Dow Closes Above 16,000 First Time Ever...IWM +1.8% Leads Market Higher...Financials Jump...

All nine sectors moved higher on Thursday…XLF, XLY and XLE were the strongest sectors…while XLP was the weakest sector. 

 

Breadth strengthened on the NASDAQ…advancers led decliners…2.95 to 1 on the NYSE and 3.25 to 1 on the NASDAQ.

 

Thursday – strengthened – advancers led

Wednesday – strengthened slightly, decliners led

Tuesday – weakened, decliners led

Monday – weakened, decliners led

Friday – strengthened, advancers led

 

 

SPY up 1.44 at 179.91…volume 92.2 million shares

VIX down .74 at 12.66…

TNX down .08 at 27.84…

TLT up .17 at 102.95...

XLF up .30 at 21.39 volume 37.1 million shares

 

AAPL up 6.14 at 521.14…volume 9.3 million shares

FB up .27 at 46.70…volume 34.8 million shares

 

Technical Commentary: 

IWM + 1.80%, QQQ + 1.02%, SPY + 0.81%, DIA + 0.69%.

 

The big news of the day was that for the FIRST TIME EVER the DOW closed above the 16,000 milestone on Thursday gaining 109.17 and finished the day at 16,009.09.  All of the main indexes closed higher on Thursday…US stocks rallied…citing better than expected data on weekly jobs claims…many stocks ended the day with strong gains.

 

GMCR ended the day with a sweet aroma…gapping up 8.74 and ending the day with a gain of 14.14% on 19.5 million shares with a strong earnings report.  WSM likewise gapped up after their earnings report to finish the day up 4.23 and rose 7.62% on 5.7 million shares.

 

MU closed on Thursday with a new all-time high and breaking through horizontal resistance gaining 1.19 closing up 6.33% on 93.3 million shares.

 

SPLK is up in after-hours trading after reported earnings…up 6.10 or 10.18%.

 

On Wednesday’s (yesterday’s) blog we reported some RUT leaders including ALG, DAKT, LZB, ARO, FNGN, ESC, GTN, AEIS, CLVS, and OPK.  Following is their standing as of the close today:

 

                                    ALG                + 1.65             + 3.11%

                                    DAKT             + 1.34             + 9.52%

                                    LZB                + 1.53             + 5.70%

                                    ARO               +   .56             + 5.58%

                                    FNGN             + 2.98             + 4.73%

                                    ESC                +   .38             + 1.79%

                                    GTN               +   .04             +   .36%

                                    AEIS               + 1.14             + 4.95%

                                    CLVS             + 2.47             + 4.53%

                                    OPK               -    .35               -3.40%

 

 

Chart Signals knows that it is important to realize that as a trader you don’t know the future and that your favorite market commentator or the television talking heads don’t know the future either, but it is the charts themselves that give, through the buying and selling actions shown, the most objective estimate of future price action.  Of course when new information becomes known that will be factored into the price action which will at times change the trend prior to a chart target.

 

Chart Targets:

SPY = 180.99, 182.69…

QQQ = 84.74, 85.52…

IWM = 110.96, 112.83…

 

 

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 SPY posture is down.

Support Levels

ES = 1,774, 1,736

SPY = 177.64, 174.76

QQQ = 83.48, 82.77, 81.37

IWM = 107.93

 

Earnings this week: JKS, CRM, TSL, ADSK, BBY, HD, JCP, GMCR, GME, P, MRVL, SPLK,

 

Q3 Earnings Reactions

Positive Reactions – GMCR, JCP, LZB, JKS, BRCD, TSN, YOKU, SINA, NTAP, SLXP, PCLN, NVDA, GRPN, AWAY, PRU, TPX, TSO, CTSH, FSLR, TRMB, MDVN, NATI, SPR, ONNN, EXPE, CRR, HAR, GTI, ATML, THOR, TRN, FLT, MCHP, ITT, DICSA, ANR, SWKS, FB, CMCSA, GILD, DWA, LVLT, EA, SEE, SPW, TFX, JCI, 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 – GME, BBY, CPB, JEC, TSL, CRM, CSCO, RAX, MNST, QCOM, SCTY, IPGP, AIG, BRKR, HME, NEM, XLS, Z, NIHD, AVP, WTW, ROVI, GRMN, JDSU, OSK, CNW, ITRI, CTRX, KRFT, GRMN, MYL, DLR, XCO, WU, LNKD, IACI, MSM, INGR, HTS, VRTX, AAPL, PMCS, MWV, SOHU, AGNC, AGCO, PCL, GT, CMI, VSH, ALSN, ROP, EW, MRK,  RYN, RMD, NCR, KBR, FSL, ESRX, EMN, FIO, SIRI, 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, COST, ESRX, GILD, GOOG, MSFT, SBUX, TXN, WDC, AXP, CMG, F, IBM, RCL, SCSS, V, VRSN,

 

Diagonal Breakout: AAPL, CMCSA, FB, MNST, WYNN, XLNX, PWRD,

 

Bull Flag: BIDU, ATI, LCC, TIF, UAL, X,

 

Potential Bullish Divergence: 

 

Gap Up:

 

Gap Down:

 

Bear Flag:

 

At Support: AKAM, SPLK,  

 

C- Pattern:

 

Moves

New Highs: MU, PCLN, BAC, FAS, KKD,  

 

Gap Up:      

 

Gap Down: GME,

 

H Breakout: C, SWKS,    

 

D Breakout:

 

Breakout Test:

 

Bounce: ADSK, AMAT, ATVI, BRCM, SBUX, TXN, WYNN, CREE, DNKN, GRPN, P, SPY, SSYS, YNDX,

 

MACD Divergence Bounce: FAST, CREE, FB

 

Bear Flag:  

 

Support Break:

 

 

______________________

 

 

84 out of 100 NDX stocks closed higher on Thursday and one was unchanged.

 

Leading NDX 100 stocks included: GMCR, MU, WYNN, CERN, ADSK, INTC, SPLS, NFLX, AMAT, BIIB, KLAC, MCHP, EXPE, SBUX, VOD, CTXS

 

Lagging NDX stocks included: DLTR, SHLD, AMGN, AKAM, ROST, SBAC, GOLD, CTRX, ISRG, DTV

 

Leading stocks > +2% on Thursday included: YNDX, KKD, SCTY, P, VECO, SSYS, TPX, FA, DDD, SWKS, GRPN

 

Lagging stocks < -2.0% included: GME, ANR, WLT, SPLK, CLF, JCP

 

Stocks to Watch on Friday

Holding Above 30 DMA= 51

CTSH, VOD, ROST, ADBE, SBUX, MSFT, XRAY, AAPL, HSIC, FISV, FOSL, INTC, INTU, LINTA, PAYX, WDC, CHKP, GOOG, ADP, AMZN, MAT, DISCA, CA, COST, LLTC, TXN, ADI, MCHP, MU, EXPE, NFLX, ADSK, ESRX, ISRG, ALXN, GILD, MYL, PCLN, MDLZ, MNST, SHLD, YHOO,  QCOM, NTAP, SRCL, BIDU, SIAL, CELG, BIIB, GRMN, ATVI

 

Moving Above 30 DMA = 7

CERN, CMCSA, CTXS, KLAC, SYMC, LBTYA, GMCR

 

Moving Below 30 DMA = 2

AMGN, DTV

 

Staying Below 30 DMA

BBBY, DLTR, GOLD, NVDA, SNDK, SBAC,CHRW, STX, WYNN, BRCM, PCAR, SIRI, EQIX, FOXA, EBAY, SPLS, AVGO, CSCO, VIAB, CTXS, AMAT, VIP, WFM, CTRX, KRFT, REGN, VRSK, LMCA, TSLA, EXPD, FAST, CHTR, VRTX, FB, MXIM, AKAM, ORLY, FFIV, ALTR, XLNX, NUAN

 

 

Sixteen Week Intermediate Term Market Trend: Up

5-Day Short Term Market Trend: Neutral