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 51.95…volume 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:
Thanks Dave U read your web site daily and find it extremely helpful!
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