Three
of nine sectors moved higher on Tuesday…XLE, XLF and XLV were the strongest sectors…while
XLU was the weakest sector.
Breadth weakened
on the NASDAQ…decliners led advancers…2.26 to 1 on the NYSE and 1.72 to 1 on the NASDAQ.
Tuesday – weakened, decliners led
Monday – weakened,
decliners led
Friday – strengthened,
advancers led
Thursday – weakened
slightly, mixed
Wednesday –
strengthened, advancers led
SPY down .39 at 179.03…volume 93.7 million shares
VIX up .29 at 13.39…
TNX up .34 at 27.12…
TLT down .80 at 104.56...
XLF up .03 at 21.15 volume
29 million shares
AAPL up .92 at 519.55…volume 7.6 million shares
FB up .53 at 46.36…volume 75.5 million shares…again finds support just above 45…
Technical
Commentary:
DIA – 0.07%, SPY – 0.22%, QQQ – 0.29%, IWM – 0.62%.
The SPY, DIA and QQQ are forming
potential bull flag patterns
while the IWM is forming a second flag in an ascending triangle. Both the SPY and DIA are pausing after
moving up for six straight weeks. The VIX
has risen for two straight days but only to 13.39 which is still inside the
range of the past one month.
BAC, C, JPM and WFC led financials as XLF rose
3 cents after being down just one cent on Monday. XLF has risen +3.73% or 76 cents during the past eight
trading days and has led all sectors. Money
is rotating from regional banks like ZION, STI and RF into the money center
banks. In order for these two pause days
to lead to a larger pull back, selling will have to appear in the financials.
3D printers SSYS, DDD, XONE and VJET after several weeks of gains were hit with heavy selling on Tuesday.
Solar stocks cooled off after positive earnings and an initial positive reaction from TSL this morning with weakness in SCTY, SPWR, JKS, TSL, JASO and FSLR.
Traders continue
to trade with trend of the individual stock that you are trading and be
vigilant in protecting profits. Continue
to move profit protection
stops according to your rules. Watch
for any weakness in the financials as an indication that stocks may be
ready for a pull back after a six-week rally.
A bull
flag is appearing in most sectors and is most apparent in XLK, XLP, XLU and
XLY. Ten percent of the NDX
100 stocks have fallen below their 30 DMA on Monday and
Tuesday with 60% still above.
Chart Signals knows that it is important to
realize that as a trader you don’t know the future and that your favorite
market commentator or the television talking heads don’t know the future
either, but it is the charts themselves that give, through the buying and
selling actions shown, the most objective estimate of future price action. Of course when new information becomes known that
will be factored into the price action which will at times change the trend
prior to a chart target.
Chart Targets:
SPY = 180.99, 182.69…
QQQ = 84.74, 85.52…
IWM = 110.96, 112.83…
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 SPY posture is
up.
Support Levels
ES = 1,774, 1,736
SPY = 177.64, 174.76
QQQ = 83.48, 82.77,
81.37
IWM = 107.93
Earnings this week: JKS, CRM, TSL, ADSK, BBY, KKD, HD, GME, JCP, P, SPLK,
Q3 Earnings Reactions
Positive Reactions – JKS,
BRCD, TSN, YOKU, SINA, NTAP, SLXP, PCLN, NVDA, GRPN, AWAY, PRU, TPX,
TSO, CTSH, FSLR, TRMB, MDVN, NATI, SPR, ONNN, EXPE, CRR, HAR, GTI, ATML, THOR,
TRN, FLT, MCHP, ITT, DICSA, ANR, SWKS, FB, CMCSA, GILD, DWA, LVLT, EA, SEE,
SPW, TFX, JCI, 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 – BBY,
CPB, JEC, TSL, CRM, CSCO, RAX, MNST, QCOM, SCTY, IPGP, AIG, BRKR, HME, NEM,
XLS, Z, NIHD, AVP, WTW, ROVI, GRMN, JDSU, OSK, CNW, ITRI, CTRX, KRFT,
GRMN, MYL, DLR, XCO, WU, LNKD, IACI, MSM, INGR, HTS, VRTX, AAPL,
PMCS, MWV, SOHU, AGNC, AGCO, PCL, GT, CMI, VSH, ALSN, ROP, EW, MRK, RYN, RMD, NCR, KBR, FSL, ESRX, EMN, FIO,
SIRI, 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: GOOG, IBM, VZ, ATI, C, IBM,
TPX,
Diagonal Breakout: CMCSA,
Bull Flag: ADBE, ADSK,
AMZN, BBBY, ESRX, MSFT, MU, MYL, NVDA, PCLN, SHLD, SNDK, STX, TXN, WDC, YHOO, DIS,
KO, MSFT, PFE, FSLR, ESI, FSLR, GME, KKD, P, RCL, SPWR, SWKS, TRIP, X,
Potential Bullish
Divergence:
Gap Up:
Gap Down:
Bear Flag:
At Support: FB,
C- Pattern:
Moves
New Highs: JPM, BAC,
Gap Up: UAL,
Gap Down: BBY, CPB, JEC,
ATVI, GRPN, ZION,
H Breakout: DTV, CVX, JNJ,
D Breakout:
Breakout Test:
Bounce: TSLA, TBT,
MACD Divergence Bounce:
Bear Flag:
Support Break: WFM, SCTY,
______________________
26 out of 100 NDX
stocks closed higher on Tuesday.
Leading NDX 100 stocks included: TSLA, ADP, GOLD,
BIIB, FB, VRTX, GILD, GRMN, CELG
Lagging NDX stocks included: ALTR, ATVI, GMCR,
WYNN, ADSK, AVGO, FFIV, WFM, SHLD, ALXN, LMCA, CHRW
Leading stocks > +2% on Tuesday
included: UAL, PWRD
Lagging stocks < -2.0% included: SSYS, XONE, SCTY, SPWR, DDD, YOKU, TSL,
GRPN, CRM, YNDX, SOHU, FSLR, SINA, GME, P, BX, Z, ANR
Stocks to Watch on Wednesday
Holding Above 30 DMA= 57
CTSH, VOD,
ROST, ADBE, SNDK, SBUX, CMCSA, MSFT, XRAY, AAPL, HSIC, FISV, FOSL, INTC, INTU,
LINTA, PAYX, SBAC, WDC, CHKP, DTV, GOOG,
ADP, AMZN, MAT, DISCA, CA, COST, LLTC, TXN, ADI, MCHP, MU, EXPE, NFLX, ADSK, ESRX,
LBTYA, ISRG, ALXN, GILD, MYL, NVDA, PCLN, MDLZ, DLTR, MNST, SHLD, YHOO, QCOM, AMGN, BBBY, NTAP, SRCL, BIDU, SIAL, CELG
Moving Above 30 DMA =3
BIIB, GOLD, GRMN
Moving Below 30 DMA = 5
ATVI, CERN, CHRW, STX, WYNN
Staying Below 30 DMA =
BRCM,
KLAC, PCAR, SIRI, EQIX, FOXA, EBAY, SPLS,
AVGO, CSCO, VIAB, CTXS, AMAT, VIP, WFM, CTRX, KRFT, REGN, VRSK, LMCA, TSLA,
EXPD, FAST, CHTR, VRTX, FB, MXIM, AKAM, ORLY, FFIV, SYMC, ALTR, XLNX, NUAN,
GMCR
Sixteen Week
Intermediate Term Market Trend: Up
4-Day Short Term Market
Trend: Neutral
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