Tuesday, April 23, 2013

IWM, SPY, QQQ, DIA Gain...AAPL Bunces While NFLX, VECO, ILMN, COH, DAL, LCC Soar...


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 strengthenedadvancers 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 157.78volume 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 18.43volume 74.88 million shares                 

AAPL up 7.46 at 406.13volume 23.7 million shares
FB up 1 cent at 25.98volume 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 reachedAs 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.

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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

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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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