Seven of nine sectors moved higher on Tuesday… XLY, XLE and XLF were the strongest sectors. XLK was
the weakest sector for the second straight day.
Breadth strengthened on Tuesday as advancers led decliners…1.37 to 1 on the NYSE and
1.15 to 1 on the NASDAQ…
Breadth strengthens as advancers increase and
or decliners decrease. Breadth
weakens as advancers decrease and or decliners increase.
Tuesday – strengthened, advancers
led
Monday – weakened, decliners led
Friday – weakened,
advancers led
Thursday – weakened,
advancers led
Wednesday –
strengthened, advancers led
The SPY stayed above
resistance again on Tuesday gaining back the 10 cents it lost on Monday. Volume has been very light both days this
week as all eyes seem to be waiting for earning releases.
Thursday’s SPY breakout
was by only 47 cents so traders should continue to watch
closely if prices rollover and
be prepared to protect profits, However it appears that the uptrend is
more likely to continue.
SPY up 10 cents at 147.07...volume 93.1 million
shares…
VIX up 0.03 at 13.55…
TNX down -0.26 at 18.31…
TNX down -0.26 at 18.31…
TLT up 55 cents at 120.07…
XLF up 7 cents at 17.13…volume 42.1 million shares
XLF up 7 cents at 17.13…volume 42.1 million shares
AAPL down - 15.83 at 485.92…volume 31.3 million
shares on concerns of weak demand for iPhone 5…EPS Jan 23
FB down .77 cents at`30.95…on volume of 98.8 million shares…EPS Jan 30
As earnings season
begins look for stock selectivity to increase as stocks with good earnings and
guidance will likely rise and those with either weak earnings or guidance likely to fall in
price. This selectivity and the
typical pause waiting for EPS announcements has so far kept the SPY in a
narrow range and may continue to do so for the next several days.
Earnings to Watch this
Week:
Tuesday – LEN
Wednesday – EBAY, GS,
JPM, USB
Thursday – AXP, BAC,
COF, C, FAST, INTC, UNH, XLNX
Friday – GE, JCI, SLB,
STT, STI
__________________
Technical Commentary:
The SPY formed a white candle
as it stayed above horizontal resistance for the fourth straight day. IWM +0.43%
led with DIA +0.14% and
SPY +0.07%. RIMM,
NFLX and SHLD pulled back to horizontal resistance for a test. FB moved lower following a media event in
which the Company introduced new search capabilities. YELP fell as a result of the news.
LEN fell after strong earnings improving
prospects for home building, but TOL, PHM and XHB gained. With earnings out of the way look at the
bull flag pattern on LEN.
Trade what you see on the
chart of your position. If it is
breaking out of resistance take the trade or stay with the uptrend according to
your rules. If the stock begins to
rollover protect your profits.
The Euro dropped 76 pips to close at 1.3305 on
Tuesday forming a bull flag patter in an strong uptrend.
Disk storage stocks WDC +0.31% and STX +1.44% paused. Coal stocks ANR,
ACI, BTU, CNX and WLT found support and appear ready to bounce after a 5-day
slide. Chinese solar stocks TSL and LDK are forming bull flag
patterns in their multi-week uptrend.
The Market Forecast Green Line is in
the upper reversal zone.
____________________
Setups
Breakout: TIF, DECK,
SINA, NUAN, ADSK, RCL
Diagonal Breakout: FFIV, SBAC,
Bull Flag: FB, ANR, RIMM, GOOG, BAC, ATI, X, AKS, PHM,
LEN, ADBE, CTSH, CTXS, NTES, SPY, LVS, C, EBAY, REGN, TXN, JOY, BRCM, GILD, LIFE,
EQIX, QCOM, TRIP, CERN, FSLR, COST, ADI, GMCR, IBM, VIAB,
CRUS, YELP
Moves
Breakout: JNPR, WDC, CRM, NKE, ANF,
CTRP, UNG, COH, STRZA, EXPD, STX, FOSL, GILD, AMZN, WAG, SNDK, F, GES
Bounce: ROST, FAST, FAS, TOL,
IWM, STI, EXPE, NTAP, GLW, JDSU, APOL, MGM, ZION, PCAR,
____________________
51 of 100 NDX stocks
closed higher and one was unchanged on Tuesday…
LMCA spin off Liberty Media
resulting in symbols STRZA and LMCAD.
NDX listed symbol is STRZA.
Leading NDX 100 stocks included: DELL, SYMC,
ROST, STRZA, FOSL, CELG, SPLS, MYL, DLTR, STX
Lagging NDX stocks included: AAPL, FISV, FB, REGN,
AMGN, AVGO, NVDA, CERN, ISRG, CTXS
Leading stocks> +2% on Tuesday included: DECK, HLF, TIF, ATI, STI, ANF, AKS, GES,
VRSN, ESI, CSTR, F
Lagging stocks < -2.0% included: YELP,
ZAGG, VECO, RIMM, RVBD, FB, SWKS, CRUS
Stocks to Watch on Wednesday…
Holding Above 30 DMA = 77
SBUX, CSCO, VMED, SBAC, EXPD, LLTC, PCAR, XLNX, TXN, ADI, SIAL, FISV, ADSK, DELL, FFIV, ORCL, COST, ADBE, GOOG, NWSA, DISCA, AMAT, CTSH, FOSL, KLAC, VIAB, NUAN, STX, LBTYA, WDC, ALTR, CHKP, FAST, MCHP, SNDK, EQIX, STRZA, CTXS, CHRW, INTC, SIRI, BIDU, VRSK, ADP, AMZN, BRCM, CMCSA, DTV, EBAY, EXPE, LINTA, MU, SRCL, SYMC, VRTX, WYNN, FB, ALXN, CA, CELG, CERN, GILD, HSIC, INTU, LIFE, PCLN, QCOM, MDLZ, CTRX, ROST, SPLS, VOD, BMC, AVGO, ATVI, SHLD, YHOO
SBUX, CSCO, VMED, SBAC, EXPD, LLTC, PCAR, XLNX, TXN, ADI, SIAL, FISV, ADSK, DELL, FFIV, ORCL, COST, ADBE, GOOG, NWSA, DISCA, AMAT, CTSH, FOSL, KLAC, VIAB, NUAN, STX, LBTYA, WDC, ALTR, CHKP, FAST, MCHP, SNDK, EQIX, STRZA, CTXS, CHRW, INTC, SIRI, BIDU, VRSK, ADP, AMZN, BRCM, CMCSA, DTV, EBAY, EXPE, LINTA, MU, SRCL, SYMC, VRTX, WYNN, FB, ALXN, CA, CELG, CERN, GILD, HSIC, INTU, LIFE, PCLN, QCOM, MDLZ, CTRX, ROST, SPLS, VOD, BMC, AVGO, ATVI, SHLD, YHOO
Moving Above 30 DMA =5
MAT, MSFT, MYL, NTAP,
PRGO
Moving Below 30 DMA = 5
AKAM, ESRX, ISRG, PAYX,
REGN
Staying Below 30 DMA
MXIM, XRAY, AMGN, GRMN, NVDA, ORLY, WFM, MNST, AAPL, BIIB, DLTR, BBBY, GOLD
Eight Week Intermediate
Term Market Trend: Up
Short Term Market Trend: Up
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