Trading SPX, NDX, COMPQ, INDU New High Close...AAPL New All-time High...

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Six of nine sectors moved higher on Tuesday.  XLK, XLY and XLV were the strongest sectors.

On Tuesday the NDX, COMPQ, SPX and INDU each made a New Bull Market High Close.  The RUT closed slightly lower.

AAPL, AMZN, BIDU, GOOG NFLX and PCLN rose and QCOM moved lower.   Both AAPL and PCLN made new all-time closing highs.  PCLN gapped up and closed up 41.22 after reporting better than expected earnings and revenues.

Money Flow

Euro     +63 pips 1.3456

TNX     +0.07        19.29

TLT      -0.39       118.15

XLF     +0.04        14.82

SPX     +4.59   1,372.18

VIX       -0.23        17.96

NDX +1.02%

COMPQ +0.69%

SPX +0.34%

INDU +0.18%

RUT -0.35%

Money Flow was typical on Tuesday as the Euro, TNX, XLF and SPX moved higher.  Bonds TLT and VIX moved lower.  The Jan 18 SPX breakout has an intermediate term chart target of 1,427 within 12 weeks of the breakout.  The SPX is within 55 points of that price target.

The VIX did confirm the SPX move on Tuesday.

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 Breadth strengthened as advancers led decliners 1.05 to 1 on the NYSE and decliners led 1.09 to 1 on the NASDAQ.

Exchange        NYSE       NASDAQ

Advancers       1,544          1,207

Decliners         1,466          1,324

The Euro rallied on Tuesday moving towards its 1.3534 chart target from its Jan 24 horizontal resistance breakout.  This breakout chart target also aligns with old resistance from Dec 1.

Bull Flag Setups to watch on Wednesday – WDC, JDSU, GMCR, GRMN, MTW, ADSK VRSN, INTU, NVDA, CIEN, ESI, RCL, ENTR, BAC, FLEX

Support bounce entries on Tuesday included GES, SBUX and INTC.

Monday night webcast I placed two real-time paper trades for Tuesday.  50 Mar 30 CREE calls if the stock rose above 29.42.  The stock did and the order filled at $1.10 per contract just after the open.  Mar 30 calls closed at $2.08 for a gain of 98 cents or $4,900 on a $5,500 investment.  An 89% gain.

Also 20 Mar 115/125 NFLX call spreads if the stock rose above 110.64.  The trade filled about 10 minutes after the open at $2.48 per spread.  The spread closed at $3.20 for a gain of 72 cents or $1,440 gain on a $4,960 investment.  A 22.9% gain.

These are two excellent examples of the potential of option trades to create meaningful gains on relatively small principal investments, the advantage of option leverage.

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Support Bounce from below the 30 DMA…

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Leading stocks > +2% on Tuesday included SINA, ZAGG, CREE, CDE, NTES, LVS, SLW, SOHU, CSTR, KKD, UAL, CRUS

Losing stocks < -2.0% included IL, SWN, ESI, LDK, ANR, LNKD, UCO

NDX 100 stocks stronger than the NDX included PCLN, SPLS, MU, LRCX, NFLX, AMZN, BIDU, CTRP, BRCM and NUAN.

Stocks weaker than the NDX include APOL, EXPD, SRCL, WYNN, CHKP, VRTX, BMC, AKAM, QCOM and FFIV.

Four NDX stocks AMGN, SBUX, TEVA, VOD closed above the 30 DMA and NVDA and WYNN closed below the 30 DMA making 76 NDX stocks above their 30 DMA.

Stocks to Watch on Wednesday

Holding Above 30 DMA = 62

WDC, CMG, DOW, ENTR, FAS, SWK, NKE, CRUS, SMH, SWKS, JDSU, NGLS, BAC, CF, CHL, STI, A, C, CAT, TPX, KKD, CREE, GS, HLF, LNKD, LVS, SLW, CSTR, VECO, COH, CRM, FFIV, SLB, INFA, NTES, SWI, VMW, IBM, ZAGG, TSLA, LDK, GES, JNPR, V, ICE, ZION, NDAQ, TIF, RVBD, SWN, UCO, ANF, CDE, DHR, MOS, POT, HAL, DLR, SNDK, UNP, TLT

Moving Above 30 DMA = 2

CROX, SINA

Moving Below 30 DMA = 5

ARUN, ESI, IL, NVDA, URE CIEN, GLW

Staying Below 30 DMA

CIEN, GLW, DECK, MCP, TBT, TSL, F, HUM, RCL, UAL, WLT, DE, CLF, FCX, X, GRPN, ANR, PCX, SOHU, AKS, ATI, FAZ

Four Month Intermediate Term Market Trend: Up

Short Term Market Trend: Up