Four of nine sectors moved higher on Wednesday…XLB,
XLE and XLU were the strongest sectors…XLI
was the weakest sector.
Breadth weakened…decliners led
advancers…1.26 to 1 on the NYSE and 1.59 to 1 on the NASDAQ.
Wednesday – weakened, decliners led
Tuesday – strengthened,
advancers led
Monday – weakened,
decliners led
Friday – weakened,
decliners led
Thursday – strengthened
–advancers led
SPY down .16 at 169.18…volume 112.7 million shares
VIX up 1.06 at 16.60…
TNX down .20 at 26.26…
TLT up .16 at 105.96...
XLF down .01 at 20.04…volume 38 million shares
AAPL up 1.60 at 489.56…volume 10.2 million shares
FB down .14 at 50.28…volume 62.2 million shares
Technical
Commentary:
QQQ – 0.04%,
SPY – 0.09%,DIA –
0.42%, IWM – 0.41%.
ES futures fell overnight in Asia and Europe
and stocks opened lower and began to rally 30 minutes after the open on
Wednesday. At the close QQQ and SPY
which led were down slightly from Tuesday’s close while IWM and DIA
lagged on Wednesday.
NDX
leaders included ADSK, PCLN, NFLX, GRMN which made new highs and SNDK and
STX. FB traded traded higher after
the open moved down and traded slightly lower for the rest of the day. YELP
paused at resistance while P, YOKU, ANGI and Z moved higher.
MCP +0.70,
+10.51% gained
following news of new production systems in place at their rare-earth
production facility.
CREE which gained +9.57, +15.90% on Tuesday paused and formed a doji which stayed
well above Tuesday’s S1 level on Wednesday.
BURL, Burlington Coat Factory went
public today at an IPO price of 17, opened trading at 23.05 and closed at 25.01
trading 15.1 million shares.
Though the
markets struggled in face of the congressional deadlock it is essential to
continue to 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 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 flat on
Wednesday.
____________________
Setups
H Breakout:
BBBY, CTSH, MSFT, MU, MYL, SBUX, SNDK, CIEN, CRM, ESI, KKD, LNKD, P, RAX, SINA,
TPX, VRSN, X, YELP, YNDX,
Diagonal Breakout: AKAM,
WDC, GLD, GME, QIHU, SCSS, SWKS, WLT,
Bull Flag: AMAT, COST, EBAY,
FB, INTC,
Potential Bullish
Divergence:
Gap Up:
Gap Down:
Bear Flag:
At Support: TIF,
Moves
New Highs: ADSK, BIDU, GRMN,
NFLX, PCLN, ROST, WFM, WYNN, SOHU, YOKU,
Gap Up: MCP,
Gap Down:
H&D Breakout: AAPL, FAST,
Breakout Test:
Bounce: SWI, Z,
MACD Divergence
Bounce:
Bear Flag:
Support Break:
______________________
40 of 100 NDX stocks
closed higher on Wednesday and one was unchanged.
Leading NDX 100 stocks included: ADSK, PCLN, STX,
SNDK, SPLS, GRMN, LINTA, NFLX, FOSL, VOD
Lagging NDX stocks included: TSLA, EQIX, CTRX, GMCR, VIAB, ADBE, MXIM, AMGN,
CHRW, CHTR
Leading stocks > +2% on Wednesday
included: MCP, P, YOKU, FIVE, ANGI, UCO, MOS, Z, WLT, CLF, X, SINA, GES
Lagging stocks < -2.0% included: LDK, XONE, ZION
Stocks to Watch on Thursday
Holding Above 30 DMA= 75
TSLA, GRMN,
PCLN, VIAB, FB, NFLX, WYNN, NVDA, ADSK, AMGN, AVGO, CTSH, GILD, VOD, SBAC,
SHLD, AKAM, 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, MYL, PAYX, PCAR, SBUX, STX, AMAT, CERN, LLTC,
SIAL, CMCSA, LBTYA, MAT, MCHP, BBBY, DISCA, FOSL, ORLY, SPLS, SRCL, MSFT, HSIC,
NTAP, AAPL, BRCM, CHKP, DELL, FFIV, GOOD
Moving Above 30 DMA = 1
WDC
Moving Below 30 DMA = 4
ALTR, ATVI, COST, EQIX
Staying Below 30 DMA
INTC,
MDLZ, ADP, DTV, CA, QCOM, ADI, CSCO, CTXS, KRFT, NUAN, GMCR, GOLD, ESRX, VRTX,
CTRX, SYMC, ISRG, MNST
Thirteen Week Intermediate
Term Market Trend: Up
5-Day Short Term Market
Trend: Neutral
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