Wednesday, December 18, 2013

Stocks Soar...As Investors React To Fed's Decision To Taper Bond Buying...DJIA And S&P 500 Set New All-time Highs...

All nine sectors moved higher on Wednesday…XLV, XLF and XLI were the strongest sectors…while XLK was the weakest sector. 
 
Breadth strengthened…advancers led decliners…3.75 to 1 on the NYSE and 2.43 to 1 on the NASDAQ.
 
Wednesday – strengthened, advancers led
Tuesday – weakened, decliners led
Monday – strengthened, advancers led
Friday – strengthened, advancers led
Thursday – strengthened, decliners led
 
 
SPY up 3.05 at 181.70 volume 234.7 million shares, more than double average volume
VIX down 2.41 at 13.80…
TNX up .42 at 28.85…
TLT down .52 at 102.77...
XLF up .49 at 21.61 volume 99.1 million shares, large volume
 
AAPL down 4.22 at 550.77 volume 20.1 million shares, large volume
FB up .71 at 55.57…volume 75.9 million shares
 
Technical Commentary: 
DIA + 1.88%, SPY + 1.71%, IWM + 1.37%, QQQ + 1.16%.
 
Wednesday’s trading session saw stocks surge…some stocks going where they have never gone before…including the DJIA gaining 292.71 to close at 16,167.97 and the S&P 500 which rose 29.65 and closed at 1810.65 topping its previous record close on December 9th.  Investors reacted positively to the Fed’s decision to begin in January the tapering of bond purchases…indicating an overall confidence in the strength of the economy.
 
Numerous stocks are set up for a horizontal resistance breakout or a diagonal resistance breakout.  Many stocks reached new highs today.
 
LEN gapped up on positive earnings gaining 2.23 or 6.34% on 14.2 million shares and is at a horizontal resistance breakout.  DHI gained 1.20 or 6.35% on 15.7 million shares and is at both a horizontal resistance breakout and a longer term diagonal resistance breakout.
 
GILD bounced today to gain 3.51 or 5.01% on 17.9 million share and is closing in on its previous high of 76.11. FAS made a new all-time high today, coming off of a double bottom closing up 5.14 or 6.33% on volume of 6.8 million shares. 
 
 
Trading volume shifted from the Dec Z3 contracts to the Mar H4 on Friday.
 
 
Finish 2013 strong by following your rules and begin to look for positive changes to make in 2014.
 
Albert Einstein: “Insanity: doing the same thing over and over again expecting different results.”
 
Remember it is big money that creates and sustains the trend.  As Granville 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 up trend chart targets:
Chart Targets:
SPY = 182.06, 183.02
QQQ = 86.69, 85.77…exceeded on Friday
IWM = 113.10, 114.39
 
 
Q3 Earnings Reactions
Positive Reactions – AVGO, MFRM, SPLK, MRVL, GMCR, JCP, LZB, JKS, BRCD, TSN, YOKU, SINA, NTAP, 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 – ROST, GME, BBY, CPB, JEC, TSL, CRM, CSCO, RAX, 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
 
 
The Market Forecast Green Line turned up today.
 
____________________
 
Setups 
H Breakout: ADSK, AKAM, AMZN, BBBY, BRCM, CMCSA, CTSH, EBAY, ESRX, INTC, GOOG, MYL, PCLN, SBUX, AXP, CREE, FAS, GLW, NTES, SCSS, SFUN, SPY, SWI, TPX,
Diagonal Breakout: ATVI, SNDK, CRM, SCTY, YELP, Z,    
Bull Flag: 
Potential Bullish Divergence: 
Gap Up:
Gap Down:
Bear Flag: 
At Support: 
C- Pattern:
 
Moves
New Highs: FB, WYNN, A, BX, RCL, TIF, V, VRSN,  
Gap Up:   
Gap Down: F, GOGO, LNKD,   
H Breakout: XLNX, GRPN, GS, STI,    
Diagonal Breakout: RAX,      
Breakout Test: 
Bounce: DTV, GILD, BAC, C,
MACD Divergence Bounce: 
Bear Flag:  
Support Break: GRMN,  
 
______________________
 
 
88 out of 100 NDX stocks closed higher and one was unchanged on Wednesday.
 
Leading NDX 100 stocks included: GILD, VRTX, ALXN, REGN, BIIB, DISCA, MNST, SPLS, CTSH, CMCSA, ADBE, ADP, MYL PCLN, LINTA, WYNN
 
Lagging NDX stocks included: MU, TSLA, GRMN, WDC, SHLD, GOLD
 
Leading stocks > +2% on Wednesday included: FAS, GRPN, SCSS, BAC, A ZION, GS, C, YNDX, NKE, CRM, KKD
 
Lagging stocks < -2.0% included: GOGO, F, LNKD, MCP
 
 
Stocks to Watch on Thursday
Holding Above 30 DMA= 53
CTSH, AAPL, FISV, INTU, WDC, GOOG, AMZN, LLTC, MU, EXPE, NFLX, ADSK, ESRX, ALXN, PCLN, MDLZ, MNST, YHOO, QCOM, SIAL, CELG, BIIB, CMCSA, LBTYA, GMCR, DTV, STX, BIDU, BRCM, FB, WYNN, AVGO, INTC, EQIX, TSLA, ORLY, ADBE, AKAM, EBAY, VIAB, VRSK, CA, CHKP, FFIV, LINTA, PCAR, VOD, FAST, SNDK, SYMC, VRTX, XLNX
 
Moving Above 30 DMA = 20
ADP, ATVI, BBBY, CTXS, EXPD, GILD, HSIC, MYL, PAYX, SPLS, WFM, XRAY, TXN, ADI, CTRX, DISCA, KRFT, FOXA, CHTR, VIP
 
Moving Below 30 DMA = 0
 
Staying Below 30 DMA
MAT, GRMN, MSFT, MCHP, NTAP, NVDA, CERN, SRCL, COST, KLAC, SBUX, LMCA, SHLD, SIRI, REGN, FOSL, ISRG, NUAN, ROST, AMGN, DLTR, COLD, SBAC, CHRW CSCO, AMAT, MXIM, ALTR
 
 
Sixteen Week Intermediate Term Market Trend: Up
3-Day Short Term Market Trend: Up
 
 
 

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