Stocks Have Little Change In Today's Session...NFLX Up 6.44%...FSLR Bounces...Up 7.82%...

Three of nine sectors moved higher on Monday…XLK, XLY and XLI were the strongest sectors…XLV was the weakest sector. 

 

Breadth weakened  on the NASDAQ…decliners led advancers…1.04 to 1 on the NYSE and 1.06 to 1 on the NASDAQ.

 

 

Monday – weakened, decliners led

 

SPY up .01 at 174.40…volume 104.1 million shares

VIX up .12 at 13.16…

TNX up .20 at 26.09…

TLT down .34 at 106.70...

XLF down .04 at 20.87 volume 29.1 million shares

 

AAPL up 12.47 at 521.36…on rising volume 14.2 million shares

FB down .37 at 53.85…volume 58.2 million shares

 

Technical Commentary: 

QQQ +0.22%, SPY +0.01%, DIA – 0.05%, IWM – 0.20%.

After last week’s record move, many stocks were pausing as indicated by Monday’s breadth.  However other stocks were still on the move…NFLX, FSLR, PCLN, AAPL, ADP, AVGO, CERN, DLTR, FISV, INTC, PAYX, SBAC, SBUX, SIRI, SNDK, STX, TXN, WDC and WYNN to mention several.  Even QQQ made a new high today.

After the close NFLX +40.00, +11.27% and VMW +9.35, +11.31% gapped higher on a positive earnings reaction.

 

QQQ = 81.87, 83.17

IWM = 110.96, 112.83

SPY = 177.85

 

 

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 = 1,685, 1,672, 1,660, 1,641

SPY = 168.33, 167.08, 165.31, 164.62

QQQ = 78.40, 77.36, 76.79, 75.99

IWM = 105.82, 104.85, 103.90, 102.94

 

Earnings to Watch

Earnings releases continue with a large list of major companies reporting next week.

 

 

Q3 Earnings Reactions

Positive Reactions – 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 – 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 pointed up and is above 80.   

 

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Setups 

H Breakout: ADBE, AKAM, ATVI, BRCM, CTSH, MSFT, NVDA, TXN, YHOO, ATI, CIEN, CLF, CREE, F, FAS, FIVE, GLW, GME, LNKD, SOHU, STI, YOKU,

 

Diagonal Breakout:  BBBY, CSCO, FFIV, NTES, PWRD, SWKS, TIF,

 

Bull Flag: CMCSA, CNX,

 

Potential Bullish Divergence:  

 

Gap Up:

 

Gap Down:   

 

Bear Flag: 

 

At Support:         

 

Moves

New Highs: PCLN, ROST, SIRI, SNDK, STX, WDC, WYNN, DDD, DNKN, LVS, NKE,

 

Gap Up: NFLX, CRM, FSLR,   

 

Gap Down:     

 

H&D Breakout: AAPL, INTC, NTAP,

 

Breakout Test: 

 

Bounce: SWKS, TBT,          

 

MACD Divergence Bounce: 

 

Bear Flag:  

 

Support Break:   

 

 

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64of 100 NDX stocks closed higher on Monday.

 

Leading NDX 100 stocks included: NFLX, PCLN, FFIV, AAPL, CHKP, AVGO, YHOO, SBAC, PAYX, SNDK, SIRI, GOLD, LMCA

 

Lagging NDX stocks included:  TSLA, VRTX, REGN, BIDU, MU, GMCR, ALXN, GILD, LINTA, NUAN

 

Leading stocks > +2% on Monday included: JDSU, CRUS, CDE, CLF, SWKS, TSL,CIEN, PWRD, RVBD, MFRM

 

Lagging stocks < -2.0% included: JCP, YELP, XONE, CHL, AKS, Z, VECO, SCSS, SOHU, SINA, GMCR, ANR, DECK, MCP

 

Stocks to Watch on Tuesday

Holding Above 30 DMA= 75

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, ORLY, PAYX, PCAR, PCLN, SIRI, SRCL, TXN, SBAC, WDC, LMCA, FOXA, CHKP, DTV, MNST, VIAB, NFLX, ESRX, GOOG, QCOM, ADP, AMGN, AMZN, BIIB, BRCM, COST, MAT, MCHP, NVDA, SYMC, MDLZ, DISCA, KRFT, ALTR, CA, ADI, CHRW, EXPD, CTRX

 

Moving Above 30 DMA = 3

DELL, FFIV, GOLD

 

Moving Below 30 DMA = 3

VRTX, REGN, TSLA

 

Staying Below 30 DMA

ADSK, ISRG, MYL, XLNX, EBAY, LLTC, MU, EXPE, SHLD, FAST, ALXN, SIAL, LBTYA, NTAP, EQIX, CSCO, CTXS, NUAN, GMCR

 

Sixteen Week Intermediate Term Market Trend: Up

5-Day Short Term Market Trend: Up