Tuesday, July 16, 2013

Market Pauses At Resistance...TSLA Down 14.31% After Analysts Comments...GOLD Up 6.76%...

Only one of nine sectors moved higher on Tuesday… XLK, XLP and XLF were the strongest sectors…XLB was the weakest sector.

Breadth weakened…advancers led decliners…1.86 to 1 on the NYSE and 1.22 to 1 on the NASDAQ…

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


SPY down .63…volume 88.7 million shares
VIX up .63 at 14.42…
TNX down .24 at 25.32…
TLT up .37 at 108.66...
XLF down .08 at 20.36…volume 36.2 million shares

AAPL up2.76 at 430.19volume 7.7 million shares
FB up .04 at 26.32volume 30.8 million shares


Technical Commentary:
IWM – 0.50%, SPY – 0.37%, DIA – 0.22%, QQQ - 0.13%.

The SPY and SPX formed a moderate bearish engulfing pattern at horizontal resistance closing just -0.37% lower on Tuesday after KO reported a drop in quarterly earnings.  JNJ gapped higher and closed unchanged after beating estimates.  The VIX rose confirming the pullback in the SPX.

TSLA -14.31% collapsed on a heavy 32.4 million shares the day after it joined the NDX following comments from a GS analyst.  Traders who moved their stop to below Monday’s close or bought puts Tuesday did just fine.

RAX ANGI, CNX and RCL bounced higher while XONE, SCTY, SSYS, F, DDD, UAL, LNKD, FSLR and JCP dropped.

The Euro rose, interest rates dropped slightly as bonds drifted higher. Gold and silver were moderately higher.

Earnings season typically leads to big moves up and down in individual stocks while the broad index has a tendency to trade in a moderate range.  Announcements increase beginning with Tuesday’s trading session.


Earnings of Interest
Monday – C
Tuesday – KO, CSX, GS, JNJ, MOS, URI, YHOO
Wednesday – AXP, BAC, EBAY, INTC, IBM, MAT, SNDK, SCSS, STLD, USB, XLNX
Thursday – AMD, CHKP, CMG, GOOG, ISRG, KEY, MSFT, MS, OSTK PM, SWKS, UNP, UNH
Friday – BHI, GE, HON, SLB, STI, WHR

After Release Today
KO, GS, MOS – closed lower
JNJ – closed flat
CSX, YHOO – up in after-hours
URI – lower in after-hours


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: GRMN, BAC, C, ESI, FIVE, GS, PWRD,

Diagonal Breakout: WYNN, CNX, GLD, LVS, SINA, TLT, UAL, UNG,

Bull Flag: ADBE, AKAM, ATVI, BBBY, CMCSA, CTSH, EBAY, ESRX, MAT, ROST, ANR, CRM, DDD, GRPN, MFRM, SOHU, STI, SWI, TBT, TPX, XONE,

Potential Bullish Divergence:  

Gap Up:

Gap Down: 

Bear Flag:   

At Support: DELL,


Moves
New Highs:  MSFT, NFLX, TXN, XLNX, GME,

Gap Up: BIDU,  

Gap Down:  F,  

H&D Breakout:   

Breakout Test: 

Bounce:    

MACD Divergence Bounce:  

Bear Flag:  

Support Break:   

______________________


39 of 100 Leading NDX stocks closed higher on Tuesday.


Leading NDX 100 stocks included:  GOLD, NWSA, BIDU, MU, AVGO, INTC, LLTC, BRCM

Lagging NDX stocks included:  SNDK, REGN, YHOO, VRTX, ADBE, GRMN, VRSK, FFIV, BBBY, ISRG, PCLN, MDLZ

Leading stocks > +2% on Tuesday included: CDE, SWKS

Lagging stocks < -2.0% included: CROX, TSLA, SSYS, TSL, MOS, F, UAL, BBRY, LNKD, ZION, ANF, ANR

Stocks to Watch on Wednesday
Holding Above 30 DMA= 89
SPLS, AVGO, CSCO, AMZN, DLTR, ADBE, INTU, SBUX, BBBY, EXPE, MCHP, PCLN,  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, SIAL, SIRI, AKAM, AMAT, GRMN, KLAC, YHOO, AMGN, MSFT, NVDA, EQIX, REGN, SBAC, AAPL, ADSK, BIDU, BRCM, CERN, FFIV, MXIM, MDLZ, WYNN

Moving Above 30 DMA = 4
FAST, GOLD, MU, QCOM

Moving Below 30 DMA = 1
SNDK

Staying Below 30 DMA
DELL, SHLD, ISRG, INTC, CTRX, ORCL NWSA

Four-Week Intermediate Term Market Trend: Up

Short Term Market Trend: Up

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