Thursday, May 23, 2013

HPQ Soars, TSLA, DLTR Up, IWM, SPY and More Form Bull Flag...SHLD, CRM Crushed After-hours...


Two of nine sectors moved higher on Thursday…XLB, XLE, and XLE were the strongest sectors…XLU was the weakest sector.

Breadth strengthened slightly decliners led advancers…1.39 to 1 on the NYSE and 1.09 to 1 on the NASDAQ…where advancers led decliners…

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

SPY down .48 at 165.45volume 210.8 million shares
VIX up .25 at 14.07
TNX down .03 at 20.23
TLT up .55 at 116.64...
XLF down .12 at 19.71volume 59.8 million shares                 

AAPL up .79 at 442.14volume 12.6 million shares
FB down .10 at 25.06volume 37.6 million shares


Technical Commentary:
IWM + 0.12%, QQQ – 0.23%, SPY – 0.29% and DIA – 0.05%.

Futures continued to drop Wednesday night and stocks opened lower on Thursday found support at overnight lows and rallied with many individual stocks like WDC, STX and TSLA with gains on Thursday.

The SPY, IWM, QQQ and DIA all formed bull flag patterns on Thursday.  Sectors XLB, XLE, XLF, XLI, XLK, XLP, XLV and XLY formed bull flag patterns.  XLU is a MACD bullish divergence setup.

DLTR +1.82 gained following earnings before the open on Thursday.

HPQ +3.63, +17.10% gapped up and soared on Thursday following earnings after the close on Wednesday.

P +1.40, +8.16% in after-hours trading following earnings after the close on Thursday.

SHLD -7.17, -12.33% and CRM -2.70, -5.91% crushed in after-hours trading following earnings after the close on Thursday.


Many stocks and ETFs are in bull flag setups positioning for possible reentry.  See Bull Flag Setups below.

AAPL +78 cents and GOOG gained while PCLN, AMZN, BIDU and NFLX moved lower in in bull flag patterns.

GILD formed a potential low day in a bull flag pattern.  TSLA +5.49 formed a bullish engulfing pattern on day xix of a bull flag setup.

The Euro moved up 78 pips to 1.2930TNX interest rates near unchanged as TLT bonds +55 cents formed a hammer candle.


Trade what you see on the chart of your position.  The intermediate term trend is up with short-term trend neutral.  Traders should lock in profits when targets are reachedAs always look for re-entry according to your rules.  Thursday was a re-entry day on stocks like TSLA and many others are setup for potential entry on Friday.


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 –  HPQ, P, NTAP, AZO, MDT, 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:
CRM, GME, HPQ, P, NTAP, ROST, SHLD,


The Market Forecast Green Line is in the Upper Zone.

____________________

Setups
H Breakout:  BBBY, FAST, SIRI, CNX,

Diagonal Breakout:  AMGN, CTSH, DELL, GLD,

Bull Flag: AKAM, AMAT, BIDU, BRCM, CELG, CMCSA, DTV, EBAY, FFIV, GOOG, GRMN, MSFT, NVDA, ORCL, PCLN, QCOM, SNDK, ATI, BAC, CIEN, CRM, DDD, FAS, FIVE, FSLR, GLW, GMCR, JNPR, NFLX, NTES, RCL, SINA, STI, YELP, ZION,

Potential Bullish Divergence: XLU, AMGN

Gap Up: P

Gap Down:  CRM, SHLD

Bear Flag:  

At Support:  ADSK, FB, ALK, ANGI, LNKD, Z,

Moves
New Highs:  ESRX, MU, MYL, STX, WDC, P,

Gap Up:  HPQ

Gap Down:   SBUX, WYNN, YHOO, LVS,   

H&D Breakout:   

Bounce: TSLA, UAL,   

MACD Divergence Bounce:

Bear Flag:  

Support Break:  ADBE,  

______________________


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


Leading NDX 100 stocks included: EXPD, MU, DLTR, WDC, GOLD, STX, BBBY, ISRG, ATVI, NVDA, FAST, AMGN, WFM, EXPE

Lagging NDX stocks included:  REGN, SYMC, WYNN, QCOM, YHOO, AVGO, MDLZ, CTSH, CHKP, EQIX, MSFT

Leading stocks > +2% on Thursday included: TSLA, UAL, HLF, SSYS

Lagging stocks < -2.0% included:  CRUS, GMCR, CLF, AKS, MCP, URE, CSTR, FCX, RVBD, DECK, CHL, ESI


Stocks to Watch on Friday
Holding Above 30 DMA= 75
ADP, GILD, BIIB, MAT, PAYX, YHOO, SBAC, MSFT, SRC, REGN, LIFE, ROST, WYNN, INTC, DTV, NWSA, SBUX, VRTX, WFM, COST, WDC, AKAM, AMAT, GOOG, NVDA, SIAL, SIRI, STX, BMC, BRCM, CA, ALXN, ESRX, ORLY, PCAR, XLNX, CERN, AAPL, FOSL, KLAC, LINTA, CHKP, ORCL, SHLD, VIAB, VMED, LBTYA, CELG, EXPD, GRMN, LLTC, MYL, PCLN, ADI, MU, NTAP, SPLS, ALTR, BIDU, HSIC, FISV, SNDK, AVGO, FFIV, ATVI, CSCO, FAST,  MNST, DISCA, BBBY, CHRW, MDLZ, DLTR, EBAY, GOLD

Moving Above 30 DMA = 3
DLTR, EBAY, GOLD

Moving Below 30 DMA = 3
QCOM, TXN, LBTYA

Staying Below 30 DMA
AMZN, CMCSA, CTXS, MCHP, VOD, XRAY, EQIX, VRSK, STRZA, PRGO, ADSK, ADBE, AMGN, EXPE, SYMC, MXIM, FB, ISRG, CTRX, NUAN, CTSH, DELL, INTU

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

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