Friday, May 17, 2013

SPY, IWM, QQQ New High Close...GILD, STX Rise...Financials Rise and Bonds Fall...Bull Flags Appear...


All nine sectors moved higher on Friday…XLE, XLI, and XLF were the strongest sectors…XLP was the weakest sector.

Breadth strengthened…advancers led decliners…2.72 to 1 on the NYSE and 2.27 to 1 on the NASDAQ…

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


SPY up 1.60 at 166.94volume 129.8 million shares
VIX down .62 at 12.45
TNX up .84 at 19.49
TLT down 1.50 at 117.06...
XLF up .26 at 19.95volume 47.9 million shares                 

AAPL down 1.32 at 433.26volume15.2 million shares
FB up .12 at 26.25volume 29.4 million shares


Technical Commentary:
IWM + 1.12%, QQQ + 0.96%, SPY + 0.97% and DIA + 0.74%.     

Once again the market proves on Friday that “news” or “economic announcements or comments,” if that is why that markets pulled back on Thursday, have the “staying power of a Popsicle in the hot sun.”  Even GILD which was down on Thursday on “guilty by association” comments on INFI rebounded on Friday.  STX which paused on Thursday continued its bull flag bounce on Friday.

SPY exceeded its S&R measuring price target of 165.87.
DIA exceeded its S&R measuring price target of 152.80.
QQQ continued above its S&R measuring price target of 73.46.
IWM exceeded its 161 Fib breakout target of 97.90 moving towards its S&R measuring price target of 99.95.

The SPY has made a new high on 40 of the 95 trading days in 2013.  That’s 42% of the trading day resulting in a new closing high.  The inverse 58% of days have not made a new high close.  

IWM led the other ETFs on Friday.  Many stocks which reached targets this week are in bull flag setups positioning for possible reentry.  See Bull Flag Setups below.

AAPL -1.31 formed a piercing line candle on Thursday and paused on Friday in its bull flag pattern following its 80 point rise from April 19 to May 7.

CTSH, BRCM, CERN and GILD led the NDX on Friday.  JCP gapped down after earnings and rallied.  TSLA which gapped up on Thursday paused at resistance on Friday.

The Euro moved down 45 pips to 1.2838TNX interest rates rallied and TLT bonds moved lower in a bear flag entry.

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:
CRM, GME, P, NTAP, ROST, SHLD,


The Market Forecast Green Line is in the Upper Zone.

____________________

Setups
H Breakout:  CIEN, CMG, GS, SPLK, AAPL, BIDU, QCOM, WFM,

Diagonal Breakout:  ANGI, CREE, LNKD, TPX, WLT, YELP, Z, ADBE, AMGN, BBBY, FB, SYMC, TXN,

Bull Flag:  ALK, CLF, CNX, DDD, FIVE, FSLR, GRPN, JCP, LVS, NFLX, NTES, RCL, SOHU, SSYS, DAL, CELG, CMCSA, FAST, FFIV, GILD, GOOG, INTC, SIRI, WYNN, YHOO

Potential Bullish Divergence:

Gap Up:

Gap Down: 

Bear Flag:  SWI,

At Support:   GLD

Moves
New Highs:   GLW, FAS, STI, SPY, QQQ, IWM, DIA, UAL, ZION, BRCM, COST, CSCO, DTV, GRMN, MSFT, MU, MYL, NVDA, ORCL, PCLN, SBUX, XLNX

Gap Up:   

Gap Down:  ADSK,

H&D Breakout:   ATI, SNDK, WDC,

Bounce: JRCC, UNG, AMZN, TBT, CTSH, ESRX, GILD, STX, WYNN,

MACD Divergence Bounce:

Bear Flag:  TLT,

Support Break: 

______________________


82 of 100 NDX stocks closed higher on Friday…two was unchanged…


Leading NDX 100 stocks included: CTSH, PCAR, BRCM, CERN, GILD, ALTR, WDC, SNDK, MSFT, MYL, MU, AMZN, BIDU, STX, STRZA

Lagging NDX stocks included:  ADSK, GOLD, CTRX, NTAP, CMCSA

Leading stocks > +2% on Friday included: ATI, FAS, ESI, F, SOHU, V, TBT, X, GS, TPX,  NTES, CSTR, ZION, CIEN, FCX

Lagging stocks < -2.0% included:  FAZ, CDE, DE


Stocks to Watch on Monday
Holding Above 30 DMA= 83
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, CHKP, ORCL, SHLD, VIAB, EQIX, VMED, LBTYA, CELG, EXPD, GRMN, LLTC, MYL, PCLN, ADI, MU, NTAP, SPLS, ALTR, BIDU, HSIC, FISV, SNDK, AVGO, EBAY, FFIV, AMZN, ATVI, CSCO, FAST, QCOM, PRGO, MNST, MDLZ, DISCA, CTXS

Moving Above 30 DMA = 1
CHRW

Moving Below 30 DMA = 1
ADSK

Staying Below 30 DMA
ADBE, AMGN, EXPE, SYMC, STRZA, MXIM, FB, GOLD, ISRG, CTRX, NUAN, CTSH, DELL INTU

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

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