Thursday, October 24, 2013

Bull Flag Bounce...IWM New High Close...AAPL 9-Month High...AMZN Gaps Up in After-hours...

Six of nine sectors moved higher on Thursday…XLY, XLI and XLB were the strongest sectors…XLU was the weakest sector. 
 
Breadth strengthened… as advancers led decliners…1.37 to 1 on the NYSE and 1.63 to 1 on the NASDAQ.
 
Thursday – strengthened, advancers led
Wednesday – weakened, decliners led
Tuesday – strengthened, advancers led
Monday – weakened, decliners led
Friday – weakened, advancers led
 
 
SPY up .58 at 175.15…volume 70.2 million shares
VIX down .22 at 13.20…
TNX up .37 at 25.22…
TLT down .42 at 107.89...
XLF up .03 at 20.77 volume 27.8 million shares
 
AAPL up 6.95 at 531.91…volume 13.7 million shares, made its highest close since Jan 2, trend is up…
FB up .54 at 52.45volume 46.6 million shares
 
Technical Commentary: 
DIA + 0.64%, IWM + 0.54%, QQQ + 0.44%, SPY + 0.33%.
 
Buyers were back on Wednesday pushing IWM to a new high close.  SPY and QQQ bounced closing just below Tuesday’s high.  DIA led the indexes on the strength of HD, V, DD, DIS, GS and IBM.
 
Bull Flag setups and bounces presented opportunity in: IWM, QQQ, SPY, A, CRM, DDD, FAS, FIVE, FSLR, LNKD, LVS, NKE, NTES, P, QIHU, SCTY, SINA, SOHU, SSYS, STI, V, WLT, X, XONE, YELP, YNDX, ZION and FB.
 
RCL +2.60, +6.54% rose on a positive earnings reaction this morning.
 
Solar stocks continued to shine on the strength of SCTY, FSLR, JKS and GTAT.
 
AMZN, +27.44, +8.26% in after-hours trading on positive earnings reaction.
 
 
Resistance Chart Targets:
QQQ = 81.87, 83.17…closed at 82.45
IWM = 110.96, 112.83…closed at 110.76
SPY = 177.85, 180.99…closed at 175.41
 
 
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 next week.
 
 
Q3 Earnings Reactions
Positive Reactions – 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 – 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: AMGN, DTV, ANR, FIVE, RAX, SPLK,
 
Diagonal Breakout: EBAY, GS, JCP, Z,   
 
Bull Flag: CELG, GRMN, NVDA, STX, WDC, BAC, FAS, NKE, P, STI, YOKU,
 
Potential Bullish Divergence:   
 
Gap Up:  
 
Gap Down:   
 
Bear Flag:  
 
At Support: JNPR, PWRD,
 
Moves
New Highs: GILD, CMG, LCC,  
 
Gap Up: DELL, ALK, ESI, RCL, ALXN, RRD,
 
Gap Down: AKAM, COST, SBUX, SYMC, CIEN, FIO, CAM, TKR, XRX, CRI, ORLY, CDNS, CVA
 
H&D Breakout: ADBE, MAT,  
 
Breakout Test:
 
Bounce: ADSK, BIDU, MU, TSLA, A, CRM, SINA, SSYS, TBT, WLT, X, ZION,         
 
MACD Divergence Bounce: 
 
Bear Flag:  
 
Support Break:  
 
 
______________________
 
 
70 of 100 NDX stocks closed higher on Thursday.
 
Leading NDX 100 stocks included: ALXN, TSLA, EXPD, CTXS, BIDU, WYNN, GOLD, EQIX, ALTR, EXPE, AMAT, SBAC, ADBE, CHTR, SPLS, ADSK
 
Lagging NDX stocks included: SYMC, AKAM, ORLY, SRCL, SRI, LMCA, FFIV, CELG, ISRG, SBUX, XRAY, HSIC
 
Leading stocks > +2% on Thursday included: ESI, RCL, ANR, HLF, ZAGG, YELP, AKS, X, ANF, CDE, MCP, LVS, SSYS, FCX, V
 
Lagging stocks < -2.0% included: CIEN, JCP, PWRD, JDSU, JNPR, MOS
 
Stocks to Watch on Friday
Holding Above 30 DMA= 68
GRMN, FB, WYNN, AVGO, CTSH, VOD, MXIM, ROST, YHOO, ADBE, DLTR, SNDK, WFM, CHTR, BIDU, SBUX, STX, AMAT, CERN, CMCSA, BBBY, MSFT, XRAY, VRSK, AAPL, HSIC, SPLS, AKAM, ATVI, CELG, FISV, FOSL, GILD, INTC, INTU, KLAC, LINTA, PAYX, PCAR, PCLN, SBAC, WDC, LMCA, FOXA, CHKP, DTV, MNST, VIAB, NFLX, ESRX, GOOG, QCOM, ADP, AMGN, AMZN, BIIB, MAT, MDLZ, DISCA, KRFT, CA, CHRW, EXPD, CTRX, GOLD, SIAL, LBTYA, REGN
 
Moving Above 30 DMA = 4
ALXN, DELL, VRTX, EQIX
 
Moving Below 30 DMA = 5
AKAM, COST, ORLY, SIRI, SRCL
 
Staying Below 30 DMA
BRCM, FAST, FFIV, MCHP, MXIM, MYL, NVDA, QCOM, SYMC, ADI, ALTR, TXN, TSLA, ADSK, ISRG, XLNX, EBAY, LLTC, MY, EXPE, SHLD, NTAP, CSCO, CTXS, NUAN, GMCR
 
Sixteen Week Intermediate Term Market Trend: Up
5-Day Short Term Market Trend: Up

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