Thursday, August 1, 2013

SPY, QQQ, DIA, & IWM All Make New Highs...YELP Up After Earnings 23.21%...Z Up Also After Earnings Report 14.82%...LNKD Up In After Hours Trading 15.80%...


All nine sectors moved higher on Thursday… XLI, XLE and XLF were the strongest sectors…XLV was the weakest sector.  

Breadth strengthened…advancers led decliners…1.64 to 1 on the NYSE and 2.60 to 1 on the NASDAQ… 

Thursday – strengthened, advancers led
Wednesday – strengthened, advancers led
Tuesday – strengthened, advancers led
Monday - weakened, decliners led
Friday – weakened, decliners led 

SPY up 1.95…volume 142.3 million shares
VIX down .51at 12.94…
TNX up 1.30 at 27.23…
TLT down 2.07 at 105.36...
XLF up .32 at 20.82…volume 34 million shares 

AAPL up 4.15 at 456.68volume 7.3 million shares
FB up .69 at 37.49volume 105.9 million shares 

Technical Commentary:
IWM + 1.37%, SPY + 1.16%, QQQ + 1.02%, DIA + 0.68%.  

QQQ, SPY, DIA, and IWM, all made new highs on Thursday.  LNKD reported earnings today and closed up 9.21 or 4.52.  In after hours trading LNKD is up an additional 15.70 or 7.37%. 

AIG is up 2.42 or 5.14% in after hours trading after reporting earnings. Z closed Thursday up 10.95 or 14.82% after gapping up in the morning.  YELP also reported earnings and closed up 9.70 or 12.21%.  In after hours trading YELP is up an additional .95 or 1.84%. 

CTRX gapped up on Thursday and broke horizontal resistance of mid-June.  CTRX is approaching a second horizontal resistance of early May 2013.  It closed up 4.23 or 8.01%. 

Earnings announcements continue as the fourth 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
Monday – ESRX, MTW, SOHU, VECO, VRTX, WYNN
Tuesday – DDD, AET, AMGN, ACI, BWLD, COH, GLW, DISCA, FISV, MDC, NYX, QCOR, RVBD, X
Wednesday – CMCSA, CTRP, GRMN, HES, HUM, LRCX, MA, MCHP, SODA, WFM, YELP
Thursday – ATVI, AIG, APA, ADP, BZH, CME, CTRX, CHK, COP, XRAY, XOM, K, KRFT, LNKD, MELI, MYL, NUS, ZAGG, DTV
Friday – ANR, EAT, CBOE, CVX, VIAB, YOKU 

Q2 Earnings Reactions
Positive Reactions – 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 – 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: AAPL, AKAM, AMAT, BBBY, BIDU, COST, CSCO, CTSH, FFIV, NTAP, NUAN, NVDA, QCOM, SBUX, SIRI, TXN, WYNN, ALK, ATI, BAC, C, CIEN, CRM, F, FSLR, GMCR, GS, JNPR, LVS, SPLK, SPY, STI, UAL,  

Diagonal Breakout: GOOG, INTC, MNST, MU, PCLN, MFRM, SSYS, TPX,  

Bull Flag: GILD, DDD, ESI, RAX,  

Potential Bullish Divergence:    

Gap Up:   

Gap Down:   

Bear Flag:  

At Support: DTV, WFM,  

Moves
New Highs: CELG, MYL, TSLA, CMG, CREE, GME, KKD, LNKD, RCL, TIF,  

Gap Up: SNDK, SINA, YELP, Z  

Gap Down:  

H&D Breakout: CMCSA, SHLD, PWRD, TBT,  

Breakout Test:   

Bounce: AMZN, NFLX, DNKN, FAS, SOHU, SWI,  

MACD Divergence Bounce:   

Bear Flag:   

Support Break: TLT, 

______________________
 

89 of 100 Leading NDX stocks closed higher on Thursday. 

Leading NDX 100 stocks included: CTRX, SNDK, MCHP, FOSL, EXPD, PCLN, WYNN, WDC, XBUX, REGN, DISCA, ALTR, KLAC, AYX, HSIC, MU, ROST, MNST, FOXA

Lagging NDX stocks included:  ADSK, GOLD, DTV,  

Leading stocks > +2% on Thursday included: YELP, SINA, SWI, DECK, UCO, NKE, ZAGG, FAS, LNKD, CREE, TBT, ANR, CRM, RCL 

Lagging stocks < -2.0% included: FAZ, MCP 

Stocks to Watch on Friday
Holding Above 30 DMA= 75
TSLA, SPLS, CSCO, AMZN, DLTR, ADBE, INTU, BBBY, MCHP, PCLN, SRCL, ALTR, CA, LINTA, ORLY, PCAR, ROST, VOD, VIAB, FB, LBTYA, KRFT, LMCA,CMCSA, HSIC, VRSK, ADP, ALXN, CHKP, CTSH, FOSL, NTAP, SYMC, WFM, NFLX, BMC, CELG, ESRX, FISV, LLTA, XLNX, ADI, ATVI, CHRW, COST, CTXS, EXPD, GILD, LIFE, MYL, PAYX, XRAY, TXN, SIAL, AKAM, AMAT, GRMN, KLAC, YHOO, AMGN, REGN, ADSK, BIDU, FFIV, MDLZ, CTRX, GOLD, QCOM, AAPL, FAST, SBUX, MXIM, WYNN, SHLD, CERN, NVDA, BIIB, MNST, FOXA 

Moving Above 30 DMA = 5
GOOG, MU, NUAN, DISCA, WDC 

Moving Below 30 DMA = 2
ADSK, DTV 

Staying Below 30 DMA
SBAC, EXPE, VRTX, SNDK, EQIX, STX, AVGO, EBAY, MSFT, BRCM, MAT, DELL, ISRG, INTC
 

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

 

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