Eight of nine sectors moved higher on Monday…XLV,
XLE and XLF were the strongest
sectors…XLU was the weakest
sector.
Breadth strengthened… advancers led decliners…1.39 to 1 on
the NYSE and 1.62 to 1 on the NASDAQ.
Monday – strengthened, advancers led
Friday – weakened,
advancers led
Thursday – strengthened,
advancers led
Wednesday –
strengthened, decliners led
Tuesday – weakened,
decliners led
SPY up .68 at 170.94…volume 112 million shares
VIX up .35 at 16.07…
TNX up .09 at 26.91…
TLT down .84 at 104.61...
XLF up .10 at 20.41 volume 36.9 million shares
AAPL up 3.23 at 496.04…volume 9.3 million shares
FB up .40 at 49.51…volume 68.7 million shares
NFLX +7.42% at 324.36
Technical
Commentary:
QQQ + 0.71%,
IWM + 0.50%, DIA + 0.41%, SPY + 0.40%.
QQQ and IWM each make a new high
close as expectations grow of a budget and debt-ceiling deal. The SPY rose making its third highest close behind Sep 18
and 19. Sectors XLB, XLE, XLI, XLK,
XLV and XLY each closed above their late July early August resistance and
closing in on their September highs.
XLF which is still in a 3-month channel has money rotating
back in the sector and has gained 4.29% since last Wednesday’s close.
Many
earnings start on Tuesday and should provide plenty of opportunity for both
bullish and bearish gaps.
MU +0.20,
+1.37 found
support following profit-taking following its earnings on Thursday. It makes for an attractive bounce setup.
Resistance Chart Targets:
QQQ = 79.69
SPY = 172.76
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
Monday –
Tuesday – KO, CSX, INTC, JNJ, LLTC, SCHW, YHOO
Wednesday – AXP, BAC, EBAY, IBM, KEY, MAT, PEP, SNDK, SCSS, SWK, STLD,
USB, URI, XLNX
Thursday – CMG, GOOG, GS, ISRG, LVS, NUE, BTU, UNP, UNH, VZ
Friday – BHI, GE, HON, KSU, MS, SLB, STI
Q3 Earnings Reactions
Positive Reactions –
COST, AA
Negative Reactions –
FAST, MU
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.
____________________
Setups
H Breakout: ADBE, CELG, FB, GILD, MSFT, NFLX, ROST, SNDK, STX, TXN, WDC, XLNX,
YHOO, ALK, CIEN, CREE, DNKN, ESI, GME, NKE, SSYS, SWK, UNG, WLT, YNDX, YOKU,
Diagonal Breakout: AAPL,
AKAM, AMGN, BBBY, CSCO, DTV, EBAY, FFIV, GOOG, INTC, MNST, NVDA, SYMC, CLF, DDD,
GRPN, PWRD, QIHU, SWKS, ZION,
Bull Flag: MU, KKD,
Potential Bullish
Divergence:
Gap Up:
Gap Down:
Bear Flag:
At Support:
Moves
New Highs: WFM, WYNN, CNX,
LVS,
Gap Up:
Gap Down: MYL,
H&D Breakout: AMAT, ATVI,
CMCSA, SBUX, ANR, JNPR,
Breakout Test:
Bounce: NFLX, GLD
MACD Divergence Bounce:
Bear Flag:
Support Break:
______________________
80 of 100 NDX stocks
closed higher on Monday and two were unchanged.
Leading NDX 100 stocks included: NFLX, ATVI,
LINTA,VRTX, WDC, ISRG, GOLD, MNST, CERN, STX, AVGO
Lagging NDX stocks included: EXPE, ALXN, BIDU, MYL, CTXS, CTSH, NUAN
Leading stocks > +2% on Monday
included: AKS, CDE, ANR, CROX, JNPR, CRUS
Lagging stocks < -2.0% included: LDK
Stocks to Watch on
Tuesday
Holding Above 30 DMA= 66
GRMN, FB,
WYNN, ADSK, AVGO, CTSH, VOD, MU, MXIM, ROST, YHOO, ADBE, DLTR, SNDK, WFM, CHTR,
BIDU, MYL, SBUX, STX, AMAT, CERN, CMCSA, BBBY, MSFT, XRAY, VRSK, ISRG, AAPL,
HSIC, SPLS, AKAM, AMZN, ATVI, BRCM, CELG, COST, DELL, FFIV, FISV, FOSL, GILD,
INTC, INTU, KLAC, LINTA, ORLY, PAYX, PCAR, PCLN, SIRI, SRCL, XLNX, TXN, DISCA,
SBAC, WDC, LMCA, FOXA, CHKP, DTV, EBAY, LLTC, MCHP, SYMC, TSLA
Moving Above 30 DMA = 7
ADP, BIIB, MAT, MNST, VIAB, REGN, NFLX
Moving Below 30 DMA = 1
EXPE
Staying Below 30 DMA
SHLD, FAST,
NVDA,ALXN,KRFT, AMGN, QCOM, SIAL, LBTYA, CHRW, EXPD, GOOG, NTAP, ALTR,EQIX,
MDLZ, CA,ADI, CSCO, CTXS, NUAN, GMCR, GOLD, ESRX, VRTX, CTRX
Sixteen Week Intermediate
Term Market Trend: Up
5-Day Short Term Market
Trend: Up
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