Monday, July 8, 2013

Stocks Gain...SPY Has Diagonal Breakout...AA Kicks Off Unofficial Earnings Season...


Eight of nine sectors moved higher on Monday… XLU, XLP and XLY were the strongest sectors…XLJ was the weakest sector.  

Breadth strengthened advancers led decliners…1.40 to 1 on the NYSE and 1.23 to 1 on the NASDAQ… 

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

SPY up .92…volume 106.7 million shares
VIX down .11 at 14.78…
TNX down .70 at 26.45…
TLT up 1.03 at 107.29...
XLF up .14 at 19.96…volume 47.6 million shares  

AAPL down 2.37 at 415.05volume 10.6 million shares
FB up .34 at 24.71volume 27 million shares
 

Technical Commentary:

DIA + 0.66%, SPY + 0.57%, IWM + 0.40%, QQQ + 0.10%.

XLV gapped up today with a diagonal breakout closing up .56%...XLE also had a diagonal breakout closing up .65%. 

XLI closed to up .27% and is a diagonal breakout setup.  Also XLP was also up 1.00% and is a diagonal breakout setup. 

XLF gapped up and closed up .73% and is approaching a horizontal breakout. 

XLY likewise gapped up closing up .93%. 

PCLN gapped up gaining 33.46 up 3.91%. 

NFLX rose 8.00 closing at 233.20 up 3.55%. 

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

Earnings of Interest
Monday – AA
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.   

____________________ 

Setups
H Breakout: CSCO, CTSH, ESRX, GOOG, NTAP, NUAN, SNDK, WDC, WFM, XLNX, CIEN, DDD, FAS, SOHU, Z,  

Diagonal Breakout: ADSK, AMGN, BIDU, MAT, MNST, MYL, YHOO, ATI, GLW, GMCR, JCP, LVS, SINA, UAL, WLT,  

Bull Flag: PWRD,  
   
Potential Bullish Divergence:  

Gap Up: 

Gap Down:  

Bear Flag:  

At Support: QCOM, CLF,  

Moves
New Highs:  AMZN, BBBY, ROST, SBUX, F, MFRM, P, TSLA, XONE, ZION, 
Gap Up: PCLN, C, TIF, UNG,  

Gap Down: 

H&D Breakout: AAPL, ATVI, CELG, COST, FAST, GILD, NFLX, SPY, SSYS, 

Breakout Test: CNX,  

Bounce:  DELL, ANR,  

MACD Divergence Bounce: 

Bear Flag:   

Support Break: INTC, 
______________________ 

50 of 100 Leading NDX stocks closed higher on Monday...and two were unchanged. 

Leading NDX 100 stocks included:  PCLN, NFLX, DELL, SIRI, CTRX, NWSA, LMCA, CA, CMCSA, AMZN, ORCL, BBBY

Lagging NDX stocks included:  AVGO, INTC, SNDK, MXIM, VRTX, ALXN MCHP

Leading stocks > +2% on Monday included: ANR, AKS, SOHU, LDK, SINA, C, TIF 

Lagging stocks < -2.0% included:  VECO, SWKS, CDE, CREE, CRUS, GRPN, SMH, TPX, TSL 

Stocks to Watch on Tuesday
Holding Above 30 DMA= 69
MU, 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, CERN, CHRW, COST, CTXS, EXPD, GILD, LIFE, MYL, NUAN, PAYX, XRAY, TXN 

Moving Above 30 DMA = 3
DELL, SIAL, SIRI, 

Moving Below 30 DMA = 4
AMAT, GRMN, ISRG, KLAC 

Staying Below 30 DMA
INTC, MSFT, NVDA, CTRX, ORCL, WYNN, YHOO, MDLZ, BIDU, GOLD, REGN, AAPL, FAST, AKAM, FFIV, BRCM, SHLD, SBAC, QCOM, EQIX, ADSK, AMGN, MXIM, NWSA 

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

 

 

1 comment:

Anonymous said...

Thanks Dave. I read your blog 2x a day.