Monday, June 27, 2011

Support Bounce in SPX...COMPQ, RUT, Leading Stocks Even Stronger...

Dave will teach in the Basic Options Trading room tomorrow morning, Tuesday at 9 am EDT a half hour before the market open for those that have been requesting to hear him teach a Basic Options trading room...


Dave will be teaching his AT Trading Room tonight and his Thursday Stocks Trading Room Thursday morning, AT Trading Room Thursday evening and will be in the Weekly Wrap on Friday...


The SPX opened near Friday’s close and began rising after the first 10 minutes of trading, formed a piercing line candle and closed up +11.65 at 1,280.10.
(click image to enlarge)

SPX piercing line, below 30 DMA +0.92%
INDU piercing line, below 30 DMA +0.91%
COMPQ bullish engulfing, below 30 DMA +1.33%
RUT bullish engulfing, below 30 DMA +0.92%

Breadth strengthened as advancers led decliners 2.16 to 1 on the NYSE and 1.89 to 1 on the NASDAQ

Exchange       NYSE        NASDAQ
Advancers      2,074            1,725
Decliners           959               908

Index              Chg.    Close    Direction    Confirmation
VIX                 -0.54     20.56      Down          Yes – SPX
SOX              +2.77   395.27      Up               Yes – COMPQ

Leading stocks > +2% on Monday included SINA, RVBD, LDK, KKD, SNDK, VMW, ARUN, FFIV, BAC, POT, FAS, CRUS, CMG, TBT, LVS, CF, JDSU, AGU, CROX, DECK, MHS,

Losing stocks < -2.0% included FAZ, NVDA

Positives – SPX, VIX, INDU, COMPQ, RUT, XLF, TNX , TBT, AAPL, AMZN, BIDU, GOOG, NFLX, PCLN, QCOM, Euro, breadth and sectors strengthened

Negatives – TLT

All nine sectors moved higher on Monday.  Technology XLK +1.34%, Consumer Discretionary +1.22% and Financials XLF +1.02% were the strongest sectors.

Bond ETF TLT moved down -$1.33 as TNX moved up +0.56.  Financials XLF moved up 15 cents.  The Euro moved up 99 pips to close at 1.4285 at 5 pm on Monday.

SPX
Resistance: 1,278, 1,288, 1,300
Support: 1,267, 1,257, 1,244

The short term 3 day trend is down.
The six-month trend is neutral.
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 +5.69– white candle, below 30 DMA
AMZN +8.70 – large white candle, above 30 DMA
BIDU +4.49 – white candle, above 30 DMA
GOOG +7.92 – bullish engulfing, below 30 DMA
NFLX +3.16 – white candle, above 30 DMA
PCLN +4.13 – spinning top, below 30 DMA
QCOM +0.56 – white spinning top, below 30 DMA


NDX 100 stocks stronger than the NDX include AMZN, MSFT, SNDK, CTXS, EXPD, BIDU, FFIV, ADBE, DTV and CMCSA.

Stocks weaker than the NDX include GRMN, BRCM, NVDA, RIMM, STX, QGEN, FLEX, XRAY, ERTS and EXPE.

Stocks to Watch on Tuesday
Holding Above 30 DMA
TIF, KKD, FAZ, CROX, GMCR, HUM, INFA, TPX, AGU, CMG, CRM, HLF, NETL, VMW, ATW, NGLS, CHL, CLF, ENTR, ESI, ACN, CSTR
Moving Above 30 DMA = 6
ARUN, FFIV, ICE, POT, RVBD, TBT
Moving Below 30 DMA = 1
TLT
Staying Below 30 DMA
A, COH, GES, NTES, SWK, UAL, UNP, WDC, CAM, DLR, DOW, SLB, ZION, CF, FCX, NKE, AKS, UNG, IAG, SWN, CY, V, VECO, CREE, ANF, NVDA, SINA, ANR, WTW, CRUS, DECK, DHR, FWLT, SMH, SNDK, STI, URE, MHS, HAS, JDSU, JNPR, GLW, ATI, CIEN,  F, CAT, IL, NDAQ, SWKS, MCP, WLT, FAS, LVS, SOHU, UCO, DE, PCX, LDK, TSL, SLW, GS, CDE, MOS, X, BAC

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

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