversing and closing up +2.44% in a typical bull flag bounce.
 
FSLR +3.69, +7.34% in after-hours reported after the close with a positive reaction.  Solar stocks TSL, CSIQ, JKS, SCTY, SUNE and YGE gained in sympathy.
 
Be vigilant in protecting profits from the last three weeks.  Chart Signals has been alerting readers to, “Move profit protective stops according to your rules,” since Monday.
 
 
Chart Targets:
QQQ = 83.17
IWM = 110.96, 112.83
SPY = 177.85, 180.99
 
Remember it is big money that creates and sustains the trend.  As Granville once wrote, “technical analysis is the art of tracking the market, following the footsteps of the ‘smart money’ crowd.  The ‘smart money crowd’ is no mysterious ‘THEY.’  It is simply a collection of people who are reading the market correctly, seeing through the maze, unconfused by this hall of mirrors.”
 
Short-term market posture is SPY up.
Support Levels
ES = 1,726
SPY = 172.76
QQQ = 81.87, 79.76, 78.40
IWM = 107.83
 
Earnings to Watch
Earnings releases continue with a large list of major companies reporting this week including:
Monday – AAPL, STX, BIIB, HLF
Tuesday – X, LNKD, YELP, BIDU, FISV, GILD, VRTX, XRAY
Wednesday – FB, GRMN, CMCSA, EXPE, KRFT, MCHP, SBUX
Thursday – CTRX, DISCA, MYL, FSLR
 
Q3 Earnings Reactions
Positive Reactions – EXPE, CRR, HAR, GTI, ATML, THOR, TRN, FLT, MCHP, ITT, DICSA, ANR, SWKS, FB, CMCSA, GILD, DWA, LVLT, EA, SEE, SPW, TFX, X, XRAY, XYL, JLL, PBI, ALR, HUN, ACT, DECK, AMZN, MSFT, FLS, AVY, ALXN, WOOF, COG, BA, CLGX, ESI, EQIX, WLL, TSCO, RRD, PHM, RCL, ALXN, APOL, BCR, NDAQ, NSC, WHR, ILMN, NUS, GNTX, LXK, DD, VFC, CMG, GOOG, BHI, GE, KSU, MS, SLB, STI, LVS, VZ, SNDK, NUE, BTU, AXP, KEY, STLD, URI, USB, INTC, JNJ, SCHW, COST, AA
 
Negative Reactions – NIHD, AVP, WTW, ROVI, JDSU, OSK, CNW, ITRI, CTRX, KRFT, GRMN, MYL, DLR, XCO, WU, LNKD, IACI, MSM, INGR, HTS, VRTX, AAPL, PMCS, MWV, AGNC, AGCO, PCL, GT, CMI, VSH, ALSN, ROP, EW, MRK,  RYN, RMD, NCR, KBR, FSL, ESRX, EMN, FIO, CAM, TKR, SYMC, CVA, CDNS, AKAM, XRX, CRI, ORLY, CAT, NFLX, COH, ZION, WAT, EMC, UTX, TXN, HON, ISRG, GS, UNP, UNH, EBAY, IBM, XLNX, SCSS, SWK, MU, FAST
 
 
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 is above 80.   
 
____________________
 
Setups 
H Breakout: AMZN, QCOM, SBUX, KKD, UAL, VRSN,
 
Diagonal Breakout: XLNX,  
 
Bull Flag: SPY, IWM, X, AMGN, CMCSA, CTSH, MNST, WFM, ATI, ESI, RAX, RCL, TLT, LVS, GLW, GLD, SCTY,
 
Potential Bullish Divergence:   
 
Gap Up: FSLR,
 
Gap Down:
 
Bear Flag: 
 
At Support: JNPR, LNKD,
 
Moves
New Highs: ROST, DDD,  
 
Gap Up: ANR, SWKS, CRR, EXPE, GTI, ATML, THOR, MCHP, ITT,
 
Gap Down: ARIA, NIHD, AVP, WTW, ROVI, JDSU, OSK, CNW, ITRI, GOLD, SPWR, V,
 
H&D Breakout: SSYS, TRIP,
 
Breakout Test: 
 
Bounce: KKD, SIRI, PWRD,     
 
MACD Divergence Bounce: 
 
Bear Flag:  
 
Support Break: AKAM, FFIV, BAC,  
 
 
______________________
 
 
40 out of 100 NDX stocks closed higher on Thursday.
 
Leading NDX 100 stocks included: EXPE, MCHP, DISCA, SPLS, FB, MU, LLTC, VOD, NFLX, AVGO, LMCA, YHOO, CMCSA
 
Lagging NDX stocks included: CTRX, WDC, GOLD, GRMN, BRCM, BIDU, FFIV, EXPD, NUAN GILD, ALXN
 
Leading stocks > +2% on Thursday included: SWKS, ANR, TRIP, PWRD, DDD, KKD
 
Lagging stocks < -2.0% included: AANGI, SPWR, V, SCTY, MFRM, FAS, Z, LCC, BBRY, SCSS, C, VECO, FSLR
 
Stocks to Watch on Friday
Holding Above 30 DMA= 62
WYNN, AVGO, CTSH, VOD, ROST, ADBE, SNDK, WFM, BIDU, SBUX, STX, AMAT, CERN, CMCSA, BBBY, MSFT, XRAY, VRSK, AAPL, HSIC, SPLS, FISV, FOSL, GILD, INTC, INTU, KLAC, LINTA, PAYX, PCLN, SBAC, WDC, LMCA, FOXA, CHKP, DTV, VIP, MNST, VIAB, GOOG, ADP, AMGN, AMZN, BIIB, MAT, MDLZ, DISCA, KRFT, CA,  EXPD, GOLD, SIAL, ALXN, COST, FAST, QCOM, BRCM, LLTC, TXN, ADI, MCHP, MU
 
Moving Above 30 DMA = 2
EXPE, NFLX
 
Moving Below 30 DMA = 4
CHRW, GRMN, SHLD, CTRX
 
Staying Below 30 DMA
CELG, DLTR, ISRG, VRTX, YHOO, LBTYA, CHTR, ATVI, PCAR, FB, REGN, MXIM, SRCL, ESRX, EQIX, AKAM, ORLY, SIRI, FFIV, MYL, NVDA, SYMC, ALTR, TSLA, ADSK, XLNX, EBAY, NTAP, CSCO, CTXS, NUAN, GMCR
 
Sixteen Week Intermediate Term Market Trend: Up
5-Day Short Term Market Trend: Up

1 comment:

TraderBobb said...

Thank You!!!!!
Robert
CANI_212