The SPY continued to pause at the start of earnings season. AA closed down 2 cents after it met EPS and exceeded on revenues Tuesday after the
close. WFC releases earnings
Friday morning.
Six of nine sectors moved higher on Wednesday… XLV, XLI and XLB were the strongest sectors. XLU was
the weakest sector.
Breadth strengthened on Wednesday as advancers led decliners…2.14 to 1 on the NYSE and 1.87 to 1 on the NASDAQ…Breadth strengthens as advancers increase and or
decliners decrease. Breadth
weakens as advancers decrease and or decliners increase.
Wednesday –
strengthened, advancers led
Tuesday – strengthened, decliners
led
Monday – weakened, decliners led
Friday – strengthened,
advancers led
Thursday – weakened,
advancers led
The SPY moved sideways
and traded in a very tight 68 cent range.
Though the SPY
has moved sideways for six days, the Jan 2 gap support continues to hold. At resistance traders should continue to watch closely for prices to rollover and be prepared to protect
profits, while at the same time be prepared to continue with the
uptrend if a breakout of resistance occurs.
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 may keep the SPY in a narrow
range for the next several days.
SPY up 37 cents at 145.92...volume 90.7 million
shares…
VIX up .19 at 13.81…
TNX down .19 at 18.52…
TNX down .19 at 18.52…
TLT down 11 cents at 119.12…
XLF down 3 cents at 16.93…volume 48.5 million shares
XLF down 3 cents at 16.93…volume 48.5 million shares
AAPL down 8.21 at 517.10…volume 14.5 million
shares …
FB up 1.53 at`30.59…on rising volume of 104.6 million shares…
__________________
Technical Commentary:
The SPY formed a doji candle pattern as it continues to trade
sideways for the sixth straight day holding above the 145 gap support area. IWM rose 42 cents on Wednesday, formed a
spinning top and continues to lead the broad index ETFs. CTXS and JOY broke through
resistance on Wednesday, while a large number of stocks bounced off support and
gave fresh entry signals. FB
continued to climb from its recent breakout.
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 another 47 pips to close at 1.3033 on Wednesday.
Disk storage stocks WDC +4.34% and STX +6.64% bounced big in their bull flag patterns. Coal stocks ANR, ACI, BTU, CNX, JRCC
and WLT all continued weak on Wednesday. Chinese
solar stocks TSL and LDK continued to soar in their multi-week
uptrend, after spending 2012 in a strong down trend.
The Market
Forecast Green Line is in the upper reversal zone.
____________________
Setups
Breakout: CRUS,
NUAN, QCOM, CTRP, SPY, BRCM, RCL, ACI, BTU, JRCC, NKE, MCP, EBAY
Bull Flag: NFLX, CERN, WLT, SBAC, ANR, ROST, FFIV, CIEN,
GLW, IBM, JNPR, DECK, FSLR, GMCR, CTSH, ADI, PCAR, TXN, COST, ZION, YELP
Moves
Breakout: CTXS, JOY, FOSL, GILD, LIFE, FB, AMZN, TRIP, WAG, EQIX, GOOG, SNDK,
Bounce: STX, WDC, REGN, EXPD, LMCA,
QCOM, VIAB, ADBE, CRM, ADSK, IWM
____________________
70 of 100 NDX stocks
closed higher on Wednesday…
Leading NDX 100 stocks included: STX, FB, WDC,
REGN, CTXS, BIDU, MAT, ALXN, LIFE, DTV
Lagging NDX stocks included: GRMN, NVDA, DLTR,
SBUX, YHOO, EXPE, AAPL, NUAN, AKAM, ORLY
Leading stocks> +2% on Wednesday included: TSL, LDK, FB, WDC, HLF, DHR, SWI, SWKS, SSYS, A, VMW, LNKD, CREE
Lagging stocks < -2.0% included: ESI,
BAC, ANR, DECK, RIMM, GPN, JDSU
Stocks to Watch on Thursday…
Holding Above 30 DMA = 78
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, AKAM, ALTR, CHKP, FAST, MCHP, SNDK, EQIX, LMCA, CTXS, CHRW, INTC, SIRI, BIDU, VRSK, ADP, AMZN, BRCM, CMCSA, DTV, EBAY, EXPE, LINTA, MU, MXIM, MYL, SRCL, SYMC, VRTX, WYNN, XRAY, PRGO, FB, ALXN, CA, CELG, CERN, GILD, HSIC, INTU, LIFE, PCLN, QCOM, MDLZ, CTRX, ROST, SPLS, VOD, BMC
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, AKAM, ALTR, CHKP, FAST, MCHP, SNDK, EQIX, LMCA, CTXS, CHRW, INTC, SIRI, BIDU, VRSK, ADP, AMZN, BRCM, CMCSA, DTV, EBAY, EXPE, LINTA, MU, MXIM, MYL, SRCL, SYMC, VRTX, WYNN, XRAY, PRGO, FB, ALXN, CA, CELG, CERN, GILD, HSIC, INTU, LIFE, PCLN, QCOM, MDLZ, CTRX, ROST, SPLS, VOD, BMC
Moving Above 30 DMA = 4
AMGN, ESRX, MAT, REGN
Moving Below 30 DMA = 3
GRMN, NVDA, YHOO
Staying Below 30 DMA
ATVI, NTAP, SHLD, ORLY, PAYX, WFM, MNST, MSFT, AAPL, BIIB, DLTR, BBBY, ISRG, AVGO, GOLD
Seventeen Week
Intermediate Term Market Trend: Neutral
at Resistance
Short Term Market Trend: Neutral
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