Thursday, July 11, 2013

Bulls Ride...S&P Sets All Time High...95 Out of 100 NDX Stocks Close Higher...Many Gap Up...

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

Breadth strengthened advancers led decliners…6.73 to 1 on the NYSE and 2.52 to 1 on the NASDAQ…

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


SPY up 2.25…volume 133.4 million shares
VIX down .20 at 14.01…
TNX down 1.06 at 25.74…
TLT up 1.26 at 107.81...
XLF up .19 at 20.21…volume 60.4 million shares

AAPL up 6.56 at 427.29volume 11.6 million shares
FB up .01 at 25.81volume 26.7 million shares


Technical Commentary:
 SPY + 2.25%, DIA + 1.67%, QQQ + 1.46%, IWM + 1.17%.

Seven out of nine sectors…XLB, XLI, XLK, XLP, XLU, XLV, and XLY all gapped up today…allowing the S&P 500 to set an all-time high in trading today.  The NDX closed higher with 95 out of 100 closing higher today.  Of the NDX stocks…19 closed up higher by 3% or more…or almost 20% of the NDX.

GOLD gapped up today after making a double bottom with a positive MACD divergence.  GOLD was 7.18 or 11.83%.  FFIV also gapped up from a double bottom with a positive MACD divergence closing up 4.14 or 5.75%.

CELG gapped up breaking through horizontal resistance of mid-May to close up 9.83 or 7.87%. 
EQIX gained 8.67 or 4.54%...CIEN had a horizontal breakout closing up 2.01 or 10.19%.  LNKD gained 8.18 or 4.34% and is near a horizontal breakout of early May.

The unofficial start of earnings season was Monday, July 8 with AA reporting earnings after the close.

Earnings of Interest
Monday – AA, ISRG
Wednesday – FAST, YUM
Friday – JPM, WFC
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.


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

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Setups
H Breakout: DTV, GILD, GRMN, MNST, MSFT, MYL, NFLX, NTAP, NUAN, YHOO, BAC, DDD, ESI, FAS, LNKD, NFLX, Z,

Diagonal Breakout:  AKAM, SINA,

Bull Flag: CMG, P, TBT, ZION,   

Potential Bullish Divergence:  

Gap Up:

Gap Down: 

Bear Flag:   

At Support:


Moves
New Highs: AMAT, AMZN, BBBY, CSCO, PCLN, SBUX, STX, F, TSLA,

Gap Up: ADBE, BRCM, CELG, CMCSA, COST, CTSH, EBAY, ESRX, FFIV, INTC, ORCL, QCOM, SNDK, SYMC, TXN, WFM, WYNN, XLNX, ATI, CRM, GLD, LVS, RCL, SWI, TIF,

Gap Down:     

H&D Breakout: ADSK, COST, GOOG, MAT, JCP,
Breakout Test: 

Bounce:     

MACD Divergence Bounce:  

Bear Flag:  

Support Break:    

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95 of 100 Leading NDX stocks closed higher on Thursday.


Leading NDX 100 stocks included:  GOLD, CELG, FFIV, REGN, EQIX, BIDU, VRTX, PCAR, LLTC, CMCSA, DTV, MDLZ, WYNN, ADSK, INTO, CERN, CHKP, MXIM, CTRX

Lagging NDX stocks included:  NWSA

Leading stocks > +2% on Thursday included: CIEN, LDK, VMW, CDE, URE, TSL, CLF, FCX, CRM, LNKD, ANR, ATI, SWI, RVBD, ESI, JDSU, AKS, FAS, RCL, TSLA, SMH, LVS, JNPR, CHL, TPX, MOX

Lagging stocks < -2.0% included:  MCP, FAZ, ZAGG, TBT

Stocks to Watch on Thursday
Holding Above 30 DMA= 82
SPLS, AVGO, CSCO, AMZN, DLTR, ADBE, INTU, SBUX, BBBY, EXPE, MCHP, PCLN, SNDK, SRCL, VRTX, ALTR, CA, LINTA, MAT, MNST, ORLY, PCAR, PCLN, ROST, STX, VOD, VIAB, FB, LBTYA, KRFT, LMCA, CMCSA, GOOG, HSIC, DISCA, VRSK, ADP, ALXN, CHKP, CTSH, DTV, EBAY, FOSL, NTAP, SYMC, WFM, WDC, NFLX, BMC, CELG, ESRX, FISV, LLTC, XLNX, ADI, ATVI, BIIB, CHRW, COST, CTXS, EXPD, GILD, LIFE, MYL, NUAN, PAYX, XRAY, TXN, DELL, SIAL, SIRI, AKAM, AMAT, GRMN, KLAC, YHOO, AMGN, MSFT, NVDA, EQIX, REGN, SBAC

Moving Above 30 DMA = 7
ADSK, BRCM, CERN, FFIV, MXIM, SHLD, MDLZ

Moving Below 30 DMA = 0

Staying Below 30 DMA
ISRG, MU, INTC, CTRX, BIDU, ORCL, WYNN, GOLD, AAPL, FAST, QCOM, NWSA

Four-Week Intermediate Term Market Trend: Up
Short Term Market Trend: Up



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