Stocks Retreat & End Lower...Energy Stocks Take Biggest Hit...TSLA Drops 12% In After Hours Trading After Failing To Meet Analysts Expectations...

Only one sector moved higher on Tuesday…XLP, XLY and XLI were the strongest sectors…XLE was the weakest sector. 

 

Breadth weakened… as decliners led advancers…2.12 to 1 on the NYSE and 1.29 to 1 on the NASDAQ.

 

Tuesday – weakened, decliners led

Monday – strengthened, advancers led

Friday – strengthened, decliners led

Thursday –weakened, decliners led

Wednesday – weakened, decliners led

 

 

SPY down .56 at 176.27…volume 85.6 million shares

VIX up .34 at 13.27…

TNX up .60 at 26.62…

TLT down 1.27 at 105.02...

XLF down .11 at 20.52 volume 25.9 million shares

 

AAPL down 1.30 at 525.45…volume 9.4 million shares

FB up 1.88 at 50.10…volume 76.7 million shares…

 

Technical Commentary: 

IWM – 0.35%, SPY – 0.32%, DIA – 0.11%, QQQ + 0.11%.

 

 

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: BBBY, CSCO, GRMN, MNST, MSFT, MYL, PCLN, TSLA, CSCO, UTX, ATI, CRM, P, SCTY, SPLK, SPWR, TIF, TPX, TSL,

 

Diagonal Breakout: CELG, FB, SHLD, STI,

 

Bull Flag: AMZN, BIDU, GILD, GOOG, TXN, AXP, GE, HD, KO, MMM, T, ESI, RAX,

 

Potential Bullish Divergence:   

 

Gap Up:

 

Gap Down:

 

Bear Flag: 

 

At Support:  

 

Moves

New Highs: MSFT, NKE, CMG, DDD, FIVE, GME, KKD,

 

Gap Up: TBT,

 

Gap Down: ATVI, INTC, INTC, GLW, TLT,

 

H Breakout: SBUX, XONE,  

 

D Breakout: CSCO,  

 

Breakout Test:  

 

Bounce: UNG,  

 

MACD Divergence Bounce: 

 

Bear Flag:  

 

Support Break: NVDA,

 

 

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35 out of 100 NDX stocks closed higher on Tuesday and three were unchanged.

 

Leading NDX 100 stocks included: REGN, FB, SBAC, CTRX, CTSH, FOSL, LINTA, CSCO, SBUX, MSFT, ESRX, BIIB, MNST

 

Lagging NDX stocks included: EXPD, FAST, CHTR, GMCR, ALXN, HSIC, NUAN, SIRI, ATVI, AMGN, LBTYA, EQIX

 

Leading stocks > +2% on Tuesday included: P, XONE, DDD, KKD, SCTY, YELP, BBRY, SSYS, TBT, GME

 

Lagging stocks < -2.0% included: GLW, TSL, SOHU, MCP, GRPN, CNX, ANR

 

Stocks to Watch on Wednesday

Holding Above 30 DMA= 64

WYNN, AVGO, CTSH, VOD, ROST, ADBE, SNDK, WFM, 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, GOOG, ADP, AMGN, AMZN, MAT, MDLZ, DISCA, KRFT, CA, SIAL, ALXN, COST, QCOM, LLTC, TXN, ADI, MCHP, MU, EXPE, NFLX, ADSK, CHRW, GOLD, GRMN, MYL, PCAR, SHLD

 

Moving Above 30 DMA = 7

BIIB, CSCO, ESRX, VIAB, CTRX, REGN, TSLA

 

Moving Below 30 DMA = 4

EXPD, FAST, ISRG, CHTR

 

Staying Below 30 DMA

BIDU, BRCM, SRCL, YHOO, LBTYA, CELG, DLTR, VRTX, ATVI, FB, REGN, MXIM,  EQIX, AKAM, ORLY, SIRI, FFIV, NVDA, SYMC, ALTR, XLNX, EBAY, NTAP, CTXS, NUAN, GMCR

 

Sixteen Week Intermediate Term Market Trend: Up

5-Day Short Term Market Trend: Neutral