Tuesday, January 22, 2013

SPY Makes Another New High Close...GOOG, IBM, ISRG and CREE Rise Big in After-hours Trading...

All nine sectors moved higher on Tuesday… XLB, XLE and XLF were the strongest sectors.   XLP was the weakest sector. 

Breadth strengthened as advancers led decliners…2.25 to 1 on the NYSE and 1.65 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 – MLK Holiday
Friday – weakened, advancers led
Thursday – strengthened, advancers led
Wednesday – weakened, decliners led
Tuesday – strengthened, advancers led


The SPY continued its current uptrend and made another new high close as Tuesday AM earnings were positive After the close GOOG +35.33, IBM +8.06, ISRG +45.01 and CREE +5.00, +14.94% reported strong earnings and gapped up above the MMM expected move.

As the trend continues to move up traders should trade with the trend while continuing to watch for a potential rollover and be prepared to protect profits.

The chart continues to indicate that the uptrend is more likely to continue, but with the large amount of new information coming into the market through earnings releases, traders must be alert for a potential pullback.

Tuesday’s earnings and price reactions continue to support the current up trend.


SPY up 80 cents at 149.13...volume 111.8 million shares…
VIX down -0.03 at 12.43
TNX down -0.08 at 18.35…
TLT up 23 cents at 120.27…
XLF
 up 16 cents at 17.31…volume 42.4 million shares

AAPL up 4.77 at 504.77volume 16.4 million shares
FB up 1.07 at`30.73on volume of 54.9 million shares…EPS Jan 30…bull flag bounce


Stocks with good earnings and guidance are likely rise and those with either weak earnings or guidance are likely to fall in price The earnings pause seems to be vanishing as traders reacted to strong earnings todayWith earnings from GOOG, IBM today, AAPL, NFLX on Wednesday and MSFT on Thursday among many others the SPY could continue to rise if earnings continue to be as positive as they were on Tuesday.

Tuesday Price Action after AM EPSFCX +1.55, +4.61%, RF +0.33, +4.44%, PETS +0.40, +3.47%, DAL +0.40, +2.94%, TRV +1.64, +2.15%, DD +0.83, +1.77%, VZ +0.40, +0.94%


Earnings to Watch this Week:
Tuesday – AMD, CA, CREE, CSX, DAL, DD, FCX, GOOG, IBM, ISRG, JNJ, PETS, RF, TXN, TRV, VZ
Wednesday – ATI, ALTR, AMGN, AAPL, BHI, CHKP, COH, FFIV, MCD, NFLX, SNDK, URI, UTX, WDC
Thursday – MMM, ALK, T, BMY, CHRW, CELG, CRUS, CY, INFA, ESI, JNPR, KEY, KLAC, MXIM, MSFT, SCSS, LUV, SWK, SBUX, TPX, UNP, UAL, VRSN,
Friday – HAL, PG, WY

__________________

Technical Commentary:

The SPY on the strength of Tuesday’s earnings made another new high close.   IWM, +0.72%, SPY +0.54%, DIA +0.48%, and QQQ +0.16% as AAPL shares bounced slightly the day before earnings.  FB made a bull flag bounce that many traders use as an entry point.

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 was up 2 pips to close at 1.3321 on Tuesday after pulling back from resistance on Friday in its strong uptrend.

Disk storage stocks led the NDX today as WDC +5.69% EPS Jan 23 and STX +7.09% EPS Jan 28 blasted higher continuing their uptrends. 

Coal stocks continued Friday’s strong move up with more gain:  JRCC +5.06%, ANR +4.19%, ACI +2.22%, CNX +2.70%, and BTU +1.12% Chinese solar stocks TSL +8.76% and LDK +7.65% bounced in their bull flag patterns in their multi-week uptrend.


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

____________________


Setups
Breakout:  VIAB, ROST, NTAP, SINA, CERN, IBM, MOS, SOHU, SWK, LEN, FAST, TIF, QCOM, STI, ZION, MGM, NUAN, BRCM, LNKD

Diagonal Breakout:  DECK, FFIV, SBAC, JDSU

Bull Flag:  BRCM, C, GOOG, BAC, BIDU, NTES, NFLX, ADBE, GES, SMH, UAL, SWI, HLF, YELP, CTXS, CRM, VMW, EXPE, RCL, NKE, WDC, STRZA, ADSK, ANF, COH, SNDK, AMZN, EBAY, CTSH, CRUS, RAX

Gap Up:  GOOG, ISRG, IBM, CREE


Moves
Breakout:  EQIX, RIMM, DE, IWM, SPY, STX, FAS, LIFE, A, LCC, UNG, PHM, TOL, SHLD, JNPR, CTRP, EXPD, FOSL, WAG, F

Bounce: VIAB, REGN, TSL, WDC, FSLR, FB, LVS, X, ATI, TRIP, ANR, CERN, ANR, MOS, SOHU, CLF, V, AKS, ADI, GMCR, COST, ROST, APOL, PCAR, JOY, GILD

____________________


49 of 100 NDX stocks closed higher and three were unchanged on Tuesday…


Leading NDX 100 stocks included:  STX, WDC, GOLD, REGN, FB, DLTR, CERN, DELL, WFM, ISRG

Lagging NDX stocks included:  ADSK, LBTYA, MDLZ, SHLD, GRMN, EBAY, FAST, CTSH, XLNX, CMCSA

Leading stocks> +2% on Tuesday included: RIMM, TSL, LDK, WDC, FCX, ANR, FB, VECO, CLF, FAS, LVS, ATI, DECK

Lagging stocks < -2.0% included:  CDE, FAZ, GRPN

Stocks to Watch on Wednesday…
Holding Above 30 DMA = 84
SBUX, CSCO, VMED, SBAC, EXPD, LLTC, PCAR, XLNX, TXN, ADI, SIAL, FISV, ADSK, DELL, FFIV, ORCL, COST, ADBE, 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, MXIM, CERN, WFM, XRAY, PAYX, VOD

Moving Above 30 DMA = 2
DLTR, ISRG               

Moving Below 30 DMA = 1
ESRX                                 

Staying Below 30 DMA
GOOG, PRGO, AKAM, REGN, AMGN, GRMN, NVDA, ORLY, MNST, AAPL, BIIB, BBBY, GOLD


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

No comments: