Thursday, November 7, 2013

Stocks Weaken On Heavier Volume...TWTR Has First Day Of Trading...TWTR Up 73% From IPO Open...Mattress Firm Investors Can SLEEP EASY Tonight...TPX Up 12.09%...MFRM Up 5.18%...

None of the sectors moved higher on Thursday…however…XLV, XLU and XLI were the strongest sectors…XLY was the weakest sector. 
 
Breadth weakened…as decliners led advancers…3.57 to 1 on the NYSE and 3.44 to 1 on the NASDAQ.
 
Thursday – weakened, decliners led
Wednesday - mixed
Tuesday – weakened, decliners led
Monday – strengthened, advancers led
Friday – strengthened, decliners led
 
 
SPY down 2.24 at 174.93…volume 157 million shares
VIX up 1.24 at 13.91…
TNX down .27 at 26.13…
TLT up .89 at 105.96...
XLF down .23 at 20.39 volume 44.7 million shares
 
AAPL down 8.43 at 512.49…volume 9.3 million shares
FB down 1.56 at 47.56…volume 97.1 million shares…
 
Technical Commentary: 
DIA – 0.87%, IWM – 1.69%, SPY – 1.26%, QQQ – 1.88%.
 
DIA, IWM, SPY, and QQQ all closed lower on volume heavier than normal…SPY and QQQ both retreated from a double top with a negative MACD divergence.  Many stocks closed at a support level and a number of stocks broke a support level today.
 
TWTR had its first day of trading with its IPO today…Volume was 117 million shares and it closed up 18.90 or up 73%.
 
For those invested in the mattress industry…you can sleep easy tonight…both MFRM and TPX gapped up.  MFRM gapped up breaking through horizontal resistance of mid-October and even touched horizontal resistance of mid-September although it did not close there.  MFRM was up 1.66 or 5.18% closing at 33.70.  TPX also gapped up after reported earnings and went beyond its mid-September horizontal resistance in intra-day trading.  MFRM was up 4.85 or 12.09% to close at 44.96 on 8.5 million shares.
 
AWAY gapped up after reported earnings breaking its mid-September horizontal resistance gaining 4.61 or 15.85% closing at 33.70 on 7.8 million shares.
 
 
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 last week.
 
 
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
 
 
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.   
 
____________________
 
Setups 
H Breakout: ESRX, TXN, CVX, IBM, INTC, TRV, STI,
 
Diagonal Breakout: WDC, DD, MRK,  
 
Bull Flag: AMGN, CMCSA, GILD, GOOG, MAT, FSLR, ANR, CLF, TRIP, UAL, WLT,
 
Potential Bullish Divergence:   
 
Gap Up:
 
Gap Down:
 
Bear Flag: 
 
At Support: AMAT, BIDU, CELG, FAST, GRMN, STX, AAPL, QIHU, SWI, YELP, YNDX,
 
Moves
New Highs:  
 
Gap Up: TPX,   
 
Gap Down: QCOM, WFM, AA, SCTY,  
 
H Breakout: MFRM,   
 
D Breakout:    
 
Breakout Test:  
 
Bounce: TLT,   
 
MACD Divergence Bounce: NTAP,
 
Bear Flag:  
 
Support Break: AKAM, PCLN, WYNN, CREE, LNKD, SINA, YOKU, Z,
 
 
______________________
 
 
Only 7 out of 100 NDX stocks closed higher on Thursday.
 
Leading NDX 100 stocks included: GOLD, ATVI, NTAP, MU
 
Lagging NDX stocks included: WFM, TSLA, MDLZ, REGN, QCOM, AVGO, FAST, AMZN, VIAB, SPLS, GRMN, PCLN, FOXA, FB, ADBE, AMAT, BIIB
 
Leading stocks > +2% on Thursday included: TPX, JCP, MFRM, SSYS
 
Lagging stocks < -2.0% included: SCTY, SWI, QIHU, SPWR, YELP, YNDX, CREE, XONE, Z, GRPN, FSLR, BX, TSL, CLF, LNKD, WLT
 
Stocks to Watch on Friday
Holding Above 30 DMA= 49
CTSH, VOD, ROST, ADBE, SNDK, SBUX, STX, CERN, CMCSA, MSFT, XRAY, AAPL, HSIC, SPLS, FISV, FOSL, INTC, INTU, KLAC, LINTA, PAYX, PCLN, SBAC, WDC,  CHKP, DTV, VIP, MNST, GOOG, ADP, AMZN, MAT, MDLZ, DISCA, CA, COST,  LLTC, TXN, ADI, MCHP, MU, EXPE, NFLX, ADSK, CHRW, GOLD, CSCO, ESRX, LBTYA
 
Moving Above 30 DMA = 1
ISRG
 
Moving Below 30 DMA = 20
ALXN, AMAT, AVGO, BRCM, CHRW, DLTR, GILD, GRMN, MYL, PCAR, PCLN, QCOM, SIAL, WFM, WYNN, VIAB, MDLZ, CTRX, DRFT, FOXA,
 
Staying Below 30 DMA
AMGN, BBBY, BIIB, SHLD, REGN, VRSK, LMCA, TSLA, EXPD, FAST, CHTR, BIDU, SRCL, YHOO, CELG, VRTX, ATVI, FB, AMIM, EQIX, AKAM, ORLY, SIRI, FFIV, NVDA, SYMC, ALTR, XLNX, EBAY, NTAP, CTXS, NUAN, GMCR
 
 
5-Day Short Term Market Trend: Neutral = DIA, SPY  Down = QQQ, IWM
 

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