SPX Rises Prior to Strong Earnings from INTC...

Dave is in Atlanta teaching 200 + investors at an Advanced Technical Analysis Workshop...

DJIA        10,216.27 +146.75 +1.44%
SP500       1,095.34  +16.59  +1.54%
COMPQ    2,198.36  +43.67  +1.99%
Russell 2000  621.61 +21.21  +3.41%


Exchange     NYSE  NASD
Advancing     2,683  2,248
Declining          390     455
 
Oil               $77.15   +1.92
Gold       $1,213.30 +14.80
SOX            362.83  +7.50
VIX               24.56  +0.13


Index     Direction Confirmation
VIX         Up            No – SPX
SOX        Up            Yes – COMPQ

Both INTC and FAST reported better than expected earnings after the close.  INTC also raised guidance for Q3 on strong demand.  INTC is a bellwether company for technology and the economy.

The first five companies report better than expected earnings.  Strong earnings can be the basis for a continuing up trend.
FAST reports 47 cents vs 44 cents est.
INTC reports 51 cents vs 43 cents est.
AA reports 13 cents vs 12 cents est.
CSX reports 1.07 vs 98 cents est.
NVLS reports 66 cents vs 60 cents est.

Earnings of interest of leading companies include:
Wednesday – CTAS, MAR
Thursday – AMD, AMX GOOG, JBHT, JPM
Friday – BAC, C, GE

Guidance:
SPX formed another higher high and higher low making its highest close since June 21.
The SPX closed above its 30 DMA for the third straight day.
The VIX did not confirm the higher close in the SPX.
Breadth was strong as advancers led decliners by 6 to 1 on the NYSE.

Stocks rallied and did not confim Monday's potential hanging man on the SPX. The short term trend continued up.

Continue to trade strong stocks up with an entry signal or bounce continuation.

The entry for down trending stocks is a break below the low of the high day.

The VIX rose +0.13 and closed at 24.56. Volatility stayed below the important 25 level on Tuesday on the second day of earnings season. If VIX stayed below 25 as the SPX rally continued. 
The short term 3 day trend is up.
The two-month trend is neutral.
The twelve-month trend is up.

Continue to focus on and trade setups on the charts of the stocks you watch, trade with the trend of the chart and follow your rules.

AAPL -5.48
QCOM +0.85
GOOG +13.37
BIDU +3.65
NDX 100 stocks stronger than the NDX include: PCLN, FLEX, KLAC, PCAR, BIDU, CHKP, JOYG, EXPE, PPDI, ADSK, VRSN, WYNN, LRCX, EBAYand YHOO.

Stocks weaker than the NDX: INFY, FAST, CERN, AAPL, APOL, HANS, GENZ, NIHD, SRCL, BRCM, AMGN, ESRX, DTV, FSLR and URBN.

Stocks to Watch on Wednesday
Holding Above 30 DMA
TLT, CHL, CREE, CRUS, GMCR, HANS, TSL, ACN, HSY, ATW, BUCY, CAT, CRM, DLR, FFIV, HAS, HLF, MA, NETL, NFLX, PCLN, PNC, TIE, V, VECO, VMW, AGU, CAM, MCD, NTRI, DE, DOW, GS, STI, ZION, FAS, SNDK, UAUA, UNP, USD
Moving Above 30 DMA = 16
AIV, AMX, BAC, FCX, FLS, GES, GR, IPI, PCP, SPG, SWK, UCO, URE, USO, WMT, X
Moving Below 30 DMA = 0

Staying Below 30 DMA
BA, MOS, FAZ, UNG, CLF, CMG, DECK, LVS, NYX, SKX, SWN, ICE, A, AMD, LXK, ATI, DHR, MHS, WHR, WLT, POT, WFMI, CSTR, ESI, BYI, JEC, GME, AKS

Intermediate Term Market Trend: Neutral
Short Term Market Trend: Up