All nine sectors moved higher on Wednesday… XLU, XLB and XLI were
the strongest sectors…XLV was the
weakest sector.
Breadth strengthened…
advancers led decliners…5.99 to 1 on
the NYSE and 1.79 to
1 on the NASDAQ.
Wednesday
– strengthened, advancers led
Tuesday – mixed,
advancers led
Monday – strengthened,
advancers led
Friday - strengthened,
advancers led
Thursday – weakened,
decliners led
Wednesday – weakened,
mixed
SPY up 1.98 at 173.05…volume 203.3 million shares
VIX down .94 at 13.59…
TNX down 1.45 at 27.08…
TLT up1.28 at 104.99...
XLF up .18 at 20.70…volume 51 million shares
AAPL up 9.36 at 464.68…volume 16.2 million shares
FB up .16 at 45.23…volume 79.2 million shares
Technical Commentary:
DIA + 0.90%, IWM +0.95%, SPY + 1.16%, QQQ + 1.20%.
Today the long awaited
announcement by the Fed surprised many investors with their decision to not ‘taper’
for the current time…but to maintain its massive bond-buying strategy…stunning
investors and sending the stock market higher.
XLU gained 2.98%, XLB gained 2.31%. DIA broke above horizontal resistance with a gain of 1.40 while the SPY gained 1.98 and QQQ rose .94. Volume was heavy with
many stocks being double the average daily volume.
Many stocks made new
highs and many are at a horizontal breakout setup. SOHU
gained 8.37 or 12.35%, ADBE gapped
up 4.44 or 9.22%, GOLD likewise
added to gains up 5.59 or 7.60%, URE was
up 4.89 or 6.99%.
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, AMZN, BBBY, BIDU, COST, DTV, FB, FFIV,
MAT, PCLN, QCOM, SIRI, STX, TSLA, ALK, ANR, BAC, C, CLF, CNX, DDD, ESI, F, FAS,
GLW, GRPN, GS, SWI, UAL, Z,
Diagonal Breakout: SYMC,
WDC, ANGI, FSLR, TLT,
Bull Flag: ATVI, CELG, MYL,
PWRD,
Potential Bullish
Divergence:
Gap Up:
Gap Down:
Bear Flag:
At Support:
Moves
New Highs: AKAM, AMGN, CTSH,
GRMN, MU, ROST, SBUX, WFM, WYNN, YHOO, CRM, LVS, P, RAX, SOHU, YOKU,
Gap Up: ADBE,
Gap Down: FIVE,
H&D Breakout: GILD,
GOOG, GLD, SPY, YELP, YNDX,
Breakout Test:
Bounce: AAPL, NFLX,
NUAN, SCSS, SINA, SPLK, WLT, XONE,
MACD Divergence
Bounce:
Bear Flag:
Support Break: ESRX,
______________________
84 of 100 NDX stocks
closed higher on Wednesday…and one was unchanged.
Leading NDX 100 stocks included: ADBE, GOLD, REGN,
DLTR, ADSK, CTSH, EXPD, BIIB, AMZN, PCLN, GILD, MU, EQIX, NFLX, MDLZ
Lagging NDX stocks included: CTRX, ESRX, SHLD, WDC,
Leading stocks > +2% on Wednesday
included: SOHU, AKS, CDE, URE, TPX, CRM, UCO, SCSS, ANR, YELP, CLF,
ESI, XONE, FAS, ATI, FCX, CRUS, X, GLW, CREE, SWK, SINA
Lagging stocks < -2.0% included: FAZ, HUM, TBT, ZION, JCP
Stocks to Watch on Thursday
Holding Above 30 DMA= 8
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,
LBTYA, MAT, MCHP, KRFT, ATVI, BBBY, SRCL, EQIX
Moving Above 30 DMA = 4
CSCO, GOLD, NUAN, DISCA
Moving Below 30 DMA = 3
ESRX, VRTX, WDC
Staying Below 30 DMA
AAPL, CTRX, SYMC, FOSL, ISRG, SPLS, MNST
Thirteen Week
Intermediate Term Market Trend: Neutral, NDX,
RUT = Up
5-Day Short Term Market
Trend: Up
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