The four broad indexes are in a two day bull flag with the INDU and the SPX the strongest and the COMPQ and RUT the weakest…The SPX which broke out of its 1,130 horizontal resistance on Monday continues above that level in its bull flag…
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Exchange NYSE NASDAQAdvancers 1,129 877
Decliners 1,892 1,767
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Index Direction ConfirmationVIX Up Yes – SPX
SOX Down Yes – COMPQ
Leading stocks on Wednesday included NFLX, LVS, FAZ, TIE, TSL, CLF, FCX, AN, AGU, MOS, AMD, MHS, ATW, V, MA, TLT, FDX, UPS, SNDK, AMX, UNG, BUCY
Losing stocks included SKX, RVBD, FAS, ZION, UAUA, SINA, X, GMCR, DECK, BYI, CRUS, FFIV, HAS, NYX, NETL, USD, PNC, WHR, CRM, GS, URE, LXK, TBT, DLR, BAC, AIV, CMG, GR, WFMI, STI, DE, NTRI, CSTR, A, CREE, SPG
On Monday in my Technical Analysis Workshop in Seattle, I pointed out that NFLX was setting up a potential entry if it went above the high of the low day. Tuesday I pointed out that the chart did give a buy signal and that the chart target was 160. On Wednesday it moved big towards that target even though the market went down. LVS gave and entry signal today and TSL and BUCY are setup for potential entry on Thursday.
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SPX
Resistance: 1,148, 1,170
Support: 1,130, 1,115, 1,100
The SPX pulled back for a second day following Monday’s breakout and held near Monday’s S1 level closing at 1,134, staying above 1,130.
Be prepared to enter bullish trades with a bounce off support and a break above the high of the low day as many up trending stocks are in two day bull flags right now.
Exit short term trades according to your rules with a break below the low of the high day. Wait on bearish entry signals for a bounce down from resistance or a break of the low of the high day.
The VIX rose +0.16 to 22.51, and is still below the 25 benchmark level.
The short term 3 day trend is neutral still above 1,130.
The three-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 +3.98 – large white candleQCOM -0.21 – potential hanging man
GOOG +2.54 – white candle inside day just above horizontal resistance
BIDU +0.62 – spinning top inside day
NDX 100 stocks stronger than the NDX include: SHLD, ORLY, ROST, COST, ORCL, AAPL, RIMM, ESRX, AMGN, JOYG, NVDA, ATVI, AMZN, GENZ and BIDU.
Stocks weaker than the NDX: ADBE, BIIB, AKAM, ADSK, ALTR, HOLX, NIHD, STX, BRCM, CTXS, XLNX, FLEX, MCHP, NWSA and MSFT.
Stocks to Watch on Thursday
Holding Above 30 DMA
HLF, PCLN, RVBD, AGU, MCD, POT, FFIV, LVS, NFLX, VMW, CMG, CRM, TSL, CLF, FCX, SINA, SPG, VOD, AIV, BUCY, CAM, DE, DHR, DLR, DOW, PCP, SWK, UNP, UPS, URE, WLT, WMT, A, GMCR, HAS, IPI, JEC, LXK, AKS, CAT, ICE, BAC, FAS, FDX, FLS, GS, MHS, ATW, STI, ACN, ATI, AMX, GES, PNC, RMBS, ZION, NDAQ, UAUA, USD, VECO, MA, NETL, ESI, GME, HSY, WFMI, GR, CHL, FDX, HANS, NTRI, WHR, AMD, BA
Moving Above 30 DMA = 4
CLF, TIE, TLT, V
Moving Below 30 DMA = 4
BYI, DECK, HANS, NYX
Staying Below 30 DMA
TBT, PNC, X, NTES, UCO, USO, FAZ, CSTR, SNDK, CRUS, CREE, SWN, UNG, SKX
Intermediate Term Market Trend: Neutral
Short Term Market Trend: Neutral
1 comment:
Are you still in Seattle? Didn't know you were in town but have been waiting so long for you to come back so I could pop in to thank you in person. I am a former phd student, full time trader and long time follower. I will be forever grateful for all your teachings and dedications to your students and to this blog.
Thank you for "paying it forward" to others everyday. I try to do the same. You inspired me!
Let me know if you're still in Seattle.
Thanks,
Peggy ps) the NFLX trade rocked!! day traded the weeklies and swung the Octobers! Great call! See I didn't even hear you call that out but you trained me well on what a great set up looks like and when to take action!
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