Wednesday, February 20, 2013

SPY Forms Bearish Engulfing...AAPL Falls...See Setups Below...


All nine sectors moved lower on Wednesday with defensive sectors XLP, XLU and XLV the strongest sectors.   XLB was the weakest sector. 

Breadth weakened as decliners led advancers3.24 to 1 on the NYSE and 3.59 to 1 on the NASDAQ…

Wednesday – weakened, decliners led
Tuesday - strengthened, advancers led
Monday – President’s Day Holiday
Friday – weakened, decliners led
Thursday – weakened, advancers led


SPY down -1.91 at 151.34...volume 160.4 million shares…
VIX up 2.37 at 14.68
TNX down -.05 at 20.21…
TLT up 35 cents at 116.27…
XLF
down 27 cents at 17.66…volume 55.2 million shares

AAPL down -11.14 at 448.85…volume 17 million shares…
FB down 47 cents at`28.46on volume of 42.1 million shares…


Technical Commentary:
Wednesday’s selloff was both broad and deep as more than half of our watch list and 40% of the NDX 100 stocks were lower on increased volume.

The SPY made its lowest close in eight days forming a bearish engulfing pattern.   Selling in DIA -0.78%, SPY -1.25%, QQQ -1.54% and IWM -1.86% formed bearish engulfing patterns.

AAPL shares moved down -11.74 falling back into its consolidation basing pattern.  FB moved down 47 cents forming a potential bearish harami in a potential bear flag pattern following a MACD bullish divergence.

The Euro fell 107 pips and closed 1.3281 falling to mid-January support and forming a similar low.  Traders must now watch for a potential break of the 1.3250 support area.  A break of support could provide a catalyst for a sell-off in stocks.

Trade what you see on the chart of your position. Many stocks may have produced exit signals on Wednesday as many stocks began to rollover giving traders reason to protect profits. If positions were exited, begin to look for potential re-entry according to your rules.

While the broad market is still in an intermediate term uptrend, the short-term trend has turned neutral and some individual stocks are breaking support and beginning to form bearish setups.

Disk storage stock WDC fell from resistance in what is now a sideways trend and STX broke short-term support and is in a four week downtrend.

Coal stocks ANR, ACI, BTU, CNX, JRCC and WLT sold off more than the broad market on moderate to heavy volume setting up potential short-term bearish entry signals.   Solar stocks SPWR, FSLR, TSL and LDK fell on Wednesday.


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

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Setups
Breakout: TW, CLB, MCHP, GCI, ZION, TEX, SHLD, BPOP, CERN, TSCO, RSH, FTNT

Diagonal Breakout: CRM, PBI, ORLY, HES, BBRY, NUS, GME, COST

Bull Flag: EQIX, FOSL, AGO, ZION, TEX, GLW, CRR, ANR, TSCO, JDSU, CBG, AVP, WYN, VMI, ATI, CSTR, LNKD, SLB, MWV, XRX, QCOM, ZNGA, C, FIVE, ALB, GES, STZ, IM, ANGI, MAS, RL, DECK, CNW,   1 day – NFLX, AGO, TIF, KORS, ADM, WLT, CNX, WBC, ADI, AIZ, SWK, ATVI, FAST, GNC, ATML, AOL, GRPN, MBI, ALTR, FTI, MTW, PTEN, P, NBR

Gap Up:

Gap Down:

Bear Flag:  AMZN, CTSH, ORCL, HSP, RMD, TFM, CTL, CPA, DNB, MCO, GMCR,

Break of Support: AVGO, ROST, TXN, VIAB, WDC, WHR, SWKS, JRCC, BTU, COST, DNDN, MGM, A, JNPR, PCLN,


Moves
Highlights: CTXS, NFLX, SINA, NTES, FSLR, WHR, TPX, SWKS, BBRY, FB

Gap Up: MDRX

Gap Down: GRMN, LIFE, OC

Breakout: FB, ESI, SPWR, PRGO, MJN, AVX, PM, STRZA, GS
 
Bounce: PMCS, JNPR, FFIV, NTES

Bear Flag:  AKAM, DPS

Support Break:  STX, RCL, ACI, LVS, ULTA, STI, DE, CCL, CLF, RAX, IPI

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Just 8 of 100 NDX stocks closed higher on Wednesday…


Leading NDX 100 stocks included:  MNST, CTRX, ALXN, AMGN, ESRX, MDLZ, DELL, CHRW

Lagging NDX stocks included:  GRMN, LIFE, SPLS, STX, ISRG, GOLD, WDC, BIDU, WYNN, SNDK

Leading stocks> +2% on Wednesday included: SINA, FAZ, DLR

Lagging stocks < -2.0% included:  TPX, CDE, CRUS, PHM, FCX, GRPN, AKS, MCP, HLF, CLF, X, MOS, RAX, NFLX, URI, BBRY, UCO, ZAGG, WDC, LDK, TSL, JDSU, FAS, ANR, DECK, SWKS, CIEN, ATI, BAC, VMW, F, C, FSLR, LVS, UAL, JNPR, DE, ANF, RCL, ZION, GS, CRM, SMH, GLW

Stocks to Watch on Thursday…
Holding Above 30 DMA = 57
CSCO, VMED, ADI, LLTC, PCAR, XLNX, ADSK, DELL, DISCA, NWSA, AMAT, KLAC, CHKP, FAST, MCHP, SNDK, STRZA, ADP, EBAY, LINTA, MU, SRCL, SYMC, CA, CELG, GILD, HSIC, PCLN, MDLZ, SPLS, ATVI, SHLD, MSFT, MYL, NTAP, MXIM, CERN, XRAY, ISRG, GOOG, ORLY, BIIB, MAT, PAYX, CTXS, QCOM, ADBE, PRGO, YHOO, ALTR, DLTR, NVDA, CMCSA, CTRX, ESRX,
BRCM, FFIV, MNST

Moving Above 30 DMA = 0                      
                                    

Moving Below 30 DMA = 17
AMZN, AVGO, BBBY, CTSH, EQIX, FOSL, GRMN, LIFE, ORCL, ROST, SIAL, SIRI, TXN, VIAB, VRSK, VRTX, WDC

Staying Below 30 DMA
COST, WYNN, EXPE, SBUX, STX, MDLZ, VOD, WFM, EXPD, LBTYA, DTV, AMGN, NUAN, AKAM, GOLD, INTU, BMC, CHRW, BIDU, ALXN, FISV, INTC, FB, SBAC, REGN, AAPL

Twelve Week Intermediate Term Market Trend: Up
Short Term Market Trend: Neutral

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