Friday, November 1, 2013

SPY Forms Hammer...SPY, IWM, DIA in Bull Flag Pattern...QQQ Horizontal Flag...FSLR Sizzles...Solar Stocks Rise...Bull Flag Pattern Setups For Next Week...

Seven of nine sectors moved higher on Friday…XLI, XLU and XLV were the strongest sectors…XLE was the weakest sector. 
 
Breadth strengthened… as decliners led advancers…1.22 to 1 on the NYSE and decliners led advancers 1.42 to 1 on the NASDAQ.
 
Friday – strengthened, decliners led
Thursday –weakened, decliners led
Wednesday – weakened, decliners led
Tuesday – strengthened, advancers led
Monday – weakened, decliners led
 
 
SPY up .42 at 176.21…volume 142.8 million shares
VIX down -.47 at 13.28…
TNX up .78 at 26.20…
TLT down -1.16 at 106.19...
XLF up .05 at 20.62 volume 33.4 million shares
 
AAPL down 2.67 at 520.03…volume 9.8 million shares
FB down -.46 at 49.75…volume 94.9 million shares…
 
Technical Commentary: 
DIA +0.37%, SPY +0.24%, QQQ +0.02%, IWM -0.44%.
 
After trading within 34 cents of its 161.8% Fib target the SPY pulled back into a bull flag pattern and formed a hammer on Friday.  DIA also rose in a bull flag pattern.  QQQ was neutral in its bull flag pattern.  The trend of the market is still up.  Look at the large number of individual stocks that are in bull flag patterns on Friday in our list below.
 
IWM -0.47, -0.44%, the weakest of the broad ETFs over the past three days, fell to its horizontal resistance (new support) breakout at 107.92 where buyers stepped in a created a lower shadow on its red candle.  IWM has formed a bull flag pattern at support.
 
FSLR +8.34, +17.56% soared following earnings Thursday after the close.  Solar stocks CSIQ, GTAT, JASO, JKS, SCTY, SUNE, TAN, TSL and YGE were sizzling on Friday.
 
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 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, FSLR
 
Q3 Earnings Reactions
Positive Reactions – 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, 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 – IPGP, AIG, BRKR, HME, NEM, XLS, NIHD, AVP, WTW, ROVI, JDSU, OSK, CNW, ITRI, CTRX, KRFT, GRMN, MYL, DLR, XCO, WU, LNKD, IACI, MSM, INGR, HTS, VRTX, AAPL, PMCS, MWV, AGNC, AGCO, PCL, GT, CMI, VSH, ALSN, 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.   
 
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Setups 
H Breakout: JCP, FIVE, NKE, X, AMGN, COST, DTV, QCOM, SBUX,
 
Diagonal Breakout: A, KKD, STI, TIF, NTAP, TSLA, XLNX, YHOO, IBM,
 
Bull Flag: SPY, QQQ, IWM, DIA, ATI, CNX, ESI, F, FAS, GLW, GME, LCC, LVS, P, QIHU, RAX, RCL, SPWR, SWKS, TLT, AAPL, ADBE, AMZN, BIDU, CELG, CTSH, GILD, GOOG, GRMN, INTC, MNST, MSFT, NFLX, PCLN, SNDK, STX, WDC, WFM, WYNN, AXP, DD, DIS,
 
Potential Bullish Divergence:   
 
Gap Up:
 
Gap Down:
 
Bear Flag: SYMC,
 
At Support: LNKD, UNG,
 
Moves
New Highs: ALK, ANR, CLF, DDD, FSLR, ROST, SSYS, TIF, UAL, VRSN, WLT, X, TXN, BA, GE, MMM
 
Gap Up: FSLR, TRMB, MDVN, SPR, ONNN,
 
Gap Down: IPGP, AIG, BRKR, DRC, HME,
 
H Breakout: FSLR, UAL, WLT, CMCSA,
 
D Breakout:
 
Breakout Test: 
 
Bounce: GRPN, JCP, BX, CRM, SCTY, TBT, TSL, V, X, YNDX, ADSK, MAT,
 
MACD Divergence Bounce: 
 
Bear Flag:  
 
Support Break:
 

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57 out of 100 NDX stocks closed higher on Friday.
 
Leading NDX 100 stocks included: ADSK, EQIX, CHTR, LMCA, CMCSA, AMGN, NFLX, EXPE, CELG, DTV
 
Lagging NDX stocks included: VRTX, GOLD, FFIV, AVGO, EBAY, AMZN, ALTR, DISCA, MXIM, KLAC
 
Leading stocks > +2% on Friday included: FSLR, GRPN, JCP, WLT, CLF, ANR, UAL, QIHU, TSL, ANGI, FIVE, SSYS, X, P, YNDX, BX, SCTY, SPWR, ALK, LCC, TBT
 
Lagging stocks < -2.0% included: ESI
 
Stocks to Watch on Monday
Holding Above 30 DMA= 62
WYNN, AVGO, CTSH, VOD, ROST, ADBE, SNDK, WFM, BIDU, SBUX, STX, AMAT, CERN, CMCSA, BBBY, MSFT, XRAY, VRSK, AAPL, HSIC, SPLS, FISV, FOSL, GILD, INTC, INTU, KLAC, LINTA, PAYX, PCLN, SBAC, WDC, LMCA, FOXA, CHKP, DTV, VIP, MNST, VIAB, GOOG, ADP, AMGN, AMZN, BIIB, MAT, MDLZ, DISCA, KRFT, CA,  EXPD, SIAL, ALXN, COST, QCOM, BRCM, LLTC, TXN, ADI, MCHP, MU, EXPE, NFLX
 
Moving Above 30 DMA = 6
ADSK, CHRW, CHTR, LBTYA, SRCL, YHOO
 
Moving Below 30 DMA = 2
FAST, GOLD
 
Staying Below 30 DMA
CTRX, GRMN, SHLD, CELG, DLTR, ISRG, VRTX, ATVI, PCAR, FB, REGN, MXIM, ESRX, EQIX, AKAM, ORLY, SIRI, FFIV, MYL, NVDA, SYMC, ALTR, TSLA, XLNX, EBAY, NTAP, CSCO, CTXS, NUAN, GMCR
 
Sixteen Week Intermediate Term Market Trend: Up
5-Day Short Term Market Trend: Neutral, RUT = Down

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