Sunday, October 27, 2013

QQQ, SPY, IWM New High Close as Up Trend Continues...DECK, FLS, AMZN, MSFT, AVY Gap Higher Following Earnings...

All nine sectors moved higher on Friday…XLU, XLY and XLE were the strongest sectors…XLV was the weakest sector. 
 
Breadth was mixed… as advancers led decliners…1.37 to 1 on the NYSE and decliners led advancers 1.12 to 1 on the NASDAQ.
 
Friday – weakened, advancers led
Thursday – strengthened, advancers led
Wednesday – weakened, decliners led
Tuesday – strengthened, advancers led
Monday – weakened, decliners led
 
 
SPY up .80 at 175.95…volume 93.6 million shares
VIX down .11 at 13.09…
TNX down .19 at 25.03…
TLT up .40 at 108.29...
XLF up .09 at 20.86 volume 28 million shares
 
AAPL down 5.95 at 525.96…volume 12.1 million shares, reports earnings Monday
FB down .50 at 51.95volume 45 million shares, reports earnings Wednesday
 
Technical Commentary: 
QQQ + 0.72%, SPY + 0.46%, DIA + 0.42%, IWM + 0.09%.
 
QQQ, SPY and IWM all made a new high close on Friday.  DIA also rose while moving near its Sep resistance level.  DIA is only broad index ETF still in its 4-month sideways channel.  MSFT with a strong positive earnings reaction along with AXP, INTC, BA, T and GS helped lift DIA on Friday.
 
The uptrend continues.  Move profit protective stops according to your rules.
 
After Friday’s move Horizontal Resistance breakout setups include:  IWM, QQQ, SPY, DDD, NTES, V, WLT,
 
Bull Flag setups include:  FSLR, LNKD, LVS, NKE, P, QIHU, SCTY, SINA, SOHU, SSYS, STI, WLT, XONE, YNDX and FB.
 
RCL +1.12, +2.64% continued to rise following a positive earnings reaction on Thursday.
 
AMZN, +31.18, +9.39% following earnings after the close on Thursday.
 
 
Resistance Chart Targets:
QQQ = 81.87, 83.17…closed at 82.45
IWM = 110.96, 112.83…closed at 110.76
SPY = 177.85, 180.99…closed at 175.41
 
 
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 = 1,726
SPY = 172.76
QQQ = 81.87, 79.76, 78.40
IWM = 107.83
 
Earnings to Watch
Earnings releases continue with a large list of major companies reporting next week including:
Monday – AAPL, STX,
Tuesday – X, LNKD, YELP
Wednesday – FB, GRMN
 
Q3 Earnings Reactions
Positive Reactions – DECK, AMZN, MSFT, FLS, AVY, ALXN, WOOF, COG, BA, CLGX, ESI, EQIX, WLL, TSCO, RRD, PHM, RCL, ALXN, APOL, BCR, NDAQ, NSC, WHR, ILMN, NUS, GNTX, LXK, DD, VFC, 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 – RYN, RMD, NCR, KBR, FSL, ESRX, EMN, FIO, CAM, TKR, SYMC, CVA, CDNS, AKAM, XRX, CRI, ORLY, CAT, NFLX, COH, ZION, WAT, EMC, UTX, TXN, 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 above 80.   
 
____________________
 
Setups 
H Breakout: IWM, QQQ, SPY, DDD, NTES, V, WLT, GS, AMGN, DTV, ANR, FIVE, RAX, SPLK, WDC, STX, FAS,
 
Diagonal Breakout: EBAY, Z,   
 
Bull Flag: CELG, GRMN, NVDA, BAC, NKE, P, STI, YOKU, FSLR, LNKD, LVS, QIHU, SCTY, SINA, SOHU, SSYS, WLT, XONE, YNDX, FB
 
Potential Bullish Divergence:  
 
Gap Up:  
 
Gap Down:  
 
Bear Flag: 
 
At Support: JNPR,
 
Moves
New Highs: GILD, CMG,
 
Gap Up: DECK, AMZN, FLS, MSFT, AVY, COG, WOOF,
 
Gap Down: RYN, RMD, NCR, KBR, FSL, ESRX,
 
H&D Breakout: GS  
 
Breakout Test:
 
Bounce: A, CRM, FAS, FIVE, NTES, STX, WDC, FAS     
 
MACD Divergence Bounce: 
 
Bear Flag:  
 
Support Break: PWRD
 
 
______________________
 
 
49 of 100 NDX stocks closed higher and one unchanged on Friday.
 
Leading NDX 100 stocks included: AMZN, ALXN, MSFT, MXIM, CA, WDC, FAST, STX, SYMC, SRCL
 
Lagging NDX stocks included: ESRX, SIRI, FFIV, CERN, WYNN, YHOO, TSLA, GMCR, LMCA, MU
 
Leading stocks > +2% on Friday included: DECK, CLF, ESI, RCL
 
Lagging stocks < -2.0% included: ANGI, TSL, YNDX, PWRD, QIHU, SCTY, SINA, TPX, YOKU, SPLK, MCP, MFRM, SPWR, LDD, Z, KKD, CIEN
 
Stocks to Watch on Monday
Holding Above 30 DMA= 66
GRMN, FB, WYNN, AVGO, CTSH, VOD, MXIM, ROST, 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, PAYX, PCAR, PCLN, SBAC, WDC, LMCA, FOXA, CHKP, DTV, MNST, VIAB, NFLX, GOOG, QCOM, ADP, AMGN, AMZN, BIIB, MAT, MDLZ, DISCA, KRFT, CA, CHRW, EXPD, CTRX, GOLD, SIAL, LBTYA, REGN, ALXN, DELL, VRTX
 
Moving Above 30 DMA = 5
COST, FAST, MXIM, QCOM, SRCL
 
Moving Below 30 DMA = 3
EQIX, ESRX, YHOO
 
Staying Below 30 DMA
AKAM, ORLY, SIRI, ADI, BRCM, FFIV, MCHP, MYL, NVDA, SYMC, ALTR, TXN, TSLA, ADSK, ISRG, XLNX, EBAY, LLTC, MU, EXPE, SHLD, NTAP, CSCO, CTXS, GMCR, NUAN
 
Sixteen Week Intermediate Term Market Trend: Up
5-Day Short Term Market Trend: Up

1 comment:

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