Tuesday, August 13, 2013

QQQ, SPY, DIA Bounce in Bull Flag as AAPL, MU Takin' It to the Street...CREE, XONE Crater in After-Hours...

Seven of nine sectors moved higher on Tuesday…XLK, XLF and XLI were the strongest sectors…XLU was the weakest sector.
 
Breadth strengthened…advancers led decliners…1.45 to 1 on the NYSE and 1.07 to 1 on the NASDAQ…
 
Tuesday – strengthened – advancers led
Monday – strengthened – advancers led
Friday – weakened – decliners led
Thursday – strengthened – advancers led
Wednesday – strengthened, decliners led
 
 
SPY up .50…volume 80.8 million shares
VIX down .50…at 12.31…
TNX up 1.10 at 27.15…
TLT down 1.54 at 104.99...
XLF up .10 at 20.44…volume 30.4 million shares
 
AAPL up 22.21 at 489.57volume 13.4 million shares, broke out of horizontal resistance
FB down 1.20 at 37.02volume 65.3 million shares, broke below its 6 day trading range
 
Technical Commentary:
 
QQQ + 0.56%, SPY + 0.30%, DIA + 0.27%, IWM – 0.13%.  
 
The NDX and the 100 ETF QQQ led the broad market on the strength of AAPL’s 18.5 NDX points and QCOM, BIDU, MU, EBAY and BIIB added just over 5 NDX points while MSFT, FB, CELG, AMZN and GOOG shaved over 8 points off the NDX.  Airline stocks were slammed after news that the DOJ will block the LCC and American merger.   Coal and steel stocks also moved lower on Tuesday.  TBT jumped as TLT bonds gapped lower and TNX gapped higher.
 
MU +1.14, +8.24 on 84.4 million shares was the percentage leader on NDX.
 
RCL +1.34, bounced in its bull flag rising to horizontal resistance.  SWI +2.01, +5.23% broke through the resistance of the bottom of its bearish earnings gap on increased volume as buyers returned.
 
CREE -11.92, crated in after-hours following inline EPS but missed revenues and lower guidance or next quarter.  Look for a gap lower on Wednesday morning.  XONE -11.77 also in after-hours trading.
 
 
With the majority of companies quarterly earnings behind traders can now focus on the technical setup rather than avoiding setups due to a pending earnings release.
 
 
Q2 Earnings Reactions
Positive Reactions – JRCC, RAX, SSYS, TMUS, SGMS, FWLT, MNST, GRPN, TSLA, AGU, BOFI, FOSL, ADM, MGM, 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 – CREE, MCP, GMCR, SCTY, SUNE, Z, CAR, CHRW, FSLR, LINTA, 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 is in the upper zone. 
 
____________________
 
Setups
H Breakout: ADSK, SNDK, WDC, YHOO, ANR, CIEN, DDD, F, GLW, GME, LVS, MFRM, SCSS,
 
Diagonal Breakout: INTC, ROST, WFM, BAC, CMG, FIVE, SPY, VECO,
 
Bull Flag: AMGN, AMZN, BBBY, CELG, COST, CTSH, FAST, FB, GILD, PCLN, ATI, ESI, PWRD, TSLA, YELP,
 
Potential Bullish Divergence:  
 
Gap Up: 
 
Gap Down:  CREE, XONE
 
Bear Flag:   
 
At Support: GOOG,
 
 
Moves
New Highs: CREE, LNKD, SINA, TIF, XONE,
 
Gap Up: TBT,  
 
Gap Down: TLT,    
 
H&D Breakout: ATVI, BIDU, MU, NUAN, QCOM, P,
 
Breakout Test: 
 
Bounce: BRCM, EBAY, C, GS, JNPR, RCL,
 
MACD Divergence Bounce:  
 
Bear Flag:  
 
Support Break: ALK,
 
______________________
 
 
58 of 100 Leading NDX stocks closed higher on Tuesday.
 
 
Leading NDX 100 stocks included: MU, AAPL, BIDU, BIIB, SNDK, FOSL, ADSK, BRCM, NUAN, ATVI, EBAY, DLTR, QCOM, VOD, KLAC
 
Lagging NDX stocks included:  FB, CELG, EQIX, MNST, TSLA, MSFT, GRMN, CHRW, LINTA, AMZN
 
Leading stocks > +2% on Tuesday included: SWI, RVBD, CRUS, RCL, CIEN, SINA, TBT, JNPR, SLB, SWKS
 
Lagging stocks < -2.0% included: UAL, SOHU, LDK, ESI, ZAGG, URE, TSL, AKS, HLF, X, FCX, GRPN
 
Stocks to Watch on Wednesday
Holding Above 30 DMA= 69
TSLA, SPLS, CSCO, GRMN, INTU, BBBY, MCHP, PCLN, SRCL, ALTR, CA, ORLY, ROST, VOD, VIAB, FB, LMCA, CMCSA, HSIC, VRSK, ADP, ALXN, CHKP, CTSH, NTAP, SYMC, WFM, NFLX, BMC, CELG, FISV, LLTC, XLNX, ADI, ATVI, CTXS, EXPD, GILD, LIFE, MYL, PAYX, XRAY, TXN, SIAL, SIRI, AKAM, YHOO, AMGN, BIDU, FFIV, MDLZ, CTRX, QCOM, AAPL, SBUX, MXIM, WYNN, MNST, FOXA, NUAN, DELL, MU, FOSL, ADSK, GOLD, WDC, AVGO, KLAC, PCAR
 
Moving Above 30 DMA = 4
DISCA, DLTR, EBAY, ESRX                     
 
Moving Below 30 DMA = 1
MNST
               
Staying Below 30 DMA
FAST, NVDA,  ADBE, COST, LBTYA, AMAT, AMZN, BIIB, CERN, CHRW, KRFT, GOOG, LINTA, REGN, SHLD, DTV, SBAC, EXPE, VRTX, EQIX, SNDK, STX, MSFT, BRCM, MAT, ISRG, INTC
 
Eight-Week Intermediate Term Market Trend: Up
10-Day Short Term Market Trend: Neutral

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