Wednesday, January 16, 2013

QQQ Gains as AAPL Rebounds...GS, EBAY Gain on EPS...FB in Bull Flag...

Three of nine sectors moved higher on Wednesday… XLE, XLK and XLF were the strongest sectors.   XLB was the weakest sector. 

Breadth weakened on Wednesday as decliners led advancers…1.19 to 1 on the NYSE and 1.44 to 1 on the NASDAQ…

Breadth strengthens as advancers increase and or decliners decrease.  Breadth weakens as advancers decrease and or decliners increase.

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


The SPY stayed above resistance again on Wednesday essentially unchanged.  Volume was again light as all eyes seem to be waiting for more 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 down .02 cents at 147.05...volume 104.8 million shares…
VIX down .13 at 13.42
TNX down - .07 at 18.24…
TLT up25 cents at 120.32…
XLF
 up .01 cent at 17.14…volume 58.2 million shares

AAPL up 20.17 at 506.09volume 24.6 million shares…leads NDX
FB down .25 cents at`29.85…on volume of 75.3 million shares…EPS Jan 30…bull flag


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

GS +5.50, +4.06% beats EPS
JPM +0.47, +1.01% beats EPS
EBAY beats EPS gains 69 cents after the close.

__________________

Technical Commentary:

The SPY continues to form a series of spinning tops in five day narrow range as it stays above horizontal resistance for the fifth straight day.  QQQ +0.41% led as AAPL shares rebounded.  BAC, BRCM, CRUS bounce as RCL and SHLD breakout.  FB formed a small spinning top in its bull flag pattern.


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 down 16 pips to close at 1.3289 on Wednesday forming a bull flag patter in an strong uptrend.

Disk storage stocks WDC +1.05% and STX -0.46% continue their strong trends.  Coal stocks ANR, ACI, BTU, CNX and WLT hold 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, NTAP, SINA, NUAN, ADSK

Diagonal Breakout:  DECK, FFIV, SBAC,  

Bull Flag:  FB, NFLX, CTXS, GOOG, AMZN, ANR, ATI, X, AKS, CRM, VMW, PHM, LEN, ADBE, CTSH, NTES, SPY, LVS, C, EBAY, REGN, JOY, GILD, LIFE, EQIX, TRIP, CERN, FSLR, ADI, GMCR, IBM, VIAB, YELP, TSL, EXPE

Moves
Breakout:  RCL, SHLD, JNPR, WDC, NKE, ANF, CTRP, UNG, COH, STRZA, EXPD, STX, FOSL, WAG, SNDK, F, GES

Bounce:  BAC, BRCM, CRUS, QCOM, RIMM, TXN, COST, STI, ZION, JDSU, FAS, ROST, FAST, TOL, IWM, GLW, APOL, MGM, PCAR,


____________________

40 of 100 NDX stocks closed higher and two were unchanged on Wednesday…



LMCA spin off Liberty Media resulting in symbols STRZA and LMCADNDX listed symbol is STRZA.

Leading NDX 100 stocks included:  AAPL, MXIM, SHLD, YHOO, ALTR, BRCM, NTAP, VMED, AVGO, CA

Lagging NDX stocks included:  DELL, STRZA, REGN, VOD, VRSK, CERN, ORLY, CTRX, BIDU, GOOG

Leading stocks> +2% on Wednesday included: CRUS, GS, SWKS, CIEN, LDK, RVBD, MCP 

 Lagging stocks < -2.0% included:  CROX, TSL, CMG, DECK, ATI, NFLX, GRPN, VECO, CRM, VMW, CLF, HLF, SINA

Stocks to Watch on Thursday…
Holding Above 30 DMA = 79
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, GILD, HSIC, INTU, LIFE, PCLN, QCOM, MDLZ, CTRX, ROST, SPLS, BMC, AVGO, ATVI, SHLD, YHOO,MAT, MSFT, MYL, NTAP

Moving Above 30 DMA =1
MXIM

Moving Below 30 DMA =3
CERN, PRGO, VOD                     

Staying Below 30 DMA
AKAM, ESRX, ISRG, PAYX, REGN, XRAY, AMGN, GRMN, NVDA, ORLY, WFM, MNST, AAPL, BIIB, DLTR, BBBY, GOLD

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

3 comments:

Equity Tips said...

First of all let me tell you, you have got a great blog. I am interested in looking for more of such topics and would like to have further information. Hope to see the next blog soon.

Commodity Tips said...

Excellent tips. Really useful stuff .Never had an idea about this, will look for more of such informative posts from your side.. Good job...Keep it up

Stock Tips said...

Finally wait is over and found some new article in your blog.. the topic of your blog is really nice and modern which helps many people.. thank for share looking for your next post.