All nine sectors moved higher on Tuesday…XLP,
XLE and XLV were the strongest
sectors…XLU was the weakest
sector.
Breadth strengthened… as advancers
led decliners…1.63 to
1 on the NYSE and decliners led advancers 1.45 to 1 on the NASDAQ.
Tuesday – strengthened, advancers led
Monday – weakened,
decliners led
Friday – weakened,
advancers led
Thursday – strengthened,
advancers led
Wednesday – weakened,
decliners led
SPY up .94 at 177.17…volume 87.3 million shares
VIX up .10 at 13.41…
TNX down .05 at 25.07…
TLT up .14 at 108.06...
XLF up .06 at 20.87 volume 22 million shares
AAPL down 13.20 at 516.68…volume 22.07 million shares
FB down .83 at 49.40…volume 102.1 million shares
Technical
Commentary:
DIA +
0.73%, SPY + 0.53%, IWM + 0.29%, QQQ + 0.17%.
What does big money
know that you don’t know? Continued economic growth, a
falling dollar, lower unemployment, falling energy prices or any of dozens of
other insights that their analytics suggest is probable about the future is why
they are still buying. You cannot beat
the market by being smarter than the market.
No matter how healthy your ego is, you are not smarter. If you were smarter you would be bigger and
they might be smaller.
Today the DIA
made a new closing high and just 8 cents below its intra-day high on Sep
18. The DIA is a horizontal
breakout setup. Today’s move in the DJIA
was led by a big jump in IBM and strong moves in T, HD, UNH, PFE, PG,
CSCO, AXP and VZ.
DIA is poised to join QQQ, IWM and
SPY in a breakout to new highs. SPY,
IWM and QQQ all made a new high close today. And the QQQ’s did it without the help of
AAPL -13.20, -2.49% which moved
lower after earnings along with STX.
X +2.05,
+8.75% a huge
move and XRAY gained and VRTX fell after reporting earnings before the
open.
After the
close BIDU +9.09, +5.70%, GILD +0.70, +1.01% traded higher LNKD -8.14, -3.29%, YELP -7.18,
-10.43% traded lower after reporting earnings.
SHLD +6.53,
+11.75% soared
after announcing several corporate actions to transform business.
MU +0.77,
+4.64% highest
close since bull flag bounce on Oct 15.
The
uptrend continues. Move profit protective stops
according to your rules.
Chart Targets:
QQQ = 83.17…closed at 83.06
IWM = 110.96, 112.83…closed
at 111.35
SPY = 177.85, 180.99…closed
at 177.17
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
this week including:
Monday – AAPL,
STX, BIIB, HLF
Tuesday – X, LNKD, YELP, BIDU, FISV, GILD, VRTX, XRAY
Wednesday – FB, GRMN, CMCSA, EXPE, KRFT, MCHP, SBUX
Thursday – CTRX, DISCA, MYL
Q3 Earnings Reactions
Positive Reactions – X,
XRAY, XYL, JLL, PBI, ALR, HUN, ACT, 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 – VRTX,
AAPL, PMCS, MWV, AGNC, AGCO, PCL, GT, CMI, VSH, ALSN, ROP, EW, MRK, 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: AMAT, BRCM, COST, FAST, GOOG,
QCOM, CLF, FAS, GS, RAX, TIF, UAL, Z,
Diagonal Breakout: ADSK,
BIDU, CSCO, EBAY, MYL, XLNX, YHOO, LNKD,
Bull Flag: GILD, MSFT, ANR,
F, LVS, SPLK, TLT, WLT,
Potential Bullish
Divergence: NVDA,
Gap Up: BIDU, GILD
Gap Down: LNKD, YELP
Bear Flag:
At Support: MFRM, NTES, TPX,
UNG,
Moves
New Highs: ADBE, ROST, SNDK,
DDD, SPY, V,
Gap Up: XYL, JLL, ALR,
HUN, ACT,
Gap Down: PMCS, MWV,
AGNC, AGCO, PCL, GT, CMI, VSH, ALSN,
H&D Breakout: BBBY, BRCM,
CTSH, TXN, X,
Breakout Test: MU,
Bounce: AKAM, MU, SHLD, PWRD,
SPWR, X,
MACD Divergence
Bounce:
Bear Flag:
Support Break:
______________________
70 out of 100 NDX
stocks closed higher on Tuesday and two were unchanged.
Leading NDX 100 stocks included: SHLD, MU, NFLX, ADI,
BIDU, LLTC, EBAY, TXN, YHOO, BRCM
Lagging NDX stocks included: ATVI, STX, GOLD,
PCAR, AAPL, VRTX, LBTYA, FB, REGN, NUAN
Leading stocks > +2% on Tuesday
included: X, TRIP, UAL, NTES, DDD, SPWR, CLF, YOKU, TSL, BX, IBM,
SSYS, QIHU, RVBD, PWRD, KKD
Lagging stocks < -2.0% included: WLT
Stocks to Watch on
Wednesday
Holding Above 30 DMA= 68
GRMN, WYNN,
AVGO, CTSH, VOD, ROST, ADBE, DLTR, SNDK, WFM, CHTR, BIDU, XBUX, STX, AMAT,
CERN, CMCSA, BBBY, MSFT, XRAY,VRSK, AAPL, HSIC, SPLS, CELG, FISV, FOSL, GILD,
INTC, INTU, KLAC, LINTA, PAYX, PCLN, SBAC, WDC, LMCA, FOXA, CHKP, DTV, MNST,
VIAB, GOOG, ADP, AMGN, AMZN, BIIB, MAT, MDLZ, DISCA,KRFT, CA, CHRW, EXPD, CTRX,
GOLD, SIAL, LBTYA, ALXN, DELL, VRTX, COST, FAST, QCOM, ADI, BRCM, LLTC, TXN
Moving Above 30 DMA =
6
ISRG, MCHP, MU, NFLX, SHLD, YHOO
Moving Below 30 DMA = 4
ATVI, FB, PCAR, REGN
Staying Below 30 DMA
MXIM,
SRCL, EQIX, ESRX, AKAM, ORLY, SIRI, FFIV, MYL, NVDA, SYMC, ALTR, TSLA, ADSK, XLNX, EBAY, EXPE, NTAP,
CSCO, CTXS, GMCR, NUAN
Sixteen Week
Intermediate Term Market Trend: Up
5-Day Short Term Market
Trend: Up
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