Friday, September 20, 2013

DIA, SPY, IWM, QQQ Pull Back...Starting To Form Bull Flags...FB...TSLA...Continue To Make New Highs...

None of the sectors moved higher on Friday…all moved lower…however, XLV, XLF and XLY were the strongest sectors…XLU was the weakest sector. 
 
Breadth weakened…advancers led decliners…2.57 to 1 on the NYSE and 1.14 to 1 on the NASDAQ.
 
Friday – weakened, decliners led
Thursday – weakened, decliners led
Wednesday – strengthened, advancers led
Tuesday – mixed, advancers led
Monday – strengthened, advancers led
Friday - strengthened, advancers led
 
SPY down 1.20 at 170.72…volume 132.8 million shares
VIX down .04 at 13.12…
TNX down .16 at 27.32…
TLT up .55 at 104.92...
XLF down .11 at 20.43…volume 43.8 million shares
 
AAPL down 4.89 at 467.41volume 24.9 million shares
FB up 1.51 at 45.98volume 47.49 million shares
 
Technical Commentary: 
DIA – 1.10%, SPY – 0.70%, IWM – 0.36%, QQQ – 0.35%.
 
DIA, IWM, SPY, and QQQ all pulled back as did the XLF and all the other eight sectors.  DIA, IWM, are in a bull flag pattern and QQQ and SPY are in a beginning bull flag pattern having closed lower.  Volume was slightly higher than average.
 
FB continues to rise closing at another all-time high on Friday up 1.51 or 3.28%.  TSLA also closed at another all-time high up 5.47 or 3.07%. AMZN broke through its horizontal resistance closing at an all-time high up 4.28 or 1.37%. 
PCLN managed another high up 2.39 or .24%.
 
BBRY dropped breaking support to close down 1.79 or 17.06% on high volume of 72.3 million shares..
 
Breakout Chart Targets:
QQQ = 78.70, 79.58
IWM = 110.91
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 = 1,660
SPY = 167.30
 
 
Q2 Earnings Reactions
Positive Reactions – ULTA, 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: ADSK, ATVI, CELG, COST, DTV, FFIV, GOOG, NFLX, QIHU, SCSS, TLT,
 
Diagonal Breakout:  
 
Bull Flag: AMGN, MYL, SHLD, SNDK, WFM, XLNX, CIEN, CMG, DNKN, ESI, FIVE, LNKD, STI, TBT,
 
Potential Bullish Divergence: 
 
Gap Up:
 
Gap Down: 
 
Bear Flag:
 
At Support: MNST, GME, ZION,
 
Moves
New Highs: AMZN, FB, PCLN, TSLA, WYNN, SPLK,
 
Gap Up:  
 
Gap Down: GLD, SWI,    
 
H&D Breakout:  
 
Breakout Test:
 
Bounce:   
 
MACD Divergence Bounce: 
 
Bear Flag:  
 
Support Break: BBRY, Z,
 
______________________
 
 
35 of 100 NDX stocks closed higher on Friday…and one was unchanged.
 
Leading NDX 100 stocks included: FB, TSLA, NFLX, AVGO, LINTA, CHKP, AMZN, ISRG, EBAY, CELG, MYL
 
Lagging NDX stocks included:  CTRX, GOLD, GRMN, NTAP, MSFT, SIAL, REGN, MDLZ, FAST, XLNX
 
Leading stocks > +2% on Friday included: A, V
 
Lagging stocks < -2.0% included: BBRY,  CDE, Z, ANR, SOHU, HLF, URE, SINA, CLF, ZONE, Z, SWI, DDD, ATI, FCX, RCL, LNKD, JNPR
 
Stocks to Watch on Monday
Holding Above 30 DMA= 90
TSLA, GRMN, PCLN, VIAB, FB, NFLX, QCOM, WYNN, DELL ,NVDA, GMCR, ADSK, AMGN, AVGO, CTSH, GILD, VOD, SBAC, 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, WFM, XRAY, LMCA, EBAY, EXPE, FISV, CHTR, BIDU, COST, FFIV, MYL, PAYX, PCAR, SBUX, STX, AMAT, CA, CERN, CHKP, DTV, HSIC, LLTC, MSFT, ORLY, SIAL, ADI, CMCSA, CTXS, MDLZ, LBTYZ, MAT, MCHP, KRFT, ATVI, BBBY, SRCL, EQIX, CSCO, NUAN, DISCA, FOSL
 
Moving Above 30 DMA = 0
 
Moving Below 30 DMA = 1
GOLD
 
Staying Below 30 DMA
ESRX, VRTX, WDC, AAPL, CTRX, SYMC, ISRG, SPLS, MNST
 
Thirteen Week Intermediate Term Market Trend: Up
5-Day Short Term Market Trend: Up

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