All nine sectors moved lower on Tuesday…however…XLE,
XLB and XLK were the strongest
sectors…XLU was the weakest
sector.
Breadth weakened… decliners led advancers…3.41 to 1 on the NYSE and 2.34 to 1 on the NASDAQ.
Tuesday – weakened, decliners led
Monday – strengthened,
advancers led
Friday – weakened,
advancers led
Thursday – strengthened,
advancers led
Wednesday –
strengthened, decliners led
SPY down 1.24 at 169.70…volume 155.4 million shares
VIX up 2.59 at 18.66…
TNX up .29 at 27.20…
TLT down .07 at 104.54...
XLF down .15 at 20.26 volume 46.6 million shares
AAPL up 2.64 at 498.68…volume 11.4 million shares
FB down .01 at 49.50…volume 81.1 million shares
Technical
Commentary:
QQQ - 0.39%, SPY – 0.73%, DIA – 0.96%, IWM – 0.98%.
Index futures traded higher before
the open but drifted lower as the no results in Washington continued for
another day. The Senate is working on a
compromise but the House still seems confused.
During the
final two hours stocks sold off once again and the IWM and DIA were down almost 1% while SPY finished
down ¾% and the tech heavy QQQ was
down just .39%. VIX bounced confirming today’s selloff.
Notable losers included GMCR, FFIV, CTSH,
YHOO, SBUX, SHLD, EBAY, AMZN, ADBE, CERN and EXPE. Winners included TSLA, GOOG, QCOM,
CELG, AAPL and PCLN.
KO, JNJ released EPS before the open and
had neutral reactions. SCHW +1.02, +4.63% also released before the open
had a positive reaction. Releasing in
after-hours CSX and YHOO had mildly positive reactions after the close
while INTC and LLTC had mildly negative reactions.
Earnings
releases continue tomorrow with more big names releasing. See Wednesday below.
The weight
of the technical evidence including trend, support and resistance, momentum,
sector patterns, green line and financial sector strength over the past week
indicates that the direction trading is to the upside. Notwithstanding, it is important to remember
technical analysis indicates what net trading is based on what traders know. Market action cannot discount what it doesn’t
know. If new information like a
debt default by the U.S. government occurs that will have to be factored into
price and many conclude that could lead to a swift selloff. Be mindful of the risk of default and
protect your profits and your positions according to your rules.
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, SCHW
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, ATVI, CELG, CMCSA,
FB, GILD, MSFT, MYL, NFLX, ROST, SIRI, SNDK, STX, TSLA, TXN, WDC, YHOO, ATI, CREE,
DDD, DNKN, GME, LCC, NKE, QIHU, SINA, UNG, VRSN, WLT, YELP, YOKU,
Diagonal Breakout: CSCO,
DTV, GOOG, INTC, NVDA, SYMC, BAC, CLF, GRPN, JNPR, PWRD, STI, SWKS, TBT, ZION,
Bull Flag: CTSH,
Potential Bullish
Divergence:
Gap Up:
Gap Down:
Bear Flag:
At Support: NTAP,
Moves
New Highs: X, WYNN, LVS,
Gap Up: ESI,
Gap Down: MCP, VECO,
H&D Breakout: X, AAPL,
MNST
Breakout Test:
Bounce:
MACD Divergence
Bounce:
Bear Flag:
Support Break: NUAN, JCP,
______________________
17 of 100 NDX stocks
closed higher on Tuesday.
Leading NDX 100 stocks included: GOLD,TSLA, ALXN,
MNST, GOOG, QCOM
Lagging NDX stocks included: GMCR, FFIV, ISRG, FOSL, NUAN, CHKP CTSH, NTAP,
CTXS, XLNX, MCHP
Leading stocks > +2% on Tuesday
included: X, CLF, ATI, LNKD, ESI, SSYS, CDE, FAZ
Lagging stocks < -2.0% included: MCP, JCP, VECO, GMCR, SCSS, TPX, ZAGG,
CROX, VMW, JNPR, FAS, SWK, UCO
Stocks to Watch on
Wednesday
Holding Above 30 DMA= 57
GRMN, FB,
WYNN, ADSK, AVGO, CTSH, VOD, MXIM, ROST, YHOO, ADBE, DLTR, SNDK, WFM, CHTR,
BIDU, MYL, SBUX, STX, AMAT, CERN, CMCSA, BBBY, MSFT, XRAY, VRSK, ISRG, 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
Moving Above 30 DMA = 3
ESRX, GOOG, QCOM
Moving Below 30 DMA = 16
ADP, AMZN, BIIB, BRCM,
COST, DELL, EBAY, FFIV, LLTC, MAT, MCHP, MU, SYMC, XLNX, DISCA, REGN
Staying Below 30 DMA
EXPE, SHLD, FAST, NVDA,
ALXN, DRFT, AMGN, SIAL, LBTYA, CHRW, EXPD, NTAP, ALTR, EQIX, MDLZ, CA, ADI,
CSCO, CTXS, NUAN, GMCR, GOLD, VRTX, CTRX
Sixteen Week Intermediate
Term Market Trend: Up
5-Day Short Term Market
Trend: Up
No comments:
Post a Comment