SPY, EURO Pause As AAPL Rises...STX, VMW Fall After Close...

Three sectors moved higher on Monday… XLK, XLP and XLI were the strongest sectors.   XLB was the weakest sector.. 

Breadth weakened as decliners led advancers…1.31 to 1 on the NYSE and remained the same at 1.26 to 1 on the NASDAQ…

Monday – weakened, decliners led on NYSE and advancers led on NASDAQ

Friday – strengthened, advancers led

Thursday – strengthened, advancers led

Wednesday – weakened, decliners led

Tuesday – strengthened, advancers led

The chart continues to indicate that the uptrend is more likely to continue, stay prepared for a potential pullback.

SPY down 18 cents at 150.07...volume 113.3 million shares…

VIX up .68  at 13.57…
TNX up .27  at 19.74…

TLT down 43 cents at 117.60…
XLF down 7 cents at 17.40…volume 31 million shares

AAPL up 9.95 at 449.83…volume 28 million shares…

FB up .93 cents at`32.47…on volume of 59.6 million shares…EPS Jan 30…bull flag bounce

Look for stocks with good earnings and guidance to likely rise and those with either weak earnings or guidance likely to fall in price. 

Earnings to Watch this Week:

Monday – BMC, CAT, STLD, VMW, YHOO, ZION, STX

Tuesday – AKS, AMZN, BRCM, CHRW, DHR, GLW, HOG, IP, BTU

Wednesday – BA, CTXS, EA, JDSU, QCOM, SWKS

Thursday – AET, MO, CTRP, MA, PCAR, POT, PHM, UA, VIAB, WHR

Friday – CVX, XOM, MAT, MRK, PRGO

BMC, STX, and VMW gapping down after releasing earnings

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Technical Commentary:

The SPY formed a potential hanging man pattern closed down 18 cents.  IWM +0.07%, SPY -0.12%, QQQ +0.22% and DIA +0.02%, as AAPL shares bounced forming a piercing line pattern.  FB broke out of horizontal resistance.

The Euro was down 3 pips to close at 1.3454 on Monday in its strong uptrend.

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.

Disk storage stocks fell after the close WDC - 2.55% and STX - 4.84% after releasing EPS. 

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

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Setups

Breakout:  C, VIAB, CERN, ZION, MGM, COST, STI, CTXS, ADI

Diagonal Breakout:  BAC, CLF, SBAC

Gap Down:  BMC, STX, BMW, WDC 

Moves

Gap Up:  HES

Gap Down: 

Breakout:  FAST, FB, CRM, JDSU

 

Bounce:  TEX, FFIV, RSH, BPOP, NUAN, STRZA, SHLD, ESI, AVX, ZNGA, NIHD, XRX

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43 of 100 NDX stocks closed higher on Monday and two were unchanged…

Leading NDX 100 stocks included:  SHLD, BIDU, SPLS, FB, AMGN, BIIB, AAPL, NUAN, MXIM, NVDA MNST

Lagging NDX stocks included:  AMZN, BBBY, CTRX, REGN, VRTX, PCLN, PRGO, LIFE, SBUX, ROST, FOSL

Leading stocks> +2% on Monday included: ESI, FB, TSLA, LNKD, CMG, CROX, GRPN, CRM

Lagging stocks < -2.0% included:  SSYS, HLF, RIMM, AKS, LDK, NFLX, MCP, ANR, TSL, X, UAL, GMCR, V, ANF

Stocks to Watch on Tuesday…

Holding Above 30 DMA = 86
SBUX, CSCO, VMED, SBAC, EXPD, LLTC, PCAR, XLNX, TXN, ADI, SIAL, ADSK, DELL, FFIV, ORCL, COST, ADBE, NWSA, DISCA, AMAT, CTSH, FOSL, KLAC, VIAB, NUAN, STX, LBTYA, WDC, CHKP, FAST, MCHP, SNDK, EQIX, STRZA, CTXS, CHRW, SIRI, BIDU, VRSK, ADP, AMZN, BRCM, CMCSA, DTV, EBAY, EXPE, LINTA, MU,  SRCL, SYMC, VRTX, WYNN, FB, CA, CELG, GILD, HSIC, INTU, LIFE, PCLN, QCOM, MDLZ, CTRX, ROST, SPLS, BMC, AVGO, ATVI, SHLD, YHOO, MSFT, MYL, NTAP, MXIM, CERN, WFM, XRAY, VOD, DLTR, ISRG, GOOG, ORLY, AKAM, BBBY, FISV, NVDA

Moving Above 30 DMA = 1

BIIB

               

Moving Below 30 DMA = 1

MAT                                                                          

Staying Below 30 DMA

ALTR, INTC, PAYX, ALXN, ESRX, PRGO, REGN, AMGN, GRMN, MNST, AAPL, GOLD

Nine Week Intermediate Term Market Trend: Up

Short Term Market Trend: Up