All nine
sectors
moved higher on Tuesday…XLK, XLB and XLE were the strongest sectors…while
XLU was the weakest sector.
Breadth strengthened as advancers led decliners 2.42 to
1 on the NYSE and 2.84to
1 on the NASDAQ.
Tuesday – strengthened, advancers led
Monday – weakened,
decliners led
Friday – strengthened,
advancers led
Thursday - mixed
Wednesday – weakened,
decliners led
SPY up 1.98 at 183.67 volume 104.5 million shares
VIX down 1.00 at 12.28…
TNX up .42 at 28.69…
TLT down .48 at 104.45...
XLF up .18 at 21.88 volume 31.3
million shares
AAPL up 10.66 at 546.39 volume 11.8 million shares
FB up 1.83 at 57.74…volume 37.4 million shares, below average volume
Technical
Commentary:
DIA +
0.75%, SPY + 1.09%, IWM + 1.23%, QQQ + 1.91%.
The broad
market indexes that were poised to break short-term support rocketed off
support after retail sales growth of 0.2% in December were
reported following 0.4% growth in November. Each of the four indexes formed a large
white candle which is a lower probability occurrence and indicates that
institutions are still net equity buyers and have a positive macro-economic
outlook. Bonds sold off, TNX interest
rates rose and many financial moved higher.
JPM raised its rating to overweight on
INTC +1.01, +3.96% based on a stabilizing PC market. This lifted other chip stocks SOX +11.94, +2.26% and
tech stocks in general. AVGO, WDC,
FB, NVDA, STX, ADBE, YHOO, FFIV, TXN, KLAC, AKAM, BRCM, GGO, MSFT, EQIX, CTXS,
ADSK, and AAPL all gained more than 2%
on Tuesday.
Social
media stocks YELP,
P, GRPN, YOKU, FB, YNDX, SINA, Z, NTES moved higher but the hot and sizzling group
once again was solar stocks with CSIQ
+10.87%, JKS +9.38%,
TSL +6.59%, YGE +5.67%, TAN +5.30% SCTY
+4.85%, AEIS +4.75%,
SUNE +4.72% GTAT +4.58% and SPWR +4.24%
scoring big gains.
JPM +0.04,
+0.07% and WFC
+0.03, +0.07%
as expected by Chart Signals had neutral reactions after reporting earnings
before the open. LLTC +0.36, +0.80% in
after-hours after a positive earnings report.
GME -9.01,
-19.88%
lowered
its quarterly guidance to $1.85 - $1.95 a share, from $1.97 - $2.14 a share.
CREE +2.19,
+3.59% gained
after selling off Monday following an analyst downgrade. As often occurs, the downgrade was a net one
day negative impact.
The intermediate-term trend is still
up, while the short-term trend is neutral.
Trade with the trend, move your protective stops. If positions were stopped out on Monday you
saw potential re-entry on Tuesday. Continue to follow your rules.
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.”
Short-term
up trend Chart Targets:
SPY = 184.69, 186.06, 186.90…
QQQ = 87.79, 88.74…
IWM = 115.98, 116.70, 118.54…
Q4 earnings season is underway.
Monday – WEN
Tuesday – JPM, LLTC, WFC
Wednesday – BAC, CSX,
FAST
Thursday – AXP, COF, C,
GS, INTC, SWKS, UNH
Friday – GE, MS, SLB,
STI
Q4 Earnings Reactions
Positive Reactions – WEN,
MON, MU, STZ, APOL
Negative Reactions – AA,
FDO, BBBY, SCHN,
Reversal of Initial
Reaction – FDO
The Market Forecast Green Line is pointed up above 80.
____________________
Setups
H Breakout: CTSH,
FAST, GILD, CRM, CSIQ, QIHU, IWM, V, VRSN, YELP,
Diagonal Breakout: GRMN, KLAC, F, SLB, GRPN, KKD, RAX, SPLK, SPY,
TIF, TPX, TWTR, YNDX,
Bull Flag: AAL, ANGI, ATI, BBRY, BX, CMG, DDD, DECK, DRYS,
FAS, GS, HLF, IBM, LVS, MCP, NTES, SCTY, SFUN, SINA, SOHU, SPWR, TSL, VECO, XONE,
Z, ZION, GLD, JKS, JASO,
Potential Bullish
Divergence: FSLR, GOGO, NKE,
Gap Up:
Gap Down:
Bear Flag:
At Support: DLTR, ANR,
MFRM,
C- Pattern:
Moves
New Highs: ADSK, AVGO, MYL, A, ALK, CRM, DAL, GLW, JNPR,
P, RCL, SMH, SWI, SWKS, UAL,
Gap Up:
Gap Down: SSYS, GME,
H Breakout: ADBE, REGN, TSLA, ESI, MOS, SWI, SWK, VMW,
SMH,
Diagonal Breakout: UNG, QQQ,
Breakout Test:
Bounce: AAPL, NVDA, PCLN, TSLA, TXN, VOD, WFM,
XLNX, CRUS, FCX, X, YOKU,
MACD Divergence
Bounce: FIVE,
Bear Flag:
Support Break:
______________________
88 out of 100 NDX
stocks closed higher on Tuesday and
one was unchanged.
Leading NDX 100 stocks included: REGN, ISRG, GOOG,
TSLA, PCLN, BIIB, AAPL, ILMN, ALXN, AMZN, WYNN
Lagging NDX stocks included: BBBY, GOLD
Leading stocks > +2% on Tuesday
included: CSIQ, YELP, TSL, ESI, FIVE, P, SCTY, UAL, X, SPWR, GRPN,
QIHU, YOKU, CREE, DAL, SWI, JCP, KKD, YNDX, GLW, CLF, SWK, ALK, FAS, FSLR,
SPLK, SOHU, CRM, SINA, Z, BAC
Lagging stocks < -2.0% included: GME, SSYS, XONE
Stocks to Watch on Wednesday
Holding Above 30 DMA= 54
CTSH,
FISV, WDC, GOOG, ILMN, LLTC, EXPE, ADSK, ESRX, ALXN, MDLZ, YHOO, MNST, DISH, SIAL,
CMCSA, LBTYA, GMCR, STX, DTV, BRCM, WYNN, FB, INTC, AVGO, EQIX, ORLY, ADBE,
AKAM, VIAB, CA, PCAR, CHKP, FFIV, XLNX, VRTX, SNDK, CTRX, KRFT, AMAT, CSCO,
SBAC, CHTR, HSIC, SIRI, AMGN, ISRG, MYL, MU, TRIP, BIIB, CHRW, EXPD, FAST
Moving Above 30 DMA = 21
ADI, ADP, ALTR, AMZN, BIDU, CELG, CTXS, EBAY, GILD, INTU, KLAC,
MXIM, NVDA, NXPI, QCOM, REGN, SRCL, TSLA, TXN, VIP, VOD
Moving Below 30 DMA = 1
ATVI
Staying Below 30 DMA
LINTA, PAYX, SYMC, ROST, TSCO, NTAP, DLTR, BBBY, SPLS, FOXA, MAT, DISCA,
AAPL,WFM, VRSK, NFLX, PCLN, GRMN, MSFT, CERN, COST, SBUX, LMCA, GOLD
Sixteen Week
Intermediate Term Market Trend: Up
3-Day Short Term Market
Trend: Neutral
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