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The SPX moved higher on Friday...Thursday's potentially bearish candles on all four broad indexes were NOT confirmed on Friday...SPX horizontal resistance is at 1,115 and 1,130...
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The RUT, which was a leading index prior to the three day weekend, was the lagging index during the shortened four day trading week as you can see on the weekly candles...a lagging RUT can be a red flag in a rally, but that lack of confirmation is partially offset by the buying this week at the RUT's weekly S1 which is bullish...
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Exchange NYSE NASDAQAdvancers 1,938 1,410
Decliners 1,054 1,164
VIX, SOX, Oil, Gold
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Index Direction ConfirmationVIX Down Yes – SPX
SOX Down No – COMPQ
Leading stocks on Friday included UCO, CAM, FLS, MA, ATI, USO, ESI, ATW, GES, UNG, CMG, V. GR, WLT, AIV, CAN, MHS, FCX, SWN, DOW, TIE, MOS, X, ICE, LXK, URE, CAT, WFMI, MCD, GS, NDAQ, NTRI, DE
Biggest losers included CRUS, CSTR, WHR, SNDK, CHL, ZION, BYI, USD, RVBD, FFIV, CREE, VECO, NETL, DECK, STI, TSL
The SPY traded 127 million shares on Friday, which was its second lowest daily volume of the past three months. For the four day trading week SPY traded just 566.8 million shares. The SPY traded 909.3 million shares Tuesday to Friday of the prior week leading into the Labor Day weekend. Look for volume to pick up next week and absent any negative surprises look for the current short term up trend to continue into the horizontal resistance of the intermediate term sideways trend.
All sectors except XLU rose on Friday led by Energy, Healthcare and Industrials. Advancers led decliners 1.8 to 1 on the NYSE.
Stay focused on and trade according to the chart on Monday.
Breakout Setups for Monday include CAM, FLS, LXK NIHD, SBUX, ADSK, AIV, DOW, X, URE, CAT, PCP, DHR, DLR and UPS
Look at these Charts
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SPX
Resistance: 1,115, 1,130
Support: 1,100, 1,086, 1,071
The SPX made a new high close at 1,109.55 on Friday which suggests trend continuation to the upside on Monday. Trend and momentum are up with many breakout stocks holding above old resistance now new support. Friday is triple witching options and futures expiration.
Look to enter bullish trades with a breakout of horizontal resistance or a bounce off support and a break above the high of the low day. There are numerous stocks in our list that have already broken resistance and have paused or pulled back over the past one to three trading days which may be potential entries on Monday.
Wait to 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 fell -0.82 to 21.99, continuing below the benchmark 25, again suggesting trend continuation.
The short term 3 day trend is up.
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 +0.34
QCOM -0.48
GOOG -0.04
BIDU +0.50
NDX 100 stocks stronger than the NDX include: NIHD, ORCL, SHLD, CELG, FLIR, CMCSA, SBUX, BBBY, CA, FWLT, SPLS, ADSK, WCRX, RYAAY and LINTA.
Stocks weaker than the NDX: MXIM, MCHP, DELL, STX, LLTC, MRVL, ADBE, RIMM, LOGI, KLAC, STLD, AKAM, QCOM, INTU and NVDA.
Stocks to Watch on Monday
Holding Above 30 DMA
HANS, 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, NYX, PCP, SWK, UNP, UPS, URE, WLT, WMT, A, BYI, GMCR, HAS, IPI, JEC, LXK, AKS, CAT, ICE, X, BAC, FAS, FDX, FLS, GS, MHS, ATW, STI, TBT
Moving Above 30 DMA = 2
ACN, ATI
Moving Below 30 DMA = 2
RMBS, ZION
Staying Below 30 DMA
DECK, TLT, UAUA, VECO, CHL, GR, HSY, NTES, V, FAZ, GES, CSTR, NDAQ, AMX, GME, MA, SNDK, BA, CRUS, CREE, TIE, UCO, USO, USD, PNC, SWN, UNG, WFMI, NETL, SKX, AMD, NTRI, ESI, WHR
Intermediate Term Market Trend: Neutral
Short Term Market Trend: Up
3 comments:
Dave, your comments about diversification were extremely enlightening and liberating. Thank you for your honesty as well as your incredible insights.
Dave, thanks for the effort keeping us on track.
The first image doesn't enlarge when clicked on. You can use this link to see it though
http://4.bp.blogspot.com/_0oqRVVx5T8U/TIwSV_HmHOI/AAAAAAAABgs/Fhn_wuf1MNA/s1600/SPX+Grid+9-10-2010+weekend.png
Dave, Thank You for All You do for us students!!
The amount of detail that I'm hearing you describe, is absolutely WONDERFUL ($RUT wkly candle comparison)!!! It inspires me to really want "to get this"!
Although, the next 3weeks, I wish you & your classes safe travels & All The Best... Selfishly, having you "Live" for only the AIT & Fri's Wrap just makes me anticipate Thurs & Fri that much more.
All The Best,
Scott L of Nashville
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