Wednesday, October 22, 2014

SPY,QQQ Pause, Pull Back After Three Day Rally...TSCO Gaps Higher, YELP Lower After-hours Earnings...

Two out of nine sectors moved higher on Wednesday…XLU, XLP and XLV were the strongest sectors while XLE was the weakest. 

Breadth weakened…decliners led advancers…2.26 to 1 on the NYSE and 2.83 to 1 on the NASDAQ.

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


SPY down .86 at 193.21 on 151.5 million shares, above average volume
VIX up 1.79 at 17.87…
TNX up .21 at 22.29…
TLT up .13 at 120.67...
XLF down .13 at 22.74 on 46.2 million shares

AAPL up .60 at 103.07 on 68.1 million shares
FB down .29 at 78.40…on 41.8 million shares

Technical Commentary:
QQQ -0.52%, SPY -0.71%, DIA -0.86%, IWM -1.43%.

After the three day rally in which SPY gained 4.19%, profit-taking took over and SPY -0.71% pulled back and formed a dark cloud cover.  From Wednesday’s low today was just a 17% retracement.  Wednesday’s high occurred at the mid-section of consolidation from Oct 1 to 9 and the 30 DMA.  This could be a one-day pause in the short-term uptrend or could turn into a bull flag pull back.  Either way traders must stay prepared and follow their rules.

Earnings continued today with positive reactions from SWK, GD and EMC and negative reactions from XRX, DOW and BA.

After the close positive earning reaction from TSCO +7.20, +11.75%, ORLY +6.14, +3.90% and NXPI +1.12, +1.75%.  Negative earning reactions from YELP -9.23, -13.14%, LRCX -2.36, -3.28% and T -0.50, -1.45%.


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 Chart Targets:
SPY = 194.27, 197.62...
QQQ = 97.10, 98.76
IWM = 112.15, 114.51…

Support Levels
SPY = 191.48, 190.45...
QQQ = 95.32, 94.47
IWM = 109.22, 107.00...

Earnings this week
Monday: AAPL, CMG, HAL, HAS, ILMN, IBM, BTU, STLD, TXN, ZION,
Tuesday: ATI, APOL, EAT, BRCM, CNI, KO, CREE, ETFC, HOG, ISRG, KMB, LXK, LMT, MCD, TRV, UTX, VZ, VMW, YHOO
Wednesday: T, BA, DOW, EMC, EQIX, GD, LRCX, NXPI, ORLY, SWK, TSCO, WHR, XRX, YELP
Thursday: MMM, ALK, ALXN, ALTR, AMZN, CAT, CELG, CERN, CHKP, CMCSA, DECK, DNKN, GM, JNPR, KLAC, LLY, MXIM, MSFT, P, LUV, UA, UNP, UAL, WYNN, YNDX, ZNGA,
Friday: BMY, F, NDAQ, PG, STT, UPS

Q3 Earnings Reactions
Positive Reactions – AAPL, APOL, EMC, GD, HAL, HAS, HOG, ILMN, KMB, LXK, STLD, SWK, TRV, TXN, ZION, AMD, C, CSX, DAL, GE, HON, LVS, MS, SCHW, SLB, STI, URI, XLNX, COST, BBBY, BBRY, MU, NKE, PAYX, LULU, PANW, ULTA, MFRM, SPLK,

More than 10% - NKE, ULTA, LULU, PANW, MFRM,

Negative Reactions – BA, CMG, DOW, EAT, IBM, KP. LMT, BTU, XRX, AXP, BAC, COF, EBAY, GOOGL, INTC, JNJ, JPM, KEY, MAT, NFLX, WFC, AZO, ADBE, KKD, CIEN,



More than -10% -

Reversal in progress – AZO,

Reversal of Initial Reaction – AXP, KKD, BBRY, MU,

The SPY Market Forecast is at 42.

___________________

Setups
Horizontal Breakout: AAPL, INTC, MU, QCOM, SNDK, TRIP, TXN,
Diagonal Breakout: AMBA,  
Bull Flag: TLT,
Gap Up: TSCO, ORLY, NXPI
Gap Down: YELP, LRCX
Bear Flag:  ETFC, SCHW, SWI, CSIQ,

Moves
New Highs: COST, GMCR, ILMN,
Breakout Test: MNST,
Gap Up: BRCM, YHOO,
Gap Down: ANGI,  
Bear Flag: ATI, CAR, CIEN, JDSU, LNKD, QIHU, SCTY, TSL, Z, 

______________________

22 out of 100 NDX stocks closed higher on Tuesday and one was unchanged.

Leading NDX 100 stocks included: TSCO, BRCM, YHOO, ILMN, ORLY, NFLX, MDLZ, GOOG, MAT

Lagging NDX stocks included: CTXS, BIIB, DISCA, FFIV, XLNX, MYL, EQIX, ISRG, GILD, FOXA, LMCK, TRIP, NVDA, SNDK, ADBE

Leading stocks > +2% on Wednesday: SCSS

Lagging stocks < -3.0% included: ANGI, YELP, TSL, CAR, XONE, Z, SPLK, SPWR, SUNE, LNKD, YY, CREE, DDD, ESI, VJET, JASO, YNDX

Stocks to Watch on Thursday
Holding Above 30 DMA= 12
SIAL, GMCR, ROST,CHRW, GRMN, MYL, SRCL, DLTR, ISRG, MNST, PAYX, REGN, ADP, ALXN, BIDU, COST, FB, ORLY, TSCO, VRTX, XLNX, AAPL, AMGN, BBBY, CELG, ESRX, FISV, GILD, HSIC, ILMN, KRFT, MAR, PCAR, QCOM, SPLS, SYMC, TX, WYNN, BRCM

Moving Above 30 DMA = 2
BRCM, YHOO

Moving Below 30 DMA = 8
BIIB, CA, CERN, CTSH, EXPD, LBTYA, SBAC, WFM
                                                                                             
Staying Below 30 DMA
ADSK, DTV, EBAY, FAST, MSFT, NFLX, CSCO, EXPE, INTU, MU, DISH, AVGO, ALTR, CTXS, INTC, KLAC, NTAP, NXPI, SNDK, VOD, AKAM, CHKP, GOOG, CHTR, CMCSA, FFIV, LLTC, AMAT, LMCA, LMCK, MXIM, TRIP, VIAB, VRSK, EQIX, MDLZ, NVDA, SIRI, CTRX, ADBE, AMZN, ATVI, FOXA, STX, TSLA, VIP, SBUX, DISCA, MAT, ADI, WDC, PCLN

6-month Intermediate Term Market Trend: Up/Neutral
3-day Short Term Market Trend: Up

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