Two out of nine sectors moved higher on Thursday…XLY,
XLI and XLB were the strongest
sectors…XLF was the weakest
sector.
Breadth weakened… as decliners
led advancers…1.53 to 1 on the NYSE and decliners led advancers 1.58 to 1 on the NASDAQ.
Thursday –weakened, decliners led
Wednesday – weakened,
decliners led
Tuesday – strengthened,
advancers led
Monday – weakened,
decliners led
Friday – weakened,
advancers led
SPY down .50 at 175.79…volume 133.7 million shares
VIX up .10 at 13.75…
TNX up .15 at 25.42…
TLT up .23 at 107.64...
XLF down .22 at 20.57 volume 48.8 million shares
AAPL down 2.19 at 522.70…volume 9.8 million shares
FB up 1.20 at 50.20…volume 248.8 million shares…huge volume
Technical
Commentary:
QQQ – 0.23%,
SPY – 0.28%, DIA –
0.37%, IWM – 0.58%.
The broad
indexes pulled back in some not so scary Halloween action forming a bull flag
price pattern. Weakness is not
unexpected as QQQ is at its S&R measuring price target, IWM
is at and SPY is near its 161.8% Fib target and DIA is near
horizontal resistance.
There were
a large number of positive and negative earning reactions on Thursday. NDX stocks EXPE and MCHP had large
gaps to the upside while KRFT, GRMN, CTRX and MYL moved lower. Add to the earlier anomaly reaction on NFLX,
FB which originally gapped up last night as much as 18% in after-hours
trading only to close down 2 cents and then open lower this morning before
reversing and closing up +2.44% in a
typical bull flag bounce.
FSLR +3.69,
+7.34% in
after-hours reported after the close with a positive reaction. Solar stocks TSL, CSIQ, JKS, SCTY, SUNE
and YGE gained in sympathy.
Be
vigilant in protecting profits from the last three weeks. Chart Signals has been alerting
readers to, “Move profit
protective stops according to your rules,” since Monday.
Chart Targets:
QQQ = 83.17…
IWM = 110.96, 112.83…
SPY = 177.85, 180.99…
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 SPY up.
Support Levels
ES = 1,726
SPY = 172.76
QQQ = 81.87, 79.76,
78.40
IWM = 107.83
Earnings to Watch
Earnings releases continue with a large list of major companies reporting
this week including:
Monday – AAPL,
STX, BIIB, HLF
Tuesday – X, LNKD,
YELP, BIDU, FISV, GILD, VRTX, XRAY
Wednesday – FB, GRMN, CMCSA, EXPE, KRFT, MCHP, SBUX
Thursday – CTRX, DISCA, MYL, FSLR
Q3 Earnings Reactions
Positive Reactions – EXPE,
CRR, HAR, GTI, ATML, THOR, TRN, FLT, MCHP, ITT, DICSA, ANR, SWKS, FB, CMCSA, GILD, DWA, LVLT, EA,
SEE, SPW, TFX, X, XRAY, XYL, JLL, PBI, ALR, HUN, ACT, DECK, AMZN,
MSFT, FLS, AVY, ALXN, WOOF, COG, BA, CLGX, ESI, EQIX, WLL, TSCO, RRD,
PHM, RCL, ALXN, APOL, BCR, NDAQ, NSC, WHR, ILMN, NUS, GNTX, LXK, DD,
VFC, CMG, GOOG, BHI, GE, KSU, MS, SLB, STI, LVS, VZ, SNDK, NUE, BTU,
AXP, KEY, STLD, URI, USB, INTC, JNJ, SCHW, COST, AA
Negative Reactions – NIHD,
AVP, WTW, ROVI, JDSU, OSK, CNW, ITRI, CTRX, KRFT, GRMN, MYL, DLR, XCO, WU, LNKD,
IACI, MSM, INGR, HTS, VRTX, AAPL, PMCS, MWV, AGNC, AGCO, PCL, GT, CMI,
VSH, ALSN, ROP, EW, MRK, RYN,
RMD, NCR, KBR, FSL, ESRX, EMN, FIO, CAM, TKR, SYMC, CVA, CDNS, AKAM,
XRX, CRI, ORLY, CAT, NFLX, COH, ZION, WAT, EMC, UTX, TXN, HON,
ISRG, GS, UNP, UNH, EBAY, IBM, XLNX, SCSS, SWK, MU, FAST
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 above
80.
____________________
Setups
H Breakout: AMZN, QCOM, SBUX, KKD, UAL,
VRSN,
Diagonal Breakout: XLNX,
Bull Flag: SPY, IWM, X, AMGN,
CMCSA, CTSH, MNST, WFM, ATI, ESI, RAX, RCL, TLT, LVS, GLW, GLD, SCTY,
Potential Bullish
Divergence:
Gap Up: FSLR,
Gap Down:
Bear Flag:
At Support: JNPR, LNKD,
Moves
New Highs: ROST, DDD,
Gap Up: ANR, SWKS, CRR,
EXPE, GTI, ATML, THOR, MCHP, ITT,
Gap Down: ARIA, NIHD,
AVP, WTW, ROVI, JDSU, OSK, CNW, ITRI, GOLD, SPWR, V,
H&D Breakout: SSYS, TRIP,
Breakout Test:
Bounce: KKD, SIRI, PWRD,
MACD Divergence
Bounce:
Bear Flag:
Support Break: AKAM,
FFIV, BAC,
______________________
40 out of 100 NDX
stocks closed higher on Thursday.
Leading NDX 100 stocks included: EXPE, MCHP, DISCA,
SPLS, FB, MU, LLTC, VOD, NFLX, AVGO, LMCA, YHOO, CMCSA
Lagging NDX stocks included: CTRX, WDC, GOLD,
GRMN, BRCM, BIDU, FFIV, EXPD, NUAN GILD, ALXN
Leading stocks > +2% on Thursday
included: SWKS, ANR, TRIP, PWRD, DDD, KKD
Lagging stocks < -2.0% included: AANGI, SPWR, V, SCTY, MFRM, FAS, Z,
LCC, BBRY, SCSS, C, VECO, FSLR
Stocks to Watch on Friday
Holding Above 30 DMA= 62
WYNN,
AVGO, CTSH, VOD, ROST, ADBE, SNDK, WFM, BIDU, SBUX, STX, AMAT, CERN, CMCSA,
BBBY, MSFT, XRAY, VRSK, AAPL, HSIC, SPLS, FISV, FOSL, GILD, INTC, INTU, KLAC,
LINTA, PAYX, PCLN, SBAC, WDC, LMCA, FOXA, CHKP, DTV, VIP, MNST, VIAB, GOOG, ADP,
AMGN, AMZN, BIIB, MAT, MDLZ, DISCA, KRFT, CA,
EXPD, GOLD, SIAL, ALXN, COST, FAST, QCOM, BRCM, LLTC, TXN, ADI, MCHP, MU
Moving Above 30 DMA = 2
EXPE, NFLX
Moving Below 30 DMA = 4
CHRW, GRMN, SHLD, CTRX
Staying Below 30 DMA
CELG, DLTR, ISRG, VRTX,
YHOO, LBTYA, CHTR, ATVI, PCAR, FB, REGN, MXIM, SRCL, ESRX, EQIX, AKAM, ORLY,
SIRI, FFIV, MYL, NVDA, SYMC, ALTR, TSLA, ADSK, XLNX, EBAY, NTAP, CSCO, CTXS,
NUAN, GMCR
Sixteen Week
Intermediate Term Market Trend: Up
5-Day Short Term Market
Trend: Up
