Big Move After Euro Finds Support on its 30 DMA...NFLX Beats After Close, Gaps Higher...

Remember those SPX chart targets we keep posting, the 1,363 target when the SPX broke out in October, the 1,332 target in our Jan 13 post and the 1,428 target within 12 weeks in our Jan 18 post?  

While it is true the October breakout did not reach its price target within the estimated 12 weeks which was the end of the year, that target looks achievable in the near future.  The SPX closed within 6 points of its 1,332 chart target today.  By the end of March for the 1,428 target, just 102 more points, it doesn't seem as absurd as when we first posted it, does it?   

Did earnings and guidance from AA, INTC, IBM, MSFT, WFC, BAC, GS, LLTC, XLNX, TXN, VMW, WDC, COH and finally AAPL on Tuesday provide evidence that the institutions did have a reason to by buying last month, that they were buying because the economy was getting stronger and once again their buying was in the chart over the last six weeks?

And all you had to do was believe the charts...


I hope so and I hope you have been making money hand over fist this month because you positioned yourself in line with the Chart Signals!

All nine sectors moved higher on Wednesday.  XLU, XLB and XLE were the strongest sectors.

Money Flow

Euro        +92 pips     1.3106

TNX         -0.57            20.07

TLT         -0.28          116.17

XLF        +0.03            14.20

SPX      +11.41       1,326.06

VIX         -0.60            18.31

NDX +1.30%

COMPQ +1.14%

RUT +0.93%

SPX +0.87%

INDU +0.64%

Money Flow was a little atypical at the end of the day with the Euro higher, TNX lower and bonds closing slightly lower.   XLF slightly higher and the SPX moved higher following AAPL and other strong earnings reactions.  The SPX made its highest close since July 26.  The SPX most recent breakout has a chart target of 1,428 within 12 weeks.

The VIX did confirm the SPX today.

(click image to enlarge)

SPY moved up $1.10 on volume of 198.4 million shares, its highest daily volume of 2012.  AAPL +26.25, +6.24% reached a new all-time closing high.

Breadth strengthened as advancers led decliners 3.16 to 1 on the NYSE and 1.97 to 1 on the NASDAQ.

Exchange        NYSE        NASDAQ

Advancers       2,287          1,682

Decliners           723             851

Wednesday’s Earnings of Interest

NFLX beat

DAL beat

LRCX beat

BA beat

LCC beat

UTX EPS beat revenue miss

SWK beat

CTXS beat lowers guidance

SNDK beat lowers guidance

ADP meat

ATI miss

GLW miss

(click image to enlarge)

Earnings season continues…

Thursday – MMM, ALK, AMGN, T, CAT, CELG, CRUS, INFA, ESI, JNPR, KLAC, MXIM, POT, RVBD, UA, UAL, VRSN

Friday – MO, CVX, DHI, F, HON, PG

Leading stocks > +2% on Wednesday TPX, AKS, SLW, MCP, CDE, PCX, LNG, UAL, CF, X, FCX, ANR, WLT, RVBD, LVS, CLF, SWK, A, ESI, SWN, CAT, ANF, URE, ZAGG, SNDK, DECK, UNP, ZION, SLB, TSLA

Losing stocks < -2.0% included GLW, LDK, GRPN, JNPR

NDX 100 stocks stronger than the NDX included CA, RIMM, AAPL, LIFE, ISRG, GOLD, FOSL, BIDU, NFLX and SIAL.

Stocks weaker than the NDX include ATVI, SHLD, GOOG, NWSA, XLNX, MCHP, MU, MXIM, YHOO and DLTR.

Four NDX stocks CHRW, COST, ISRG and RIMM closed above the 30 DMA and two stocks ATVI and YHOO closed below the 30 DMA making 94 NDX stocks above their 30 DMA. 

Stocks to Watch on Thursday

Holding Above 30 DMA = 75

WDC, DLR, IL, URE, CMG, DE, DOW, ENTR, FAS, SWK, UNP, F, NKE, ATI, CIEN, CRUS, SMH, SWKS, ZION, JDSU, NGLS, AKS, BAC, CF, CHL, DHR, STI, X, A, C, CAT, CLF, FCX, MOS, POT, TPX, ESI, RVBD, SNDK, KKD, CREE, GS, JNPR, CROX, HLF, LNKD, LVS, RCL, SLW, SOHU, TSL, CSTR, SINA, VECO, COH, MCP, ARUN, CDE, CRM, FFIV, HAL, NDAQ, SLB, INFA, NTES, NVDA, TBT, VMW, WLT, IBM, ZAGG, GES, ICE, UAL, V

Moving Above 30 DMA = 5

ANF, ANR, SWN, TSLA, UCO

Moving Below 30 DMA = 2

GLW, HUM

Staying Below 30 DMA

LDK, GRPN, TLT, TIF, PCX, FAZ, DECK

Sixteen Week Intermediate Term Market Trend: Up

Short Term Market Trend: Up

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