Tuesday, May 29, 2012

SPY Moves as Semiconductors, Materials, Energy and Financials Move Higher...


SPY continued its support bounce in a big way on Tuesday.  Semiconductor stocks bounced as CRUS led our watch list stocks.  The Euro fell to a one year low and TNX interest rates pulled back -0.14.  Financial stocks rose and bonds pulled back slightly.  The SPX closed at 1,332.42 above its 1,300 support area.

All nine sectors moved higher on Tuesday. XLB, XLE, and XLF were the strongest sectors.

Breadth strengthened as advancers led decliners 3.77 to 1 on the NYSE and 2.31 to 1 on the NASDAQ.

Exchange        NYSE       NASDAQ
Advancers       2,394          1,755
Decliners            635             757

SPY moved up $1.60 on 152.8 million shares

AAPL was up +9.98 at 572.27 on 13.6 million shares...

VRTX -7.05, -10.87% fell after releasing corrected cystic fibrosis data

FB -3.07 at 28.84 on 78 million shares a new low.....

GRPN -26 cents, -2.16% in bull flag following reversal pattern…



C Pattern Continuation: SWKS, AVGO, A, SIAL, WFM, SRCL, ZAGG, DLTR, SHLD, ALXN, V,

C Pattern Entry: CMG, CSTR, COST, FAST, DHR, TSLA

C Pattern Setup: FISV, SBUX, CRM, GOOG, AAPL, INTU, CTXS, CMCSA, MSFT

Breakout: CRUS, SWI, BBBY,

Breakout Setup: MNST, ROST

Bounce: VECO, NWSA, CROX, ALTR, BMC, ORLY, CERN,

Daily/Weekly Bull Flags: WCRX, VRSN, CTXS, GRPN, BIIB

MACD Histogram Bullish Divergence: RVBD, CIEN, MCP, SOHU, VMW, TPX, JDSU, MOS, INFA, F, BIDU, NFLX, QCOM, NVDA, VMED, PNRA, MSFT, MRVL, MCHP, INFY, GOLD, EXPD, CTRP, CHKP, CELG, ADBE, AKAM


Technical Commentary:

The SPY continued its support bounce following the Memorial Day weekend.  It appeared last week that buyers were stronger than sellers buy just did not want to commit more aggressive buying before the three-day weekend.  The weight of the evidence which suggested bounce continuation as more likely was right once again.

Tuesday Highlights
SPY closes up $1.60
The Euro fell 11 pips, closed 1.2503
TNX -0.14
VIX moved lower -0.73, below 25 at 21.03
XLF closed up 20 cents


82 of 100 NDX stocks closed higher on Tuesday…


Leading NDX 100 stocks included CTRP, AVGO, NTAP, BRCM, BIDU, NUAN, EBAY, MU, NVDA, COST

Lagging NDX stocks included VRTX, STX, ATVI, TEVA, NFLX, FSLR, FFIV, ALXN, CELG, GOLD

Leading stocks > +2% on Tuesday included CRUS, TSLA, NTES, PCX, SINA, SWKS, CMG, TSL, CIEN, CLF, BAC, FAS, AKS, SOHU, JDSU, CROX, MCP, VECO, ANR, X, A, URE, SLB, RVBD, CSTR, FCX, ATI, LVS, F, C, MOS, GLW

Losing stocks < -2.0% included LDK, FB, FAZ, WDC, ZAGG, GRPN

Stocks to Watch on Wednesday

Holding Above 30 DMA = 12
TLT, CRUS, SWI, VECO, FAZ, GRPN, ZAGG, UAL, V, A, DECK, SWKS

Moving Above 30 DMA = 6
CMG, CSTR, DHR, NKE, NTES, TSLA

Moving Below 30 DMA = 0


Staying Below 30 DMA
CRM, LDK, LNKD, CHL, URE, CREE, TSL, STI, WDC, DLR, ANF, ATI, DE, GLW, IBM, SLB, VMW, ESI, FAS, FCX, SMH, TIF, UCO, AKS, ANR, JNPR, X, HLF, SOHU, HUM, CROX, LVS, CIEN, PCX, RCL, RVBD, CLF, MCP, SWK, TPX, ZION, INFA, BAC, TBT, F, JDSU, C, GS, COH, MOS, ICE, SINA, GES, CDE

Eight Week Intermediate Term Market Trend: Down
Short Term Market Trend: Up