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…
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
XLF up 16 cents at 17.31…volume 42.4 million shares
AAPL up 4.77 at 504.77…volume 16.4 million shares
FB up 1.07 at`30.73…on 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
today. With 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 EPS – FCX +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
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
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