Thursday, October 7, 2010

SPX Holds Above Support as Tech Stocks Rebound...

The SPX formed slightly higher high while forming a potential hanging man and the NASDAQ recovered from Wednesday’s sell off and move slightly higher…
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Exchange     NYSE     NASDAQ
Advancers    1,365        1,166
Decliners      1,605        1,468
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Index     Direction     Confirmation
VIX           Up              Yes – SPX
SOX          Up              Yes – COMPQ

Leading stocks on Thursday included GES, UAL, HLF, SKX, SINA, TSL, A, FFIV, TBT, CAN, CMG, FAZ, LXK, DLR, X, MOS, IPI, NFLX, DOW, USD, ICE, AIV, VECO, NTES, UNP, FLS, MCD

Losing stocks included UNG, UCO, WLT, RVBD, STI, TIE, WFMI, NYX, FCX, USO, GMCR, CAM, CRUS, DECK, SWN, CSTR, ATI, BYI, ATW, ESI, WHR, JEC, AGU, GME, HANS, PNC, AKS, FAS, BUCY, MA, AMX

The tech stocks that were hit hard on Wednesday were mixed on Thursday. CTXS, FFIV, NFLX, NTAP, AMZN, BIDU and AKAM moved higher. While CRM, RVBD, VMW and PCLN moved slightly lower. CTXS, FFIV, NTAP, AMZN, AKAM, VMW and PCLN all formed a hammer candle pattern.
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Bull Flag Setups for Friday: BIDU, CTSH, EXPE, ESRX, ILMN, INFY, LVS, MICC, NVDA, NTAP, PCLN, SHLD

Horizontal Breakout Setups for Friday: BUCY, GILD, JOYG, ZION

Interest rates were flat, bonds moved lower, the EURO rose, the SOX moved higher and the VIX was near unchanged but slightly higher.

Consumer Discretionary +0.47%, Healthcare +0.20% and Utilities XLU +0.19% rose on Thursday and Financials XLF -0.41% were lower by six cents.

Decliners led advancers 1.17 to 1 on the NYSE

SPX
Resistance: 1,170, 1,182
Support: 1,148, 1,130, 1,115

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 for a bounce down from resistance or a close below of the low of the high day.

The VIX rose +0.07 to 21.56, and is still below the 25 benchmark level.

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    +0.03 – potential hanging man
QCOM  -0.10 – spinning top
GOOG  -4.34 – black candle
BIDU   +0.09 –black spinning top

NDX 100 stocks stronger than the NDX include: ADBE, STX, VRTX, INTU, ROST, EXPE, CHKP, AKAM, ADSK, GILD, MXIM, FSLR, FLEX, EBAY and NTAP.

Stocks weaker than the NDX: ILMN, YHOO, ISRG, LOGI, URBN, PPDI, SPLS, FLIR, HANS, CERN, APOL, LINTA, LRCX, CEPH and WYNN.

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

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

5 comments:

Judy said...

Good morning Dave! Thanks for the watch list ideas. I enjoy reviewing your ideas against what I see. Your strong trading abilities sure help my confidence. I'll be listening to the WSWU later as I work my real job. Take care, Judy

Brian McAllister said...
This comment has been removed by the author.
Brian McAllister said...

Dave,

Your blog Wednesday and the AIT Thursday (short but chock full of good info) were among your recent best. New lessons learned on the path to successful trading. I just signed up for the 4-day live and look forward to seeing you in person again.

Thanks,

Brian

Anonymous said...

Everyone and Dave,

I hear lots of people talking about the Gold bubble bursting. So, does that mean it does not burst yet and keeps going up?

Thoughts?

DW

Unknown said...

Thanks for your daily teaching, Dave! Your point of "rotation" is certainly circulating among diff trades. I am new and slowly seeing the patterns.

Very looking forward to seeing you in the 4-day training in UT.
--Jessica, FL