Monday, October 28, 2013

SPY, QQQ Inch to New High Close...AAPL Beats, STX Misses After Close...

Four of nine sectors moved higher on Monday…XLP, XLV and XLK were the strongest sectors…XLB was the weakest sector. 
 
Breadth weakened… as decliners led advancers…1.19 to 1 on the NYSE and decliners led advancers 1.03 to 1 on the NASDAQ.
 
Monday – weakened, decliners led
Friday – weakened, advancers led
Thursday – strengthened, advancers led
Wednesday – weakened, decliners led
Tuesday – strengthened, advancers led
 
 
SPY up .28 at 176.23…volume 84.9 million shares
VIX up .22 at 13.31…
TNX up .09 at 25.12…
TLT down .37 at 107.92...
XLF down .05 at 20.81 volume 21.4 million shares
 
AAPL up 3.92 at 529.88…volume 19.5 million shares
FB down 1.72 at 50.23volume 73.3 million shares
 
Technical Commentary: 
DIA – 0.05%, IWM – 0.05%, QQQ + 0.02%, SPY + 0.16%.
 
SPY and QQQ inch to another new high close in front of AAPL earnings after the close.  DIA and IWM near unchanged.    
 
The uptrend continues.  Move profit protective stops according to your rules.
 
AAPL -6.44, -1.22% after-hours reports better than expected EPS and revenues and inline guidance.
 
STX -2.40, -4.81% after-hours reports 1.16 vs. 1.30 estimate, revenue $3.49B vs. $3.56B, adjusts revenue guidance for Q2, raises dividend.
 
 
 
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 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
 
Q3 Earnings Reactions
Positive Reactions – 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 – 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: AMGN, BRCM, COST, CTSH, DTV, FAST, QCOM, STX, TXN, GS, RAX, TIF, KLAC, INTC
 
Diagonal Breakout: CSCO, EBAY, Z,    
 
Bull Flag: ATVI, CELG, GOOG, ATI, F, GLW, LCC, SPWR, TLT, AVGO, CERN, CHKP, FOSL, FOXA, CA, BIIB, LMCA, MSFT, MXIM, PCLN, VOD, VRSK, WYNN, XRAY
 
Potential Bullish Divergence:  
 
Gap Up:  
 
Gap Down: SOHU,   
 
Bear Flag: 
 
At Support: FFIV, NVDA, TSLA, YHOO, MFRM, NTES,
 
Moves
New Highs: ROST, ESI, SPY,
 
Gap Up: BMY, CF,
 
Gap Down: MCP, UNG,
 
H&D Breakout: MNST,  
 
Breakout Test:
 
Bounce: JCP,     
 
MACD Divergence Bounce: 
 
Bear Flag:  
 
Support Break:
 
 
______________________
 
 
54 of 100 NDX stocks closed higher on Monday.
 
Leading NDX 100 stocks included: CTSH, BRCM, TXN, FFIV, GOLD, LLTC, ISRG, SNDK, AMGN, ESRX, EXPD, ADI
 
Lagging NDX stocks included: NFLX, TSLA, FB, BIDU, GRMN, MXIM, ORY, SBUX, EQIX, CHTR, AMZN, GILD, EXPE, PCLN
 
Leading stocks > +2% on Monday included: JCP, Z, RVBD, UALHLF, ANF
 
Lagging stocks < -2.0% included: SOHU, NTES, TSL, CROX, LDK, GRPN, PWRD, DDD, ZONE, DECK, ANR, CLF, AKS
 
Stocks to Watch on Tuesday
Holding Above 30 DMA= 68
GRMN, FB, WYNN, AVGO, CTSH, VOD, ROST, ADBE, DLTR, SNDK, WFM, CHTR, BIDU, XBUX, STX, AMAT, CERN, CMCSA, BBBY, MSFT, XRAY,VRSK, AAPL, HSIC, SPLS, ATVI, CELG, FISV, FOSL, GILD, INTC, INTU, KLAC, LINTA, PAYX, PCAR, PCLN, SBAC, WDC, LMCA, FOXA, CHKP, DTV, MNST, VIAB, GOOG, ADP, AMGN, AMZN, BIIB, MAT, MDLZ, DISCA,KRFT, CA, CHRW, EXPD, CTRX, GOLD, SIAL, LBTYA, REGN, ALXN, DELL, VRTX, COST, FAST, QCOM
 
Moving Above 30 DMA = 4
BRCM, LLTC, TXN, ADI
 
Moving Below 30 DMA = 3
MXIM, SRCL, NFLX
 
Staying Below 30 DMA
ESRX, YHOO, EQIX, AKAM, ORLY, SIRI, ADI, BRCM, FFIV, MCHP, MYL, NVDA, SYMC, ALTR, TXN, TSLA, ADSK, ISRG, XLNX, EBAY, LLTC, MU, EXPE, SHLD, NTAP, CSCO, CTXS, GMCR, NUAN
 
Sixteen Week Intermediate Term Market Trend: Up
5-Day Short Term Market Trend: Up

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