SPX, Another New High Close...

Went down the the university this evening to watch Tannes play in a basketball game.  His team won 67 - 34.  He was the shortest guy on the court and he scored 22 points.  Way to go, Tannes!  Oh yeah, he also had five steals that set up some of those points...

Have a safe and relaxing three day weekend, everyone!

The SPX opened slightly higher and closed up +9.48 at 1,293.24 on Friday, its highest close since August 28, 2008.   The SPX closed less than a point from its short term breakout, on Wednesday, price target of 1,294. 

(click image to enlarge)

SPX large white candle, new high close

INDU large white candle, new high close

COMPQ large white candle, new high close

RUT large white candle, horizontal breakout, new high close

Breadth strengthened on Friday as advancers led decliners 1.36 to 1 on the NYSE and 1.77 to 1 on the NASDAQ…

Exchange       NYSE          NASDAQ

Advancers      1,725              1,711

Decliners        1,262                963

(click image to enlarge)

Index              Chg.    Close   Direction     Confirmation

VIX                  -0.93     15.46    Down          Yes – SPX

SOX             +11.77    451.59    Up               Yes – COMPQ

Leading stocks > 1% on Friday included PNC, JEC, FAS, HUM, ZION, BAC, SINA, MOS, SLB, CF, SNDK, SMH, HANS, CRUS, CMG, IPI, NETL, STI, GS, UNG, ESI, MCD, LVS, CRM, LXK, CLF, DECK, VMW, HOLX, URE, MA, UCO, ARUN, TBT, CAM, NDAQ, POT 

Losing stocks < -1% included CSTR, PCX, WLT, MCP, FAZ, TSL, CREE, LDK, X, AKS, GES, GME, HLF

Positives – SPX, VIX, NDX, SOX, EURO, AAPL, AMZN, BIDU, GOOG, advancers gained, TNX higher, bonds lower

Negatives – TRAN, PCLN

Interest rates moved higher on Friday and bonds moved lower. The Euro rose 26 pips to 1.3388 at 5 pm ET.

Eight of nine sectors moved higher on Friday with Financials XLF +1.61% and Energy XLB +1.08% leading all sectors for the second straight day.

Earning reports will be the driver next week as AAPL and IBM lead off on Tuesday.

Earnings
Tue – AAPL, CREE, IBM, LLTC, POT
Wed – EBAY, FFIV, GS, STT, STX, XLNX
Thu – GOOG, FCX, ISRG, MXIM, SBUX, UNP
Fri – BAC, GE

SPX

Resistance: 1,281, 1,300

Support: 1,256, 1, 241, 1,220

The short term 3 day trend is up.
The six-month trend is up.
The twelve-month trend is up.

Trade with the trend of the chart you are trading.

Bullish entry signal is a bounce off support and a break above the high of the low day or a break out of horizontal resistance.

Bearish entry signal is a break of short term support or a bounce down from the 30 DMA or other resistance.

 

AAPL +2.80 – white candle, new high close

AMZN +3.22 – large white candle, new high close, breakout

NFLX -0.01 – spinning top, above breakout after MACD bullish divergence

QCOM +0.17 – hammer in bull flag

GOOG +7.49 – large white candle, recent new high close

BIDU +1.48 – white candle, recent new high close

NDX 100 stocks stronger than the NDX include AMAT, ALTR, KLAC, LRCX, ISRG, BRCM, LLTC, MCHP, AKAM, SNDK, XLNX, CHKP, VRTX, MRVL and FISV.

Stocks weaker than the NDX: CTRP, ATVI, INFY, BIIB, LIFE, URBN, INTC, QGEN, DELL, ILMN, CHRW, TEVA, ERTS, DLTR and FSLR.

Stocks to Watch on Tuesday
Holding Above 30 DMA
SINA, WLT, NDAQ, SMH, RVBD, CAT, FWLT, PCX, CLF, VMW, SNDK, CRUS, HOLX, FCX, A, DHR, DOW, PNC, DE, FAS, JEC, STI, SWK, ZION, ACN, BAC, NYX, IPI, MCP, ATI, CF, GS, URE, AGU, MOS, POT, UNP, BA, SWN, UNG, ARUN, NETL, LVS, VECO, CRM, TBT, TSL, DLR, GMCR, HANS, HUM, HSY, UAL, LDK, MHS, NTES, UCO, CAM, CHL, SLB, SOHU, TIE, ATW, ESI, FDX, SKX, CMG, PCP

Moving Above 30 DMA = 5

DECK, LXK, MA, SPG, WHR

Moving Below 30 DMA = 2

AMD, HLF

Staying Below 30 DMA
CREE, X, AKS, AIV, GME, ICE, GES, TLT, HAS, V, CSTR, MCD, FAZ

Symbols Removed – BYI, CAKE, FLS, INFA, GR, USD – primarily small and less efficient options trading

Symbols Added - SMH

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



Week 2 is completed. Just 50 weeks left to go as we move towards our objective to make 2011our best year ever. How did you do?

Again evaluate your trades for the week. Did you buy, hold and sell where you were supposed to according to your rules?

Give yourself an A+ or 10 for each trade that you did follow your rules.

New step for week 2. How did your portfolio do compared do compared with the following indexes? If you outperformed the SPX give yourself an A-, the NDX an A and the SOX an A+.

          Week 2     YTD
SPX   1.71%       2.83%
NDX   2.05%       4.76%
SOX   6.07%       9.66%

Step 3 take your annual goal that you sent in to Chart Signals and divide that goal by 52 weeks and multiply by 2. How does your week 2 results compare to your goal? If you are at the goal or higher give yourself and A+.