Thursday, May 16, 2013

CSCO Soars After Earnings...AAPL Rallies, Stocks Pause After Fed Comments...


One of nine sectors moved higher on Thursday…XKP, XLB, and XLE were the strongest sectors…XLY was the weakest sector.

Breadth weakeneddecliners led advancers…1.52 to 1 on the NYSE and 1.33 to 1 on the NASDAQ…

Thursday – weakened, decliners led
Wednesday – weakened, advancers led
Tuesday – strengthened, advancers led
Monday – weakened, decliners led
Friday – strengthened, advancers led



SPY down .78 at 165.34volume 109.8 million shares
VIX up .26 at 13.07
TNX down .78 at 18.65
TLT up 1.22 at 118.56...
XLF down .13 at 19.69volume 37.5 million shares                 

AAPL up 5.73 at 434.58volume 21.5 million shares
FB down .47 at 26.13volume 35.4 million shares


Technical Commentary:
QQQ – 0.11%, DIA – 0.22%, IWM – 0.25% and SPY - 0.47%.     

Fed indicates again that asset purchase may be tapered off in coming months gave some traders a catalyst to sell as the broad market pulled back after achieving resistance breakout targets on Wednesday.  .

SPY pulled back at its S&R measuring price target of 165.87.
DIA pulled back at its S&R measuring price target of 152.80.
QQQ stayed just above its S&R measuring price target of 73.46.
IWM pulled back at its 161 Fib breakout target of 97.90.


QQQ led the other ETFs on Thursday lagging due to strength in AAPL +5.73 which formed a a piercing line candle in its bull flag pattern following its 80 point rise from April 19 to May 7.

CSCO, NTAP and FFIV led the NDX on Thursday.  CSCO gapped up after earnings and JCP was down in after-hours trading.  TSLA gapped up after pulling back on Tuesday and Wednesday to a higher low.

The Euro moved up 3 pips to 1.2883TNX interest rates dropped and TLT bonds rose.

It’s time to move stops up to protect profits as traders stay with the trend.

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 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 –  CSCO, A, MCP, WCRX, NVDA, PCLN, GMCR, GRPN, TSLA, EA, DVA, WFM, CTSH, DTV, LBTYA, AIG, ADP, CBOE, REGN, FB, BZH, EXPD, GM, MDC, STX, V, YELP, ICE, JRCC, VIAB, CMCSA, 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, APOL

EPS Losers – DISH, XRAY, ATVI, RAX, MNST, Z, LNKD, TPX, ZAGG, CTRX, GRMN, MRK, SWI, 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:



The Market Forecast Green Line is in the Upper Zone.

____________________

Setups
H Breakout:   ADSK, CRM,

Diagonal Breakout:  FB, ANGI, WLT,

Bull Flag:  AAPL, AMAT, AMGN, AMZN, ATVI, BBBY, CELG, CMCSA, COST, DELL, ESRX, FAST, MAT, ROST, SBUX, SHLD, TXN, WFM, WYNN, ALK, ANGI, ATI, BAC, C, CLF, CMG, CNX, DDD, FAS, FSLR, LVS, SSYS, ZION

Potential Bullish Divergence:

Gap Up:

Gap Down: 

Bear Flag: 

At Support:  NUAN, ANR, GLD, UNG, YELP,


Moves
New Highs:  MSFT, MU, MYL, NTAP, GRPN, STI, UAL,

Gap Up:  CSCO, FFIV, CRM, JNPR, TSLA,

Gap Down:  AMD,

H&D Breakout:  FFIV, GRMN, BBRY,

Bounce: TLT,

MACD Divergence Bounce:

Bear Flag: 

Support Break: 

______________________


22 of 100 NDX stocks closed higher on Thursday…one was unchanged…


Leading NDX 100 stocks included: CSCO, NTAP, FFIV, GOLD, CTXS, MU, GRMN, AAPL, ORCL, ADSK, VOD, MSFT

Lagging NDX stocks included:  CELG, EXPE, REGN, ALXN, YHOO, GILD, FOSL, AKAM, AMGN, SIRI, STRZA, FAST,

Leading stocks > +2% on Thursday included: TSLA, CIEN, JDSU, RVBD, JNPR, CRM, VMW

Lagging stocks < -2.0% included:  TSL, SSYS, NTES, TPX, DECK, MCP, CLF, NFLX, LDK, TBT, NKE, AKS, BBRY

Stocks to Watch on Friday
Holding Above 30 DMA= 84
ADP, GILD, BIIB, MAT, PAYX, YHOO, SBAC, MSFT, SRCL ,REGN, VOD, BBBY, LIFE, ROST, WYNN, DLTR, INTC, DTV, NWSA, SBUX, VRTX, WFM, COST, WDC, AKAM, AMAT, GOOG, NVDA, SIAL, SIRI, STX, TXN, BMC, BRCM, CA, ALXN, ESRX, ORLY, PCAR, XLNX, CERN, CMCSA, FOSL, KLAC, LINTA, MCHP, XRAY, VRSK, AAPL, CHKP, ORCL, SHLD, VIAB, EQIX, VMED, LBTYA, CELG, EXPD, GRMN, LLTC, MYL, PCLN, ADI, ADSK, MU, NTAP, SPLS, ALTR, BIDU, HSIC, FISV, SNDK, AVGO, EBAY, FFIV, AMZN, ATVI, CSCO, FAST, QCOM, PRGO, MNST, MDLZ, DISCA

Moving Above 30 DMA = 1
CTXS

Moving Below 30 DMA = 5
ADBE, AMGN, EXPE, SYMC, STRZA

Staying Below 30 DMA
MXIM, FB, GOLD, ISRG, CHRW, CTRX, NUAN, CTSH, DELL, INTU

Five Month Intermediate Term Market Trend: Up
Short Term Market Trend: Up

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