Seven of nine sectors moved higher on Wednesday…
XLE, XLY and XLP were the strongest sectors…XLU was the weakest sector.
Breadth weakened…advancers
led decliners…1.23 to 1 on the NYSE and 1.07 to 1 on the NASDAQ…where
decliners led advancers.
Wednesday
– weakened, mixed
Tuesday – weakened,
advancers led
Monday – strengthened,
advancers led
Friday - mixed
Thursday - mixed
SPY
up .53 at 169.40…volume 94.2 million shares
VIX
down .71 13.82…
TNX
down .39 at 29.20…
TLT
up .91 at 103.29...
XLF
up .02 at 20.29…volume 32.4 million shares
AAPL
down 26.93 at 467.71…volume
32 million shares
FB
up 1.44 at 45.04…volume 71.9 million shares, new high
Technical Commentary:
DIA +0.90%, SPY + 0.31%, IWM +0.05%, QQQ
– 0.19%.
After closing above its 30 DMA on
Tuesday, DIA exploded to the upside on Wednesday leading stocks
higher. SPY followed and small
cap IWM inched above breakeven by the close. QQQ closed slightly lower following a
big gap down by AAPL which combined with QCOM were more than 25 NDX
points to the downside. The NDX -5.21 which had 14 points from MSFT, FB, CMCSA,
GOOG, BIDU, BIIB, CSCO, EBAY and SBUX with the balance of positive
points coming from 63 other advancing stocks offsetting the majority of loss
from AAPL.
FB +3.30% made a new intra-day high at 45.09 and a new
all-time high close at 45.09. FB is up 31% from July 25 the day
of its 29% earnings gap. Last
week an STI analyst raised their price target to 55.
In addition to FB other
positive setups include P +5.06%
breakout setup, GRPN +2.99% breakout,
RAX +2.27% new high, YELP +2.18% new high, LNKD +1.57% breakout, Z +1.55%
breakout setup, SINA +0.71% breakout
setup moved higher. CRM -0.28% breakout setup pause.
Airline stocks UAL, DAL and
LCC paused after soaring for two days.
Basic materials XLB stocks were
on the move again Wednesday as steel stocks AKS, X, STLD and NUE
gained.
Breakout Chart Targets:
QQQ = 78.70, 79.58
IWM = 106.10, 107.51
SPY = 169.93, 171.56
Remember it is big money that creates and sustains the
trend. As Granville once wrote, “technical analysis
is the art of tracking the market, following the footsteps of the ‘smart money’
crowd. The ‘smart money crowd’ is no
mysterious ‘THEY.’ It is simply a collection
of people who are reading the market correctly, seeing through the maze, unconfused
by this hall of mirrors.”
Short-term market posture is up.
Support Levels
ES = 1,647, 1,629, 1,611
SPY = 165.15, 163.35, 161.55
Q2 Earnings Reactions
Positive Reactions – FIVE, CIEN, SPLK, CRM, GES, DSW, ADSK,
ROST, GME, JRCC, RAX, SSYS, TMUS, SGMS, FWLT, MNST, GRPN, TSLA,
AGU, BOFI, FOSL, ADM, MGM, 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
pointed up.
____________________
Setups
H Breakout: ADBE, CELG, COST, CTSH, DTV, EBAY, ESRX, FAST,
FFIV, GILD, PCLN, ROST, GLW, P, RAX, RCL, SINA, SWI, Z
Diagonal Breakout: AMAT, MNST, WDC, STI,
Bull Flag: BBRY, DDD, SSYS, YOKU,
Potential Bullish Divergence:
Gap Up:
Gap Down:
Bear Flag:
At Support:
Moves
New Highs: AKAM, BIDU, GRMN, WYNN, FIVE, GRPN, LNKD, LVS, QIHU,
SPLK, YELP,
Gap Up: MSFT,
Gap Down: AAPL, QCOM,
H&D Breakout: CMCSA, NTAP, SBUX, SIRI, WFM, CMG, PWRD,
Breakout Test:
Bounce:
MACD Divergence Bounce:
Bear Flag:
Support Break:
______________________
72 of 100 NDX stocks closed higher on Wednesday…and four were unchanged.
Leading NDX 100 stocks included: BIDU, BIIB, FB, FFIV, CMCSA,
VIAB, MXIM, XRAY, NVDA, COST, SBUX, EBAY, GMCR, AKAM, MU
Lagging NDX stocks included:
AAPL, NFLX, TSLA, QCOM, VRTX, SHLD, AMZN, BRCM, MNST, STX, ISRG
Leading stocks > +2% on Wednesday included: AKS, GRPN, FCX, IBM, X, YELP
Lagging stocks < -2.0% included: CRUS,
BBRY, DECK, SWKS, ZAGG, CHL, MFRM, JCP
Stocks to Watch on Thursday
Holding Above 30 DMA= 81
TSLA, GRMN, PCLN, FB, VIAB, NFLX,
QCOM, WYNN, DELL, NVDA, GMCR, ADSK, AMGN, AVGO, CTSH, GILD, SBAC, VOD, NUAN,
SHLD, AKAM, ALTR, BIIB, CELG, EXPD, MU, MXIM, NTAP, ROST, YHOO, REGN, VRSK,
FOXA, ADBE, ADP, ALXN, CHRW, DLTR, INTC, INTU, KLAC, SNDK, XLNX, TXN, AMZN,
BRCM, FAST, GOOG, LINTA, SIRI, VRTX, WFM, XRAY, WDC, LMCA, EBAY, EXPE, FISV,
CHTR, BIDU, COST, FFIV, MAT, MYL, PAYX, PCAR, SBUX, STX, EQIX, AMAT, CA, CERN,
CHKP, DTV, ESRX, HSIC, LLTC, MSFT, ORLY, SIAL, ADI
Moving Above 30 DMA = 6
ATVI, CMCSA, CTXS, SRCL, MDLZ, LBTYA
Moving Below 30 DMA = 1
AAPL
Staying Below 30 DMA
GOLD, KRFT, CTRX, SYMC, FOSL,
ISRG, SPLS, CSCO, MCHP, BBBY, DISCA, MNST,
Thirteen Week Intermediate Term Market Trend: Neutral, NDX = Up
5-Day Short Term Market Trend: Up
1 comment:
Thanks Dave!
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