Tuesday, July 29, 2014

IWM Positive as QQQ, SPY Give Back Early Gains...BIIB Bounces...FB, SWI, SWKS, VRSN Bull Flag...TWTR Gaps Higher in After-hours on EPS Report...

Only one out of nine sectors moved higher on Tuesday… XLV, XLK and XLE were the strongest sectors…XLI was the weakest sector.

Sector Posture – six sectors are positive 
Positive trend: XLB, XLE, XLF, XLK, XLV, XLY
Neutral trend near resistance:
Neutral trend near support: XLI, XLP, XLU

Breadth weakened as decliners led advancers 1.53 to 1 on the NYSE and advancers led decliners 1.03 to 1 on the NASDAQ.

Tuesday – weakened, mixed
Monday – strengthened, decliners led
Friday – weakened, decliners led
Thursday – weakened, decliners led
Wednesday – weakened, mixed


SPY down .85 at 196.95 on 80.3 million shares
VIX up .72 at 13.28…
TNX down .29 at 24.62…
TLT up .42 at 115.93...
XLF down .12 at 22.90 on 28.4 million shares

AAPL down .64 at 98.38 on 43 million shares
FB down 1.21 at 73.71…on 41.2 million shares


Technical Commentary:

IWM + 0.27%, QQQ – 0.18%, DIA – 0.37%, SPY – 0.43%.

IWM leads while forming a bullish harami in a MACD bullish divergence.  QQQ and SPY still in bull flag pattern as bounce fails to hold, both make higher low than Monday.

After-hours TWTR +11.14, +28.87 on positive EPS reaction and increase in user growth.

BIIB earnings flag bounce, FB, SWI, SWKS, VRSN, GILD earnings flag bounce to horizontal resistance.


                  (click image to enlarge)

The FOMC meeting is underway today and Wednesday with FOMC announcement expected Wednesday at 2 pm ET.  GDP Q2 will be out tomorrow morning at 8:30 am ET.  The Unemployment report for July will be out Friday morning 8:30 am.

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


Short-term up trend Chart Targets:
SPY = 198.12, 199.06…
QQQ = 96.31, 97.52, 98.28
IWM = 116.46, 119.09…

Support Levels
SPY = 196. 59, 194.13, 193.11…
QQQ = 93.57, 91.73, 90.44…
IWM = 114.66, 113.16…

Earnings this week:
Monday – CMI, TSN, WYNN, JEC, HLF
TuesdayAET, AKS, DLR, GLW, HCA, MDC, YNDX, AMGN, AXP, BWLD, CHRW, ESRX, FISV, MAR, MRK, PFE, SLCA, X, UPS, VRTX
WednesdayGRMN, HES, AEM, AKAM, CTRP, EQIX, KRFT, LRCX, MTW, WDC, WFM, YELP
ThursdayDDD, BZH, CL, COP, DTV, XOM, ESI, RYL, TEVA, TWC, EXPE, LNG, LNKD, MA, MCHP, SPWR, TSLA, TRLA
FridayCBOE, CVX, HLT, PG, BRK.A

Q2 Earnings Reactions
Positive Reactions – AKS, TSN, WYNN, YNDX, CMG, BIIB, ISRG, SWI, UA, VRSN, AAPL, APD, CA, CHKP, CMCSA, CTXS, DAL, DECK, DOW, FFIV, FB, FTI, GD, LXK, LMT, NBR, NDAQ, NOK, OSTK, ORLY, PETS, RHI, STLD, SWK, TSCO, TXN, WHR, XRX, ZION, BX, C, GOOGL, GS, HON, INTC, KSU, JPM, PM, SCSS, SWKS, URI, AA, STZ, APOL, BKS, KBH, MON, MU, NKE, SCHN,

Negative Reactions – AET, CMI, GLW, HLF, JEC, ALK, ALXN, AMZN, ANGI, ATI, BA, CAT, CELG, DHI, DNKN, EA, ETFC, FCX, GM, HOG, ILMN, JNPR, KLAC, KMB, KO, LLTC, MCD, NFLX, P, PHM, QCOM, SBUX, STI, STO, T, TPX, TRIP, TRV, UTX, V, XLNX, AMD, BAC, BHI, JCI, JNJ, LVS, MAT, SLB, SNDK, STX, USB, YHOO, FAST, FDO, CAMP, BBBY, GIS, CCL, WAG,

Reversal in progress – GIS, WAG,


Reversal of Initial Reaction – BBBY, YHOO, APOL, KBH, MON,


The SPY Market Forecast green line is in the upper zone at 84.

____________________

Setups
Horizontal Breakout: JD, NKE, SCHW, SCTY, TWTR, CRM, LNKD, SINA, WLT, AKAM, CMCSA, DTV, EXPE, PCLN, TSLA, WDC,   
Diagonal Breakout: ETFC, GLD, GOGO, SOHU, SPWR, JCP, UPL, XONE, YOKU, CELG,  
Bull Flag: BX, C, DAL, FAS, MS, RCL, SWI, VRSN, PANW, ZION, FB, GOOG, INTC, MAR, MSFT, YHOO,
Potential Bullish Divergence: IWM 
Gap Up: TWTR, AMGN, ESRX, SLCA, X,
Gap Down: BWLD, VRTX
Bear Flag: 
At Support: AAL, AIG, P, HOG, ILMN, MU,  
C- Pattern:

Moves
New Highs: HPQ, GILD,   
H Breakout: COST, WYNN,   
Diagonal Breakout: TSL, VJET, YNDX, ESRX,   
Bull Flag Bounce
Gap Up: COST,  
Gap Down: GLW,   
Breakout Test:  
Bounce: ANR, WFM,      
MACD Divergence Bounce: DDD, YNDX, ADSK,    
Bear Flag
Support Break: BBRY, CSIQ, GTAT,   
C- Pattern
       

______________________

25 of 100 NDX stocks closed higher on Tuesday.

Leading NDX 100 stocks included: WFM, WYNN, ESRX, GILD, COST

Lagging NDX stocks included: BIDU, FB, AVGO, GOOG

Leading stocks > +2% on Tuesday included: SCTY, P, ETFC, GOGO, DDD, VJET, ZONE, ANGI, ANR, WLT

Lagging stocks < -2.0% included: GLW, CSIQ, Z, GME, BBRY, QIHU, KNDI, CTRP, JASO, MTW, GTAT,


Stocks to Watch on Wednesday
Holding Above 30 DMA= 57
CHRW, SIAL, MU, CHTR, ADP, EQIX, ATVI, CSCO, ADBE, INTU, MSFT, BIDU, CMCSA, GOOG, SBUX, INTC, STX, WDC, LMCA, SYMC, DTV, VRTX, FISV, GILD, SBAC, MDLZ, NTAP, EBAY, VRSK, COST, PAYX, DISCA, CTRX, FB, BBBY, MYL CERN, SIRI, AAPL, CELG, CTSH, EXPE, MAR, REGN, ALXN, AMGN, CTXS, FFIV, PCLN, VOD, WYNN, BIIB, CHKP, ISRG, CA, TSCO, YHOO

Moving Above 30 DMA = 3
BRCM, SPLS, SRCL                                                        

Moving Below 30 DMA = 4
DLTR, EXPD, ORLY, PCAR                                                             

Staying Below 30 DMA
ADSK, AMZN, HSIC, KLAC, LINTA, AVGO, DISH, ILMN, QCOM, TRIP, ALTR, GMCR, KRFT, LLTC, NXPI, TXN, VIAB, XLNX, AMAT, NFLX, LBTYA, NVDA, VIP, SNDK, AKAM, FOXA, MAT, MNST, TSLA, ADI, ROST, GRMN, FAST, MXIM, WFM, ESRX

Sixteen Week Intermediate Term Market Trend: Up
3-Day Short Term Market Trend: Neutral

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