Thursday, December 5, 2013

IWM Inches Higher as IWM, QQQ, DIA, SPY Form Inside Day in Bull Flag Pattern as Traders Await Jobs Report...MFRM, YOKU, UNG Rise...

Two of nine sectors moved higher on Thursday…XLY, XLI and XLV were the strongest sectors…while XLF was the weakest sector. 

Breadth was mixeddecliners led advancers…1.92 to 1 on the NYSE and 1.18 to 1 on the NASDAQ.

Thursday – mixed, decliners led
Wednesday – weakened, decliners led
Tuesday – strengthened slightly, decliners led
Monday – weakened, decliners led
Friday – weakened, advancers led


SPY down .79 at 178.94 volume 106.9 million shares
VIX up .38 at 15.08…
TNX up .21 at 28.62…
TLT down .29 at 102.43...
XLF down .20 at 21.10 volume 36.7 million shares

AAPL up 2.90 at 567.90 volume 15.9 million shares
FB down .28 at 48.34…volume 43.8 million shares

Technical Commentary: 
IWM + 0.07%, QQQ – 0.13%, DIA – 0.40%, SPY – 0.44%.

Stocks opened lower after release of economic data that the US economy had expanded by 3.6% for 3Q but that the revised gain appeared would have little impact as it was fueled by a huge buildup in inventories.

AAPL succeeded in hitting a 52 week high to close up 2.90 on volume of 15.9 million.  JCP fell .81 or 8.39% on large volume of 69.8 million shares.  JCP continues to slide in after-hours trading down 3.84%.

Those investors in MFRM are going to sleep easy tonight after yesterday’s earnings report.  MFRM gapped up 4.66 to gain 13.61% by the close of the day.  Volume was 1.2 million and is near its horizontal resistance.

YOKU closed up 1.68 or 5.61% and is at horizontal resistance.  Volume was 5.7 million shares.

AVGO bounced on Thursday and broke horizontal resistance to close at a new high of 47.59 gaining 3.09 or 6.94% on volume of 4.5 million shares.

Albert Einstein: “Insanity: doing the same thing over and over again expecting different results.”

Remember it is big money that creates and sustains the trend.  As Granville 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.”

New short term chart targets:
Chart Targets:
SPY = 182.06, 183.02…Friday’s high 181.75
QQQ = 85.14, 85.77…touched on Friday
IWM = 114.39, 116.10…Friday’s high over 114

Short-term SPY posture is down in bull flag pattern.
Support Levels
ES = 1,797, 1,783, 1,774
SPY = 179.93, 177.98
QQQ = 84.11
IWM = 111.62, 110.88


Q3 Earnings Reactions
Positive Reactions – MFRM, SPLK, MRVL, GMCR, JCP, LZB, 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 – ROST, GME, 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


The Market Forecast Green Line moved below 80.   

____________________

Setups 
H Breakout: BRCM, WYNN, CIEN, YNDX,  
Diagonal Breakout: BA, A, ANGI, P,   
Bull Flag: AMZN, DTV, NFLX, GS, ALK, BX, FAS, GS, RCL, SPY,
Potential Bullish Divergence: 
Gap Up:
Gap Down:
Bear Flag: 
At Support: WFM, CSCO,   
C- Pattern:

Moves
New Highs: YHOO, LVS, SWKS,  
Gap Up: CELG, MFRM,
Gap Down:     
H Breakout: JNPR, SOHU, UNG, YOKU,   
Diagonal Breakout:  
Breakout Test:
Bounce: GILD, GRMN, INTC, MAT, NTAP, SPLK,
MACD Divergence Bounce:
Bear Flag: 
Support Break: ATVI, COST,


______________________


39 out of 100 NDX stocks closed higher on Thursday.

Leading NDX 100 stocks included: AVGO, EQIX, CELG, INTC, WYNN, YHOO, NTAP, SPLS, BRCM

Lagging NDX stocks included: ATVI, VIP, GOLD, MSFT, CTXS, SHLD, PAYX, ADBE,
CHTR, COST

Leading stocks > +2% on Thursday included: MFRM, YOKU, WLT, TWTR, UNG, SOHU, LNKD, SCTY, ANR, JNPR

Lagging stocks < -2.0% included: JCP, TSL, GOGO, FIVE, BBRY, ESI, QIHU, XONE, KKD, DDD, UAL

Stocks to Watch on Thursday
Holding Above 30 DMA= 45
CTSH, VOD, MSFT, AAPL, HSIC, FISV, INTU, WDC, CHKP, GOOG, ADP, AMZN, MAT, CA, LLTC, TXN, MCHP, MU, EXPE, NFLX, ADSK, ESRX, ALXN, GILD, MYL, PCLN, MDLZ, MNST, YHOO, QCOM, NTAP, SIAL, CELG, BIIB, CMCSA, CTXS, LBTYA, GMCR, DTV, STX, NVDA, BIDU, BRCM, WYNN, FB

Moving Above 30 DMA = 4
AVGO, GRMN, INTC, EQIX

Moving Below 30 DMA = 11
ADBE, AKAM, ATVI, COST, FFIV, HSIC, LINTA, PAYX, VRTX, XRAY, VRSK

Staying Below 30 DMA
BBBY, CERN, EBAY, KLAC, SBUX, ADI, LMCA, TSLA, PCAR, SHLD, SIRI, SRCL, DISCA, REGN, CHTR, FOSL, ISRG, NUAN, ROST, SYMC, AMGN, DLTR, GOLD, SNDK, SBAC, CHRW, FOXA, SPLS, CSCO, VIAB, AMAT, VIP, WFM, CTRX, KRFT, EXPD, FAST, MXIM, ORLY, ALTR, XLNX


Sixteen Week Intermediate Term Market Trend: Up
3-Day Short Term Market Trend: Down

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