All nine sectors moved higher on Tuesday…XLF, XLE, and XLK were
the strongest sectors…XLU was the
weakest sector…The SPX dropped 15 points
in less than two minutes when a report on a terrorist attack on the White
House appeared on Twitter…AP reported
moments later that its Twitter account had been hacked and that the report was
false…the SPX then rallied back to its level before the report…Another
illustration of how anything can happen and an excellent example of market
sensitivity to rumor…
Breadth strengthened…advancers led decliners
4.01 to
1 on the NYSE and 3.16 to 1 on the NASDAQ…
Tuesday – strengthened,
advancers led
Monday – strengthened,
advancers led
Friday – strengthened,
advancers led
Thursday strengthened,
decliners led
Wednesday – weakened,
decliners led
SPY
up 1.61 at 157.78…volume 166.1 million shares
VIX
down .91 at 13.48…
TNX
down .05 at 16.98…
TLT
down 43 cents at 122.49…
XLF
up 32 cents at 18.43…volume 74.88 million shares
AAPL
up 7.46 at 406.13…volume 23.7 million shares
FB
up 1 cent at 25.98…volume 25.1 million shares
Technical Commentary:
IWM + 1.58%, SPY +1.03%, DIA + 1.02% and QQQ +.96% all
continued Monday’s support bounce moving towards resistance. NFLX +24.44%,
VECO +16.38%, ILMN +13.28%,
COH +9.80%, and TRV +2.09%
all gapped on Tuesday after reporting strong EPS. DAL and LCC took flight and soared after
earnings.
QQQ, SPY, DIA and IWM
all formed white candles as momentum continued to the upside for
the second straight day. DIA confirmed
Monday’s dragonfly doji and gave an entry signal. IBM and GE bounced after two
down days and TRV gained giving strength to the DJIA. SPY and QQQ made an entry bounce on
Monday.
The Euro was down 62 pips and closed at 1.3000. The Euro stayed above support for the
tenth straight day.
AAPL moved up +8.14 on 23.4 million shares. AAPL reported EPS after the close and
share were up as much as $20 and then traded down $2 from Tuesday’s close. This was an atypical up the turn slightly
negative earnings reaction. Watch
Wednesday to see if AAPL gaps or trades higher.
FB continues
to struggle in gaining any upside momentum and did not confirm Monday’s inverted
hammer in a potential flag setup on volume of 25.1 million…FB again closed
just 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.
EPS Reaction Summary
EPS Gainers – 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 – ACI, GE, IBM, ISRG,
MCD, MS, PM, UNH, SNDK, EBAY, BAC, USB, GS, LLTC
Key Earnings this week:
Monday – CAT, CHKP, 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.
____________________
Setups
H Breakout: C, WDC, LNKD,
SBUX, TPX, FSLR, TXN, COST, YHOO, WYNN, HD,
DTV, ADBE, MNST, SPLK
Diagonal Breakout: CMCSA,
XLNX, SWI
Bull Flag: GILD,
BIIB, MSFT, UNG, GRPN,
YELP, FB, MU, ORCL
Potential Bullish Divergence: EXPD, FFIV
Gap Up: AAPL, BRCM, COH
Gap Down: AMGN, T, CREE, JNPR, PNRA, VMW
Bear Flag: IBM, EBAY, PM, QCOM
At Support: GRMN
Moves
New Highs: INTC, CREE,
TSLA, ABC, JNJ, KO, PEP, UNP, VZ
Gap Up: NFLX, COH, ILMN,
VECO, TRV, VRTX
Gap Down: DELL, UNH
H&D Breakout: Z, RCL, ROST, NTAP, TPX, DAL, DD, NKE, AKAM,
COST, SYMC, CELG, DTV,
ATVI
Bounce: LCC, C, SPY, SSYS,
DDD, LNKD, NVDA, NTES, STX, GMCR, AMZN, SIRI, SPLK, SBUX, GOOG, BIDU, LVS,
SNDK, SHLD, GRMN, WFM, TPX, NUAN,
WDC, PCLN, BRCM, AKAM, COST, PM, AAPL, QCOM, FAS, WYNN, FSLR
MACD Divergence Bounce: ADSK, ESRX, FIVE, CSCO, AMAT, FAST, MYL, ZION
Bear Flag:
Support Break: CTSH, ATI
______________________
81 of 100 NDX stocks closed higher on
Tuesday…and one remained the same…
Leading NDX 100 stocks included: WDC, STX, AKAM, MXIM, ADSK,
SIRI, GRMN, EQIX, KLAC, AMAT, NVDA, BIDU, TXN, AVGO, SHLD
Lagging NDX stocks included:
SPLS, CTSH, VIAB, GILD, DELL, BIIB, GOLD,, HSIC, CHKP, ISRG, MSFT, CELG,
AMGN, PCAR, REGN
Leading stocks > +2% on Tuesday included: NFLX, VECO, COH, TSL, SSYS, ZAGG, LNKD,
FAS, LDK, JDSU, ESI, CRUS CIEN, BREE, SINA, UAL
Lagging stocks < -2.0% included: FAZ, ANR, CDE
Stocks to Watch on Wednesday
Holding Above 30 DMA = 42
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, CTRX, DLTR, INTC, KLAC, DTV, FISV, NWSA,
SBUX, VRTX, WFM, PRGO, AMGN, ATVI, COST, EXPE, EQIX, WDC
Moving Above 30 DMA =13
AKAM, AMAT, BIDU, CERN, DISCA, GOOG, MXIM, NTAP, NVDA, SIAL,
SIRI, STX, TXN
Moving Below 30 DMA = 0
Staying Below 30 DMA
HSIC, EBAY, ISRG, PCLN, SNDK,
ALXN, BMC, CMCSA, MU, XRAY, CHRW, CSCO, GRMN, PCAR, QCOM, SHLD, SPLS, VRSK,
AVGO, CTSH, MCHP, ORLY, ADSK, BRCM, DELL, SYMC, XLNX, FAST, GOLD, ESRX, INTU,
ALTR, CA, LLTC, ADI, AAPL, LINTA, MYL, ORCL, CTXS, FOSL, CHKP, FFIV, EXPD
Twenty One Week Intermediate Term Market Trend: Up
Short Term Market Trend: Up
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