IWM, SPY Engulfing, QQQ Harami Pattern Bounce as VRTX, GOOG, CMG Soar...IBM, GE Gap Down...

Eight of nine sectors moved higher on Friday…XLP, XLU, and XLV were the strongest sectors…XLE was the weakest sector…

Breadth strengthened…advancers led decliners 2.67 to 1 on the NYSE and 2.26 to 1 on the NASDAQ…

Friday – strengthened, advancers led

Thursday strengthened, decliners led

Wednesday – weakened, decliners led

Tuesday – strengthened, advancers led

Monday – weakened, decliner led

SPY up 1.34 at 15..48…volume 149.7 million shares

VIX down 2.59 at 14.97…

TNX up .18 at 17.03…

TLT down 26 cents at 122.83…

XLF up 25 cents at 18.08…volume 54.4 million shares                 

AAPL down -1.52 at 390.53…volume 21.8 million shares

FB up 4 cents at 25.73…volume 20.4 million shares

Technical Commentary:

QQQ +1.37%, IWM 1.15%, SPY +0.87% and DIA +0.07%.  CMG +11.54%, GOOG +4.43% and KMB +4.68% jumped after reporting earnings.  VRTX +61.91% gaps up on positive data from cystic fibrosis mid-stage trial.

                          

SPY and QQQ formed gap engulfing candles as momentum shifted to the upside, while IWM formed a bullish harami.  DIA formed a small spinning top in large measure from the weakness in IBM which gapped lower following earnings.  IWM made an entry bounce on Friday.  SPY and QQQ are setup to make an entry bounce on Monday.

The Euro was up 4 pips and closed at 1.3053.   The Euro stayed above support for the eighth straight day.

AAPL moved down -1.52 on 21.8 million shares forming a potential inverted hammer at its 390 level.  AAPL EPS are on Tuesday.  FB formed a spinning top inside day candle in a potential flag setup on volume of 20.3 million…shares closing below its 30 DMA.

Trade what you see on the chart of your position.  The intermediate term trend is up with a bull flag setup.  Some stocks gave entry signals on Friday.  Look for potential entry on Monday.  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.

Demo trade on GILD on 4/9 support bounce entry above 47.65 filled May 49 call at 1.55 which quoted on Friday at 4.75, a gain of 3.20 or 206% in 10 days.  EPS scheduled Monday after the close.  Stock closed 53.17, chart target is 55.18. 

EPS Reaction Summary

EPS Gainers – CMG, GOOG, KMB, STI, MSFT, BTU, PEP, UNP, VZ, MAT, AXP, JNJ, INTC, KO, C

EPS Losers – GE, IBM, ISRG, MCD, MS, PM, UNH, SNDK, EBAY, BAC, USB, GS, LLTC

Key Earnings this week:

Monday – CAT, CHKP, GILD, HAL, HAS, ILMN, LIFE, NFLX, TXN, VECO, ZION

Tuesday – AMGN, AAPL, ACI, T, BRCM, COH, CREE, DAL, DD, JNPR, LMT, PNRA, RF, TRV, LCC, LCC, UTX, VMED, VMW,

Wednesday – AKAM, BA, COG, CLF, GLW, FFIV, DAVE, F, HES, LRCX, QCOM, NDAQ, TSCO, WDC, WHR, XLNX, ZNGA

Thursday – MMM, ALK, ALXN, ALTR, MO, AMZN, ABC, BIDU, BIIB, CELG, CERN, CRUS, CROX, DEC, DOW, EXPE, HOG, ESI, KLAC, LVS, MXIM, PTEN, PHM, RCL, SIAL, SBUX, HSY, TWC,

Friday – CVX, DHI, GT, WLB, WY

The Market Forecast Green Line is below the upper zone and is pointed down.

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Setups

H Breakout:  Z, RCL, INTC, NKE, ADBE, GILD, MNST, SPLK

Diagonal Breakout: STX, CMCSA, LVS, XLNX, AMZN, AKAM, SIRI, TPX, COST, DTV, SYMC, SWI, ATVI

Bull Flag:  SPY, CREE, BIIB, GRPN, GMCR, LNKD, BIDU, ROST, C, SBUX, WFM, YELP, FB, MU,  NUAN, NVDA, ORCL, YHOO, SSYS, DDD, NTES,

Potential Bullish Divergence:  EXPD, BRCM, AMAT, GRMN, FFIV, FIVE, ADSK, ESRX, FAST

Gap Up:

Gap Down:

Bear Flag:

At Support:  CSCO, TXN, WDC, PCLN

Moves

New Highs:  TSLA, ABC, JNJ, KO, PEP, UNP,

Gap Up:  VRTX, MSFT

Gap Down:  IBM, DELL, PM, EBAY, UNH

Breakout: CMG, GILD, GOOG, VZ, UNG

Bounce:  FAS, WYNN, AMGN, CELG, FSLR, HD, DTV, BBBY, Z,

MACD Divergence Bounce: MYL, ZION

Bear Flag: 

Support Break:  AAPL, SNDK, SHLD, CTSH, QCOM, ATI

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76 of 100 NDX stocks closed higher on Friday…

Leading NDX 100 stocks included: VRTX, MDLZ, GILD, GOOG, AMGN, MSFT, WYNN, REGN, CELG, FOSL

Lagging NDX stocks included:  DELL, CTSH, NTAP, ISRG, FFIV, GRMN, ALTR, PCLN, EBAY, CSCO

Leading stocks > +2% on Friday included:  CMG, GRPN, FAS, STI, MCP, LDK, BBRY, URE, CDE, CROX, LVS, TSL

Lagging stocks < -2.0% included:  IBM, ANR, FAZ, VMW, VECO

Stocks to Watch on Monday

Holding Above 30 DMA = 29

VMED, STRZA, ADP, GILD, BIIB, MAT, PAYX, YHOO, AMGN, SBAC, ADBE, CELG, MSFT, SRCL, MDLZ, LBTYA, VIAB, REGN, VOD, BBBY, LIFE, NUAN, ROST, MNST, WYNN, CRTX, DLTR, INTC, KLAC

Moving Above 30 DMA = 8

DTV, FISV, HSIC, NWSA, PRGO, SBUX, VRTX, WFM

Moving Below 30 DMA = 0

Staying Below 30 DMA

AMZN, BIDU, COST, EBAY, ISRG, NTAP, NVDA, PCLN, SNDK, WDC, ALXN, AMAT, BMC, CERN, CMCSA, MU MXIM, STX, XRAY, TXN, FB, DISCA, EQIX, AKAM, ATVI, CHRW, CSCO, EXPE, GRMN, PCAR, QCOM, SHLD, SPLS, VRSK, AVGO, CTSH, MCHP, ORLY, SIRI, ADSK, BRCM, DELL, SYMC, XLNX, FAST, GOLD, ESRX, GOOG, INTU, ALTR, CA, LLTC, SIAL, ADI, AAPL LINTA, MYL, ORCL, CTXS, FOSL, CHKP, FFIV, EXPD

Twenty One Week Intermediate Term Market Trend: Up

Short Term Market Trend: Down