Wednesday, October 13, 2010

SPX Hits 1,184 and Closes at 1,178...

The SPX rose to 1,184 before pulling back to close at 1,178…Financials which led early in the day pulled back as interest fell were a key factor in the SPX closing below its high of the day…
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Exchange     NYSE    NASDAQ
Advancers    2,306      1,963
Decliners        725         713

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

Leading stocks on Tuesday included VECO, RVBD, FCX, UNP, CREE, IPI, MA, TSL, V, WLT, SWN, WHR, TIE, GMCR, WFMI, UCO, UPS, NTRI, FDX, URE, A, ATW, BA, FLS, CRM, BYI, HSY, GR, JEC, DHR, AGU, VOD
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Losing stocks included GME, STI, USD, BAC, SKX, ESI, ZION, AMD, UAL, FAZ, NETL, HLF, CRUS, NFLX, AIV, SNDK, GS, ICE

Interest rates rose slightly but below their intraday high, bonds moved closed down slightly, the EURO rose, the SOX closed fractionally higher and the VIX closed higher +0.14 at 19.07.

All nine sectors moved higher led by Industrials XLI +1.65, Materials XLB +1.60% and Energy XLE +1.22%.

Advancers led decliners 3.18 to 1 on the NYSE.

SPY traded 194.2 million shares.

JPM reported 1.01 vs. consensus of 0.90 Wednesday morning with revenues reporting 300 million below expectations on $24.3 billion. JPM opened higher but sold off all day closing down 56 cents at 39.84 near Tuesday’s open. INTC also opened higher and moved lower closing down 53 cents at 19.24. While sellers moved both stocks lower after better than expected earnings, overall the market had a strong day finishing with its highest close since May 3.

Thursday Earnings: AMD, GOOG
Friday Earnings: GE

RVBD led the tech stocks that were swept lower in the analyst down grade effect last week as EQIX, CTXS, CRM, FFIV, VMW, AKAM and NTAP all rose for the second straight day on Wednesday.

SPX
Resistance: 1,182, 1,190
Support: 1,170, 1,148, 1,130

Enter bullish trades with a bounce off support and a break above the high of the low day or a break out of horizontal resistance.

Take bearish entry signals on a bounce down from resistance or a close below of the low of the high day.

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 +1.60 – potential tombstone doji
QCOM +0.61 – white spinning top
GOOG +1.91 – black spinning top
BIDU +0.33 – black spinning top confirms hammer

NDX 100 stocks stronger than the NDX include: YHOO, INFY, NVDA, FWLT, CSCO, ADSK, ORCL, MICC, FLEX, CTXS, RIMM, MSFT, GRMN, MRVL and SRCL.

Stocks weaker than the NDX: ISRG, INTC, LLTC, MCHP, ALTR, DISH, XLNX, ORLY, APOL, MXIM, AMZN, AMGN, IACI, HSIC and LINTA.

Stocks to Watch on Thursday
Holding Above 30 DMA
HLF, PCLN, AGU, MCD, LVS, NFLX, CMG, TSL, FCX, SINA, VOD, AIV, DE, DHR, DOW, PCP, SWK, UNP, URE, WLT, WMT, A, HAS, IPI, JEC, LXK, CAT, ICE, FAS, FLS, MHS, ATW, STI, ACN, AMX, GES, RMBS, ZION, NDAQ, UAL, USD, MA, NETL, ESI, HSY, CHL, FDX, NTRI, AMD, TIE, V, ATI, BA, DECK, GR, UCO, USO, WHR, AKS, BYI, CLF, GS, SPG, HANS, MOS, SNDK, SWN, UPS, VECO, SKX, CSTR, CREE, POT, RVBD, TBT
Moving Above 30 DMA = 3
WFMI
Moving Below 30 DMA = 2
BAC, GME
Staying Below 30 DMA
CRUS, X, FFIV, TLT, NYX, PNC, DLR, VMW, NTES, CRM, GMCR, FAZ, UNG

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

3 comments:

Unknown said...

Dave,

Thanks for the charts, particularly for the drawing analysis for the Leading stocks (e.g. VECO). They’re super helpful in training my eyes of understanding the trade signals. I am in Orlando, the two-day BO Training with Linda McCoy. She highly spoke about you to us numerous times of the day and even recommended us to watch you on Monday, Thursday, and Friday sessions. Your Advanced TA training in Aug in Orlando has been helping me make better decisions. Also, I had to share your this site with other classmates and my friends. Really appreciate your daily input/guidance! See you Friday at the Real Time Trade—First Annual Meeting in Orlando. And I am going to UT this Sunday for the upcoming 4-day live training with you. Can’t wait to learn from you, Dave! Thanks very much. God bless!—Jessica Min

Joe said...

Dave,
You make trading fun! The 4-Day Live was outstanding and thank you for taking the extra time to explain what you see. The blog is much more meaningful now that the 4-Day Live knowledge is beginning to stick. Anyone that has a chance will want to sign up for your 4-Day Live class and do it ASAP! Thanks for your passion and commitment to your students!
Much Gratitude,
Joe

Anonymous said...

Dave,
Thanks again for your in depth analysis and insights. You get my trading day off to a great start.

Gary A