Thursday, June 6, 2013

SPY Bounces at 200% Target From Tuesday's Low...IWM Leads as Financials Form Bull Flag...

All nine sectors moved higher on Thursday… XLV, XLF and XLU were the strongest sectors…XLK was the weakest sector.

Breadth strengthened… advancers led decliners…3.54 to 1 on the NYSE and 2.00 to 1 on the NASDAQ…

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

LMCA replaced VMED in the NDX 100 on Wednesday morning June 5.
NFLX will replaced PRGO in the NDX 100 on Thursday morning June 6.


SPY up 1.46 at 162.73volume 200.1 million shares
VIX down .87 at 16.63
TNX down .25 at 20.75
TLT down .07 at 115.22...
XLF up .27 at 19.63…volume 71.3 million shares                  

AAPL down 6.65 at 438.46volume 14.8 million shares
FB dup .07 at 22.97volume 31.2 million shares


Technical Commentary:
DIA + 0.63%, SPY + 0.90%, QQQ + 0.49% and IWM + 1.06%.

The SPY opened moved lower and bounced forming a piercing line candle.  The SPY fell to its 200% target from Monday – Tuesday’s range before bouncing.  

TSLA today formed a bounce entry, confirmation of Wednesday’s bullish harami and a hammer in its bull flag pattern. 

CIEN +17.41% following earnings Thursday morning.

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.  The current market condition is sideways with a potential support bounce forming.

Trade what you see on the chart of your position.  The intermediate term trend is up with short-term trend down.  Traders should lock in profits when targets are reachedLook for potential entries on a bounce or break of support 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.


Earnings this Week:

EPS Reaction Summary
EPS Gainers –  GES, SPLK, PWRD, HPQ, 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 – 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 downDefensive posture.

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Setups
H Breakout:  MNST

Diagonal Breakout:  ANGI, CMG, NTAP, YHOO, BBRY, NVDA, BBBY, NFLX, QCOM, ROST,

Bull Flag:  SPY, STX, CREE, FSLR, F, NTES, GS, STI, ZION, BAC, C, FAS, GILD, GOOG, WFM, ESRX, WYNN, MAT, MSFT, SPLK, SBUX, SIRI, GRMN, TIF, P, TBT, SCTY, GRPN, VECO, INTC, XLNX, AMAT,

Potential Bullish Divergence:  

Gap Up:

Gap Down: 

Bear Flag: 

At Support:  CMCSA, CLF, FB, CNX, ADBE, ADSK, FAST,


Moves
New Highs:  MU, WDC, CSCO, MFRM, PWRD,

Gap Up:  CIEN, JDSU

Gap Down: 

H&D Breakout: MNST, LNKD,

Breakout Test:

Bounce:  BIDU, SNDK, DDD, TSLA, XONE, SINA, SOHU, AMGN, PCLN, YELP, Z, ATVI, CELG, COST, CTSH, DTV, EBAY, FFIV, MYL, NUAN, GMCR, SSYS, TPX,

MACD Divergence Bounce:

Bear Flag:   

Support Break:   AAPL,  

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73 of 100 NDX stocks closed higher on Thursday…


Leading NDX 100 stocks included: REGN, BIDU, BIIB, AMGN, CELG, FFIV, MU, SIRI, CA, CERN, LMCA, GILD, SPLS, DLTR, ALXN

Lagging NDX stocks included:  ALTR, NFLX, ORCL, XLNX, AAPL, AMAT, DISCA, LLTC, MXIM, KLAC, XRAY, AVGO

Leading stocks > +2% on Thursday included: CIEN, JDSU, VMW, RVBD, TPX, LNKD, SSYS, FAS, URE, YELP, TSL, SOHU, GMCR, ICE,  FCX, SINA, TSLA

Lagging stocks < -2.0% included:  FAZ, NFLX, LDK, SWKS

Stocks to Watch on Friday
Holding Above 30 DMA= 32
MSFT, LIFE, INTC, WFM, WDC, AMAT, LMCA, SIAL, STX, CA, ESRX, PCAR, XLNX, CERN,  KLAC, LINTA, CHKP, ADI, PCLN, MU, NTAP, SPLS, BIDU, HSIC, SNDK, AVGO, CSCO, ISRG, AMZN, GOLD, DELL, MNST

Moving Above 30 DMA = 11
COST, CTSH, DLTR, DTV, EXPD, FOSL, MYL, NVDA, SBUX, YHOO, REGN

Moving Below 30 DMA = 4
AAPL, ALTR, ORCL, NFLX

Staying Below 30 DMA
ADBE, FAST, LLTC, MCHP, NWSA, ORLY, SIRI, TXN, DRFT, ADP, AKAM, BIIB, BMC, FFIV, GOOG, PAYX, SRCL, VRTX, WYNN, XRAY, DISCA, BRCM, CELG, GILD, ALXN, ATVI, BBBY, CTXS, EBAY, GRMN, VIAB, ROST, LBTYA, FISV, MAT, MDLZ, CHRW, CMCSA, SHLD, SBAC, QCOM, VOD, EQIX, VRSK, ADSK, AMGN, EXPE, SYMC, MXIM, FB, CTRX, NUAN, INTU

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

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