Tuesday, February 9, 2016

Long Tail Hammer on SPX, SPY, DIA, QQQ Near August Support Indicate Possible Bottom...Protect Bearish Profits...

All nine sectors moved lower on MondayXLP, XLU and XLE were the strongest sectors while XLB was the weakest sector.  Oil fell 88 cents to close at 30.12.
                         
Breadth was mixed as decliners led advancers 3.96 to 1 on the NYSE and 2.45 to 1 on the NASDAQ.

Monday – mixed, decliners led
Friday – weakened, decliners led
Thursday- strengthened, advancers led
Wednesday – strengthened, advancers led on the NYSE
Tuesday – weakened, decliners led


SPY down 2.53 at 185.42 on 180.7 million shares, 20% above average volume
VIX up 2.62 at 26.00…
TNX down 1.13 at 17.35…
TLT up 2.77 at 131.49…on 14.4 million shares, 50% above average volume
XLF down .53 at 20.42…on 107.4 million shares, 70% above average volume

AAPL up .99 at 95.01 on 54 million shares, 1% below average volume
FB down 4.32 at 99.75 on 71.2 million shares, 80% above average volume

Technical Commentary:
DIA -0.98%, SPY -1.35%, QQQ -1.53%, IWM -1.64%.

SPX, SPY, DIA and QQQ all formed a hammer candle near August support indicating that institutions may be accumulating stock at support for the fourth time since last August.  SPY broke the 187.06 support on the open putting traders in a defensive posture.

With the formation of a bullish hammer or other bullish candles, stops should be moved above today's bullish candles to protect profits on bearish trades in the event that a follow through bounce occurs on Tuesday.

The NDX -63.80 formed a long tail hammer below last week’s support low, led by point losers FB, AMZN, MSFT, BIIB, CTSH, MDLZ, PCLN, ADBE, TSLA, NXPI, AVGO, AMGN, ATVI, INTC and ISRG. 

Stocks below support should generally be traded bearishly until a reversal pattern forms.  

DIA fell to last week’s support low and formed a hammer candle.  Nine Dow stocks CVX, PG, JNJ, XOM, AAPL, MCD, KO, MMM and CSCO rose on Monday. 

XLP Staples was led by gains in TSN, HRL, HSY, MKC, CLX, COST, PG, CPB and MO.

XLI Industrials was led by gains in CHRW, KSU, UPS, UNP and GWW.


YTD:
SPX Leaders:  NEM, SWN, KORS, RRC, SE, COG, MAT, EXC, EQT, ED, ()
SPX Losers: WMB, CHK, MPC, ESV, MRO, URI, VRTX, RCL, TRIP, ADS

NDX Leaders:  MAT, FAST, CMCSA, PCAR, VIAB, XLNX, DISCK, FISV (8)
NDX Losers: TSLA, BMRN, VRTX, NCLH, INCY, TRIP, WDC, ILMN, ADSK, MU

DJI Leaders:  VZ, WMT, XOM, PG, MMM,
DJI Losers: AXP, BA, GS, INTC, CSCO, HD, JPM, DD, V, DIS


Remember:  “It’s a market of stocks, not just a stock market.”

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

The SPX MFC green line is pointed down at 29. 

  
______________________

13 of 100 NDX stocks closed higher on Monday.

6 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Tuesday:
Moving Above 30 DMA = 0


Moving Below 30 DMA = 5
CA, DISCA, FB, PYPL, VIAB


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

No comments: