Thursday, October 3, 2013

SPY, QQQ, IWM and FB Consolidate as CREE, KKD, SOHU and MU Move to New Highs...

All nine sectors moved lower on Thursday…XLP, XLF and XLB were the strongest sectors…XLU was the weakest sector. 
 
Breadth weakened…decliners led advancers…3.69 to 1 on the NYSE and 2.81 to 1 on the NASDAQ.
 
Thursday – weakened, decliners led
Wednesday – weakened, decliners led
Tuesday – strengthened, advancers led
Monday – weakened, decliners led
Friday – weakened, decliners led
 
 
SPY down1.56 at 167.62…volume 176.6 million shares
VIX up 1.07 at 17.67…
TNX down .20 at 26.06…
TLT down .17 at 105.79...
XLF down .15 at 19.89…volume 46.6 million shares
 
AAPL down 6.15 at 483.41…volume 11.5 million shares
FB down 1.10 at 49.18volume 81.9 million shares
 
Technical Commentary: 
QQQ – 1.17%, SPY – 0.92%, DIA – 0.87%, IWM – 0.87%.
 
DIA fell and closed below Monday’s short-term support as SPY bounced up from Monday’s low.  IWM and QQQ continue to be relatively stronger finding support above Monday’s lows while closing near Monday’s close.  Uncertainty surrounding the timing of a budget deal appeared to weigh on traders on Thursday.
 
The market is currently pulling back to higher highs in its continuing uptrend.  Numerous bull flag, diagonal and horizontal breakout setups appear on many stock charts on Thursday.
 
FB -1.09, -21.8% announced that it will add advertisements to Instagram, which lifted the stock in after-hours trading.  Bull flag setup on FB.
 
CREE +4.50, +6.56%, SOHU +2.30, +2.86%, KKD +1.20, +6.01% and MU +0.35, +1.98% continued to their recent moves to new highs. 
 
Twitter (TWTR) filed its registration statement on Thursday for its IPO. 
 
 
Though the markets are consolidating in the face of the congressional deadlock it is essential to continue to follow your rules.
 
 
Resistance Chart Targets:
QQQ = 79.69
SPY = 173.60
 
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 neutral.
Support Levels
ES = 1,672, 1,660
SPY = 168.33, 167.08, 165.31
QQQ = 78.40, 77.67
IWM = 105.52, 104.57
 
 
Q2 Earnings Reactions
Positive Reactions – NKE, BBBY, ULTA, FIVE, CIEN, SPLK, CRM, GES, DSW, ADSK, ROST, GME, JRCC, RAX, SSYS, TMUS, SGMS, FWLT, MNST, GRPN, TSLA, AGU, BOFI, FOSL, ADM, MGM, WPO, CNK, KORS, SATS, MGM, EAT, VIAB, YOKU, AIG, CTRX, CHK, COP, LNKD, MELI, MYL, NUS, ZAGG, CMCSA, CTRP, GRMN, HES, MA, MCHP, SODA, YELP, QCOR, FISV, BWLD, MTW, VRTX, WYNN, SWK, SBUX, ALK, AMZN, CELG, CB, CLF, GILD, IP, MXIM, RCL, HSY, UA, UAL, V,   FB, BIDU, TRIP, COG, CTXS, ETFC, FFIV, AKAM, AAPL, EA, VMW, DAL, LCC, EMC, LLY, MCO, AKS, FCX, BTU, UTX, HAS, TXN, GE, HON, SLB, STI, WHR, CHKP, CMG, JCI, KEY, MS, OSTK, SWKS, UNP, UNH, BAC, IBM, SNDK, XLNX, CSX, GS, URI, YHOO, C, WFC
 
Negative Reactions – P, SHLD, PWRD, CREE, MCP, GMCR, SCTY, SUNE, Z, CAR, CHRW, FSLR, LINTA, ANR, CVX, CME, XOM, K, DTV, RVBD, X, COH, DISCA, ESRX, SOHU, DLR, CERN, CRUS, DECK, DNKN, EXPE, KLAC, POT, PCP, SWI, TPX, EQIX, ABC, CROX, ANGI, ATI, CAT, WDC, PNRA, STX, NSC, USNA, TRV, MCD, MO, NFLX, ZION, BHI, AMD, GOOG, ISRG, MSFT, EBAY, INTC, MAT, SCSS, USB, AXP, KO, MOS
 
 
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 down.   
 
____________________
 
Setups 
H Breakout: AAPL, CTSH, FAST, SIRI, SNDK, STX, CIEN, CNX, P, SCSS, SINA, TPX,
 
Diagonal Breakout: WDC, CRM, GLD, WLT,
 
Bull Flag: AKAM, AMAT, AMGN, CMCSA, COST, FB, NVDA, TSLA, NKE, SWK, TLT, V,  
 
Potential Bullish Divergence:   
 
Gap Up:
 
Gap Down: 
 
Bear Flag:
 
At Support: NUAN,     
 
Moves
New Highs: MU, MYL, SOHU, YNDX,
 
Gap Up: FIVE,   
 
Gap Down: ANGI,  
 
H&D Breakout:   
 
Breakout Test: 
 
Bounce: KKD, MFRM,  
 
MACD Divergence Bounce: 
 
Bear Flag:  
 
Support Break: ADBE, RAX,
 
 
______________________
 
 
5 of 100 NDX stocks closed higher on Thursday and one was unchanged.
 
Leading NDX 100 stocks included: MU, MYL, VRTX
 
Lagging NDX stocks included:  EQIX, BIIB, TSLA, REGN, NFLX, CTXS, EXPE, EXPD, ISRG, CHRW, FB
 
Leading stocks > +2% on Thursday included: CREE, SOHU, FAZ, UAL, ICE
 
Lagging stocks < -2.0% included: HLF, ESI, GRPN, SSYS, JCP, LDK, VMW, URE, BBRY, LNKD, Z, CHL, DDD, FAS, MCP, PWRD
 
 
Stocks to Watch on Friday
Holding Above 30 DMA= 59
TSLA, GRMN, PCLN, VIAB, FB, NFLX, WYNN, NVDA, ADSK, AVGO, CTSH, VOD, SBAC, SHLD, AKAM, BIIB, CELG, MU, MXIM, ROST, YHOO, REGN, FOXA, ADBE, ALXN, DLTR, INTU, KLAC, SNDK, XLNX, TXN, AMZN, FAST, LINTA, SIRI, WFM,  LMCA, EBAY, EXPE, FISV, CHTR, BIDU,  MYL, SBUX, STX, AMAT, CERN, CMCSA,  MAT, BBBY, DISCA, FOSL, ORLY, SPLS, MSFT, HSIC, BRCM, DELL, FFIV,
 
Moving Above 30 DMA = 0
 
 
Moving Below 30 DMA = 18
AAPL, AMGN, CHKP, CHRW, EXPD, GILD, GOOG, LLTC, MCHP, NTAP, PAYX, PCAR, SIAL, SRCL, XRAY, LBTYA, VRSK, WDC
 
Staying Below 30 DMA
ALTR, ATVI, COST, EQIX, INTC, MDLZ, ADP, DTV, CA, QCOM, ADI, CSCO, CTXS, KRFT, NUAN, GMCR, GOLD, ESRX, VRTX, CTRX, SYMC, ISRG, MNST
 
Thirteen Week Intermediate Term Market Trend: Up
5-Day Short Term Market Trend: Neutral

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