Tuesday, August 27, 2013

SPY, DIA, IWM Bear Flag Entry...AAPL, FB Pull Back in Bull Flag Pattern...GLD, SLV, UNG Higher...TSLA New High Close...

All nine sectors moved lower on Tuesday…XLU, XLP and XLE were the strongest sectors…XLF was the weakest sector. 
 
Breadth weakened… decliners led advancers…4.07 to 1 on the NYSE and 6.89 to 1 on the NASDAQ…
 
Tuesday – weakened, decliners led
Monday – weakened, decliners led
Friday – weakened, advancers led
Thursday – strengthened – advancers led
Wednesday – weakened, decliners led
 
 
SPY down 2.67 at 163.33…volume 158.2 million shares
VIX up 1.78…at 16.77…
TNX down .84 at 27.21…
TLT up 1.32 at 106.13...
XLF down .48 at 19.45…volume 72.8 million shares
 
AAPL down 14.38 at 488.59volume 15.1 million shares
FB down 1.70 at 39.64volume 72.5 million shares
 
Technical Commentary:
 
 IWM – 2.35%, QQQ – 2.05%, SPY – 1.61%, DIA – 1.15%.  
 
Futures moved lower overnight and the SPY opened lower following Monday’s bearish engulfing pattern.  The SPY closed 1.03 below its open for a total loss of 2.67 on Tuesday.  The SPY broke through its 38% Fib level and closed two cents below its 50% Fib level of 163.35.  Its next support level is 161.55.  The SPY which made a lower close while its MACD histogram made a higher low and is forming a potential MACD bullish divergence.
 
AAPL -2.86% and FB -4.11% both fell more than the broad market and are forming a potential bull flag pattern.  GLD and SLV gapped and closed higher.  TSLA made a new high close and CMCSA formed a piercing line pattern.
 
DSW +7.91% soars following earnings before the open.
 
In addition to the SPY many individual stocks gave bear flag entry signals today including ALK, BAC, C, CIEN, CREE, F, FAS, FSLR, GLW, GS and TPX.  Many of these same stocks are forming potential MACD bullish divergences as they make similar or lower lows.
 
 
Short-term market posture continues defensive.
Support Levels
ES = 1,647, 1,629, 1,611
SPY = 165.15, 163.35, 161.55
 
Q2 Earnings Reactions
Positive Reactions – DSW, ADSK, ROST, GME, 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 – P, SHLD, PWRD, 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 out of the upper zone and pointed down. 
 
____________________
 
Setups
H Breakout: 
 
Diagonal Breakout: TLT,  
 
Bull Flag: AAPL, AMGN, BIDU, FB, MSFT, ANR, DDD, GMCR, GME, KKD, LNKD, NTES, SSYS, 
 
Potential Bullish Divergence: 
 
Gap Up: 
 
Gap Down: 
 
Bear Flag: 
 
At Support: 
 
Moves
New Highs: 
 
Gap Up: GOLD,
 
Gap Down: ADBE, ADSK, AMAT, ESRX, FAST, FFIV, GOOG, GRMN, MAT, MU, MYL, PCLN, QCOM, ROST, SBUX, SIRI, SYMC, TXN, WDC, WFM, XLNX, YHOO, ALK, ATI, BAC, C, CLF, CNX, CREE, CRM, F, FAS, GLW, GS, RCL, STI, TBT, UAL, VECO, ZION,
 
H&D Breakout:
 
Breakout Test:  
 
Bounce: SHLD,  
 
MACD Divergence Bounce:
 
Bear Flag:  
 
Support Break: AMZN, COST, DTV, EBAY, NUAN, NVDA, SNDK, STX, CIEN, DNKN, FIVE, LVS, SINA, SPLK, SPY,
 
______________________
 
 
6 of 100 NDX stocks closed higher on Tuesday.
 
Leading NDX 100 stocks included: SHLD, TSLA, SBAC, CMCSA
 
Lagging NDX stocks included:  WDC, SNDK, MU, FB, AMGN, STX, VRTX, FFIV, KLAC, CELG, AAPL, GOLD, SIRI, BIDU
 
Leading stocks > +2% on Tuesday included: FAZ, UCO, SCSS
 
Lagging stocks < -2.0% included: LDK, UAL, FAS, CDE, CIEN, SSYS, TSL, RCL, CLF, DDD, CREE, ANR, ANR, SINA, ZION,
 
Stocks to Watch on Wednesday
Holding Above 30 DMA= 20
TSLA, GRMN, PCLN, VIAB, FB, NFLX, AKAM, BIDU, QCOM, AAPL, WYNN, FOXA, DELL, GOLD, NVDA, ROST, ADSK, DLTR, MSFT, AMGN
 
Moving Above 30 DMA = 0

Moving Below 30 DMA = 23
AVGO, BMC, CA, CELG, CHKP, CHRW, CTSH, CTXS, EXPD, FISV, FOSL, GILD, INTU, ISRG, MU, MYL, NTAP, ORLY, SBUX, SYMC, TXN, CTRX, VRSK
       
Staying Below 30 DMA
ADP, FFIV, NUAN, VOD, YHOO, MDLZ, ATVI, WDC, SHLD, PAYX, SPLS, SIAL, HSIC, ALTR, ALXN, CSCO, EBAY, KLAC, LIFE, LLTC, MCHP, MXIM, SIRI, SRCL, XLNX, XRAY, ADI, LMCA, BBBY, CMCSA, ESRX, PCAR, WFM, DISCA, MNST, FAST, ADBE, COST, LBTYA, AMAT, AMZN, BIIB, CERN, KRFT, GOOG, LINTA, REGN, DTV, SBAC, EXPE, VRTX, SNDK, EQIX, STX, BRCM, MAT, INTC
 
Thirteen Week Intermediate Term Market Trend: Neutral
5-Day Short Term Market Trend: Down

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