Monday, September 9, 2013

Small Caps IWM, Materials XLB Lead as QQQ Breaks to New High...FB, MU, AKAM, QCOM New High Close...

All nine sectors moved higher on Monday… XLB, XLI and XLK were the strongest sectors…XLU was the weakest sector. 
 
Breadth strengthened…advancers led decliners…4.00 to 1 on the NYSE and 3.09 to 1 on the NASDAQ…
 
Monday – strengthened, advancers led
Friday - mixed
Thursday - mixed
Wednesday – strengthened, advancers led
Tuesday – strengthened, advancers led
 
 
SPY up1.59 at 167.63…volume 87.4 million shares
VIX down .22 15.63…
TNX down .41 at 28.97…
TLT up .05 at 103.10...
XLF up .23 at 20.03…volume 32.7 million shares
 
AAPL up 7.95 at 506.17volume 12.8 million shares
FB up .09 at 44.04volume 75.7 million shares, new high close
 
Technical Commentary:
 
IWM +1.51%, QQQ +1.17%, SPY +0.96%, DIA +0.93% 
 
IWM small caps led the broad indexes combined with QQQ breaking out to a new high suggests this bounce may be just beginning. 
 
Breakout Chart Targets:
QQQ = 78.70, 79.58
IWM = 106.10, 107.51
SPY = 169.93, 171.56
 
Breakouts or new highs from AKAM, ALTR, CTSH, EXPD, FB, MU, NUAN, NVDA, QCOM, SHLD, VOD, XRAY, YHOO and strength in AAPL helped QQQ reach a new high close.
 
XLB led all sectors as steel stocks X, AKS, SCHN, NUE, STLD and ATI made big moves as did coal stocks ANR, ACI, BTU, CNX, CLF, JRCC, WLT and ETF KOL. 
 
Gains in growth segments small caps stocks IWM, technology stocks QQQ and material stocks XLB indicates that institutions see more economic growth coming.  This was reinforced by defensive sectors XLP, XLV and XLU lagging the SPY on Monday.  
 
FB got within 21 cents of its IPO intra-day high of 45 before sellers pushed back.  FB +.09 still managed a new high close at 44.04.
 
 
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 – 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: AAPL, AMGN, BIDU, CELG, DELL, EBAY, ESRX, GILD, INTC, NTAP, NUAN, NVDA, SIRI, TXN, XLNX, YHOO, ANR, BBRY, CLF, CMG, CRM, F, FAS, FIVE, RAX, SINA,
 
Diagonal Breakout: MNST, WDC, WFM, BAC, GLW,
 
Bull Flag: NFLX, TSLA, DDD, Z,
 
Potential Bullish Divergence: 
 
Gap Up: 
 
Gap Down: 
 
Bear Flag: 
 
At Support: DNKN,  
 
Moves
New Highs: FB, MU, QCOM, WYNN, CIEN, SPLK,
 
Gap Up: AAPL, LVS,  
 
Gap Down: 
 
H&D Breakout: AKAM, GOOG, GRPN, SPY, WLT,
 
Breakout Test:
 
Bounce: MSFT,  
 
MACD Divergence Bounce: 
 
Bear Flag:  
 
Support Break: 
 
______________________
 
 
89 of 100 NDX stocks closed higher on Monday and two were unchanged.
 
Leading NDX 100 stocks included: SHLD, YHOO, VRTX, REGN, MYL, AKAM, EQIX, GILD, FAST, MU, EXPE, KRFT, QCOM
 
Lagging NDX stocks included:  TSLA
 
Leading stocks > +2% on Monday included: BBRY, AKS, CLF, TSL, GMCR, MOS, ANR, MCP, UAL, URE, LVS, LDK, X, JDSU, FAS, CREE, GRPN, ATI, HLF, VMW, FC,
 
Lagging stocks < -2.0% included: FAZ, SOHU, NTES, UCO
 
Stocks to Watch on Tuesday
Holding Above 30 DMA= 60
TSLA, GRMN, PCLN, FB, VIAB, NFLX, QCOM, AAPL, WYNN, DELL, GOLD, 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, KALC, SNDK, TXN, AMZN, BRCM, FAST, GOOG, LINTA, SIRI, VRTX, WFM, XRAY, WDC, LMCA, CHTR, EBAY, EXPE, FISV
 
Moving Above 30 DMA = 12
BIDU, COST, CTXS, EQIX, FFIV, KRFT, MAT, MYL, PAYX, PCAR, SBUX, STX
 
Moving Below 30 DMA = 2
CTRX, ESRX
 
Staying Below 30 DMA
AMAT, ATVI, LBTYA, SYMC, FOSL, MSFT, CA, CHKP, ISRG, ORLY, MDLZ, SPLS, SIAL, HSIC, CSCO, LLTC, MCHP SRCL, ADI, BBBY, CMCSA, DISCA, MNST, CERN, DTV
 
Thirteen Week Intermediate Term Market Trend: Neutral
5-Day Short Term Market Trend: Up

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