TThe SPX closed up +1.12 or +0.09% on Monday forming another doji in a continuation of its short term neutral trend…the COMPQ has flattened out over the past three days…
(click image to enlarge)
NFLX, BIDU, FSLR and PCLN pulled back while AAPL GOOG, LVS and WYNN rose. Breadth weakened from Friday as advancers led decliners by only 1.1 to 1 on the NYSE and trailed decliners on the NASDAQ…Exchange NYSE NASDAQ
Advancers 1,561 987
Decliners 1,415 1,693
(click image to enlarge)
Index Direction Confirmation
VIX Up No – SPX
SOX Down Yes – COMPQ
Leading stocks on Monday included UCO, LVS, SPG, AIV, SWN, GMCR, LXK, AKS, CLF, HLF, URE, FCX, UNP, X, POT, USD, HAS, CAT, ATW, JEC, TBT, CAN, AMX, HANS, CSTR, BAC, PCP, CMG, SLB, AMD, CAM, GS, WFMI, VMW, WLT
Losing stocks included UNG, NFLX, VECO, TSL, CRUS, DECK,NTES, CREE, UAL, CRM, FLS, SINA, RVBD, GME, NTRI, ARUN, FDX, STI, ZION, PNC, IPI, SWK, GES, BUCY, MOS, FFIV, SOHU, V, SKX, TIE, CF, TLT, WHR, PCLN, HSY, SNDK, NYX, NETL, DE
Interest rates moved higher, bonds fell, the EURO fell, the SOX fell -0.32%. The VIX rose +0.63 at 21.83.
Three of nine sectors moved higher on Monday with Energy XLE +0.12% and Technology XLK +0.08% leading all sectors.SPX
Charts to Watch – Flag Setups TBT, UAL, RVBD, AKAM, GS, DE, NFLX, AMZN, BIDU, BRCM, ILMN, KLAC, URE, LIFE, STX
Potential Bearish Setups – CRM, X, V, CREE, TIE, TSL, TLT, VMW, INFY, BUCY
Continue to trade with the trend and simultaneously be prepared for any break of support.
Resistance: 1,182, 1,190, 2,000
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.
A break and/or close below the low of the high day can be a potential exit for short bullish trades. Entry for a bearish signal can be a close below of the low of the high day for a counter trend trade or the same entry on a down trending stock.
The short term 3 day trend is neutral.
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 +3.20 – bullish harami at support
QCOM +0.17 – black spinning top new high close by 1 cent EPS on Wednesday
GOOG +1.30 – doji
BIDU -2.86 – black candle in bull flag
NDX 100 stocks stronger than the NDX include INTC, DISH, APOL, WYNN, GRMN, PCAR, GILD, CHKP, MRVL, SYMC, MSFT, AAPL, ROST, SBUX and STLD.
Stocks weaker than the NDX: RYAAY, ADSK, BIDU, FSLR, LINTA, YHOO, FLEX, AKAM, EBAY, FWLT, AMZN, URBN, LRCX, RIMM and SHLD.
Stocks to Watch on Tuesday
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
Moving Above 30 DMA = 1
JEC
Moving Below 30 DMA = 5
FDX, GME, NTRI, SNDK, SWK
Staying Below 30 DMA
FAS, FLS, GES, SKX, WHR, ZION, LXK, CHL, STI, CREE, AKS, TIE, FAZ, RMBS, TSL, BAC, CRUS, X, TLT, DLR, VMW, UNG
Intermediate Term Market Trend: Neutral YTD - 8 week Up
Short Term Market Trend: Neutral
VIX Up No – SPX
SOX Down Yes – COMPQ
Leading stocks on Monday included UCO, LVS, SPG, AIV, SWN, GMCR, LXK, AKS, CLF, HLF, URE, FCX, UNP, X, POT, USD, HAS, CAT, ATW, JEC, TBT, CAN, AMX, HANS, CSTR, BAC, PCP, CMG, SLB, AMD, CAM, GS, WFMI, VMW, WLT
Losing stocks included UNG, NFLX, VECO, TSL, CRUS, DECK,NTES, CREE, UAL, CRM, FLS, SINA, RVBD, GME, NTRI, ARUN, FDX, STI, ZION, PNC, IPI, SWK, GES, BUCY, MOS, FFIV, SOHU, V, SKX, TIE, CF, TLT, WHR, PCLN, HSY, SNDK, NYX, NETL, DE
Interest rates moved higher, bonds fell, the EURO fell, the SOX fell -0.32%. The VIX rose +0.63 at 21.83.
Three of nine sectors moved higher on Monday with Energy XLE +0.12% and Technology XLK +0.08% leading all sectors.SPX
Charts to Watch – Flag Setups TBT, UAL, RVBD, AKAM, GS, DE, NFLX, AMZN, BIDU, BRCM, ILMN, KLAC, URE, LIFE, STX
(click image to enlarge)
Potential Bearish Setups – CRM, X, V, CREE, TIE, TSL, TLT, VMW, INFY, BUCY
Continue to trade with the trend and simultaneously be prepared for any break of support.
Resistance: 1,182, 1,190, 2,000
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.
A break and/or close below the low of the high day can be a potential exit for short bullish trades. Entry for a bearish signal can be a close below of the low of the high day for a counter trend trade or the same entry on a down trending stock.
The short term 3 day trend is neutral.
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 +3.20 – bullish harami at support
QCOM +0.17 – black spinning top new high close by 1 cent EPS on Wednesday
GOOG +1.30 – doji
BIDU -2.86 – black candle in bull flag
NDX 100 stocks stronger than the NDX include INTC, DISH, APOL, WYNN, GRMN, PCAR, GILD, CHKP, MRVL, SYMC, MSFT, AAPL, ROST, SBUX and STLD.
Stocks weaker than the NDX: RYAAY, ADSK, BIDU, FSLR, LINTA, YHOO, FLEX, AKAM, EBAY, FWLT, AMZN, URBN, LRCX, RIMM and SHLD.
Stocks to Watch on Tuesday
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
Moving Above 30 DMA = 1
JEC
Moving Below 30 DMA = 5
FDX, GME, NTRI, SNDK, SWK
Staying Below 30 DMA
FAS, FLS, GES, SKX, WHR, ZION, LXK, CHL, STI, CREE, AKS, TIE, FAZ, RMBS, TSL, BAC, CRUS, X, TLT, DLR, VMW, UNG
Intermediate Term Market Trend: Neutral YTD - 8 week Up
Short Term Market Trend: Neutral
4 comments:
Dave,
I had a bull flag target of 110.99 on WYNN and a market order for 110.59 that filled today. Thanks to your coaching, I gave somebody else a .52 tip.
Dave
I enjoyed your session tonight, so many observations to absorb. I like placing the entry order based on the stocks price but wonder how I would figure my trade risk and how many contracts I should purchase if I do not know the price I will be filled at. Currently my risk is 2% of account per trade. I set a stop to close the trade if my loss is 50%. I can see the advantage of closing based on the support as I have been stopped out before when the stock had not broken what I felt was support. Thank-you again for a great session tonight.
Val,
I have covered the answer many times in past sessions. Simply take the stock risk, entry - stop, and multiply it by the delta of the option. That is your option risk.
Cheers,
Dave
Thank-you for your response. Although we have been with Investools for many years we were not registered to take part in the Trading Rooms. Last night was my first Capstone and I thought that you must have covered it many times so I didn’t take time asking in the session. I now see all of the archives and will listen and retake the courses online. I look forward to many more sessions and reading your Chart Signals Blog. Mahalo! Val
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