All nine sectors moved higher on Tuesday…XLV, XLK and XLY were
the strongest sectors…XLU was the
weakest sector.
Breadth strengthened…advancers led
decliners…2.61 to
1 on the NYSE and
2.55 to 1 on the NASDAQ.
Tuesday – strengthened, advancers led
Monday – weakened,
decliners led
Friday – weakened,
decliners led
Thursday – strengthened
–advancers led
Wednesday – weakened,
mixed
SPY up 1.33 at 169.34…volume 127 million shares
VIX down 1.06 at 15.54…
TNX up .31 at 26.46…
TLT down .32 at 105.80...
XLF up .14 at 20.05…volume 40.9 million shares
AAPL up 11.21 at 487.96…volume 12.6 million shares
FB up .19 at 50.42…volume 98 million shares
Technical
Commentary:
IWM + 1.16%,
QQQ + 1.01%, SPY + 0.79%, DIA + 0.41%.
Talk is
cheap. Actions speak louder than
words. Charts don’t lie. Uncertainty removed, politicians’ stalemate,
partial government shutdown and institutions do what the chart has been
indicating, they buy. Those who
are surprised just won’t look at the chart and believe what they see. Some continue to believe that they can
outguess the market.
Strong IWM and QQQ over the past two weeks and a
relatively weak VIX was shouting that institutions were looking to the future
not the present and they were buying. IWM
broke out of resistance to a new high on Tuesday…yes, a NEW HIGH! Breakout chart target now IWM = 109.72.
Financials
XLF slightly lagged the SPY but regional banks, KRE, ZION, STI
and RF among others outperformed.
GLD and TLT rolled over back in the direction of their
intermediate term down trends.
CREE +9.57,
+15.90% exploded
to the upside after an analyst upgrade and price target of 80.
YELP +4.94,
+7.46% bounced
to resistance after a Cowen raised price target to 80.
With many
bounce entries on Tuesday, look for horizontal
and diagonal breakout setups on leading stocks like IWM, QQQ,
YELP, SINA, HLF, SHLD, DDD, SSYS among others. Stop letting talking heads and others
mislead you and exploit your fears. Follow
your rules.
Resistance Chart Targets:
QQQ = 79.69
SPY = 173.60
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 down, NDX,
QQQ neutral.
Support Levels
ES = 1,672, 1,660
SPY = 168.33, 167.08,
165.31
QQQ = 78.40, 77.67
IWM = 105.52, 104.57
Q2 Earnings Reactions
Positive Reactions – NKE, BBBY, 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 down.
____________________
Setups
H Breakout:
ADBE, AKAM, CMCSA, CTSH, FAST, GRMN, MSFT, MYL, SIRI, WFM, DDD, ESI, LNKD, LVS,
RAX, TPX, X, YELP, YOKU,
Diagonal Breakout: AAPL,
NUAN, SBUX, SNDK, WDC,
Bull Flag: ADSK, AMAT,
COST, NKE,
Potential Bullish
Divergence: MFRM,
Gap Up:
Gap Down:
Bear Flag:
At Support: SYMC,
Moves
New Highs: BIDU, CELG, NFLX,
PCLN, ROST, WYNN, YHOO, TSL,
Gap Up: DELL, NFLX, CREE,
SWK, UNG,
Gap Down: GOLD, TLT,
H&D Breakout: AMZN, SHLD,
ALK, FIVE,
Breakout Test:
Bounce: AMGN, BBBY, BRCM,
ESRX, FFIV, GOOG, MAT, MYL, NTAP, QCOM, TXN, XLNX, ALK, ATI, BAC, CIEN, CLF, CREE,
CRM, F, FAS, FIVE, GME, GRPN, GS, JNPR, RCL, SCTY, SPY, STI, SWKS, TIF, UAL, XONE,
YNDX, ZION,
MACD Divergence
Bounce:
Bear Flag:
Support Break:
______________________
81 of 100 NDX stocks
closed higher on Tuesday.
Leading NDX 100 stocks included: SHLD, NFLX, FFIV,
YHOO, MYL, CERN, PCLN, AMZN, SIRI, GRMN, AMGN, AAPL, DLTR
Lagging NDX stocks included: MDLZ, ADSK, PAYX, GOLD, DISCA, SBAC, ISRG,
EQIX, ALTR, INTC, SYMC, AMAT
Leading stocks > +2% on Tuesday
included: CREE, YELP, XONE, SINA, HLF, GRPN, TSL, AKS, DDD, URE, Z,
SWKS, SSYS, SCSS, CIEN, FAS, TPX, MOS, GMCR, UAL, HUM, X, LNKD
Lagging stocks < -2.0% included: ANR, FAZ, LDK
Stocks to Watch on Wednesday
Holding Above 30 DMA= 72
TSLA, GRMN,
PCLN, VIAB, FB, NFLX, WYNN, NVDA, ADSK, AMGN, AVGO, CTSH, GILD, VOD, SBAC,
SHLD, AKAM, ALTR, BIIB, CELG, EXPD, MU, MXIM, ROST, YHOO, REGN, VRSK, FOXA,
ADBE, ALXN, CHRW, DLTR, INTU, KLAC,SNDK, XLNX, TXN, AMZN, FAST, LINTA, SIRI,
WFM, XRAY, LMCA, EBAY, EXPE, FISV, CHTR, BIDU, COST, MYL, PAYX, PCAR, SBUX,
STX, AMAT, CERN, LLTC, SIAL, CMCSA, LBTYA, MAT, MCHP, BBBY, EQIX, DISCA, FOSL,
ORLY, SPLS, SRCL, MSFT, HSIC, NTAP
Moving Above 30 DMA = 7
AAPL, ATVI, BRCM, CHKP, DELL, FFIV,
GOOG
Moving Below 30 DMA = 2
INTc, MDLZ
Staying Below 30 DMA
ADP, DTV,
CA, QCOM, ADI, CSCO, WDC, CTXS, KRFT, NUAN, CMCR, GOLD, ESRX, VRTX, CTRX, SYMC,
ISRG, MNST
Thirteen Week Intermediate
Term Market Trend: Up
5-Day Short Term Market
Trend: Neutral, IWM = Up
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