Tuesday, July 23, 2013

TXN Gaps Up...BTU Leads Coal Stocks...Broad Market Drifts...AAPL, EA, VMW Up in After-Hours...PNRA Crushed...

Three of nine sectors moved higher on Tuesday… XLB, XLU and XLE were the strongest sectors…XLK was the weakest sector.

Breadth weakened…advancers led decliners…1.30 to 1 on the NYSE and decliners led advancers 1.15 to 1 on the NASDAQ…


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


SPY down .36…volume 80.8 million shares
VIX up .37 at 12.66…
TNX up .28 at 25.16…
TLT down .46 at 108.90...
XLF down .08 at 20.70…volume 30.1 million shares

AAPL down 7.32 at 418.99volume 13.1 million shares
FB up .08 at 26.13volume 28.2 million shares


Technical Commentary:
 DIA + 0.25%, QQQ – 0.74%, SPY – 0.21%, IWM – 0.07%.

Broad markets seemed to be hold waiting for AAPL earnings as the SPY traded only 80.8 million shares continuing the light volume pattern of the past week.  The real action both positive and negative is in those stocks that are reporting earnings.  Follow the reactions each day in our Q2 Earnings Reactions list below.

AAPL +16.39 in after-hours trading reported better than expected results after the close on Tuesday.

BTU +5.02% reported positive results before the open which lifted other coal stocks and the coal ETF…JRCC +5.94%, ACI +4.48%, WLT +4.37%, CLF +4.13%, ANR +3.89%, KOL +2.31% and CNX +1.63%.

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 – 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 – AAPL, EA, VMW, AKS, FCX, BTU, UTX, HAS, TXN, 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 – PNRA, TRV, MCD, NFLX, ZION, 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: FB, ROST, ATI, C, CLF, ESI, F, GS, SPLK, SWI, UAL,

Diagonal Breakout: GRMN, ORCL, QCOM, WYNN, ANR,

Bull Flag:  AAPL, AKAM, AMAT, AMGN, AMZN, FFIV, NFLX, WFM, YHOO, ANGI, DNKN, GME, LNKD, SINA, SOHU,

Potential Bullish Divergence:  

Gap Up:  AAPL, EA, VMW

Gap Down:  PNRA,

Bear Flag:   

At Support: INTC, SHLD, P, VECO,


Moves
New Highs: JNPR, PWRD,

Gap Up: TXN,     

Gap Down: BRCM, ZION,

H&D Breakout: GLD,   

Breakout Test: 

Bounce:

MACD Divergence Bounce:  

Bear Flag:  

Support Break:   

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26 of 100 Leading NDX stocks closed higher on Tuesday and one was unchanged.


Leading NDX 100 stocks included:  TXN, MDLZ, ADI ,GOLD, COST, LINTA, MAT, VOD, DISCA, ORCL,MCHP, LLTC, VIAB

Lagging NDX stocks included:  NFLX, BRCM, SHLD, BBIB, REGN, STX, WDC, ALXN, CHKP, CELG, AMGN, EXPD, SNDK

Leading stocks > +2% on Tuesday included: MCP, X, CLF, ANR, AKS, ESI, FCX, JNPR, CROX

Lagging stocks < -2.0% included: JDSU, ZION, SSYS, YELP, VECO

Stocks to Watch on Wednesday
Holding Above 30 DMA= 88
SPLS, CSCO, AMZN, DLTR, ADBE, INTU, SBUX, BBBY, EXPE, MCHP, PCLN,  SRCL, VRTX, ALTR, CA, LINTA, MNST, ORLY, PCAR, ROST, STX, VOD, VIAB, FB, LBTYA, KRFT, LMCA, FOXA, 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, GOLD QCOM, ORCL

Moving Above 30 DMA = 0


Moving Below 30 DMA = 3
 AAPL, AVGO, SHLD

Staying Below 30 DMA
EBAY, MSFT, NVDA, MXIM, BRCM, MAT, DELL, ISRG, INTC

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

1 comment:

Anonymous said...

Thanks Dave for your continued helpful insights.