A Great Day for BDK and Those Intermediate Term Traders...

DJIA - 17.53 -0.18% SP500 + 2.53 +0.24% COMPQ + 8.12 +0.40% Russell 2000 + 8.22 +1.46% Exchange NYSE NASD Advancing 1,850 1,640 Declining 1,181 1,092 Oil $79.60 +1.47 Gold $1,084.90 +31.20 SOX 293.48 -3.89 VIX 28.81 -0.97 The VIX moved down and did confirm the move up in the SPX on Tuesday. The SOX moved down and did NOT confirm the move up in the COMPQ. Strongest Sectors: XLI +1.72%...XLE +1.29%...XLB +1.01% Weakest Sectors: XLP -0.65%...XLK -0.39%...XLU -0.21% Six of nine sectors moved higher on Tuesday. Industrials, Energy, Materials and Financials were stronger than the SPX +0.24%. Financial stocks stronger than XLF +0.27%: ZION, IVZ, PNC, PRU, RF, C, BAC, SPG, AXP, MET, GS, MS, WFC, AFL, ALL, JPM and ETFs UYG and FAS. Tech stocks stronger than XLK -0.39%: AMT, DELL, QCOM, EMC, GOOG, ADP, IBM, GLW, ADBE, EBAY, TXN and AAPL. Sector Watch Up Trending: XLK, XLB, XLY, XLV, XLP, XLE Horizontal Breakout: XLF, XLI, XLU Sideways: Down Trending: Key Resistance Levels: 1,056 = Sep 25 R1 level 1,061 = Sep 16 S1 Level 1,075 = 875 Breakout Chart Target Key Support Levels 1,044 = October Horizontal Old Resistance 1,025 = 950 Breakout Chart Target The SPX had a modest gain for the second day in a row as its trading range dropped from 22 points on Monday to 12 points on Tuesday. The SPX formed an inside day, hammer like candle that confirmed Monday’s bullish harami spinning top. Buyers and sellers continued fighting for control with each controlling parts of the trading day until the buyers wound up winning on Tuesday for the second day in a row. BDK soared 30.97% after its announced merger with SWK. I was in training all day so I will follow up on our virtual trades in Wednesday’s post. When we entered the intermediate term trade in August at 1.65 we had a target of 15 by January. Today the Jan 45 calls closed at 17. The other big news was Buffet’s take over of BNI which rose 27.51% almost as much as BDK. CSX +7.31% and UNP +7.90% also rose on the take over news. These stock formed bullish engulfing patterns on Tuesday: AA, ADBE, BUCY, CAT, DD, DE, FCX, FLS, JCG, JOYG, JPM, NKE, POT, WHR, XLF, ZION. Guidance: The intermediate term trend is still up while the short term trend is neutral. Momentum was balanced as the SPX formed an inside day with a higher low and lower high. Momentum edged slightly higher on Tuesday as can be seen in the white hammer like candle and a rising MACD histogram. Continue to watch for potential acceleration, in upward momentum as often occurs after an inside day, on Wednesday. Of course you must watch for potential break of support also. SPX short term resistance is still at 1,056. A large number of stocks formed bullish candle patterns, especially bullish engulfing, on Tuesday. Many stocks above their 20 and 30 DMA did stay above, while many stocks below their MA stayed below. Continue to trade the chart of the stocks you watch and follow your rules. AAPL -0.56 QCOM +0.41 GOOG +3.30 BIDU +7.59 NDX 100 stocks stronger than the NDX include: CTSH, RIMM, JBHT, NIHD, FLEX, JOYG, CEPH, GRMN, FWLT, MICC, GENZ, GILD, STLD, ATVI, FLSR, VRTX, CTXS, BIDU, ILMN, MXIM, BIIB, FAST, SHLD, STX, ESRX, PCAR, LIFE URBN, CHRW, LLTC, DELL, ROST, FISV and QCOM. Stocks to Watch on Wednesday Leading Stocks Holding Above 30 DMA K, JW.A, DECK, VPRT, AMZN, SLGN, NFLX, DV, MCD, ICE, MUR, DLB, FAZ, RCI, ESRX, MHS, WCG, ALGT, BDX, BYI, CPLA, VAR, ACN, JOYG Moving Above 30 DMA = 9 ATW, BKC, CLB, GES, GXDX, HLF, SWN, WAB, SNA Moving Below 30 DMA = 2 GR, WMT Staying Below 30 DMA AAPL, BLUD, CTSH, FLS, GPRO, HANS, HDB, ORCL, RBN, AFAM, EZPW, JEC, PCLN, STRA, TRLG, PWRD, AMED, AMX, BIDU, CAM, FSLR, GMCR, APEI, MOS, PCP, PWR, WRC, NIHD, JOSB, TDG, SPWRA, FAS, UYG, ESI, EBAY, BAP, CHL, GILD, URE, USD, DLTR, GME, SNHY, URE, PETS, MON, X, PSYS, NTLS, PPD, BIIB, JCOM, FUQI, CBST, RIMM, MYGN, SYNA Intermediate Term Market Trend: Up Short Term Market Trend: Neutral