Seven of nine sectors moved higher on Tuesday…XLK, XLE, and XLY were
the strongest sectors…XLP Vas the
weakest sector.
Breadth weakened…advancers led decliners 2.00 to 1 on the NYSE and 1.53 to 1 on
the NASDAQ…
Tuesday – weakened,
advancers led
Monday – strengthened,
advancers led
Friday – weakened,
decliners led
Thursday –
weakened/strengthened, advancers led
Wednesday – weakened,
advancer led
SPY
up 38 cents at 159.68…volume 116.0 million
shares
VIX
down .19 at 13.52…
TNX
up .07 at 16.75…
TLT
up 7 cents at
123.01...
XLF
up 5 cents at 18.70…volume 41.1 million shares
AAPL
up 12.66 at 442.78…volume 24.7 million shares
FB
up 79 cents at 26.98…volume 36.2 million shares
Technical Commentary:
QQQ + 0.73%, IWM + 0.57%, SPY + 0.24% and DIA + 0.11%. While
many companies have earnings to report this week and next, the majority of
earnings are complete. Some companies
that had a negative earnings reaction like IBM are beginning to rebound.
QQQ, broke out of horizontal
resistance on the strength of a rising AAPL.
SPY, DIA and IWM at resistance are poised to breakout.
The Euro rose 76 pips to short-term resistance and closed at 1.3166. Look for a potential horizontal breakout on
the Euro.
AAPL moved up 12.66 on 24.7 million shares. AAPL broke out of short-term
resistance from early April which a possible reversal point of its down trend
since last September.
FB gained 79 cents and closed above its 30 DMA for the third on
volume of 36.2 million shares. Raymond
James analyst on Friday upgraded FB to Strong Buy with a price
target of $37. FB reports
earnings after the close on Wednesday.
Chart Signals Strategy Guidelines
Technical setups for
short-term option trades be in and out by earnings release.
Over earnings release use earnings option strategies such as straddles, strangles, OTM calls
or puts.
After earnings look for
bullish setups in positive reaction stocks and bearish setups in negative reaction
stocks.
EPS Reaction Summary
EPS Gainers – DDD, AVP, HLF, CERN, CVX, DHI, TWC, ANGI, AKAM, ALXN, ALTR, BIIB,
COG, CLF, CROX, DOW, ESI, FFIV, HOG, LRCX, LVS, MO, PHM, RCL, SIAL, XLNX, BA,
BRCM, GLW, HES, DAL, COH, DD, NFLX, ILMN, VECO, LCC, RF, ZION, TRV, LMT,
CAT, CHKP, HAL, HAS, CMG, GOOG, KMB, STI, MSFT, BTU, PEP, UNP, VZ, MAT,
AXP, JNJ, INTC, KO, C
EPS Losers – AMZN,
BIDU, CRUS, DECK, EXPE, HSY, KLAC, MXIM, QCOM, PTEN, ABC, MMM, AMGN,
T, JNPR, PNRA, VMW, GE, IBM, ISRG, MCD, MS, PM, UNH, SNDK, EBAY, BAC,
USB, GS, LLTC
Key Earnings this week:
Monday – HLF, RVBD,
Tuesday – DDD, AVP, MTW, X, VRSK,
VRTX
Wednesday – AMT, ADM, CAR, CHK, FB, GRMN, ICE, JRCC, JDSU,
LVS, MA, MRK, STX, TWX, VIAB, V, WLT, YELP
Thursday – ANR, AIG, BZH, CTRX,
GM, LNKD, MDC, MYL, TPX, ZAGG
Friday – ADP, CBOE, REGN, UPL
The Market Forecast Green Line is
pointed up in the Upper Zone.
____________________
Setups
H Breakout: X, UNG, DOW, FB, CRUS, ESRX, SPY, FAS, LCC, PHM, PM, SPLK, TPX, VECO, ATVI, XLNX,
HD, DTV, ADBE, MNST
Diagonal Breakout: YELP,
ZION, AMGN, NTAP
Bull Flag: JCP, GRPN,
PHM, ANGI, ESI, BA, C, COST, UNP, GRMN,
MYL, YHOO, STX, KO, PEP, CMG, TRV, VRTX, GILD, CELG
Potential Bullish Divergence:
Gap Up:
Gap Down: SWI
Bear Flag: CTSH, DELL, X, GE, IBM
At Support: FIVE, BIDU, JNPR,
VMW,
Moves
New Highs: ILMN, ROST,
LNKD, SBUX, AKAM, FSLR, BIIB, INTC, TXN, MSFT, AMAT, COH, DD, GLW, JNJ, NKE, NVDA,
VZ, WYNN
Gap Up: OIS, BBY, NFLX
Gap Down: NUAN, EXPE, MXIM,
QCOM
H&D Breakout: DDD, AAPL, SSYS, BRCM, GOOG, NTES, ESRX, DAL,
TSLA, CMCSA, TPX, SYMC, DTV
Bounce: Z, WDC, HSY, ORCL,
LVS, SHLD, IBM, LRCX, DECK, MMM, JNPR, CTSH, AMZN, RCL, ABC, FFIV, BIDU, KLAC, CSCO, MU, UNH, GMCR
MACD Divergence Bounce: EXPD, FFIV, ADSK, FAST
Bear Flag: SNDK, EBAY,
Support Break: ATI
______________________
65 of 100 NDX stocks closed higher
and one was unchanged on Tuesday…
Leading NDX 100 stocks included:
SIRI, ADSK, CTSH, FOSL, AAPL, FB, SHLD, SPLS, CHKP, KLAC
Lagging NDX stocks included:
NUAN, SNDK, AMGN, INTU, BIIB, VRTX, AVGO, FAST, LBTYA, SYMC
Leading stocks > +2% on Tuesday included: SSYS, MCP, BBRY, AKS, JNPR, CDE, HLF,
SINA, CLF, URE, VECO
Lagging stocks < -2.0% included: UCO, GRPN, LDK, YELP
Stocks to Watch on Wednesday
Holding Above 30 DMA = 66
STRZA, ADP, GILD, BIIB, MAT, PAYX,
YHOO, SBAC, ADBE, CELG, MSFT, SRCL, MDLZ, REGN, VOD, BBBY, LIFE, ROST, MNST,
WYNN, CTRX, DLTR, INTC, DTV, FISV, NWSA, SBUX, VRTX, WFM, ATVI, COST, WDC,
AKAM, AMAT, GOOG, NTAP, NVDA, SIAL, SIRI, STX, TXN, BMC, BRCM, CA, GOLD, GRMN,
SYMC, ALXN, ESRX, MYL, ORLY, PCAR, XLNX, PRGO, CERN, CMCSA, FB, AAPL, CHRW,
CSCO, FOSL, KLAC, LINTA, MCHP, XRAY VRSK
Moving Above 30 DMA = 8
ADSK, CHKP, EQIX, LLTC, ORCL, SHLD, SPLS, VIAB
Moving Below 30 DMA = 6
AMGN, DISCA, FAST, LBTYA, NUAN, VMED
Staying Below 30 DMA
AMZN, BIDU, EXPE, MXIM, PCLN, QCOM,
HSIC, EBAY, ISRG, SNDK, MU, AVGO, CTSH, DELL, INTU, ADI, ALTR, CTXS, FFIV, EXPD
Five Month Intermediate Term Market Trend: Up
Short Term Market Trend: Up
