All nine sectors moved higher on Monday…XLE,
XLB and XLK were the strongest
sectors…XLF was the weakest
sector.
Breadth strengthened… as advancers
led decliners…2.08 to
1 on the NYSE and 1.88 to 1 on the NASDAQ.
Monday – strengthened, advancers led
Friday – strengthened, decliners
led
Thursday –weakened,
decliners led
Wednesday – weakened,
decliners led
Tuesday – strengthened,
advancers led
SPY up .62 at 176.83…volume 85.5 million shares
VIX down .35 at 12.93…
TNX down .18 at 26.02…
TLT up .10 at 106.29...
XLF up .01 at 20.63 volume 18.7 million shares
AAPL up 6.72 at 526.75…volume 8.7 million shares
FB down 1.53 at 48.22…volume 80.2 million shares…
Technical
Commentary:
IWM +
1.15%, SPY +0.35%, DIA +0.13%, QQQ + 0.14%.
Money
rotated back into IWM on Monday as it led all broad ETFs by a large
margin especially stocks that recently reported earnings like EXTR, UNTD,
ZLTQ, GTI, GSE and SFY. SPY
was lifted by strong moves in basic material stocks like VMC, AA, NEM, CLF,
X and BTU. Growth sectors XLE,
XLB, XLK, XLI and XLY led while defensive sectors lagged. The weakest sector was financial XLF which struggled as interest rates
paused after a strong move last week.
The VIX continued lower confirming the rise in SPY.
Solar
stocks were sizzling again on Monday led by JKS, CSIQ, SCTY, SPWR and JASO
with double digit gains on the day and impressive single digit gains in TSL,
TAN, YGE, SUNE, FSLR and GTAT.
Bull Flag
bounces occurred in many stocks on Monday including IWM, SPY, QQQ, ATI
and many others in Friday’s Bull Flag List.
Continue
to trade with trend of the individual stock that you are trading and be
vigilant in protecting profits from the last three weeks. Chart Signals has been alerting
readers to, “Move profit
protection stops according to your rules,” since Monday.
Chart Targets:
QQQ = 83.17…
IWM = 110.96, 112.83…
SPY = 177.85, 180.99…
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
neutral.
Support Levels
ES = 1,741, 1,726
SPY = 174.44, 172.76
QQQ = 81.87, 80.76,
79.76
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, FSLR
Q3 Earnings Reactions
Positive Reactions – 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, 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 – IPGP,
AIG, BRKR, HME, NEM, XLS, NIHD, AVP, WTW, ROVI, JDSU, OSK, CNW, ITRI, CTRX, KRFT,
GRMN, MYL, DLR, XCO, WU, LNKD, IACI, MSM, INGR, HTS, 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: AAPL, ADSK, MSFT, QCOM, SNDK,
WDC, DIS, PFE, UTX, VZ, ATI, BX, CRM, KKD, LCC, RCL, SCTY, SPLK, SPWR, SPY, TIF,
TPX, TSL, XONE,
Diagonal Breakout: CELG,
CSCO, PCLN, SHLD, TSLA, XLNX, YHOO, IBM, MSFT, A, CNX, IBM, P, STI, TBT,
Bull Flag: AMAT, AMZN,
BIDU, GILD, INTC, HD, INTC, ESI, LVS, RAX,
Potential Bullish
Divergence:
Gap Up:
Gap Down:
Bear Flag:
At Support: MNST, LNKD,
Moves
New Highs: FSLR, ALK, CMG,
DDD, FIVE, TRIP, UAL,
Gap Up: MRK, GRPN, VECO,
X,
Gap Down: BBRY, UNG,
H Breakout: ADBE, COST, DTV,
FAST, MAT,
D Breakout: MYL, NUAN, TPX,
Breakout Test:
Bounce: GRMN, NUAN, WDC,
MFRM,
MACD Divergence
Bounce:
Bear Flag:
Support Break: NVDA,
______________________
56 out of 100 NDX
stocks closed higher on Monday and three were unchanged.
Leading NDX 100 stocks included: TSLA, FAST, SHLD,
MYL, WDC, GOLD, CHRW, CTRX, GMCR, GRMN, ISRG, NUAN, NFLX
Lagging NDX stocks included: FB, NVDA, BIDU,
GILD, VRTX, CHTR, LMCA, REGN
Leading stocks > +2% on Monday
included: SCTY, SPWR, VECO, ANR, WLT, TSL, GRPN, XONE, TRIP, CLF, DDD,
FSLR, X, QIHU, TPX, FIVE, MFRM, YELP, CNX, CRM, JCP, KKD
Lagging stocks < -2.0% included: UNG
Stocks to Watch on Tuesday
Holding Above 30 DMA= 61
WYNN,
AVGO, CTSH, VOD, ROST, ADBE, SNDK, WFM, SBUX, STX, AMAT, CERN, CMCSA, BBBY,
MSFT, XRAY, VRSK, AAPL, HSIC, SPLS, FISV, FOSL, GILD, INTC, INTU, KLAC, LINTA,
PAYX, PCLN, SBAC, WDC, LMCA, FOXA, CHKP, DTV, VIP, MNST, GOOG, ADP, AMGN, AMZN,
MAT, MDLZ, DISCA, KRFT, CA, EXPD, SIAL,
ALXN, COST, QCOM, LLTC, TXN, ADI, MCHP, MU, EXPE, NFLX, ADSK, CHRW, CHTR
Moving Above 30 DMA = 6
FAST, GOLD, GRMN, ISRG, MYL, PCAR, SHLD,
Moving Below 30 DMA = 7
BIDU, BIIB, BRCM, LBTYA, SRCL, VIAB,
YHOO
Staying Below 30 DMA
CTRX, CELG, DLTR, VRTX, ATVI, FB, REGN, MXIM, ESRX,
EQIX, AKAM, ORLY, SIRI, FFIV, NVDA, SYMC, ALTR, TSLA, XLNX, EBAY, NTAP, CSCO,
CTXS, NUAN, GMCR
Sixteen Week
Intermediate Term Market Trend: Up
5-Day Short Term Market
Trend: Neutral
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