Tuesday, November 2, 2010

SPX Holds Gains to Make a New High Close at 1,193 on Election Day...

The SPX closed up +9.19 or +0.78% on Tuesday making a new high close at 1,193, its highest close since May 3…the COMPQ also made a new high close
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MHS and NTRI rise after strong earnings…LVS and WYNN rise prior to WYNN earnings after the close…WYNN reported better than expected revenues and $8 dividend… Breadth strengthened from Monday as advancers led decliners by 2.84 to 1 on the NYSE and 2.7 to 1 on the NASDAQ

Exchange     NYSE    NASDAQ
Advancers    2,219       1,959
Decliners        779          710
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Index   Direction Confirmation
VIX        Down       Yes – SPX
SOX       Up           Yes – COMPQ

Leading stocks on Tuesday included MHS, NTRI, ARUN, VECO, BYI, GMCR, LVS, GES, X, RVBD, TSL, MA, AKS, PCP, CREE, WHR, NFLX, CSTR, CRUS, UCO, SOHU, AMD, SKX, SINA, SPG, CMG, WLT, PCLN, SLB, JEC, NDAQ ESI, DOW, GR, WFMI, CRM, FCX, HAS, CLF, V, GME, ATW, URE, VMW, FLS, TLT, DE, UNG, UNP, DHR, FAS, SWN

Losing stocks included HLF, IPI, NYX, TBT, AGU, ZION, FAZ, POT, CAM, BA, STI, TIE, BAC, AIV, MOS, ICE, PNC, HANS

Interest rates pulled back, bonds rose, the EURO rose, the SOX +0.74%. The VIX fell -0.26 to close at 21.57.

All nine sectors moved higher on Tuesday with Utilities XLU +1.18% and Consumer Discretionary XLY +1.10% leading all sectors.

PCLN made a new high close and AAPL and RVBD each had a support bounce entry signal.

Charts to Watch – Flag Setups AMZN, BIDU, NFLX, UAL, TBT, AKAM, GS, BRCM, ILMN, KLAC, URE, LIFE, STX
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Potential Breakout Setups DE, VECO, STLD, SOHU, SINA, MAR

Potential Bearish SetupsCRM, X, V, CREE, TIE, TSL, TLT, VMW, INFY, FSLR, APOL, ISRG, BUCY, LZ, EAT

Continue to trade with the trend and simultaneously be prepared for any break of support.

SPX
Resistance: 1,190, 1,200, 1,209
Support: 1,182, 1,170, 1,148, 1,130

Since the SPX did not close above its intraday highs on Oct 25 and Nov 1 we maintain a short term neutral that we will change to up with a close above 1,196.

The short term 3 day trend is neutral.
The two-month trend is up.
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 +5.18 – white candle confirms bullish harami in bull flag pattern
QCOM +0.05 – black spinning top new high close by 5 cents EPS on Wednesday
GOOG +0.60 – black spinning top
BIDU +2.40 – white bullish harami

NDX 100 stocks stronger than the NDX include ESRX, WYNN, ADBE, STLD, FAST, ERTS, EBAY, FSLR, LINTA, ROST, BIDU, FWLT, CTAS, NVDA and LRCX.

Stocks weaker than the NDX: VRTX, INTC, GRMN, ORLY, CHKP, TEVA, EXPD, HANS, HOLX, WCRX, DELL, RIMM, VRSN, DISH and AMGN.

Stocks to Watch on Wednesday
Holding Above 30 DMA
HLF, PCLN, AGU, MCD, LVS, CMG, FCX, SINA, VOD, AIV, CAKE, CAM, DE, DHR, DOW, UNP, URE, WLT, A, HAS, IPI, ICE, ATW, SLB, ACN, AMX, NDAQ, UAL, USD, MA, HSY, AMD, V, ATI, BA, DECK, GR, UCO, CF, GS, SPG, HANS, MOS, VECO, CSTR, RVBD, TBT, WFMI, NYX, NFLX, NTES, PCP, PNC, BYI, INFA, MHS, NETL, CRM, FFIV, GMCR, ARUN, SWN, ESI, CAT, CLF, POT, JEC
Moving Above 30 DMA = 5
FAS, GME, NTRI, SWK, X
Moving Below 30 DMA = 1
HSY
Staying Below 30 DMA
FDX, SNDK, FLS, GES, SKX, WHR, ZION, LXK, CHL, STI, CREE, AKS, TIE, FAZ, RMBS, TSL, BAC, CRUS, TLT, DLR, VMW, UNG

Intermediate Term Market Trend: Up – 2 months
Short Term Market Trend: Neutral

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