Tuesday, November 12, 2013

Stocks Close Lower While DJIA Retreats From Record High...Energy Stocks Take A Hit...

Three of nine sectors moved higher on Tuesday…XLK, XLP and XLI were the strongest sectors…XLF was the weakest sector. 
 
Breadth weakened…decliners led advancers…1.73 to 1 on the NYSE and 1.22 to 1 on the NASDAQ.
 
Tuesday – weakened, decliners led
Monday - mixed
Friday – strengthened, advancers led
Thursday – weakened, decliners led
Wednesday - mixed
 
 
SPY down .36 at 176.96…volume 83.7 million shares
VIX up .29 at 12.82…
TNX up .17 at 27.68…
TLT up .48 at 103.50...
XLF down .20 at 20.67 volume 28.5 million shares
 
AAPL up .96 at 520.01…volume 7.2 million shares
FB up .40 at 46.60…volume 68 million shares…
 
Technical Commentary: 
QQQ + 0.16%, IWM + 0.08%, DIA – 0.15%, SPY – 0.20%.
 
Stocks closed lower Tuesday with the QQQ finishing with a slight gain and the DOW retreating from its record high of Monday.  Energy stocks led the sectors in being the weakest.  XLF ended the day down .19 or down 0.93%.
 
RAX gapped down after earnings were reported to end the day down 5.86 or 11.88% on 17.2 million shares.  Also gapping down was HOLX after reported earnings closing down 2.38 or 10.43% on 42.8 million shares.  VECO broke support to close down 2.15 or 7.03% on 1.5 million shares after reported earnings.
 
On a positive note DISH gapped up after reported earnings to break through and close above horizontal resistance gaining 2.85 or 6.00%.
 
 
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 this week: RAX, NTES, SINA, CSCO, NTAP, XONE, YOKU,
 
Q3 Earnings Reactions
Positive Reactions – 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 – 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: ESRX, INTC, MU, NVDA, ROST, SHLD, SNDK, WDC, WYNN, YHOO, ESI, FIVE, IBM, MFRM, P, SPY, TIF,
 
Diagonal Breakout: AAPL, CELG, SIRI, GLW, GRPN,
 
Bull Flag: CMCSA, GOOG, MSFT, CLF, TPX,
 
Potential Bullish Divergence:  
 
Gap Up:
 
Gap Down:
 
Bear Flag:   
 
At Support: FB, GLD,  
 
Moves
New Highs: ADBE, CTSH, ALK, CRM, DDD, GME, VRSN,
 
Gap Up: UNG,    
 
Gap Down: RAX,
 
H Breakout: NTAP, PWRD,  
 
D Breakout: ATVI,     
 
Breakout Test:
 
Bounce: BRCM, SCSS, SWKS,  
 
MACD Divergence Bounce:  
 
Bear Flag:  
 
Support Break: VECO,  
 
 
______________________
 
 
62 out of 100 NDX stocks closed higher on Tuesday.
 
Leading NDX 100 stocks included: SHLD, REGN, CHKP, BRCM, AVGO, WFM, MU, FFIV, WYNN, QCOM, EXPE, MCHP
 
Lagging NDX stocks included: TSLA, GOLD, VIP, AMZN, EQIX, NFLX, LBTYA, FOSL, AMAT, FOXA
 
Leading stocks > +2% on Tuesday included: SCSS, PWRD, UAL, P, YELP, GRPN, GME, JNPR, MFRM, DDD
 
Lagging stocks < -2.0% included: RAX, VECO, WLT, TSL, CLF, SPWR, BX, MCP, QIHU, FSLR, SSYS, JCP, FAS, SINA, ATI, SCTY,
 
Stocks to Watch on Wednesday
Holding Above 30 DMA= 56
CTSH, VOD, ROST, ADBE, SNDK, SBUX, STX, CERN, CMCSA, MSFT, XRAY, AAPL, HSIC, SPLS, 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, GOLD, CSCO, ESRX, LBTYA, ISRG, ALXN, GILD, MYL, NVDA, PCAR, PCLN, MDLZ, DLTR, MNST, SHLD, WYNN, YHOO
 
Moving Above 30 DMA = 6
ATVI, AVGO, BRCM, CTXS, KLAC, QCOM
 
Moving Below 30 DMA = 2
AMAT, VIP
 
Staying Below 30 DMA
CHRW, GRMN, SIAL, WFM, VIAB, CTRX, KRFT, FOXA, AMGN, BBBY, BIIB, REGN, VRSK, LMCA, TSLA, EXPD, FAST, CHTR, BIDU, SRCL, CELG, VRTX, FB, MXIM, EQIX, AKAM, ORLY, SIRI, FFIV, SYMC, ALTR, XLNX, EBAY, NTAP, NUAN, GMCR
 
 
Sixteen Week Intermediate Term Market Trend: Up
5-Day Short Term Market Trend: Neutral
 
 
 
 

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