Wednesday, October 2, 2013

Broad Indexes Pause...Pullback as ADSK, PCLN, NFLX, BIDU, GRMN, ROST, WYNN, P, SOHU and YOKU Move Higher...

Four of nine sectors moved higher on Wednesday…XLB, XLE and XLU were the strongest sectors…XLI was the weakest sector. 
 
Breadth weakened…decliners led advancers…1.26 to 1 on the NYSE and 1.59 to 1 on the NASDAQ.
 
Wednesday – weakened, decliners led
Tuesday – strengthened, advancers led
Monday – weakened, decliners led
Friday – weakened, decliners led
Thursday – strengthened –advancers led
 
 
SPY down .16 at 169.18…volume 112.7 million shares
VIX up 1.06 at 16.60…
TNX down .20 at 26.26…
TLT up .16 at 105.96...
XLF down .01 at 20.04…volume 38 million shares
 
AAPL up 1.60 at 489.56…volume 10.2 million shares
FB down .14 at 50.28volume 62.2 million shares
 
Technical Commentary: 
QQQ – 0.04%, SPY – 0.09%,DIA – 0.42%, IWM – 0.41%.
 
ES futures fell overnight in Asia and Europe and stocks opened lower and began to rally 30 minutes after the open on Wednesday.  At the close QQQ and SPY which led were down slightly from Tuesday’s close while IWM and DIA lagged on Wednesday.
 
NDX leaders included ADSK, PCLN, NFLX, GRMN which made new highs and SNDK and STX.  FB traded traded higher after the open moved down and traded slightly lower for the rest of the day.   YELP paused at resistance while P, YOKU, ANGI and Z moved higher.
 
MCP +0.70, +10.51% gained following news of new production systems in place at their rare-earth production facility.
 
CREE which gained +9.57, +15.90% on Tuesday paused and formed a doji which stayed well above Tuesday’s S1 level on Wednesday. 
 
BURL, Burlington Coat Factory went public today at an IPO price of 17, opened trading at 23.05 and closed at 25.01 trading 15.1 million shares.
 
Though the markets struggled in face of the congressional deadlock it is essential to continue to follow your rules.
 
 
Resistance Chart Targets:
QQQ = 79.69
SPY = 173.60
 
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 neutral.
Support Levels
ES = 1,672, 1,660
SPY = 168.33, 167.08, 165.31
QQQ = 78.40, 77.67
IWM = 105.52, 104.57
 
 
Q2 Earnings Reactions
Positive Reactions – NKE, BBBY, ULTA, FIVE, CIEN, SPLK, CRM, GES, DSW, ADSK, ROST, GME, JRCC, RAX, SSYS, TMUS, SGMS, FWLT, MNST, GRPN, TSLA, AGU, BOFI, FOSL, ADM, MGM, WPO, CNK, KORS, SATS, MGM, EAT, VIAB, YOKU, AIG, CTRX, CHK, COP, LNKD, MELI, MYL, NUS, ZAGG, CMCSA, CTRP, GRMN, HES, MA, MCHP, SODA, YELP, 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 – P, SHLD, PWRD, CREE, MCP, GMCR, SCTY, SUNE, Z, CAR, CHRW, FSLR, LINTA, ANR, CVX, CME, XOM, K, DTV, 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 is flat on Wednesday.   
 
____________________
 
Setups 
H Breakout: BBBY, CTSH, MSFT, MU, MYL, SBUX, SNDK, CIEN, CRM, ESI, KKD, LNKD, P, RAX, SINA, TPX, VRSN, X, YELP, YNDX,
 
Diagonal Breakout: AKAM, WDC, GLD, GME, QIHU, SCSS, SWKS, WLT,
 
Bull Flag: AMAT, COST, EBAY, FB, INTC,    
 
Potential Bullish Divergence:   
 
Gap Up:
 
Gap Down: 
 
Bear Flag:
 
At Support: TIF,   
 
Moves
New Highs: ADSK, BIDU, GRMN, NFLX, PCLN, ROST, WFM, WYNN, SOHU, YOKU,
 
Gap Up: MCP,  
 
Gap Down:  
 
H&D Breakout: AAPL, FAST,  
 
Breakout Test:  
 
Bounce: SWI, Z,
 
MACD Divergence Bounce: 
 
Bear Flag:  
 
Support Break:  
 
______________________
 
 
40 of 100 NDX stocks closed higher on Wednesday and one was unchanged.
 
Leading NDX 100 stocks included: ADSK, PCLN, STX, SNDK, SPLS, GRMN, LINTA, NFLX, FOSL, VOD
 
Lagging NDX stocks included:  TSLA, EQIX, CTRX, GMCR, VIAB, ADBE, MXIM, AMGN, CHRW, CHTR
 
Leading stocks > +2% on Wednesday included: MCP, P, YOKU, FIVE, ANGI, UCO, MOS, Z, WLT, CLF, X, SINA, GES
 
Lagging stocks < -2.0% included: LDK, XONE, ZION
 
 
Stocks to Watch on Thursday
Holding Above 30 DMA= 75
TSLA, GRMN, PCLN, VIAB, FB, NFLX, WYNN, NVDA, ADSK, AMGN, AVGO, CTSH, GILD, VOD, SBAC, SHLD, AKAM, BIIB, CELG, EXPD, MU, MXIM, ROST, YHOO, REGN, VRSK, FOXA, ADBE, ALXN, CHRW, DLTR, INTU, KLAC, SNDK, XLNX, TXN, AMZN, FAST, LINTA, SIRI, WFM, XRAY, LMCA, EBAY, EXPE, FISV, CHTR, BIDU,  MYL, PAYX, PCAR, SBUX, STX, AMAT, CERN, LLTC, SIAL, CMCSA, LBTYA, MAT, MCHP, BBBY, DISCA, FOSL, ORLY, SPLS, SRCL, MSFT, HSIC, NTAP, AAPL, BRCM, CHKP, DELL, FFIV, GOOD
 
Moving Above 30 DMA = 1
WDC
 
Moving Below 30 DMA = 4
ALTR, ATVI, COST, EQIX
 
Staying Below 30 DMA
INTC, MDLZ, ADP, DTV, CA, QCOM, ADI, CSCO, CTXS, KRFT, NUAN, GMCR, GOLD, ESRX, VRTX, CTRX, SYMC, ISRG, MNST
 
Thirteen Week Intermediate Term Market Trend: Up
5-Day Short Term Market Trend: Neutral

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