SPX closed up +4.39 or +0.37% on Wednesday after wide swings just before and after the widely expected FOMC announcement. The SPX traded in a 14 point range before finally closing at a new high close of 1,197. The COMPQ also made a new high close…
(click image to enlarge)
Exchange NYSE NASDAQ
Advancers 1,721 1,472
Decliners 1,260 1,133
(click image to enlarge)
Index Direction ConfirmationVIX Down Yes – SPX
SOX Up Yes – COMPQ
Leading stocks on Wednesday included FFIV, CSTR, TBT, STI, NETL, ZION, UCO, TSL, FAS, MA, PNC, USD, CMG, VOD, X, SNDK, SWN, LVS, NTRI, WFMI, AMD, VMW, HLF, LXK, UNP, VECO, UAL,NYX, IPI, BAC, SLB, DEC, CREE, RMBS, SINA, CRM
Losing stocks included ESI, TIE, AGU, FLS, FAZ, TLT, GMCR, MOS, CF, NTES, UNG, DLR, GES, BYI, ICE, SOHU, INFA
Interest rates pulled back, bonds fell, the Euro rose and the SOX was +3.62%. The VIX fell -2.01 to close at 19.56.
Seven of nine sectors moved higher on Wednesday with Financial XLF +0.99% and Technology XLK +0.57% leading all sectors.
QCOM rises +7.18% in after-hours trading following better than expected earnings and raised guidance. IPI is up in after-hours trading after strong earnings.
This morning at the open I discussed the “well-telegraphed” Fed announcement and that it was a non-factor because it was already known by the market and that in order for the market to change there would need to be new information. I also pointed out that price could easily fluctuate inside its channel of the past few weeks and that the market would likely gyrate just before and after the announcement at 2:15 pm ET inside of the trend channel. Three for three as the market behaved exactly as described at the beginning of the day.
Dave’s Insight: The technical principle “history repeats itself” is a useable concept in making good trading decisions as proven today.
AMZN, BIDU, UAL, TBT, BRCM, KLAC, LIFE and TSL each had a support bounce entry signal on Wednesday.
Charts to Watch – Flag Setups NFLX, AKAM, GS, ILMN, URE, STX
(click image to enlarge)
Breakouts – STLD, X, F, FFIV
Potential Breakout Setups – DE, VECO, SOHU, SINA, MAR, CRM, VMW, INFY, ISRG, BUCY
Continue to trade with the trend and simultaneously be prepared for any break of support.
SPX
Resistance: 1,200, 1,209
Support: 1,190 1,182, 1,170
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.
Wait to enter a bearish trades for a close below of the low of the high day.
The short term trend is up as the SPX closes above its intraday highs on Oct 25 and Nov 1.
The short term 3 day trend is up.
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 +3.44 – white candle flag bounce continuation
QCOM +0.31 – white candle bounce off 30 DMA
GOOG +4.58 – white spinning top
BIDU +1.10 – white candle confirms bullish harami bull flag entry signal
NDX 100 stocks stronger than the NDX include URBN, AMZN, CSCO, ILMN, DISH, EXPD, LRCX, NWSA, INTC, BRCM, ISRG, AKAM, STLD, FLIR and MCHP.
Stocks weaker than the NDX: GRMN, ERTS, SYMC, VRTX, BBBY, MSFT, GILD, WYNN, SHLD, ORCL, JOYG, COST, APOL, ROST and CHRW.
Stocks to Watch on Thursday
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, CAT, CLF, POT, JEC, FAS, GME, NTRI, SWK, X
Moving Above 30 DMA = 3
FDX, HSY, SNDK
Moving Below 30 DMA = 1
ESI
Staying Below 30 DMA
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: Up
3 comments:
Dave, you have recently mentioned many times that if interest rates go up the financials will finally get on board. But after todays decision wouldn't you now expect the rates to drop?
Shortstar,
I don't expect in the way you are using the word expect. I just trade the chart...It doesn't matter what I expect...Financials went up 0.99% today...
It is not the short term rate that the Fed moves, it is the market rate that matters and the market rate is driven by demand...
Cheers,
Dave
Good night DAVE! Thanks for the flag and breakout ideas in your post. I sure enjoy your blog! Have a great evening! Judy
Post a Comment