Tuesday, September 24, 2013

Many Stocks Bounce From Bull Flag Setups...AMAT Up 9.09% On Large Volume...FB Continues To Climb...Another High...

Three of nine sectors moved higher on Tuesday…XLI, XLY and XLE were the strongest sectors…XLF was the weakest sector. 
 
Breadth strengthened…advancers led decliners…1.20 to 1 on the NYSE and 1.24 to 1 on the NASDAQ.
 
Tuesday – strengthened, advancers led
Monday – mixed, decliners led
Friday – weakened, decliners led
Thursday – weakened, decliners led
Wednesday – strengthened, advancers led
 
 
SPY down .24 at 169.53…volume 101 million shares
VIX down .23 at 14.08…
TNX down .61 at 26.53…
TLT up 1.14 at 106.83...
XLF down .12 at 20.01…volume 40.2 million shares
 
AAPL down 1.54 at 489.10…volume 12.9 million shares
FB up 1.26 at 48.45volume 136.3 million shares
 
Technical Commentary: 
DIA – 0.42%, SPY – 0.24%, QQQ  0.00%, IWM + 0.33%.
 
SPY and DIA remained in a bull flag set up closing slightly down while QQQ was unchanged but still also in a bull flag set up.  IWM had a slight bounce closing up .35 or .33%.
 
Many stocks that had been in a bull flag set up had a bounce today including AMAT which gapped up 1.45 or 9.09%.  AMAT had double the average daily volume with 88.8 million shares.
 
FB continued to climb today gapping up 1.26 or 2.67% again closing at an all-time high with volume of 136.5 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 closed below 80 and is pointed down.
 
____________________
 
Setups 
H Breakout: ANGI, YNDX,   
 
Diagonal Breakout: AAPL,
 
Bull Flag: ADBE, ADSK, AKAM, AMGN, BRCM, CELG, CMCSA, COST, DTV, FAST, GILD, GOOG, INTC, MAT, MU, MYL, NTAP, NVDA, SHLD, SIRI, TXN, XLNX, ANR, ATI, CLF, CNX, CRM, DNKN, FAS, FSLR, GRPN, GS, JNPR, RAX, SCSS, SCTY, SOHU, SPLK, SPY, TPX, YELP, YOKU,
 
Potential Bullish Divergence: MFRM, XONE,  
 
Gap Up:
 
Gap Down: 
 
Bear Flag:
 
At Support: ESRX, SYMC, BAC, TBT,
 
Moves
New Highs: BIDU, FB, WYNN, YHOO, LVS,  
 
Gap Up: FB, AMAT,   
 
Gap Down: FFIV, RCL, UNG,
 
H&D Breakout: TLT,  
 
Breakout Test:
 
Bounce: BBBY, GRMN, SBUX, SNDK, STX, WDC, ESI, FIVE, GLW, GME, LNKD, TIF,
 
MACD Divergence Bounce: 
 
Bear Flag:  
 
Support Break: JCP, SWI,
 
______________________
 
 
48 of 100 NDX stocks closed higher on Tuesday…and two were unchanged.
 
Leading NDX 100 stocks included: AMAT, YHOO, FB, WDC, VOD, STX, SBUX, MCHP, NFLX, AVGO, NUAN, GRMN, SNDK
 
Lagging NDX stocks included:  CTXS, DTV, FFIV, ESRX, ISRG, KRFT, CHTR, BRCM, VRTX, SRCL, CHKP, GOLD
 
Leading stocks > +2% on Tuesday included: TSL, DDD, LNKD, SSYS, YELP, ESI, UAL, LVS
 
Lagging stocks < -2.0% included: JCP, BBRY, CDE, SWI, VMW, TBT
 
Stocks to Watch on Wednesday
Holding Above 30 DMA= 80
TSLA, GRMN, PCLN, VIAB, FB, NFLX, QCOM, WYNN, DELL, NVDA, 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, MYL, PAYX, PCAR, SBUX, STX, AMAT, CA, CERN, DTV, HSIC, LLTC, SIAL, ADI, CMCSA, MDLZ, LBTYA, MAT, MCHP, BBBY, EQIX, DISCA, FOSL, AAPL,
 
Moving Above 30 DMA = 0
 
Moving Below 30 DMA = 8
ATVI, CHKP, CTXS, FFIV, MSFT, ORLY, SRCL, KRFT
 
Staying Below 30 DMA
CSCO, NUAN, GMCR, GOLD, ESRX, VRTX, WDC, CTRX, SYMC, ISRG, SPLS, MNST
 
Thirteen Week Intermediate Term Market Trend: Up
5-Day Short Term Market Trend: Neutral
 
 
 

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