Euro Rises above 1.30...TXN Calls Bottom of Downturn After the Close...

 

Four of nine sectors moved higher on Monday.  XLE, XLU and XLF were the strongest sectors.

Money Flow

Euro      +48 pips    1.3014

Money Flow did follow the Euro higher as TNX rose and bonds closed lower.   XLF and the SPX moved higher.  The SPX made its highest close since July 26 and is just 55 points below its May 2 high of 1,370, the SPX’s highest level since the March 2009 low.  The SPX has a new chart target of 1,428 within 12 weeks.

The VIX did NOT confirm the barely rising SPX today.

TXN reported after the close and the CEO stated, “Revenue in the fourth quarter was higher than expected across all our major product lines, reinforcing our belief that we’re at the bottom of this downturn.”

The trend short-term trend turned neutral on Monday with the third daily close on the SPX within a point and a half.  The SPX continues to be susceptible to a 20 point channel fluctuation to the downside.  The weight of the technical evidence does point to a continuation of the 16-week up trend.  Earnings season continues with a release from AAPL on Tuesday and several DJIA stocks also reporting this week. 

The AAPL earnings reaction Tuesday after the close will likely determine the direction of the short-term trend.

SPY moved up 7 cents on volume of 129.2 million shares.

Breadth weakened as advancers led decliners 1.39 to 1 on the NYSE and decliners led advancers 1.21 to 1 on the NASDAQ.

Exchange        NYSE        NASDAQ

Advancers       1,756          1,110

Decliners         1,259          1,350

Monday’s Earnings of Interest

CSX miss

HAL beat

TXN beat

VMW beat

WDC beat

Earnings season continues…

Tuesday – AMD, AKS, ALTR, AAPL, DD, JNJ, MCD, STLD, TRV, VZ, YHOO

Wednesday – ATI, ADP, BA, CTXS, COP, GLW, DAL, LRCX, NFLX, SNDK, SWK, SYMC, LCC, UTX

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 Monday SWN, PCX, ZAGG, ANR, ENTR, SLW, LVS, UCO, NVDA, BAC, X

Losing stocks < -2.0% included LDK, VECO, DECK, CIEN, VMW, TSL, RVBD, HAL, UAL

NDX 100 stocks stronger than the NDX included MRVL, NVDA, CHKP, AAPL, DLTR, WYNN, MU, MAT, INTC and DTV.

Stocks weaker than the NDX include RIMM, NFLX, GMCR, SHLD, NUAN, PNRA, WCRX, AMGN, AMZN and AMAT.

One NDX stock CHRW closed above the 30 DMA and two stocks ATVI and CERN closed below the 30 DMA making 93 NDX stocks above their 30 DMA. 

Stocks to Watch on Tuesday

Holding Above 30 DMA = 74

WDC, LDK, DLR, IL, URE, CMG, DE, DOW, ENTR, FAS, HUM, 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, GLW, 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

Moving Above 30 DMA = 5

ANR, GES, ICE, SWN, UCO

Moving Below 30 DMA = 2

UAL, V

Staying Below 30 DMA

GRPN, TLT, ANR, TIF, PCX, ANF, FAZ, TSLA, DECK, SWN

Sixteen Week Intermediate Term Market Trend: Up

Short Term Market Trend: Neutral