Wednesday, August 28, 2013

SPY, QQQ, IWM, DIA Bounce in MACD Divergence...FB Gains as TSLA Pauses...

Seven of nine sectors moved higher on Wednesday…XLE, XLY and XLV were the strongest sectors…XLP was the weakest sector. 
 
Breadth strengthened…advancers led decliners…1.25 to 1 on the NYSE and 1.36 to 1 on the NASDAQ…
 
Wednesday – strengthened, advancers led
Tuesday – weakened, decliners led
Monday – weakened, decliners led
Friday – weakened, advancers led
Thursday – strengthened – advancers led
 
 
SPY up .58 at 163.91…volume 107.3 million shares
VIX down .28…at 16.49…
TNX up .61 at 27.82…
TLT down .86 at 105.27...
XLF up .04 at 19.48…volume 51.3 million shares
 
AAPL up 2.31 at 490.90volume 10.9 million shares, inverted hammer, bull flag pattern
FB up .91 at 40.55volume 57.6 million shares, bullish harami, bull flag pattern
 
Technical Commentary:
 
QQQ + 0.39%, SPY + 0.36%, DIA + 0.37%, IWM + 0.20%.  
 
Stocks rose on Wednesday led by the NDX +12.59 with over 8 points coming from six stocks GILD, AAPL, FB, BIDU, QCOM and CELG.  MSFT weighed on the NDX.  The SPY formed a piercing line candle pattern as it bounced up from its 50% Fib retracement level and is forming a MACD histogram bullish divergence along with QQQ, IWM and DIA. 
 
GILD +2.89% formed bullish engulfing candle after a one-day bull flag pullback.
 
Many stocks are also forming MACD bullish divergence setups while many other stocks formed bullish harmai or inside day bounce in a bull flag pattern.
 
 
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 turned higher and is pointed up. 
 
____________________
 
Setups
H Breakout: BIDU, CTSH, GILD, QCOM, TSLA, GMCR, KKD, LNKD,
 
Diagonal Breakout: BBBY, BRCM, CMCSA, INTC, SHLD, CMG, CRM, ESI, TPX, UNG, YELP,
 
Bull Flag: AAPL, ADSK, AMGN, AVGO, FB, GRMN, MSFT, ROST, ANR, CNX, GME, NTES, SSYS, SWKS
 
Potential Bullish Divergence:  AMAT, ESRX, FAST, MNST, STX, TXN, YHOO, ALK, ATI, BAC, CLF, FSLR, JCP, RAX, SWI,
 
Gap Up: 
 
Gap Down: 
 
Bear Flag: 
 
At Support: PCLN, WDC, P
 
Moves
New Highs: 
 
Gap Up:  
 
Gap Down: RCL,
 
H&D Breakout: DTV, SOHU, Z,  
 
Breakout Test:  
 
Bounce: SOHU, Z, CREE, SWKS, ESI, GMCR, YOKU, LVS, SCSS, SINA, NTES, AKAM, TBT,   
 
MACD Divergence Bounce:
 
Bear Flag:  
 
Support Break: TIF,  
 
______________________
 
 
66 of 100 NDX stocks closed higher on Wednesday.
 
Leading NDX 100 stocks included: AVGO, GILD, BIDU, NFLX, FB, CTSH, SNDK, ALXN, WDC, REGN, CELG
 
Lagging NDX stocks included:  NUAN, COST, GOLD, WFM, MSFT, KRFT, LINTA, AMAT, CERN, GRMN
 
Leading stocks > +2% on Wednesday included: CRUS, SOHU, Z, CREE, SWKS, ESI, GMCR, BBRY, LVS, SCSS, DDD
 
Lagging stocks < -2.0% included: TIF, CDE, JCP, HLF, AKS, RCL
 
Stocks to Watch on Thursday
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 = 6
AVGO, BMC, CTSH, GILD, MYL, SYMC
 
Moving Below 30 DMA = 0
       
Staying Below 30 DMA
CA, CELG, CHKP, CHRW, CTXS, EXPD, FISV, FOSL, INTU, ISRG, MU, NTAP, ORLY, SBUX, TXN, CTRX, VRSK, 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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