Check Out the AAPL 335 Call from Monday Night...SPX, AAPL Break the High of the Low Day...

Monday night I placed a virtual trade on AAPL and SPY.  I also pointed out the bullish candles on AMZN, BIDU, GOOG, NFLX, PCLN and QCOM and pointed out STLD and ZION for gap trade setups.  I encouraged everyone to do at least the AAPL and SPY virtual trades and consider doing virtual trades on the other setups.

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Last night I placed a real time virtual order to buy 8 335 weekly calls at limit of 6.40 if AAPL moved above 332.48.  I used the weekly because this trade is to be closed out no later than just before the close on Wednesday since AAPL reports earnings after the close tomorrow.  Since this was at most a two day trade, three days of time was just fine.

The calls filled a 7:31:12 at 6.40.  I used $5,120 of capital and placed the stop at 319.75 risking approximately $3,700 to make the trade.  AAPL closed at 337.86 and the weekly 335 calls closed at 8.475 for a gain of 2.275 or $1,660.  That is a 32.4% gain in one day. 

With only one day left in the trade the stop should be moved to at least breakeven.  Some traders of course decide to set the stop at a level that would protect $830 of profit or another amount.  We also placed a sell market at 341.38.

The 35 May 132 calls on SPY also filled on their conditional order at 131.05.  The calls filled at 1.62 and closed at 1.66 for a gain of $140.

The SPX formed a white candle that closed above its 30 DMA, +7.48 at 1,312.62.

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SPX white candle, above 30 DMA +0.57%

INDU white candle, above 30 DMA, +0.53%

COMPQ hammer, above 30 DMA, +0.35%

RUT spinning top, just above 30 DMA, +0.18%

Breadth strengthened on Tuesday as advancers led decliners 2.04 to 1 on the NYSE and 1.02 to 1 on the NASDAQ …

Exchange       NYSE          NASDAQ

Advancers      2,018             1,315

Decliners           987              1,283

Index              Chg.    Close    Direction      Confirmation

VIX                 -1.13       16.96     Down            Yes – SPX

SOX              +1.82     425.26     Up                 Yes – COMPQ

Leading stocks > +2% on Tuesday included SINA, AKS, X, MHS, POT, MOS, ATI, ZION, ARUN, IPI, UNG, IAG, SWKS, SLW, AGU, CLF, WLT, VLO, GMCR, SOHU, FCX, WDC, FWLT, CAT

Losing stocks < -2.0% included CSTR, ESI

Positives – SPX, INDU, COMPQ, RUT, NDX, RUT, AAPL, BIDU, GOOG, NFLX, PCLN, breadth and sectors strengthened

Negatives – GOOG, TNX, TBT

Interest rates TNX -0.15 moved down and bond ETF TLT moved up 40 cents.  Financial stocks XLF rose 5 cents. The Euro moved up 101 pips to 1.4233 at 5 pm on Tuesday.

All nine sectors moved higher on Tuesday.  Materials XLB +1.78% and Energy XLE +1.01% were the strongest sectors. 

Key Earnings this week:

C, STLD and ZION closed higher after reporting earnings on Monday.  TXN closed lower.

Tuesday – INTC, ISRG, LLTC, MICC, STT, WYNN, YHOO, CREE, CSX, GS, HOG, JNJ, JNPR, RF, STT, SYK, VMW

INTC, WYNN, YHOO, JNPR, VMW gapped up in after-hours trading after reporting earnings.  ISRG and SYK gapped lower.

Wednesday – AAPL, GILD, FFIV, VMED, LRCX, QCOM, AMGN, AXP, AMR, DAL, FCX, MAR, STI, CAKE, UNP, UTX, WFC, WDC

Thursday – MXIM, SNDK, VRTX, BIIB, AMD, ALD, ALXN, COF, DD, GR, LLL, NEM, NUE, NOK, PCX, PNC, RMBS, SLB, UAL, VZ

Look for selectivity and rotation to occur with positive earnings attracting big money buying and negative earnings attracting big money selling.

SPX

Resistance: 1,321, 1,330, 1,344

Support: 1,311, 1,300, 1,288

The short term 3 day trend is neutral.
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 +6.01 – large white candle

AMZN +0.48 – hammer, bull flag

BIDU -0.92 – large white candle, breakout

GOOG -5.31 – large black candle

NFLX +8.22 – large white candle, break above high of the low day

PCLN +8.75 – large white candle, breakout

QCOM +0.13 – spinning top

NDX 100 stocks stronger than the NDX include MICC, CTRP, PCAR, NFLX, URBN, BIDU, VMED, MYL, ISRG, AAPL, PCLN, BRCM, CTSH, BIIB and LLTC.

Stocks weaker than the NDX include RIMM, TEVA, FSLR, APOL, CLEG, YHOO, NTAP, WYNN GOOG, CHKP, DLTR and CSCO.

Stocks to Watch on Wednesday

Holding Above 30 DMA
HUM, GMCR, HLF, SINA, UCO, CSTR, WDC, DHR, NTES, MCP, A, WLT, ACN, SOHU, CMG, ANF, DECK, DLR, CRM, LVS, TIF, V, NDAQ, NYX, SNDK, CIEN, IL, VMW, UNP, FAZ, SWK, URE, ATI, TLT, CF

Moving Above 30 DMA = 11

AGU, AKS, ARUN, CHL, CLF, DOW, MHS, POT, SLW, UNG, ZION

Moving Below 30 DMA = 0

Staying Below 30 DMA

CAT, DE, JEC, NVDA, PCX, SMH, TSL, F, IAG, GS, CDE, FAS, FCX, STI, TBT ESI, FWLT, HAS, NETL, SLB, SWN, VECO, VLO, ATW, MOS, IPI, X, AMD, ICE, CAM, RVBD, JNPR, BAC, GLW, JDSU, CRUS, SWKS, GES, LDK, UAL

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