AAPL Leads Tech Stocks Higher...XLK Breaks Out...FB Rises with EPS on Wednesday...

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.

Trade what you see on the chart of your position.  The intermediate term trend is up with a horizontal resistance breakout setup.  Traders should lock in profits when targets are reached.  As always look for re-entry according to your rules.

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.

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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

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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