All sectors moved lower on Wednesday… XLB, XLE and XLY were
the strongest sectors…XLU was the
weakest sector.
Breadth weakened…decliners
led advancers…5.71 to 1 on the NYSE and
2.49 to 1 on
the NASDAQ…
Wednesday
– weakened, decliners led
Tuesday – strengthened,
advancers led
Monday – strengthened,
advancers led
Friday – weakened,
decliners led
Thursday – strengthened,
advancers led
SPY
down 2.29…volume 205.7 million shares
VIX
up .03 at 16.64…
TNX
up 1.29 at 23.11…
TLT
down 1.17 at 112.11...
XLF
down .26 at 19.60…volume 61.2 million shares
AAPL
down 8.77 at 423.00…volume 11 million shares
FB
up .10 at 24.31…volume 31.7 million shares
Technical Commentary:
SPY – 1.38%, DIA – 1.31%, IWM – 1.23%, QQQ
– 1.11%.
As expected volatility increased on Wednesday beginning with
the FOMC announcement at 2 pm
ET. The SPY traded in a one dollar
range until about 2:50 pm and then a relatively light 8.8 million
share volume selloff sent the SPY $1.40 lower in about 10 minutes
followed by an 80 cent rally.
During the last 30 minutes a 23 million share volume selloff sent
the SPY down another $1.20. The
sharp drop on these volume levels appear to be buyers dropping bids.
Similar to May 22
indications that tapering of asset purchases later in the year might occur sent
buyers scurrying and sellers were able to send the markets lower on relatively
light volume. Logical? Rational?
Nonetheless, reality this afternoon.
The Euro which was down 99 pips to
close at 1.3295, collapsed more than
100 pips after the FOMC announcement. TNX
interest rates jumped and TLT bonds broke support.
ADBE +5.58% reported
earnings after the close Tuesday and formed a black candle gap up.
FB up 10 cents is holding
a press event on Thursday which some believe may be to announce a new video
sharing app with the potential to generate significant revenue for the company.
GMCR +3.13% is a
horizontal resistance breakout.
GOOG gained 6 cents and formed a potential tombstone doji. TSLA +1.25% closed at 104.68.
MU gave back Wednesday’s 22 cent
gain after
reporting positive earnings after the close.
Trade what you see on the chart of your position. The intermediate term trend is up and the short-term trend is pull back under
resistance neutral. Adjust stops,
trade to targets and take bearish trades according to your rules as the month long
consolidation continues.
Chart Signals Strategy Guidelines
When the market
is trending up Chart Signals looks
for support bounce and resistance breakout entries.
When the market
is trending down Chart signals looks
for resistance pull back and support break entries.
When the market
is sideways in consolidation Chart Signals
will look for support bounce, diagonal breakouts and pull backs
at resistance where price action stays between support and resistance.
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 – ADBE, ULTA, 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 – CPRT, COST,
TSL, CRM, GME, SHLD, 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
The Market Forecast Green Line is
below the Upper Zone and is pointed up.
____________________
Setups
H Breakout: CMCSA, GOOG,
INTC, MAT, MYL, NFLX, NVDA, PCLN, WFM, CMG, NFLX, PWRD, SOHU, TBT,
Diagonal Breakout: AKAM, BRCM, COST, CTSH, EBAY, TXN, XLNX, BBRY,
C, CLF, GLW, LVS, SWI, TPX, UAL, WLT,
Bull Flag: BIDU, MNST,
ESI, GME, GS, JNPR, XONE,
Potential Bullish Divergence:
Gap Up:
Gap Down:
Bear Flag:
At Support:
Moves
New Highs: MU, GMCR, YELP,
Gap Up: ADBE,
Gap Down:
H&D Breakout: ADSK,
QCOM, VECO,
Breakout Test:
Bounce:
MACD Divergence Bounce:
Bear Flag:
Support Break:
______________________
10 of 100 NDX stocks closed higher on Wednesday…
Leading NDX 100 stocks included:
ADBE, NVDA, NWSA, MU
Lagging NDX stocks included:
REGN, BIIB, GOLD, EQIX, MDLZ, VOD, CELG, SBAC, SPLS, GILD, ATVI, DTV,
SNDK, KRFT
Leading stocks > +2% on Wednesday included: YELP, FAZ, GMCR, LDK
Lagging stocks < -2.0% included: URE, BBRY, FAS, ANR, SINA, HLF, ESI, CHL,
A, ICE, TSL, ANR, CDE, F, NTES, TPX
Stocks to Watch on Thursday
Holding Above 30 DMA= 38
MSFT, LIFE, INTC, WFM, WDC, AMAT,
STX, CA, CERN, PCLN, MU, NTAP, SPLS, HSIC, SNDK, AVGO, CSCO, ISRG, AMZN, MNST,
MYL, SBUX, BBBY, CTRX, DELL, EXPE, KLAC, MCHP, ORLY, LMCA, DLTR, ESRX, GOOG,
PCAR, XLNX, ADI, NFLX, FOSL
Moving Above 30 DMA = 2
ADBE, NVDA
Moving Below 30 DMA = 22
ADP, CERN, CHKP, CHRW, COST, DTV, EXPD, FISV, GRMN, LINTA,
NUAN, ORCL, PAYX, ROST, SRCL, VOD, WYNN, YHOO, MDLZ, DISCA, VRSK, KRFT
Staying Below 30 DMA
BIDU, VRTX, GOLD, SIAL, TXN, BIIB,
CTSH, INTU, SIRI, VIAB, LBTYA, REGN, AAPL, ALTR, ADBE, FAST, LLTC, NWSA, AKAM,
BMC, FFIV, XRAY, BRCM, CELF, GILD, ALXN, ATVI, CTXS, EBAY, MAT, CMCSA, SHLD,
SBAC, QCOM, EQIX, ADSK, AMGN, SYMC, MXIM, FB
Five Month Intermediate Term Market Trend: Up
Short Term Market Trend:
Neutral
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