Wednesday, November 13, 2013

Stocks Gain Momentum As DOW and S&P Set Record Highs...Many Stocks At Horizontal Resistance...SINA Up 11.38% After Earnings Report...CSCO Down In After Hours...

All nine sectors moved higher on Wednesday…XLY, XLE and XLK were the strongest sectors…XLU was the weakest sector. 
 
Breadth strengthened…advancers led decliners…2.17 to 1 on the NYSE and 2.31 to 1 on the NASDAQ.
 
Wednesday – strengthened, advancers led
Tuesday – weakened, decliners led
Monday - mixed
Friday – strengthened, advancers led
Thursday – weakened, decliners led
 
 
 
SPY up 1.42 at 178.38…volume 103.2 million shares
VIX down .30 at 12.52…
TNX down .43 at 27.25…
TLT up .38 at 103.88...
XLF up .18 at 20.84 volume 42.5 million shares
 
AAPL up .62 at 520.63…volume 7 million shares
FB up 2.10 at 48.71…volume 79.1 million shares…
 
Technical Commentary: 
QQQ + 1.21%, IWM + 0.96%, SPY + 0.80%, DIA + 0.44%.
 
What started out as a down for stocks at the open turned into a record setting day for the S&P and DJIA as eager investors rallied the markets.  The day saw the DOW rise 0.5% to 15,821.57 while the S&P gained 0.8% to 1,781.97…a record close for both. 
 
Many stocks were able to break through their horizontal resistance to end the day with a new all-time high including: ADBE, CTSH, MYL, PCLN, ROST, YHOO, CRM, FSLR, GME, NKE, P, SPY, VRSN.  Many more finished Wednesday near a horizontal resistance and many others near a diagonal resistance.
 
SINA gapped up after earnings breaking its diagonal resistance and closed the day up 8.64 or 11.38% with 11.7 million shares in volume.  QIHU gained 7.97 or 9.79% and broke through its diagonal resistance on volume of 4 million shares.  FB is near its diagonal resistance with today’s bounce closing up 2.10 or up 4.52%.  Volume for FB was 79.2 million shares.  VECO had a positive divergence bounce today and gained 1.75 or 6.15%.
 
CSCO drops 10.31% in after hours after reporting earnings.
 
 
 
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: BRCM, GOOG, MAT, MSFT, NTAP, NUAN, QCOM, SBUX, SHLD, SNDK, WDC, WYNN, BA, ANR, ESI, FIVE, IBM, LVS, MFRM, SWKS, TPX, TRIP, TSL, X,
 
Diagonal Breakout: AAPL, AMAT, CMCSA, EBAY, FB, MNST, XLNX, BAC, BX, GLW, GRPN, LNKD, YELP, YNDX,
 
Bull Flag: STI, TBT, XONE, ZION,
 
Potential Bullish Divergence: 
 
Gap Up:
 
Gap Down:
 
Bear Flag:  
 
At Support: FAST,   
 
Moves
New Highs: ADBE, CTSH, MYL, PCLN, ROST, YHOO, CRM, FSLR, GME, NKE, P, SPY, VRSN,
 
Gap Up: SINA, TLT,    
 
Gap Down:  
 
H Breakout: BBBY, ESRX, INTC, MU, NVDA, PCLN, ROST, TXN, YHOO, P, SPY, TIF,
 
D Breakout: STX, CLF, F, QIHU,       
 
Breakout Test:
 
Bounce: AKAM, FB, GOOG, LNDK, VECO,  
 
MACD Divergence Bounce: VECO,
 
Bear Flag:  
 
Support Break:   
 
 
______________________
 
 
89 out of 100 NDX stocks closed higher on Wednesday.
 
Leading NDX 100 stocks included: FB, SHLD, AKAM, YHOO, NVDA, MDLZ, NTAP, FOSL, MAT, ADBE, BBBY, PCLN, QCOM
 
Lagging NDX stocks included: CTXS, REGN, GOLD
 
Leading stocks > +2% on Wednesday included: SINA, QIHU, VECO, Z, LNKD, BX, SPWR, CLF, FSLR, PWRD, JCP, P, NTES, TPX, TSL, TRIP YOKU
 
Lagging stocks < -2.0% included: XONE, UAL, UNG
 
Stocks to Watch on Thursday
Holding Above 30 DMA= 60
CTSH, VOD, ROST, ADBE, SNDK, SBUX, STX, CERN, CMCSA, MSFT, XRAY, AAPL, HSIC, SPLS, FISV, FOSL, INTC, INTU, LINTA, PAYX, SBAC, WDC, CHKP, DTV,  GOOG, ADP, AMZN, MAT, DISCA, CA, COST, LLTC, TXN, ADI, MCHP, MU, EXPE, NFLX, ADSK, CSCO, ESRX, LBTYA, ISRG, ALXN, GILD, MYL, NVDA, PCAR, PCLN, MDLZ, DLTR, MNST, SHLD, WYNN, YHOO, ATVI, AVGO, BRCM, KLAC, QCOM
 
Moving Above 30 DMA = 7
AMGN, BBBY, CHRW, EBAY, NTAP, SRCL, VIAB
 
Moving Below 30 DMA = 2
CTXS, GOLD
 
Staying Below 30 DMA
AMAT, VIP, GRMN, SIAL, WFM, VIAB, CTRX, KRFT, FOXA, AMGN, BBBY, BIIB, REGN, VRSK, LMCA, TSLA, EXPD, FAST, CHTR, BIDU, CELG, VRTX, FB, MXIM, EQIX, AKAM, ORLY, SIRI, FFIV, SYMC, ALTR, XLNX, NUAN, GMCR
 
 
Sixteen Week Intermediate Term Market Trend: Up
5-Day Short Term Market Trend: Neutral

2 comments:

TraderBobb said...

Dave:
Thank you so much for all your work and this blog.
Robert
CANI_212

Dave Johnson said...

You're welcome!