Stocks Slide After Yesterday's Bounce...FB Posts Earnings And Exceeds Analysts Expectations...Soars In After Hours Trading...Up 12%...

Only one of the nine sectors moved higher on Wednesday…XLB, XLU and XLE were the strongest sectors…while XLP was the weakest sector. 

Breadth weakened as decliners led advancers 3.30 to 1 on the NYSE and 3.29 to 1 on the NASDAQ.

Wednesday – weakened, decliners led

Tuesday – Strengthened, advancers led

Monday – strengthened, decliners led

Friday – weakened, decliners led

Thursday – weakened, decliners led

SPY down 1.72 at 177.35 volume 215.4 million shares, about double normal volume

VIX up 1.55 at 17.35…

TNX down .71 at 26.75…

TLT up .88 at 107.87...

XLF down .25 at 21.01 volume 64.4 million shares, above average volume

AAPL down 5.75 at 500.75 volume 17.9 million shares

FB down 1.61 at 53.53…volume 95.8 million shares, above average volume

Technical Commentary: 

IWM – 1.44%, DIA – 1.16%, QQQ – 1.07%, SPY – 0.96%.

Stocks slip after yesterday’s bounce sending the index’s lower in today’s trading session…DJIA closed down 189.77 with the NASDAQ off 46.53 and the S&P 500 shedding 18.30.

FB reported earnings after today’s trading session and exceeded analysts expectations…in after hours trading FB has soared 6.47 up 12.09%.

Total revenues increased by 63% to 2.59 billion.  Over the past 12 months FB stock is up over 74%.

QCOM also reported earnings and has laid to rest any fears investors may have had…QCOM is trading up 2.57% in after-hours trading.

UNG couldn’t be stopped today in spite of stocks retreating.  On volume of 39.3 million shares…UNG gained 2.55 or 10.55% and closed the trading session with a record all- time high.

YHOO gapped down after yesterday’s earning report ending the session down 3.33 or 8.71%.  Volume was high at 67.2 million shares.  Today’s close is at support of October 4^th, 2013.

Monday kicks off a huge week for earnings AAPL, CAT, RCL, STX, X, and ZION just on Monday.  On Tuesday CMCSA, DD, F, ILMN, VMW and YHOO.  On Wednesday FB, BA and QCOM report and Thursday releases MMM, AMZN, CELG, CMG, GOOG and V.  The week wraps with BIDU, CVX and MA on Friday.

Trade with the trend of the chart you are trading and move your protective stops.  Continue to follow your rules.

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:

SPY = 181.34, 183.40, 184.69…

QQQ = 88.18, 89.00…

IWM = 114.48, 116.70…

Support Levels

SPY = 179.12, 177.74, 176.36

QQQ = 86.38, 85.67

IWM = 113.26, 112.14, 110.71

Q4 earnings season continues into the third full week…

Monday – AAPL, CAT, RMBS, RCL, STX, X, ZION

Tuesday – AKS, AAL, AMGN, CHKP, CRUS, CMCSA, GLW, DD, EA, F, ILMN, LXK, NUE, OI, VMW, YHOO

Wednesday – BIIB, BA, CTXS, DOW, EMC, FB, LRCX, LVS, PSX, QCOM, TSCO, VLO

Thursday – MMM, ALXN, AMZN, BZH, BRCM, CELG, CMG, CL, LLY, XOM, GOOG, HOG, JDSU, MTW, OSTK, BTU, POT, PHM, RVBD, RYL, SHW, BX, TWC, UPS, VIAB, V, WHR, 

Friday – BIDU, CVX, CNX, MA, MAT, NOV, PCAR, SPG, TSN

Q4 Earnings Reactions

Positive Reactions – QCOM, BA, FB, DD, F, CAT, RCL, JNPR, MSFT, KMB, PG, MXIM, SBUX, NFLX, FFIV, URI, UNP, EBAY, MCD, CREE, TXN, UTX, NUAN, XLNX, BHI, DAL, RF, MS, SLB, STI, AXP, SWKS, BAC, LLTC, WEN, MON, MU, STZ, APOL

Negative Reactions – ILMN, VMW, YHOO, HON, KSU, SWK, STT, ALTR, ISRG, KLAC, KEY, JCI, LMT, WDC, ABT, BAX, ATI, COH, FCX, AMD, IBM, HAL, JNJ, TRV, VZ, GE, COF, INTC, UNH, C, GS, CSX, FAST, AA, FDO, BBBY, SCHN,  

Reversal of Initial Reaction – FAST, FDO, AA

The Market Forecast Green Line is below 80 and is pointed down.

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Setups

H Breakout: GLD, QIHU, RCL, TSLA,     

Diagonal Breakout: CIEN, SSYS, TWTR,  

Bull Flag: ESI, STI, V, VRSN, AKAM, CTSH, DTV, EBAY, NTAP, XLNX,  

Potential Bullish Divergence: SCSS,    

Gap Up:  

Gap Down:

Bear Flag: DDD, GRPN, CELG, GOOG,  

At Support: C, SPY, YOKU, COST, GRMN, PCLN, TXN,

C- Pattern:

Moves

New Highs:  

Gap Up:           

Gap Down: YHOO,    

H Breakout: TLT,   

Diagonal Breakout:  

Breakout Test: 

Bounce: SWKS, UNG, MSFT, WDC,

MACD Divergence Bounce:   

Bear Flag: 

Support Break: GME, SINA, TBT, YNDX, SBUX,

______________________

22 out of 100 NDX stocks closed higher on Wednesday.

Leading NDX 100 stocks included: STX, GOLD, SYMC, ALTR, ILMN

Lagging NDX stocks included: YHOO, VIP, BIDU, SBUX, ADSK, FB, AMZN, LBTYA, PCLN, TSCO, NTAP

Leading stocks > +2% on Wednesday included: UNG, CIEN,

Lagging stocks < -2.0% included: SINA, YNDX, ESI, YELP, YOKU, Z, LNKD, RAX, GOGO, MFRM

Stocks to Watch on Thursday

Holding Above 30 DMA= 30

ILMN, ESRX, MNST, CMCSA, AVGO, EQIX, AKAM, FFIV, VRTX, XLNX, CTRX, SBAC,  AMGN, ISRG, MU, MYL, BIIB, GILD, MXIM, TSLA, NXPI, NTAP, GOLD, NFLX, CHTR, ALTR, ALXN, CHKP, SYMC, REGN

Moving Above 30 DMA = 2

CHRW, MSFT

Moving Below 30 DMA = 6

ADSK, GOOG, ORLY, SIRI, WYNN

Staying Below 30 DMA

CSCO, DTV, STX, WDC, GMCR, EBAY, HSIC, PCLN, QCOM, SRCL, AAPL, ADBE, AMAT, AMZN, CA, CELG, CERN, CTSH, EXPD, FAST, FISV, KLAC, LLTC, NVDA, PCAR, SIAL, SNDK, VOD, TXN, FB, VIP, ADP, BIDU, CTXS, GRMN, ADI, KRFT, DISH, EXPE, INTC, INTU, LBTYA, MDLZ, TRIP, YHOO, VIABM LINTA, TSCO, ATVI, PAYX, ROST, DLTR, BBBY, SPLS, FOXA, MAT, DISCA, WFM, VRSK, COST, SBUX, LMCA

Sixteen Week Intermediate Term Market Trend: Up

3-Day Short Term Market Trend: Down