Eight of nine sectors moved higher on Friday…XLF,
XLB and XLY were the strongest
sectors…XLU was the weakest
sector. Significant in Friday’s broad market move is that it was led by
financials, basic materials and consumer discretionary and that two defensive
sectors utilities and consumer staples.
XLF had its largest move
since Oct 10 when it became apparent that the U.S. government was not going to
default on its debt. Leading financial
stocks with large gains on Friday included: LNC, RF, SCHW, MET, ETFC, ZION, FITB, KEY, JPM, CME, CMA, STI and GNW.
Breadth strengthened…as advancers led
decliners…1.35 to
1 on the NYSE and 3.00 to
1 on the NASDAQ.
Friday – strengthened, advancers
led
Thursday – weakened,
decliners led
Wednesday - mixed
Tuesday – weakened,
decliners led
Monday – strengthened,
advancers led
SPY up 2.36 at 177.29…volume 136.7 million shares
VIX down -1.01 at 12.90…
TNX up 1.33 at 27.46…
TLT down -2.55 at 103.41...
XLF up .47 at 20.86 volume 63.9 million shares
AAPL up 8.07 at 520.56…volume 10 million shares
FB down .03 at 47.53…volume 70.1 million shares…
Technical
Commentary:
IWM +1.82%,
SPY +1.35%, QQQ +1.35%, DIA +1.05%. Interest rates rose and bonds fell…
The market was led by IWM, SPY and QQQ
as the large cap DIA trailed. SPY, IWM
and DIA each fully reversed Thursday’s selloff, closed higher that Wednesday’s
close and did so on volume that was lower than Thursday’s volume. This suggests that sellers were done on
Thursday and that buying has relatively little resistance on Friday.
Another characteristic of Friday’s
trading was more of a selective rotation move than a total broad move. This was indicated by the strength in IWM and
relative weakness in the DIA. Also the
NYSE advancers and decliners was a modest 1.35 to 1, not a
particularly broad number, while the Nasdaq Composite was 3.00
to 1. Additionally, the XLF +2.33% led
all sectors by a larger than typical margin.
With
Friday’s big move there are many bull flag
setups in our list below and with the strong jump in financials and look
for more stocks to break out of resistance.
TWTR -3.25,
-7.25% pulled back on its second day of trading,
Solar
stocks sizzling again on Friday: SUNE
+1.88, +17.62%, JKS +2.62, +11.22%, CSIQ +2.41, +9.14%,
JASO +.84, +8.26%, YGE, SPWR, TSL, TAN and
FSLR.
Continue
to trade with trend of the individual stock that you are trading and be
vigilant in protecting profits from the last three weeks. Chart Signals has been alerting
readers to, “Move profit
protection stops according to your rules,” since Monday.
Chart Targets:
QQQ = 83.17…
IWM = 110.96, 112.83…
SPY = 177.85, 180.99…
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
neutral.
Support Levels
ES = 1,741, 1,726
SPY = 174.44, 172.76
QQQ = 81.87, 80.76,
79.76
IWM = 107.83
Earnings this week: RAX, NTES, SINA, CSCO, NTAP, XONE, YOKU,
Q3 Earnings Reactions
Positive Reactions – 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 – 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: SPY, DIA, DDD, GS, NKE, ADSK,
MYL, GRPN,
Diagonal Breakout: TSL, FB,
MU, SHLD, YHOO,
Bull Flag: QQQ, IWM, ALK,
ANR, ATI, CLF, CMG, CNX, CRM, DNKN, FIVE, FSLR, GLW, GME, KKD, P, RCL, SPLK,
SPWR, SWKS, TIF, TRIP, V, VRSN, AAPL, ADBE, AMZN, CMCSA, COST, ESRX, GILD,
GOOG, MAT, MSFT, NFLX, ROST, SBUX, SNDK, STX, TXN, WDC, WYNN, AXP, BA,
Potential Bullish
Divergence: YNDX, YOKU, GRMN, NUAN, SIRI,
Gap Up:
Gap Down:
Bear Flag: UNG,
At Support: LNKD, QIHU, BRCM,
CELG, FAST, FB, QCOM, TSLA, XLNX,
Moves
New Highs: DIA,
Gap Up: SLXP, RVBD, GPS,
NVDA,
Gap Down:
H Breakout: JNPR, STI, TBT,
NVDA,
D Breakout:
Breakout Test: MFRM,
TPX, AWAY
Bounce: ESI, FAS, penn, PCLN,
LCC, UAL, WLT, X, XONE, ZION, BAC, C, GS, BIDU, FFIV, MYL,
MACD Divergence Bounce: PWRD,
NTAP,
Bear Flag:
Support Break: AKAM,
PCLN, WYNN, CREE, LNKD, SINA, YOKU, Z,
______________________
90 out of 100 NDX
stocks closed higher on Friday.
Leading NDX 100 stocks included: NVDA, PCLN, MYL,
FOXA, YHOO, ADBE, ALXN, CELG, ISRG, SBUX, GILD
Lagging NDX stocks included: MNST, EQIX, KRFT,
TSLA, GOLD, CTRX, GRMN, MAT, FB, CHKP
Leading stocks > +2% on
Friday included: WLT, XONE, GRPN, FAS, SPWR, ESI, LCC, ZION, TSL, TBT, ANR,
PWRD, STI, FSLR, UAL, NTES, BAC, DDD, Z, CE, SCSS, JNPR, GME, ALK, SWI, YELP,
ANGI, GS, CLF, CRM, ATI, RCL, YOKU (33)
Lagging stocks < -2.0% included: SINA, TLT, SPLKM, MFRM
Stocks to Watch on Monday
Holding Above 30 DMA= 46
CTSH, VOD,
ROST, ADBE, SNDK, SBUX, STX, CERN, CMCSA, MSFT, XRAY, AAPL, HSIC, SPLS, FISV,
FOSL, INTC, INTU, KLAC, LINTA, PAYX, SBAC, WDC, CHKP, DTV, VIP, GOOG, ADP,
AMZN, MAT, CA, COST, ADI, LLTC, TXN, MCHP, MU, EXPE, NFLX, ADSK, GOLD, CSCO,
ESRX, LBTYA, ISRG
Moving Above 30 DMA =
8
ALXN, ATVI, GILD, MDLZ, MYL, NVDA,
PCAR, PCLN
Moving Below 30 DMA = 1
MNST
Staying Below 30 DMA
AMAT,
AVGO, BRCM, CHRW, CTRX, DLTR, FOXA, GRMN, KRFT, MDLZ, PCAR, QCOM, SIAL, VIAB, WFM,
WYNN, AMGN, BBBY, BIIB, SHLD, REGN, LMCA, TSLA, VRSK, CHTR, EXPD, FAST,BIDU,
SRCL, YHOO, CELG, VRTX, FB, MXIM, EQIX, AKAM, ORLY, SIRI, FFIV, SYMC, ALTR,
XLNX, EBAY, NTAP, CTXS, GMCR, NUAN
Sixteen Week
Intermediate Term Market Trend: Up
5-Day Short Term Market
Trend: Neutral
1 comment:
Dave,
Your posts are ALWAYS appreciated very much!!!
Thank you!
Kathy :)
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