Eight of nine sectors moved higher on Friday…XLK,
XLE and XLI were the strongest
sectors…XLV was the weakest
sector.
Breadth weakened
slightly on the NASDAQ…advancers
led decliners…2.52 to
1 on the NYSE and
2.06 to 1 on the NASDAQ.
Friday – weakened, advancers led
Thursday – strengthened,
advancers led
Wednesday –
strengthened, advancers led
Tuesday – weakened,
decliners led
Monday – strengthened,
advancers led
SPY up 1.17 at 174.39…volume 129.3 million shares
VIX down .44 at 13.04…
TNX up .02 at 25.89…
TLT up .23 at 107.04...
XLF up...04 at 20.91 volume 42 million shares
AAPL up 4.39 at 508.89…on rising volume 10.4 million shares
FB up 2.01 at 54.22…on rising
volume 88.2 million shares…record closing high
Technical
Commentary:
QQQ +1.62%,
IWM +1.14%, SPY +0.67%, DIA +0.19%.
If you did not read Thursday night’s
post read it now…We
highlighted the GOOG gap and AAPL, AMZN, BIDU, FB, NFLX, PCLN and
WDC. We wrote, “Watch the open for
strong moves to the upside.” Look at
each of those charts and their move after the open including GOOG and CMG. Friday was a great day to be in flow with the
market trend and let the trend make you money.
We hope you did make a lot.
GOOG +122.61,
+13.80%
CMG +70.67,
+16.10%
IWM and SPY closed at new-record highs and
QQQ closed at a new 10+ year high.
The weight of the technical evidence indicated that the market wanted to
go to the upside even as it could not see if the government would actually
default on the 17th. As
soon as the uncertainty was removed and it was known that the government would
not default, stocks went higher just as the weight of the evidence suggested. We hope you were onboard for the big
gains. If you were not, when will you stop
thinking you or someone knows better than big money pressure?
QQQ, IWM, SPY, XLE, XLV, XLK, XLY,
FB, GOOG, CMG, AMZN, AVGO, BIDU, CELG, CERN, CMCSA, GILD, ROST, SBUX, SIRI,
SNDK, STX, WDC, WFM and
WYNN each broke through horizontal resistance this week and moved to a new
high.
Numerous
other stocks are poised at horizontal resistance with a breakout setup.
Resistance Chart Targets:
QQQ = 81.87, 83.17
IWM = 110.96, 112.83
SPY = 177.85
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 = 1,685, 1,672,
1,660, 1,641
SPY = 168.33, 167.08,
165.31, 164.62
QQQ = 78.40, 77.36,
76.79, 75.99
IWM = 105.82, 104.85,
103.90, 102.94
Earnings to Watch
Earnings releases continue with a large list of major companies reporting
next week.
Q3 Earnings Reactions
Positive Reactions – 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 – 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 pointed up and is
above 80.
____________________
67of 100 NDX stocks
closed higher on Friday and one was unchanged.
Leading NDX 100 stocks included: GOOG, BIDU, AMZN,
FB, GMCR, SHLD, STX, LINTA, FOSL, FFIV
Lagging NDX stocks included: ISRG, MYL, ALXN, REGN, DTV, NUAN, ORLY,
CMCSA, ALTR, BIIB
Leading stocks > +2% on
Thursday included: CMG, SCTY, FSLR, YELP, QIHU, YOKU, SOHU, LNKD, Z, YNDX,
FIVE, P, SWK, SINA, XONE, GME, BBRY, ZION, LVS, CRM
Lagging stocks < -2.0% included: JCP, ANR, MCP, WLT, SCSS
Stocks to Watch on Monday
Holding Above 30 DMA= 75
GRMN, FB,
WYNN, AVGO, CTSH, VOD, MXIM, ROST, YHOO, ADBE, DLTR, SNDK, WFM, CHTR, BIDU, SBUX,
STX, AMAT, CERN, CMCSA, BBBY, MSFT, XRAY, VRSK, AAPL, HSIC, SPLS, AKAM, ATVI,
CELG, FISV, FOSL, GILD, INTC, INTU, KLAC, LINTA, ORLY, PAYX, PCAR, PCLN, SIRI,
SRCL, TXN, SBAC, WDC, LMCA, FOXA, CHKP, DTV, TSLA, MNST, VIAB, NFLX, ESRX,
GOOG, QCOM, ADP, AMGN, AMZN, BIIB, BRCM, COST, MAT, MCHP, NVDA, SYMC, MDLZ,
DISCA, REGN, KRFT, ALTR, CA, VRTX, ADI
Moving Above 30 DMA =
3
CHRW, CTRX, EXPD
Moving Below 30 DMA =5
ADSK, DELL, GOLD, ISRG, MYL
Staying Below 30 DMA
XLNX, EBAY, FFIV, LLTC,
MU, EXPE, SHLD, FAST, ALXN, SIAL, LBTYA, NTAP, EQIX, CSCO, CTXS, NUAN, GMCR
Sixteen Week
Intermediate Term Market Trend: Up
5-Day Short Term Market
Trend: Up
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