None of the sectors moved higher on Thursday…however…XLV,
XLU and XLI were the strongest
sectors…XLY was the weakest
sector.
Breadth weakened…as decliners
led advancers…3.57 to 1 on the NYSE and 3.44 to
1 on the NASDAQ.
Thursday – weakened, decliners led
Wednesday - mixed
Tuesday – weakened,
decliners led
Monday – strengthened,
advancers led
Friday – strengthened,
decliners led
SPY down 2.24 at 174.93…volume 157 million shares
VIX up 1.24 at 13.91…
TNX down .27 at 26.13…
TLT up .89 at 105.96...
XLF down .23 at 20.39 volume 44.7 million shares
AAPL down 8.43 at 512.49…volume 9.3 million shares
FB down 1.56 at 47.56…volume 97.1 million shares…
Technical
Commentary:
DIA – 0.87%,
IWM – 1.69%, SPY
– 1.26%, QQQ – 1.88%.
DIA, IWM, SPY, and QQQ all closed lower on
volume heavier than normal…SPY and QQQ both retreated from a
double top with a negative MACD divergence.
Many stocks closed at a support level and a number of stocks broke a
support level today.
TWTR had its first day of trading with
its IPO today…Volume was 117 million shares and it closed up 18.90 or up 73%.
For those
invested in the mattress industry…you can sleep easy tonight…both MFRM
and TPX gapped up. MFRM gapped
up breaking through horizontal resistance of mid-October and even touched
horizontal resistance of mid-September although it did not close there. MFRM was up 1.66 or 5.18%
closing at 33.70. TPX also gapped
up after reported earnings and went beyond its mid-September horizontal
resistance in intra-day trading. MFRM
was up 4.85 or 12.09% to close at 44.96 on 8.5 million
shares.
AWAY gapped up after reported earnings
breaking its mid-September horizontal resistance gaining 4.61 or 15.85%
closing at 33.70 on 7.8 million shares.
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 last week.
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
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: ESRX, TXN, CVX, IBM,
INTC, TRV, STI,
Diagonal Breakout: WDC, DD,
MRK,
Bull Flag: AMGN, CMCSA, GILD,
GOOG, MAT, FSLR, ANR, CLF, TRIP, UAL, WLT,
Potential Bullish
Divergence:
Gap Up:
Gap Down:
Bear Flag:
At Support: AMAT, BIDU,
CELG, FAST, GRMN, STX, AAPL, QIHU, SWI, YELP, YNDX,
Moves
New Highs:
Gap Up: TPX,
Gap Down: QCOM, WFM, AA,
SCTY,
H Breakout: MFRM,
D Breakout:
Breakout Test:
Bounce: TLT,
MACD Divergence Bounce:
NTAP,
Bear Flag:
Support Break: AKAM, PCLN,
WYNN, CREE, LNKD, SINA, YOKU, Z,
______________________
Only 7 out of 100 NDX
stocks closed higher on Thursday.
Leading NDX 100 stocks included: GOLD, ATVI, NTAP, MU
Lagging NDX stocks included: WFM, TSLA, MDLZ,
REGN, QCOM, AVGO, FAST, AMZN, VIAB, SPLS, GRMN, PCLN, FOXA, FB, ADBE, AMAT,
BIIB
Leading stocks > +2% on Thursday
included: TPX, JCP, MFRM, SSYS
Lagging stocks < -2.0% included: SCTY, SWI, QIHU, SPWR, YELP, YNDX,
CREE, XONE, Z, GRPN, FSLR, BX, TSL, CLF, LNKD, WLT
Stocks to Watch on Friday
Holding Above 30 DMA= 49
CTSH, VOD,
ROST, ADBE, SNDK, SBUX, STX, CERN, CMCSA, MSFT, XRAY, AAPL, HSIC, SPLS, FISV,
FOSL, INTC, INTU, KLAC, LINTA, PAYX, PCLN, SBAC, WDC, CHKP, DTV, VIP, MNST, GOOG, ADP, AMZN, MAT,
MDLZ, DISCA, CA, COST, LLTC, TXN, ADI,
MCHP, MU, EXPE, NFLX, ADSK, CHRW, GOLD, CSCO, ESRX, LBTYA
Moving Above 30 DMA = 1
ISRG
Moving Below 30 DMA = 20
ALXN, AMAT, AVGO, BRCM, CHRW, DLTR,
GILD, GRMN, MYL, PCAR, PCLN, QCOM, SIAL, WFM, WYNN, VIAB, MDLZ, CTRX, DRFT,
FOXA,
Staying Below 30 DMA
AMGN,
BBBY, BIIB, SHLD, REGN, VRSK, LMCA, TSLA, EXPD, FAST, CHTR, BIDU, SRCL, YHOO,
CELG, VRTX, ATVI, FB, AMIM, EQIX, AKAM, ORLY, SIRI, FFIV, NVDA, SYMC, ALTR,
XLNX, EBAY, NTAP, CTXS, NUAN, GMCR
5-Day Short Term Market
Trend: Neutral = DIA, SPY Down = QQQ, IWM
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