Friday, July 19, 2013

IWM, SPY New Record Close as Thursday's Breakout Holds...CMG, WHR, SWKS, SLB, GE Gap Higher...YELP Record Close...

Seven of nine sectors moved higher on Friday… XLE, XLV and XLI were the strongest sectors…XLK was the weakest sector.

Breadth weakenedadvancers led decliners…1.04 to 1 on the NYSE and decliners led advancers 1.10 to 1 on the NASDAQ…

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


SPY up .30…volume 103.8 million shares
VIX down 1.23 at 12.54…
TNX down .43 at 24.91…
TLT up 1.70 at 109.20...
XLF up .01 at 20.73…volume 33 million shares

AAPL down 6.81 at 424.95volume 9.5 million shares
FB down .30 at 25.88volume 46.5 million shares


Technical Commentary:
SPY + 0.18%, IWM + 0.15%, QQQ - 1.03%, DIA – 0.01%.

The SPY and IWM made another new high close on Friday.  The SPY closed above horizontal resistance for the second straight day on a last half hour rally into the close on expiration Friday.   IWM closed above its 161.8% extension also for the second straight day. 

The NDX by comparison was crushed on weakness in AAPL, MSFT, ISRG, GOOG, EBAY and MAT after MSFT, GOOG and ISRG released earnings on Thursday.  Biotech stocks AMGN, GILD, BIIB, REGN, CELG and VRTX led the NDX.

Positive earnings reactions from CMG, WHR, SWKS, SLB and GE helped lift stocks higher.  YELP +5.99% made another new high close.

UNG held Thursday reversal pattern breakout.  WLT had a downtrend diagonal breakout on Friday following Thursday’s strong bounce following an analyst upgrade.

Earnings announcements accelerate as the third of earnings season begins on Monday.  Chart Signals is focusing on stocks with announcements and stocks that have had a positive earnings reactions over the past two weeks.


This Week Earnings of Interest
Monday – GLW, HAL, HAS, KMB, MCD, NFLX, TXN, ZION
Tuesday – AKS, ALTR, MO, AAPL, DD, EA, FCX, JNPR, LLTC, NSC, PCAR, PNRA, BTU, RSH, RF, TRV, UPS, UTX, USNA, VLO, VMW
Wednesday – AKAM, ATI, ABC, ANGI, BIDU, BA, CA, COG, CAT, CTXS, CROX, DAL, ETFC, LLY, EMC, EQIX, FFIV, FB, LVS, MCO, ORLY, QCOM, RYL, STX, SAVE, LCC, V, WDC
Thursday – MMM, ALK, ALXN, AMZN, BIIB, BMY, CELG, CERN, CB, CRUS, CLF, DECK, DOWN, DNKN, EXPE, GILD, IP, ESI, KLAC, MXIM, POT, PCP, RCL, SWI, TPX, HSY, UA, UAL
Friday – DLR, SWK, WLB


Q2 Earnings Reactions
Positive Reactions – GE, HON, SLB, STI, WHR, CHKP, CMG, JCI, KEY, MS, OSTK, SWKS, UNP, UNH, BAC, IBM, SNDK, XLNX, CSX, GS, URI, YHOO, C, WFC

Negative Reactions – BHI, AMD, GOOG, ISRG, MSFT, EBAY, INTC, MAT, SCSS, USB, AXP, KO, MOS


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 in the upper zone. 

____________________

Setups
H Breakout: ATVI, CMCSA, DTV, SNDK, ANGI, C, GS, TIF,

Diagonal Breakout:  WYNN, TLT,

Bull Flag:  AMAT, AMZN, PCLN, SIRI, TXN, WFM, DDD, ESI, FSLR, MFRM, SCTY, SPLK, SSYS,

Potential Bullish Divergence:  

Gap Up:

Gap Down: 

Bear Flag:   

At Support:  INTC, NVDA, SCSS,


Moves
New Highs:  COST, GILD, MYL, NTAP, STX, WDC, CIEN, JNPR, NTES, SPY, STI, YELP,

Gap Up: CMG,    

Gap Down: FB, GOOG, MSFT,  

H&D Breakout: FIVE, SOHU, WLT,

Breakout Test: 

Bounce:  AMGN,

MACD Divergence Bounce:  

Bear Flag:  

Support Break:  MAT, P,  

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52 of 100 Leading NDX stocks closed higher on Friday and one was unchanged.


Leading NDX 100 stocks included:  GOLD, AMGN, GILD, NWSA, BIIB, REGN, SNDK, CELG, VRTX, SHLD, VOD, STX, FOSL

Lagging NDX stocks included:  MSFT, ISRG, MAT, EBAY, NVDA, YHOO, FFIV, NUAN, EXPE, AAPL, GOOG

Leading stocks > +2% on Friday included: CMG, SWKS, YELP, SLB, CDE, HLF, CRUS, CREE, SWI, GLW

Lagging stocks < -2.0% included: TBT, ZAGG, ANR, LNKD, IBM, X

Stocks to Watch on Monday
Holding Above 30 DMA= 86
SPLS, CSCO, AMZN, DLTR, ADBE, INTU, SBUX, BBBY, EXPE, MCHP, PCLN,  SRCL, VRTX, ALTR, CA, LINTA, MNST, ORLY, PCAR, PCLN, ROST, STX, VOD, VIAB, FB, LBTYA, KRFT, LMCA, CMCSA, GOOG, HSIC, DISCA, VRSK, ADP, ALXN, CHKP, CTSH, DTV, 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, SIAL, SIRI, AKAM, AMAT, GRMN, KLAC, YHOO, AMGN, EQIX, REGN, SBAC, AAPL, ADSK, BIDU, CERN, FFIV, MDLZ, WYNN, FAST, MU, SNDK, CTRX

Moving Above 30 DMA = 4
AVGO, GOLD, QCOM, SHLD

Moving Below 30 DMA = 4
EBAY, MSFT, NVDA, ORCL

Staying Below 30 DMA
MXIM, BRCM, MAT, DELL, ISRG, INTC, NWSA

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

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