Wednesday, September 4, 2013

SPY, QQQ Bullish Divergence Gains Momentum, CIEN Gaps Up, JNPR, JDSU Higher...Solar Continue to Sizzle...JASO, YGE, TSL...

Eight of nine sectors moved higher on Wednesday… and one was unchanged…XLV, XLY and XLI were the strongest sectors…XLU was the weakest sector. 
 
Breadth strengthened…advancers led decliners…2.49 to 1 on the NYSE and 1.89 to 1 on the NASDAQ…
 
Wednesday – strengthened, advancers led
Tuesday – strengthened, advancers led
Monday – Labor Day Holiday
Friday – weakened, decliners led
Thursday – strengthened, advancers led
 
 
SPY up 1.36 at 165.75…volume 97.3 million shares
VIX down .73…at 15.88…
TNX up .49 at 28.97…
TLT down .23 at 103.99...
XLF up .15 at 19.75…volume 31.3 million shares
 
AAPL up 10.77 at 498.69volume 12.3 million shares
FB down .09 at 41.78volume 42.5
 
Technical Commentary:
 
QQQ + 1.07%, SPY + 0.83%, IWM + 0.88%, DIA + 0.72%.  
 
After trying traders for three days plus a long holiday weekend, the SPY and QQQ MACD bullish divergences finally gained momentum on Wednesday and closed higher.
 
NDX +32.78 was led by big names AAPL, GOOG, INTC, AMZN, BIIB, CSCO, EBAY CELG and QCOM with over 22 NDX points.  The rest of the 79 NDX stocks offset a 5 NDX point drop in MSFT and added the other 10 NDX points.
 
Solar stocks continued to heat up on Wednesday as JASO +15.91%, YGE +12.79%, TSL +5.08%, JKS +3.39%, CSIQ +1.89% were once again sizzling.
 
Mattress stocks made comfy gains on Wednesday with TPX +5.56% and SCSS +4.14%.
 
CIEN +13.83% gained after a positive earnings reaction this morning which helped lead JNPR +6.53% and JDSU +5.92% higher.
 
 
Short-term market posture continues defensive.
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 turned up and is pointed up. 
 
____________________
 
Setups
H Breakout: AKAM, AMGN, BRCM, CELG, CTSH, GRMN, NTAP, SHLD, XLNX, C, CMG, F, RAX, UNG, WLT, YELP,
 
Diagonal Breakout: ESRX, FFIV, MAT, NVDA, STX, BAC, FAS, GS, PWRD, SINA, SPY, SWI,
 
Bull Flag: GMCR, ANR, NTES,  
 
Potential Bullish Divergence: CREE, GMCR,  
 
Gap Up: 
 
Gap Down: 
 
Bear Flag: 
 
At Support: BIDU, MSFT, ATI,
 
Moves
New Highs: NFLX, LVS, Z, SPLK,
 
Gap Up: MU, CIEN, JCP, TPX,
 
Gap Down:
 
H&D Breakout: YELP, BBRY, CMCSA, GOOG, YHOO, SPY, ADBE, AMAT, EBAY, FAST, INTC, SBUX, SNDK, TXN, SOHU,
 
Breakout Test: 
 
Bounce: AAPL, PCLN, TIF, SCSS, SIRI, STX, QQQ, IWM
 
MACD Divergence Bounce:  SPY, QQQ,
 
Bear Flag:  
 
Support Break: BBBY, FSLR,
 
______________________
 
 
88 of 100 NDX stocks closed higher on Wednesday.
 
Leading NDX 100 stocks included: KLAC, MU, BIIB, VRTX, MNST, ALTR, REGN, EXPE, AMAT, SNDK, DLTR, BRCM, XLNX, INTC, WDC, ADBE, ALXN
 
Lagging NDX stocks included: SYMC, MSFT
 
Leading stocks > +2% on Wednesday included: CIEN, HLF, YELP, LDK, JNPR, CRUS, JEP, JDSU, TPX, BBRY, TSL, SOHU, ESSS, F, ESI, MOS, CREE, TIF, VECO, UAL, FAS, CROX, A, SMH
 
Lagging stocks < -2.0% included: LNKD, SSYS, FAZ, UCO
 
Stocks to Watch on Thursday
Holding Above 30 DMA= 40
TSLA, GRMN, PCLN, VIAB, FB, NFLX QCOM, AAPL, WYNN, DELL, GOLD, NVDA, ADSK, AMGN, AVGO, BMC, CTSH, GILD, MYL, VOD, SBAC, NUAN, SHLD, AKAM, ALTR, BIIB, CELG, EXPD, LIFE, MU, MXIM, NTAP, ROST, SBUX, YHOO, EQIX, LBTYA, REGN, VRSK, FOXA
 
Moving Above 30 DMA = 12
ADBE, ADP, ALXN, ATVI, CHRW, DLTR, INTC, INTU, KLAC, SNDK, XLNX, TXN
 
Moving Below 30 DMA = 2
BIDU, SYMC
 
Staying Below 30 DMA
FOSL, MSFT, CTXS, CTRX, CA, CHKP, FISV, ISRG, ORLY, FFIV, MDLZ, WDC, PAYX, SPLS, SIAL, HSIC, CSCO, EBAY, LLTC, MCHP, SIRI, SRCL, XRAY, ADI, LMCA, BBBY, CMCSA, ESRX, PCAR, WFM, DISCA, MNST, FAST, COST, AMAT, AMZN, CERN, KRFT, GOOG, LINTA, DTV, EXPE, VRTX, STX, BRCM, MAT
 
Thirteen Week Intermediate Term Market Trend: Neutral
5-Day Short Term Market Trend: Up

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