Wednesday, July 25, 2012

Support Holds Following AAPL, NFLX Drop, WFM, WDC, AKAM Gap Up After the Close...


SWI +8.00, ALXN +7.51, BA +2.00, HES +1.53 and CAT +1.17 moved higher after releasing earnings BMOWFM +9.82, WDC +6.33, AKAM +4.85 rose in after-hours trading while ZNGA -1.95 and CTXS -2.89 fell after reporting earnings following the close Wednesday afternoon.  AAPL -25.95 and NFLX -20.11 finished lower and PNRA +11.45, RVBD +3.77, ALTR +3.74 and BRCM +2.21 closed higher following reporting earnings after the close on Tuesday.

Varied reactions indicate that selectivity is still functional and a key factor during this earnings season.

The AAPL miss did not lead to the market breaking below its July 12 support and buyers took advantage of AAPL at the 570 level.

Five of nine sectors moved higher on Wednesday and one sector XLB closed unchanged.  XLV, XLF, and XLI were the strongest sectors.

Breadth strengthened as advancers led decliners 1.16 to 1 on the NYSE and 1.42 to 1 on the NASDAQ.

Exchange      NYSE    NASDAQ
Advancers     1,613       1,434
Decliners       1,382       1,003

The SPX moved up -0.42 at 1,337.89 closing below its 30 DMA for the second straight day and just below the mid-section of its April-July trading range of 1,422 – 1,266


Earnings of Interest Week July 23 - 27
Monday: BIDU, HAL, MCD, STLD, TXN, VMW, ZION
Tuesday: AKS, ALTR, AAPL, T, BIIB, BRCM, CHRW, DD, JNPR, LLTC, LMT, NFLX, NSC, PCAR, PNRA, BTU, RVBD, SAVE, SPG, TPX, VMI, WHR, VMED,
 Wednesday: AEM, AKAM, BA, BMY, CAT, CTXS, CLF, COP, GLW, CROX, DAL, DLR, LLY,  F, HES, LRCX, LVS, ORLY, SWI, LCC, V, WDC, WFM, ZNGA, ALXN, TSLA

Thursday: MMM, ALK, AMZN, AMGN, CA, CELG, CERN, CSTR, CL, DECK, EXPE, XOM, FB, GILD, INFA, KMB, KLAC, MXIM, NTGR, POT, RCL, SBUX, UAL, UTX, VECO, HSY
Friday:


Technical Commentary:
DIA, IWM and SPY closed higher forming a bullish harami pattern and QQQ closed lower forming a spinning top following AAPL negative earnings reaction.  

Look for earnings reactions to continue this week.
    
The Euro and financial stocks rose while interest rates closed just above even.  The VIX moved lower while gold rose and suggesting a stable level of fear on Wednesday even after negative reactions to AAPL and NFLX.


Wednesday Highlights:
SPY closes up 3 cents on 129.1 million shares, below 30 DMA
The Euro moved up 93 pips, closed at 1.2154
TNX +0.02 at 14.06
VIX down -1.13 at 19.34
XLF up 6 cents at 14.27

AAPL down -25.95 at 574.97 on 31.3 million shares...
FB up 89 cents at 29.34 on volume of 17.1 million shares, reports earnings on Thursday AMC...
KYAK -49 cents, -1.50% at 32.16 on .250 million shares
FIVE -55 cents at 27.05 on ..426 million shares…


The Market Forecast green line is pointed down below 80.


64 of 100 NDX stocks closed higher on Wednesday…



Leading NDX 100 stocks included SYMC, ALTR, PNRA, ALXN, BRCM, GOLD, LLTC, FLEX, BIIB, FFIV

Lagging NDX stocks included NFLX, CHRW, PCLN, EXPE, AAPL, EXPD, AMZN, CTXS, RIMM, SPLS

Leading stocks > +2% on Wednesday included RVBD, SWI, JNPR, TPX, CDE, FB, JDSU, CIEN, WDC, C, SMH

Losing stocks < -2.0% included GLW, ESI, DECK, ANR, CLF, AKS, TSLA, HUM, ATI, LVS, CSTR, MCP

Stocks to Watch on Thursday

Holding Above 30 DMA = 13
URE, MOS, CHL, ANF, SLB, TLT, WDC, UCO, TPX, SWK, TIF, ZAGG, FAZ

Moving Above 30 DMA = 5
DLR, GS, JNPR, RVBD, SWI

Moving Below 30 DMA = 2
HLF, VMW

Staying Below 30 DMA
LNKD, SWKS, V, ATI, CRM, FCX, IBM, STI, TSLA CIEN, CMG, COH, CREE, CRUS, DECK, ESI, FAS, GES, ICE, RCL, SMH, X, ZION, DHR, BAC, C, DE, UAL, FB, VECO, AKS, CSTR, JDSU, LDK, MCP, CLF, CROX, GLW, INFA, NTES, TSL, A, CDE, SOHU, TBT, HUM, SINA, F, GRPN, NKE, ANR, LVS

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

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