Wednesday, August 7, 2013

Bull Flags Form as Buyers Create Support in QQQ, SPY, AAPL, AMZN, CELG, CMCSA...TSLA, GRPN Gap Up in After-hours...

Three of nine sectors moved higher on Wednesday…XLU, XLV and XLB were the strongest sectors…XLY was the weakest sector.
 
Breadth strengthened…decliners still led advancers…2.32 to 1 on the NYSE and 2.03 to 1 on the NASDAQ…
 
Wednesday – strengthened, decliners led
Tuesday – weakened, decliners led
Monday - mixed
Friday – mixed
Thursday – strengthened, advancers led
 
 
SPY down .55…volume 84.7 million shares
VIX up .26…at 12.98…
TNX down .42 at 26.00…
TLT up .79 at 106.80...
XLF down .14 at 20.44…volume 38.6 million shares
 
AAPL down .27 at 464.98volume 10.6 million shares
FB up .32 at 38.87volume 68.7 million shares
 
Technical Commentary:
 
SPY – 0.32%, DIA – 0.20%, QQQ – 0.18%, IWM – 0.71%.   QQQ formed a hammer, SPY formed a dragonfly doji, DIA formed a white spinning top and IWM formed a red spinning top.  All four indexes are in a bull flag price pattern.  Numerous stocks are also in a bull flag pattern.  See Bull Flag Setups below. 
 
After a second day in a bull flag pull back, indexes found buyers and many charts formed bullish candles.
 
The NDX -3.51, -0.11% led the broad indexes.  AMZN, GOOG and MDLZ weighed on the NDX while AMGN, MSFT, FOXA and FB helped lift the index from its intra-day lows.
 
On Wednesday SUNE, FSLR, CHRW, CAR and Z gapped down after earnings.  In after-hours trading GRPN and TSLA jumped while GMCR and SCTY dropped.
 
 
 
Earnings announcements continue as the fifth week 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
Tuesday – ADM, CAR, CHRW, DIS, DISH, EXPD, FSLR, FOSL, LINTA, LMCA, MGM, Z
Wednesday – AGU, BOFI, GMCR, GRPN, SCTY, SUNE, TSLA, TWX
Thursday – AAP, FWLT, MCP, MNST, NVDA, RAX, SGMS, SSYS, TMUS,
Friday – JRCC
 
Q2 Earnings Reactions
Positive Reactions – FOSL, DSW, WPO, CNK, KORS, SATS, MGM, EAT, VIAB, YOKU, AIG, CTRX, CHK, COP, LNKD, MELI, MYL, NUS, ZAGG, CMCSA, CTRP, GRMN, HES, MA, MCHP, SODA, YELP, QCOR, FISV, BWLD, MTW, VRTX, WYNN, SWK, SBUX, ALK, AMZN, CELG, CB, CLF, GILD, IP, MXIM, RCL, HSY, UA, UAL, V,   FB, BIDU, TRIP, COG, CTXS, ETFC, FFIV, AKAM, AAPL, EA, VMW, DAL, LCC, EMC, LLY, MCO, 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 – ANR, CVX, CME, XOM, K, DTV, RVBD, X, COH, DISCA, ESRX, SOHU, DLR, CERN, CRUS, DECK, DNKN, EXPE, KLAC, POT, PCP, SWI, TPX, EQIX, ABC, CROX, ANGI, ATI, CAT, WDC, PNRA, STX, NSC, USNA, TRV, MCD, MO, 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 and is in the upper zone. 
 
____________________
 
Setups
H Breakout: BIDU, NTAP, SYMC, CIEN,
 
Diagonal Breakout:  
 
Bull Flag: AAPL, AKAM, AMZN, ATVI, BBBY, CELG, CMCSA, FAST, GILD, GRMN, NVDA, QCOM, ROST, SBUX, TSLA, TXN, XLNX, ALK, ATI, CLF, CMG, CNX, CREE, CRM, DNKN, F, GLW, GME, KKD, LNKD, MFRM, P, PWRD, RCL, SINA, SPY, STI, WLT, ELP
 
Potential Bullish Divergence:  
 
Gap Up:  TSLA, GRPN
 
Gap Down:  GMCR, SCTY
 
Bear Flag:   
 
At Support: ADBE, AMAT, INTC, STX, SOHU, WLT,
 
 
Moves
New Highs: MYL,
 
Gap Up: 
 
Gap Down: SUNE, FSLR, CHRW, CAR, BAC, FAS, FIVE, GS, UNG,   
 
H&D Breakout: AMGN,   
 
Breakout Test: 
 
Bounce: MSFT, TLT,  
 
MACD Divergence Bounce:  
 
Bear Flag:  
 
Support Break: SHLD, C, DDD, SCSS, SSYS,
 
______________________
 
 
28 of 100 Leading NDX stocks closed higher on Wednesday and one was unchanged.
 
 
Leading NDX 100 stocks included: AMGN, FOXA, EQIX, MSFT, DTV, AVGO, VRTX, FB, INTU, VIAB, MYL, CELG
 
Lagging NDX stocks included:  TSLA, CHRW, FOSL, KRFT, FAST, MU, LINTA
 
Leading stocks > +2% on Wednesday included: CIEN, JDSU ESI, AKS
 
Lagging stocks < -2.0% included: TSL, LDK, TSLA, BBRY, GES, NFLX, NTE, SOHU, SWKS, GMCR, UCO, ZAGG, ANR
 
Stocks to Watch on Thursday
Holding Above 30 DMA= 71
TSLA, SPLS, CSCO, AMZN, DLTR, INTU, BBBY, MCHP, PCLN, SRCL, ALTR, CA,  ORLY,  ROST, VOD, VIAB, FB, LBTYA, LMCA, CMCSA, HSIC, VRSK, ADP, ALXN, CHKP, CTSH, NTAP, SYMC, WFM, NFLX, BMC, CELG, ESRX, FISV, LLTC, XLNX, ADI, ATVI,  COST, CTXS, EXPD, GILD, LIFE, MYL, PAYX, XRAY, TXN, SIAL, AKAM, GRMN, KLAC, YHOO, ADSK, BIDU, FFIV, MDLZ, CTRX,  QCOM, AAPL, FAST, SBUX, MXIM, WYNN, NVDA, MNST, FOXA, NUAN, DISCA, DELL, MU, FOSL
 
Moving Above 30 DMA = 0
 
Moving Below 30 DMA = 5
ADBE, AMAT, AMZN, BIIB, CERN, CHRW, EBAY, PCAR, KRFT
 
Staying Below 30 DMA
GOLD, GOOG, LINTA, SHLD, REGN, WDC, ADSK, DTV, SBAC, EXPE, VRTX, SNDK, EQIX, STX, AVGO, MSFT, BRCM, MAT, ISRG, INTC
 
Four-Week Intermediate Term Market Trend: Up
Short Term Market Trend: Neutral

1 comment:

TraderBobb said...

Dave:
Thank you for this blog and all your efforts.
Robert
CANI_212