Tuesday, May 21, 2013

SPY New High Close, JPM, WFC, GS, GILD Rise as PCLN, GOOG, BIDU and AAPL Pause


Six of nine sectors moved higher on Tuesday…XLV, XLY, and XLF were the strongest sectors…XLK was the weakest sector.

Breadth weakened slightly…advancers led decliners…1.18 to 1 on the NYSE and 1.06 to 1 on the NASDAQ…

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


SPY up .24 at 167.17volume 95.7 million shares
VIX up .35 at 13.37
TNX down .21 at 19.44
TLT up .92 at 117.84...
XLF up .05 at 20.04volume 36.2 million shares                 

AAPL down 3.27 at 439.66volume 16.2 million shares
FB down .10 at 25.66volume 26.2 million shares


Technical Commentary:
IWM + 0.02%, QQQ + 0.11%, SPY + 0.14% and DIA + 0.31%.

The SPY has made its 41st new high close of 2013 on Tuesday.  on 40 of the 95 trading days in 2013.  Financial stocks were led by JPM, WFC and GS.  Solar stocks were sizzling at the open and led the market early before cooling off.  LDK, TSL, SOL, YGE and FSLR still had big gains on Tuesday.

Bernanke will testify before the Joint Economic Committee of Congress shortly after the open at 10 a.m. on Wednesday.

NTAP +1.33 gained in after-hours trading following earnings after the close.

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

AAPL -3.27 paused on Tuesday after rising on Monday in a bull flag bounce.

NUAN bounced off support in a bullish divergence setup. 

GILD gained closing 12 cents above its May 3 high in a horizontal resistance breakout setup.  JCP rallied to horizontal resistance.  TSLA is in day four of a bull flag setup.

The Euro moved up 22 pips to 1.2905TNX interest rates drifted lower and TLT bonds rallied 91 cents at support.

Continue 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 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 –  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, P, NTAP, ROST, SHLD,


The Market Forecast Green Line is in the Upper Zone.

____________________

Setups
H Breakout:  ATVI, FAST, GILD, INTC, ROST, SIRI, STX, CMG, CNX, DDD, GRPN, JCP, LVS, SSYS, UAL, YELP,

Diagonal Breakout:  BBBY, CTSH, DELL, ANR, GLD, TLT,

Bull Flag:   AKAM, AMAT, BIDU, CELG, CMCSA, CSCO, DTV, EBAY, ESRX, GOOG, GRMN, MNST, MU, MYL, NTAP, QCOM, SNDK, TXN, ALK, ANGI, C, CIEN, CREE, CRM, FIVE, JNPR, NFLX, NTES, P, TSLA, UAL,

Potential Bullish Divergence: GLD

Gap Up:

Gap Down: 

Bear Flag:  

At Support:   ADBE, FB, SYMC,

Moves
New Highs:  COST, NVDA, ORCL, SBUX, WDC, WFM, XLNX, CMG, FAS, FSLR, GS, SPLK, SPY,

Gap Up:   

Gap Down: RCL,    

H&D Breakout:  GS, MAT, SHLD,

Bounce:   YHOO

MACD Divergence Bounce: NUAN

Bear Flag:  

Support Break:   

______________________


67 of 100 NDX stocks closed higher on Tuesday…one was unchanged…


Leading NDX 100 stocks included: SHLD, NUAN, CHRW, BIIB, VRTX, ALXN, ATVI, WDC, AMGN

Lagging NDX stocks included:  INTU, PCLN, EBAY, NTAP, BIDU, REGN, AKAM, AMAT, AAPL

Leading stocks > +2% on Tuesday included: LDK, TSL, VECO, AKS, ESI, DECK, HLF, GRPN

Lagging stocks < -2.0% included:  CDE, FCX, UAL, TSLA, RCL


Stocks to Watch on Wednesday
Holding Above 30 DMA= 79
ADP, GILD, BIIB, MAT, PAYX, YHOO, SBAC, MSFT, SRCL ,REGN, VOD, 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, AAPL, FOSL, KLAC, LINTA, MCHP, XRAY, 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, MNST, DISCA, CTXS

Moving Above 30 DMA = 5
BBBY, CHRW, CMCSA, VRSK, STRZA

Moving Below 30 DMA = 1
PRGO

Staying Below 30 DMA
MDLZ, ADSK, 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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