Wednesday, May 8, 2013

SPY, QQQ, IWM New High Close As Stocks Rise on Strength of GOOG, AAPL, BIDU...WFM Gaps...TSLA Soars in After-Hours...


Eight of nine sectors moved higher on Wednesday…XLB, XLF, and XLK were the strongest sectors…XLU was the weakest sector.

Breadth weakened…advancers led decliners 1.92 to 1 on the NYSE and 1.26 to 1 on the NASDAQ…

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


SPY up .74 at 163.34volume 97.3 million shares
VIX down .17 at 12.66
TNX down .23 at 17.60
TLT up .19 at 120.35...
XLF up .16 at 19.30volume 63.3 million shares                 

AAPL up 5.18 at 463.84volume 16.8 million shares
FB up .23 at 27.12volume 34.6 million shares


Technical Commentary:
QQQ +0.48%, SPY +0.46%, DIA +0.45% and +0.29% each made a new high close on Wednesday. 

The Euro bounced 83 pips to close at 1.3160.  The dollar fell and gold rose.  Bonds moved slightly higher as interest rates paused after rising for three straight days.  XLF made a new bull market high.

AAPL gained +5.18 after a one-day pause and made its highest close since Feb 15.  AAPL which made a horizontal reversal breakout on April 30 is setup for another horizontal resistance breakout above 470.

FB up 23 cents formed a white spinning top in its four-day bull flag pullback.  It is now setup for a potential bull flag bounce entry.


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 – TSLA, GRPN, 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

EPS Losers – 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:
Monday – DDS, FSLR, LBTYA
Tuesday – DIS, DTV, MDLZ, SYMC, Z
Wednesday – ATVI, CTSH, EA, GRPN, RAX, TSLA
Thursday – PCLN, NVDA, XRAY, DISH



The Market Forecast Green Line is pointed up in the Upper Zone.

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Setups
H Breakout:  GRMN, GMCR, MU, XLNX, NVDA, PCLN, AAPL, CRM, JCP, ZION

Diagonal Breakout:  CSCO, MU, ATI, TPX, UNG, AMGN,

Bull Flag:  ADBE, AMAT, GILD, FB, MSFT, ORCL, ANGI, CMG, FSLR, LVS, NFLX, P, SSYS, YELP, Z

Potential Bullish Divergence:

Gap Up: TSLA, GRPN

Gap Down:  RAX

Bear Flag:  SWI

At Support: AMGN


Moves
New Highs:  SPY, QQQ, IWM, FAS, ALK, C, CREE, NTES, RCL, STI, ATVI, CMCSA, GOOG, MAT, MAT, SBUX, STX, WDC, WYNN, YHOO

Gap Up:  WFM, EA, GOLD

Gap Down:  SYMC

H&D Breakout:  BIDU, NTAP

Bounce:  CTSH, EBAY, DDD, GRPN, WLT, DVA, CLF, ANR, CNX, JCP

MACD Divergence Bounce:

Bear Flag: 

Support Break: 

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67 of 100 NDX stocks closed higher on Wednesday…three were unchanged


Leading NDX 100 stocks included:  WFM, CTSH, LINTA, BIDU, GOLD, EQIX, AVGO, MU, FFIV, ATVI, GOOG, EBAY, XRAY, NVDA, PRGO

Lagging NDX stocks included:  CHRW, SYMC, CA, MDLZ, GILD, VRTX, MYL, ORLY, DISCA, BBBY, NWSA, MSFT, MBIIB, CERN, NUAN, ADBE

Leading stocks > +2% on Wednesday included: CLF, SOHU, ANR, X, ESI, ATI, AKS, CDE, GRPN, CRUS, MOS, CROX, JNPR, FCX, SINA, C, HUM, DECK, UCO, FAS, TPX

Lagging stocks < -2.0% included:  TSL, YELP LDK, FAZ


Stocks to Watch on Wednesday
Holding Above 30 DMA= 79
STRZA, ADP, GILD, BIIB, MAT, PAYX, YHOO, SBAC, ADBE, MSFT, SRCL, MDLZ, REGN, VOD, BBBY, LIFE, ROST, MNST, WYNN, DLTR, INTC, DTV, NWSA, SBUX, VRTX, WFM, ATVI, COST, WDC, AKAM, AMAT, GOOG, NVDA, SIAL, SIRI, STX, TXN, BMC, BRCM, CA, SYMC, ALXN, ESRX, ORLY, PCAR, XLNX, CERN, CMCSA, FB, AAPL, FOSL, KLAC, LINTA, MCHP, XRAY, VRSK, CHKP, ORCL, SHLD, VIAB, EQIX, VMED, LBTYA, CELG, EXPD, GRMN, LLTC, MYL, PCLN, ADI, ADSK, MU, NTAP, SPLS, ALTR, BIDU, HSIC, FISV, SNDK

Moving Above 30 DMA = 5
AVGO, EBAY, FFIV, GOLD, MXIM

Moving Below 30 DMA = 1
CHRW

Staying Below 30 DMA
ISRG, PRGO, DISCA, AMGN, CSCO, CTRX, FAST, NUAN, AMZN EXPE, QCOM, CTSH, DELL INTU, CTXS

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

1 comment:

clint elliott said...

Great summary, very useful in practice for 4DL. Thanks Dave!