Once again…all nine sectors moved higher on Thursday…XLK,
XLE and XLY were the strongest
sectors…XLU was the weakest
sector.
Breadth strengthened…advancers led
decliners…5.07 to
1 on the NYSE and
2.08 to 1 on the NASDAQ.
Thursday – strengthened, advancers led
Wednesday –
strengthened, advancers led
Tuesday – weakened,
decliners led
Monday – strengthened,
advancers led
Friday – weakened,
advancers led
SPY up 1.15 at 173.22…volume 129.3 million shares
VIX down 1.23 at 13.48…
TNX down .84 at 25.87…
TLT up .96 at 106.81...
XLF up .19 at 20.87 volume 53.4 million shares
AAPL up 3.39 at 504.50…volume 9 million shares
FB up 1.08 at 52.21…volume 71.5 million shares
Technical
Commentary:
QQQ +
0.57%, SPY + 0.67%, IWM + 0.88%, DIA – 0.03%.
Horizontal breakouts a plenty on
Thursday including SPY, IWM, QQQ, XLV, XLE, GILD and FB to mention just a
few. Once again the weight of the
evidence has been right. For the past week, except for Tuesday,
stocks resisted the drama in Washington indicating the pressure was to the
upside so on the first day since resolution SPY joins IWM and QQQ in a
horizontal breakout. One of the big
keys of the rally over the past six days is that money is flowing back into
financial stocks with XLF at horizontal resistance poised for a
breakout.
After the close GOOG more than
doubles its expected move after the close and seemed to lift other stocks like AAPL, AMZN,
BIDU, FB, NFLX, PCLN and WDC. Watch the
open for strong moves to the upside.
GOOG +72.69,
+8.18% in after-hours positive EPS reaction
CMG +34.43,
+7.84% in after-hours positive EPS reaction
Resistance Chart Targets:
QQQ = 81.87, 83.17
IWM = 110.96, 112.83
SPY = 177.85
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 – VZ,
SNDK, NUE, BTU, AXP, KEY, STLD, URI, USB, INTC, JNJ, SCHW, COST, AA
Negative Reactions – 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 pointed up.
____________________
Setups
H Breakout: AAPL, ADBE, AKAM, COST,
INTC, MNST, MSFT, NFLX, ROST, SIRI, TXN, A, ALK, BAC, CLF, CRM, F, GME, KKD,
NKE, P, QIHU, SINA, SPLK, SSYS, STI, V, ZION,
Diagonal Breakout: BBBY,
MYL, FIVE,
Bull Flag: ATVI,
CTSH,
Potential Bullish
Divergence:
Gap Up: GOOG, CMG
Gap Down: ISRG,
Bear Flag:
At Support: FFIV,
Moves
New Highs: CMCSA, GILD,
SBUX, STX, WDC, WFM, DDD, DNKN, LCC, LVS, SCTY, SPY, IWM, QQQ, BA, AXP, MMM,
XLV, XLE,
Gap Up: SNDK, VZ, GLD,
TLT,
Gap Down: UNH, EBAY,
XLNX, MFRM, SCSS, TBT,
H&D Breakout: CELG,
FB, DDD, ESI, FAS, GLW, RCL,
Breakout Test:
Bounce: MCP, UAL,
MACD Divergence
Bounce:
Bear Flag:
Support Break:
______________________
75 of 100 NDX stocks
closed higher on Thursday and one was unchanged.
Leading NDX 100 stocks included: SNDK, GOLD, SBAC, MDLZ,
VOD, GILD, BIIB, BIDU, ORLY, NFLX, ALTR, FB, XRAY
Lagging NDX stocks included: GMCR, EBAY XLNX, FFIV, YHOO
Leading stocks > +2% on
Thursday included: ZAGG, ESI, UAL, CDE, URE, RCL, FAS, GLW, DDD, XONE, A, LVS
Lagging stocks < -2.0% included: SCSS, LDK, GMCR, GRPN, IBM, VECO, MFRM,
Z, SWK, FAZ, UCO, HUM, TPX, GS, SWKS
Stocks to Watch on
Friday
Holding Above 30 DMA= 75
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, ESRX, GOOG, QCOM, ADP, AMGN, AMZN, BIIB, BRCM, COST, DELL,
MAT, MCHP, NVDA, SYMC, MDLZ, DISCA, REGN, KRFT
Moving Above 30 DMA =
5
ALTR, CA, GOLD, VRTX, ADI
Moving Below 30 DMA =1
XLNX
Staying Below 30 DMA
EBAY, FFIV, LLTC, MU, EXPE,
SHLD, FAST, ALXN, SIAL, LBTYA, CHRW, EXPD, NTAP, EQIX, CSCO, CTXS, NUAN, GMCR,
CTRX
Sixteen Week
Intermediate Term Market Trend: Up
5-Day Short Term Market
Trend: Up
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