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A New High By the Not So Little Trend That Could...
DJIA 10,583.96 +155.91 +1.50%
SP500 1,132.99 +17.89 +1.60%
COMPQ 2,308.42 +39.27 +1.73%
Russell 2000 640.10 + 8.02 +2.35%
Exchange NYSE NASD
Advancing 2,476 2,175
Declining 600 595
Oil $81.50 +2.14
Gold $1,117.70 +22.50
SOX 366.08 +6.17
VIX 20.04 -1.64
The VIX moved down and did confirm the move up in the SPX on Monday. The SOX moved up and did confirm the move up in the COMPQ.
Strongest Sectors: XLE +3.16%…XLB +3.12%...XLF +2.01%
Weakest Sectors: XLU +0.19%...XLP +0.76%...XLY +0.77%
All nine sectors moved higher on Monday. Energy, Materials, Financials, Industrials and Healthcare were stronger than the SPX +1.60%.
Sector Watch
Up Trending: XLK, XLB, XLY, XLV, XLP, XLE, XLI, XLU
Horizontal Breakout: XLF
Sideways:
Down Trending:
Key Resistance Levels:
1,025 - 1,133 = 1,075 BO chart target - Sep 08 Low
1,145 = 1,133 BO chart target – Dec 31 Low
Key Support Levels
1,119 = December High
1,105 - 1,113 = November High
1,101 = October High
1,087 = Nov 10 Channel low
1,082 = Nov 9 S1 level
1,075 = 875 Breakout Chart Target
After a dramatic 2009, Monday Jan 4, 2010 produced a gap that didn’t fade. Asian and European buyers moved the futures higher over night, The SPX and other indexes opened higher as a result and did not have a common fade opportunity as the SPX header higher all day. It did slow down once it reached 1,133 resistance shortly before noon ET, and then moved sideways in a narrow trading range of just three points, closing at 1,132.99, less than a point below its intra-day high of 1,133.87.
In addition to the broad indexes, the SOX and several sector ETFs XLE, XLB, XLF, XLI and XLV also had very strong moves on the first trading day of 2010.
We pointed out to you in Thursday’s post not to let the last 25 minute sell off on Thursday distract you from the trend. You can see that there really is a difference between price fluctuation and trend change. And today the trend continued with some very nice rewards.
The RUT and COMPQ broke to new highs with new chart targets while the SPX and INDU paused near their horizontal resistance areas.
Check out these charts:
(click image to enlarge)
WYNN and FWLT had a strong support bounce
NIHD had a strong resistance breakout
JOYG is poised for a diagonal breakout
Check out these charts:
(click image to enlarge)
Guidance:
Stay with your up trending positions.
Continue to raise your stops.
Look for the intermediate term trend to continue while being mindful of a pause or pull back.
XLF continues to be the key to the SPX breakout following through to the upside.
Stay with trends that have broken above resistance.
Monday provided many re-entries on bull flag trend continuation moves.
Continue to focus on and trade setups on the charts of the stocks you watch and follow your rules.
AAPL +3.28
QCOM +0.68
GOOG +6.77
BIDU -1.20
NDX 100 stocks stronger than the NDX include: WYNN, JOYG, NIHD, MICC, GRMN, FWLT, RYAAY, LOGI, STX, VRTX, CTSH, STLD, CSCO, HOLX, TEVA, PDCO, CTXS, LINTA, SYMC, INFY, AMAT, PCLN, JBHT, BRCM, ESRX, CA, INTC, HANS, AKAM, ERTS, CERN, KLAC, VRSN, AMGN, DISH and FISV.
Stocks to Watch on Tuesday
Leading Stocks
Holding Above 30 DMA
DLB, WCG, ALGT, BDX, TSL, AFAM, GR, SYNA, MELI, PCLN, PCP, MON, TDG, X, BIIB, NTLS, NIHD, VPRT, URE, BLUD, GES, USD, BKC, CBST, SNA, FSLR, MYGN, RIMM, AMED, CLB, DV, ORCL, GMCR, UNG, HANS, SWN, CAM, MHS, CTSH, WAB, ESI, ICE, JEC, MOS, UYG, VAR, AMZN, AAPL, JOSB, ACN, DECK, EBAY, SLGN, FAS, USO, GS, JCOM
Moving Above 30 DMA = 12
ATW, AMX, BYI, CHL, CEDC, ESRX, GME, HDB, IPI, JOYG, MCD, WMT
Moving Below 30 DMA = 1
K
Staying Below 30 DMA
CGA, FAZ, HLF, BIDU, GILD, PWRD, FLS, FUQI
Intermediate Term Market Trend: Up
Short Term Market Trend: Up
WYNN and FWLT had a strong support bounce
NIHD had a strong resistance breakout
JOYG is poised for a diagonal breakout
Check out these charts:
(click image to enlarge)
Guidance:
Stay with your up trending positions.
Continue to raise your stops.
Look for the intermediate term trend to continue while being mindful of a pause or pull back.
XLF continues to be the key to the SPX breakout following through to the upside.
Stay with trends that have broken above resistance.
Monday provided many re-entries on bull flag trend continuation moves.
Continue to focus on and trade setups on the charts of the stocks you watch and follow your rules.
AAPL +3.28
QCOM +0.68
GOOG +6.77
BIDU -1.20
NDX 100 stocks stronger than the NDX include: WYNN, JOYG, NIHD, MICC, GRMN, FWLT, RYAAY, LOGI, STX, VRTX, CTSH, STLD, CSCO, HOLX, TEVA, PDCO, CTXS, LINTA, SYMC, INFY, AMAT, PCLN, JBHT, BRCM, ESRX, CA, INTC, HANS, AKAM, ERTS, CERN, KLAC, VRSN, AMGN, DISH and FISV.
Stocks to Watch on Tuesday
Leading Stocks
Holding Above 30 DMA
DLB, WCG, ALGT, BDX, TSL, AFAM, GR, SYNA, MELI, PCLN, PCP, MON, TDG, X, BIIB, NTLS, NIHD, VPRT, URE, BLUD, GES, USD, BKC, CBST, SNA, FSLR, MYGN, RIMM, AMED, CLB, DV, ORCL, GMCR, UNG, HANS, SWN, CAM, MHS, CTSH, WAB, ESI, ICE, JEC, MOS, UYG, VAR, AMZN, AAPL, JOSB, ACN, DECK, EBAY, SLGN, FAS, USO, GS, JCOM
Moving Above 30 DMA = 12
ATW, AMX, BYI, CHL, CEDC, ESRX, GME, HDB, IPI, JOYG, MCD, WMT
Moving Below 30 DMA = 1
K
Staying Below 30 DMA
CGA, FAZ, HLF, BIDU, GILD, PWRD, FLS, FUQI
Intermediate Term Market Trend: Up
Short Term Market Trend: Up
9 comments:
Wow-
How about that SPX!
Okay David, I will do as you say and read the homework.
I read it earlier, but want to go over it again to make sure i didn't miss anything!
I love the title today! Chugga, chugga, chugga, chugga....success! That's what trends do!
Lois
Dave:
anonymous asked for more comments and I will be happy to chime in my two cents (actually your fine teaching has profited more than two cents). I love what you do and thank you for your years of dedication in doing it ... question to you, anonymous and others ... what types of additional commentary from your followers would be helpful and/or appreciated other than the kudos and thank you's that are so deserved. Melanie
I couldn't agree with you more, Dave, regarding the importance of following the trend. I made it a point in 2009 to follow the trend and filter out what other "experts" were saying that the market should or shouldn't do. I was much more successful and I noticed that trading became far less stressful. I love your blog.
Dave,
Good stuff here for sure !
BTW ... BUCY calls (10 contracts) I held from last week sure popped today - sold today + 250 % ...NICE
Thanks, I would not of even looked at BUCY last week if I was not on your site. For 2010 I will be a Dave follower vs. an occasional user.
Dave: Great ATA Capstone tonight! Appreciate the great start to 2010!
Thanks again for all you do.
Robert
CANI_212
Dave - tonight's capstone is one of the classics - this will be one that is referrred to and used for research - i cannot thank you enough as your students knowledge increases so does the material you cahallenge us with.
Here, Here-Well said Christine!! You are da WoMan!
Laney
Dave:
I love the blog. It is one thing to look at stocks and think about what we could do, especially in hindsight; however, as you say repeatedly, it is the actions that count, not the thought.
In adding to your quotes - here is another one that is appropriate:
"We must not, in trying to think abut how we can make a big difference, ignore the small daily differences we can make which, over time, add up to big differences that we often cannot foresee." Marian Wright Edelman.
After being with the group for a few years and seeing people come and go, many want big returns fast and don't think of the day to day ACTIONS that need to be taken. I need to remind myself on a regular basis. We need to remember it is what we choose to do/follow that gives us the results - sometimes we second guess or pick and choose the stocks or make soem changes we think are for the better. If we are not getting the results desired - think about what we are doing different from your instruction!
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