SPX Pulls Back as VIX Bounces on Fed Speak...FOSL Gaps Up...FB, TSLA Cool Off...FSLR, Z, CAR, DIS Lower in After-hours...

All nine sectors moved lower on Tuesday…However XLP, XLY and XLV were the strongest sectors…XLB was the weakest sector.

 

Breadth weakened…decliners led advancers…2.98 to 1 on the NYSE and 2.27 to 1 on the NASDAQ…

 

Tuesday – weakened, decliners led

Monday - mixed

Friday – mixed

Thursday – strengthened, advancers led

Wednesday – strengthened, advancers led

 

 

SPY down .97…volume 87.4 million shares

VIX up .88…at 12.72…

TNX up .02 at 26.42…

TLT up .31 at 105.90...

XLF down .18 at 20.58…volume 25.2 million shares

 

AAPL down 4.20 at 465.25…volume 11.9 million shares

FB down .64 at 38.55…volume 63.9 million shares

 

Technical Commentary:

 

SPY – 0.57%, QQQ – 0.60%, DIA – 0.60%, IWM – 1.00%.

 

Stocks generally moved lower after two regional Fed presidents spoke on Tuesday indicating the Fed may taper asset purchases in September.  The SPX and SPY shifted neutral, retraced to its horizontal breakout level and found support at its 10 DMA.

 

AAPL, GOOG, CELG, AMGN, REGN, GILD, CMCSA, BIIB, QCOM and FB led the NDX lower while EBAY and FOSL moved higher.

 

Approximately 80% of the S&P 500 companies have reported earnings with 68% exceeding earnings expectations and 55% above revenue forecasts according to Thomson Reuters. 

 

Earnings before the open led to FOSL +19.12, +17.81%, MGM up 36 cents, DISH up 20 cents and ADM up 3 cents moved higher on the day, while LMCA -1.36 and LINTA -1.30 moved lower.

 

After-hours earnings led FSLR, Z, CHRW, CAR and DIS to gap lower and FOXA +1.02 to gap higher.

 

 

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. 

 

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Setups

H Breakout: FFIV, MU, NTAP, NUAN, WFM, WYNN, CIEN, GMCR, GRPN, JNPR, RAX, SCTY, XONE,

 

Diagonal Breakout: ESRX, INTC, WLT,

 

Bull Flag: AKAM, ATVI, BIDU, CELG, CMCSA, FAST, GILD, GRMN, QCOM, ROST, SBUX, XLNX, ALK, BAC, CMG, DNKN, F, GLW, KKD, LNKD, PWRD, RCL, SPY, STI, YELP, GS, SINA

 

Potential Bullish Divergence:  

 

Gap Up:  FOXA

 

Gap Down: FSLR, Z, CHRW, CAR, DIS

 

Bear Flag:   

 

At Support: AMZN, BRCM, SHLD, STX, C, FSLR, SCSS, UAL,

 

 

Moves

New Highs: PCLN, Z,

 

Gap Up:  FOSL

 

Gap Down: GLD,    

 

H&D Breakout: CTSH,  

 

Breakout Test: 

 

Bounce:  

 

MACD Divergence Bounce:  

 

Bear Flag:  

 

Support Break: FIVE,

 

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42 of 100 Leading NDX stocks closed higher on Monday and one was unchanged.

 

 

Leading NDX 100 stocks included: FOSL, EXPE, EXPD, EBAY, ADP, NUAN, CTSH, NFLX, PCLN, ESRX, SIAL

 

Lagging NDX stocks included:  GOLD, REGN, SHLD, LINTA, CELG, BIIB, ALXN, VRTX, AMGN, TSLA, FB, GILD

 

Leading stocks > +2% on Wednesday included: FAZ

 

Lagging stocks < -2.0% included: CDE, TSL, ANR, SSYS, UAL, YELP, ANR, JDSU, AKS, MCP, GRPN, ATI, C, CIEN, SOHU, FAS, IBM, GES, ZAGG, CLF, X, GS

 

Stocks to Watch on Wednesday

Holding Above 30 DMA= 74

TSLA, SPLS, CSCO, AMZN, DLTR, ADBE, INTU, BBBY, MCHP, PCLN, SRCL, ALTR, CA,  ORLY, PCAR, ROST, VOD, VIAB, FB, LBTYA, KRFT, LMCA,CMCSA, HSIC, VRSK, ADP, ALXN, CHKP, CTSH, NTAP, SYMC, WFM, NFLX, BMC, CELG, ESRX, FISV, LLTC, XLNX, ADI, ATVI, CHRW, COST, CTXS, EXPD, GILD, LIFE, MYL, PAYX, XRAY, TXN, SIAL, AKAM, AMAT, GRMN, KLAC, YHOO, AMGN, ADSK, BIDU, FFIV, MDLZ, CTRX,  QCOM, AAPL, FAST, SBUX, MXIM, WYNN, CERN, NVDA, BIIB, MNST, FOXA, NUAN, DISCA, DELL, MU

 

Moving Above 30 DMA = 2

EBAY, FOSL

 

Moving Below 30 DMA = 5

GOLD, GOOG, LINTA, SHLD, REGN                    

 

 

Staying Below 30 DMA

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