Wednesday, July 10, 2013

Stocks Advance...CTSH Up 4.72%...ALXN Up 4.59%...NUS Up 19.21%...RAX Down 6.84%...

Five sectors moved higher on Wednesday… XLV, XLU and XLK were the strongest sectors…XLE was the weakest sector.

Breadth weakened slightly advancers led decliners…1.15 to 1 on the NYSE and 1.35 to 1 on the NASDAQ…

Wednesday – weakened slightly, advancers led
Tuesday – strengthened, advancers led
Monday – strengthened, advancers led
Friday – strengthened, advancers led
Thursday – closed 4th of July


SPY up .06…volume 120.2 million shares
VIX down .14 at 14.21…
TNX up .50 at 26.80…
TLT down .84 at 106.56...
XLF down .12 at 20.02…volume 57.7 million shares

AAPL down 1.63 at 420.73volume 10 million shares
FB up .32 at 25.80volume 26.7 million shares


Technical Commentary:
QQQ + 0.57%, IWM + 0.28%, SPY + 0.04%, DIA – 0.05%.

NUS gapped up to an all-time high gaining 12.79 or 19.21% on volume of 7.5 million.  MCP was also up .98 or 16.07% and today gained enough to close above a diagonal breakout of one and a half years with volume of about 17.1 million.

MDRX gapped up 1.35 or 10.10% on volume of 8.9.  What is interesting to note is that MDRX had a horizontal breakout from its October 2012 high.  Volume today was 8.9 million.

CTSH closed up 3.14 or 4.72% breaking through the horizontal resistance of mid-May.  ALXN had a nice bounce today of 4.39 or 4.59% on 1.7 million.  FFIV had a diagonal breakout today and closed up 2.59 or 3.73% on 3.6 million in volume.

XLV was the strongest sector today and had a horizontal breakout of mid-June high and is approaching another horizontal breakout of late May.  XLK is nearing a diagonal breakout as is XLBXLI is at a horizontal breakout point as is XLF and XLU.


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: BRCM, CELG, CMCSA, COST, GOOG, MAT, MSFT, MYL, NFLX, NTAP, SIRI, TXN, XLNX, YHOO, ALK, BAC, DDD, FAS, NFLX, Z,

Diagonal Breakout: JCP,  

Bull Flag: MU, ANGI, GRPN, LNKD, P, ZION,    

Potential Bullish Divergence:  

Gap Up:

Gap Down: 

Bear Flag:   

At Support:


Moves
New Highs: AMZN, CSCO, ESRX, FB, WDC, MFRM, SCSS, SPLK

Gap Up:  

Gap Down: RAX,    

H&D Breakout: AMAT, AMGN, BIDU, CTSH, FFIV,

Breakout Test: 

Bounce: FFIV, VECO,    

MACD Divergence Bounce:  

Bear Flag:  

Support Break: BBRY, GMCR,   

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71 of 100 Leading NDX stocks closed higher on Wednesday...and one was unchanged.


Leading NDX 100 stocks included:  CTSH, ALXN, AMAT, AMGN, FFIV, SHLD, DLTR, XLNX, LINTA, SBAC, VRTX, EQIX, AVGO

Lagging NDX stocks included:  MU, FAST, GOLD, NSA, NFLX, CTRX

Leading stocks > +2% on Wednesday included: MCP, SSYS, TSL, CRUS, UCO, TPX, CRM, GRPN, ICE, ESI

Lagging stocks < -2.0% included:  GMCR, UAL, BBRY, ZION

Stocks to Watch on Thursday
Holding Above 30 DMA= 75
SPLS, AVGO, CSCO, AMZN, DLTR, ADBE, INTU, SBUX, BBBY, EXPE, MCHP, PCLN, SNDK, SRCL, VRTX, ALTR, CA, LINTA, MAT, MNST, ORLY, PCAR, 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

Moving Above 30 DMA = 6
AMGN, MSFT, NVDA, EQIX, REGN, SBAC

Moving Below 30 DMA = 0

Staying Below 30 DMA
CERN, MU, ISRG, INTC, CTRX, ORCL, WYNN, MDLZ, BIDU, GOLD, AAPL, FAST, FFIV, BRCM, SHLD, QCOM, ADSK, MXIM, NWSA

Four-Week Intermediate Term Market Trend: Neutral

Short Term Market Trend: Up

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