Thursday, December 20, 2012

SPY Rises, RIMM Gaps Lower and Futures Fall After Tax Cut Vote Cancelled...


All nine sectors moved higher on ThursdayXLF, XLB, and XLE were the strongest sectors

Breadth
strengthened on Thursday as advancers led decliners…2.15 to 1 on the NYSE and 1.58 to 1 on the NASDAQ…

Thursday – strengthened, advancers led
Wednesday – weakened, decliners led
Tuesday – strengthened, advancers led
Monday – strengthened, advancers led
Friday – strengthened, decliners led


NDX 100 annual changes prior to the open Monday, Dec. 24, 2012:
Additions:  ADI, CTRX, DISCA, EQIX, LBTYA, LMCA, REGN, SBAC, VRSK, WDC
Deletions:  APOL, EA, FLEX, GMCR, LRCX, MRVL, NFLX, RIMM, VRSN, WCRX

It is time to consider moving stops to protect profits of the last two days.


SPY up 83 at 144.10...volume 168.4 million shares…
VIX + .31 at 17.67
TNX unchanged at 18.00…
TLT up 2 cents at 120.93…
XLF
up 23 cents at 16.60…volume 61.9 million shares

AAPL down - 4.58 at 521.73…volume 17.2 million shares …
FB down 5 cents at`27.36…on volume of 35.5 million shares…

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Technical Commentary:
White candles appeared on many charts including the SPY, DIA, FAS, AMZN and PCLN.  After the close word that a Republican Plan B tax cut vote had been canceled.  The ES is down over 20 points and the NQ just over 40 points in night-time trade.
 
After a breakout bounce and forming a white candle the SPY closed above T1 at 145.12 and still maintains a flagpole target at 146.82.  The VIX closed higher and did not confirm the SPY move up.


The weight of the evidence continues to suggest that the current 4+ week uptrend is likely to continue.

The Euro closed up 18 pips at 1.3243 on Thursday.  TNX was unchanged, TLT, bonds rose 2 cents and XLF moved up 23 cents to 16.70.

Disk storage stocks WDC up 96 cents and STX up 6 cents.  Coal stocks ANR, ACI, BTU, CNX and WLT pulled back on Thursday.


SPY – white candle, pennant
AAPL black candle above support, MACD divergence, below 30 DMA
FB – black spinning top in channel, BO target 29.63
FAS – large white candle, breakout bounce
AMZN – white candle, breakout bounce
EXPE – dragon fly doji, bull flag pause at resistance at T1
STX – potential hanging man, breakout test
VIAB – black spinning top, bull flag bounce pause
RIMM – white candle, bull flag bounce, gap down after EPS
CRUS –evening star, bear flag setup
F – potential hanging man, above T1
PHM – potential hanging man, breakout test
SWK – white candle, breakout test
SWI – hammer at 30 DMA, bounce setup
RAX – large white candle, breakout bounce
URI – white spinning top, breakout test
YELP – white  spinning top confirm bullish harami, close above 30 DMA
XHB – potential hanging man, diagonal breakout test
XRT – hanging man at resistance, above30 DMA

BO = breakout, DBO = diagonal breakout, CT = counter-trend, IT = intermediate term, ST = short term


The Market Forecast Green Line is in the upper reversal zone.

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Chart Targets:
SPY = 146.82 short-term resistance flagpole target
ES =
1,449 161% Fib extension
1,459 = 200% measuring
EUR/USD = 1.3281 161% Fib extension

Short-term support at
1.3126 = Euro
144.55 = SPY
90.09 = SPXL
1,428, 1,405 = ES
2,691 = NQ


Setups:
Bull Flag:  MCP, AMGN, CELG, MNST, MXIM, DELL, DECK

Moves:
Bull Flag Bounce: 

Bounce Continuation:  WDC, FAS, URE, AMZN, BAC, V, C, X, STX, DLR, ALTR, EXPD, STI, ZION, XLNX, URI, ADI, AMAT, AKS, EBAY, SNDK, BRCM, VIAB, PCAR, LLTC, SIAL, SWK, SIAL, SPY, DIA, IWM, LNKD, COST, XRAY, DISCA

Pause:  VMW, TRIP, NTAP, MRVL, TSLA, SMH, VECO, FB, BIIB, SBUX, GILD, GRMN, IBM

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64 of 100 NDX stocks closed higher on Thursday…


Leading NDX 100 stocks included: RIMM, FLEX, WCRX, GMCR, VMED, EBAY, AMZN, MSFT, KLAC, FAST

Lagging NDX stocks included: BBBY, ISRG, EA, MRVL, SPLS, NUAN, PAYX, MNST, MXIM, GRMN

Leading stocks > +2% on Thursday included:  FAS, BAC, YELP, SSYS, CDE, URE, WDC, V

Lagging stocks < -2.0% included: LDK, HLF, ESI, FAZ, TSL, DECK, SWKS, CRUS

Stocks to Watch on Friday…
Holding Above 30 DMA = 84
YHOO, MYL, RIMM, XRAY, SBUX, HSIC, FB, CSCO, NTAP GMCR, VMED, EXPD, LLTC, MXIM, PCAR, TXN, XLNX, AMGN, BIIB, CELG, EBAY, LIFE, SIAL, AMZN, FISV, ADSK, DELL, FFIV, MAT, MRVL, MU, ORCL, BRCM, COST, MNST, ADBE, GOOG, GRMN, NWSA, SYMC, WYNN, AMAT, CTSH, PAYX, ADP, APOL, FOSL, INTU, KLAC, NFLX, VIAB, FLEX, NUAN, STX, AKAM, ALTR, CHKP, DTV, FAST, MCHP, SNDK, CTXS, ALXN, CHRW, LRCX, MDLX, NVDA, ESRX, EXPE, INTC, SPLS, SIRI, BIDU, WCRX,
BMC, CMCSA, CERN, VRTX, CA, LINTA, MSFT, ORLY, QCOM, WFM

Moving Above 30 DMA = 2
DLTR, PRGO

Moving Below 30 DMA = 3
 BBBY, EA, GILD

Staying Below 30 DMA
ISRG, SRCL, ATVI, VOD, AVGO, PCLN, AAPL, SHLD, GOLD, VRSN, ROST


Fifteen Week Intermediate Term Market Trend: Neutral
Short Term Market Trend: Neutral

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