Eight of nine sectors moved higher on Tuesday…XLE, XLF and XLV were
the strongest sectors…XLU was the
weakest sector.
Breadth strengthened…
advancers led decliners…1.38 to 1 on the NYSE and 2.37 to 1 on
the NASDAQ…
Tuesday – strengthened,
advancers led
Monday – Memorial Day
Friday – weakened, decliners
led
Thursday – strengthened,
mixed
Wednesday – weakened,
decliners led
Tuesday – weakened,
advancers led
SPY
up .99 at 166.30…volume 143.6 million shares
VIX
up .49 at
14.48…
TNX
up 1.24 at 21.35…
TLT
down 2.96 at 113.84...
XLF
up .20 at 19.93…volume 47.8 million shares
AAPL
down 3.71 at 441.44…volume 13.8 million shares
FB
down .21 at 24.10…volume 50.1 million shares
Technical Commentary:
IWM +1.30%, DIA +0.73%, QQQ +0.65%, and
SPY +0.60%.
Futures were higher overnight
following the Memorial Day holiday as central bankers in Japan and Europe indicated
they would maintain their accommodative monetary policies. The SPY, IWM, QQQ and DIA gapped open
in a bull flag bounce.
Sectors XLB, XLE, XLF, XLI, XLK,
XLV and XLY had a bull flag bounce entry.
XLP which had a bull flag bounce entry on Friday pulled back
after hitting horizontal resistance. XLU
broke support as bond yields jumped.
TSLA +13.65% as big money revved up buying on 19.6
million shares, more than $2 billion total value on Tuesday. TSLA made another all-time high.
AAPL -3.71 opened
higher and closed back in the consolidation area of the past week between 435 and
445.
AMZN gapped up
and pulled back after touching horizontal resistance. Watch for a potential horizontal
breakout. GOOG made a bull flag
bounce entry while PCLN and BIDU gained. NFLX -6.36% slumped after disappointing viewer reaction to the release
of the “Arrested Development” season.
GILD gained in
its bull flag pattern.
The Euro moved down 80 pips to 1.2852. TNX interest rates jumped to 21.35 its
highest level in over a year and TLT bonds -2.96 broke support.
Trade what you see on the chart of your position. The intermediate term trend is up with short-term trend neutral in a bull flag bounce. Traders should lock in profits when targets
are reached. As always look
for re-entry according to your rules. Tuesday
was a re-entry day on many stocks like IWM, C and F. See our Bounce
List below.
Chart Signals Strategy Guidelines
Technical setups for
short-term option trades be in and out by earnings release.
Over earnings release use earnings option strategies such as straddles, strangles, OTM calls
or puts.
After earnings look for
bullish setups in positive reaction stocks and bearish setups in negative
reaction stocks.
EPS Reaction Summary
EPS Gainers – HPQ, NTAP, AZO, MDT, CSCO, A,
MCP, WCRX, NVDA, PCLN, GMCR, GRPN, TSLA, EA, DVA, WFM, CTSH,
DTV, LBTYA, AIG, ADP, CBOE, REGN, FB, BZH, EXPD, GM, MDC, STX, V,
YELP, ICE, JRCC, VIAB, CMCSA, DDD, AVP, HLF, CERN, CVX,
DHI, TWC, ANGI, AKAM, ALXN, ALTR, BIIB, COG, CLF, CROX, DOW, ESI, FFIV,
HOG, LRCX, LVS, MO, PHM, RCL, SIAL, XLNX, BA, BRCM, GLW, HES, DAL,
COH, DD, NFLX, ILMN, VECO, LCC, RF, ZION, TRV, LMT, CAT, CHKP, HAL, HAS,
CMG, GOOG, KMB, STI, MSFT, BTU, PEP, UNP, VZ, MAT, AXP, JNJ, INTC, KO, C, APOL
EPS Losers – CRM, GME,
SHLD, DISH, XRAY, ATVI, RAX, MNST, Z, LNKD, TPX,
ZAGG, CTRX, GRMN, MRK, SWI, AMZN, BIDU, CRUS, DECK, EXPE,
HSY, KLAC, MXIM, QCOM, PTEN, ABC, MMM, AMGN, T, JNPR, PNRA, VMW,
GE, IBM, ISRG, MCD, MS, PM, UNH, SNDK, EBAY, BAC, USB, GS, LLTC
The Market Forecast Green Line is
in the Upper Zone.
____________________
Setups
H Breakout: GRPN, HUM,
SCTY, STI, ATVI, FAST, GILD, ROST, CNX
Diagonal Breakout: AMGN, CMCSA, BBRY
Bull Flag: GLW, GMCR, PHM, SOHU, YELP, BRCM, DTV, MAT, MNST,
NVDA, PCLN
Potential Bullish Divergence:
Gap Up:
Gap Down:
Bear Flag:
At Support: CLF, LNKD
Moves
New Highs: COST, MU,
SIRI, WDC, WFM, TSLA,
Gap Up: TIF, SCSS, VECO
Gap Down:
H&D Breakout: NTES,
TBT, TRIP, VECO, ESRX,
Bounce: SPY, A, BAC,
C, CIEN, CMG, F, FAS, GMCR, GS, IBM, ICE, JNPR, LVS, MCD, MOS, NKE, SMH, SPLK, SSYS,
STI, SWK, TRIP, TSL, URI, VECO, ZION, AKAM, AMAT, CELG, CSCO, EBAY, FFIV, GOOG,
GRMN, MSFT, NTAP, ORCL, SBUX, WYNN
MACD Divergence Bounce:
Bear Flag:
Support Break: TLT, FB,
______________________
77 of 100 NDX stocks closed higher
on Tuesday…one was unchanged…
Leading NDX 100 stocks included: NTAP, STRZA, ADSK, FFIV, AMAT,
BIIB, XRAY, MSFT, AMZN, INTU, ALXN
Lagging NDX stocks included:
SHLD, EQIX, CHRW, BRCM, GOLD, YHOO, SBAC, FB, AAPL, MNST
Leading stocks > +2% on Tuesday included: TSLA, TSL, VECO, TBT, TRIP, LDK, TIF,
CIEN, F, SSYS, AKS, NTES, SWI, CREE, C, GRPN, JDSU, FAS, UCO, ZION, YELP, LVS,
HUM
Lagging stocks < -2.0% included: NFLX, CRM, LNKD, TLT, FAZ, URE
Stocks to Watch on Wednesday
Holding Above 30 DMA= 69
ADP, GILD, BIIB, MAT, PAYX, YHOO,
MSFT, SRCL, REGN, LIFE, ROST, WYNN, INTC, DTV, NWSA, SBUX, VRTX, WFM, COST,
WDC, AKAM, AMAT, GOOG, NVDA, SIAL, SIRI, STX, BMC, BRCM, CA, ALXN, ESRX, ORLY,
PCAR, XLNX, CERN, AAPL, FOSL, KLAC, LINTA, CHKP, ORCL, VIAB, VMED, ADI, EXPD,
GRMN, LLTC, MYL, PCLN, MU, NTAP, SPLS, ALTR, BIDU, HSIC, SNDK, AVGO, FFIV,
ATVI, CSCO, FAST, DISCA, BBBY, DLTR, EBAY, ISRG, LBTYA, PRGO
Moving Above 30 DMA = 7
AMZN, CELG, FISV, MCHP, MDLZ, STRZA, TXN
Moving Below 30 DMA = 2
CHRW, CMCSA
Staying Below 30 DMA
GOLD, MNST, SBAC, SHLD, QCOM, CTXS,
EQIX, VOD, VRSK, XRAY, ADSK, ADBE, AMGN, EXPE, SYMC, MXIM, FB, CTRX, NUAN,
CTSH, DELL, INTU
Five Month Intermediate Term Market Trend: Up
Short Term Market Trend:
Neutral
