Monday, January 6, 2014

Stocks Weaken...Bull Flags Continue To Dominate...P Gains 14.14%...SCSS Slides 19.06%...

Three of nine sectors moved higher on Monday…XLU, XLE and XLF were the strongest sectors…while XLY was the weakest sector. 

Breadth weakened as decliners led advancers…1.16 to 1 on the NYSE and 1.73 to 1 on the NASDAQ.

Monday – weakened – decliners led
Friday – strengthened, advancers led
Thursday – weakened, decliners led
Wednesday – New Year’s
Tuesday – strengthened, advancers led
Monday – weakened, decliners led


SPY down .52 at 182.36 volume 107.5 million shares, above avg. volume
VIX down .21 at 13.55…
TNX down .34 at 29.61…
TLT up .43 at 102.60...
XLF up .02 at 21.91 volume 34.7 million shares

AAPL up 2.95 at 543.93 volume 14.7 million shares, above avg. volume
FB up 2.64 at 57.20…volume 68.8 million shares


Technical Commentary: 
IWM – 0.81%, QQQ - 0.37%, DIA – 0.30%, SPY – 0.29%.

SIRI gained on Monday after a buyout offer from Liberty Media Corp closing the session up .26 or 7.28%.  TWTR gapped down today after a downgrade closing down 2.71 or 3.93% on 27.3 million shares.

P gapped up and broke horizontal resistance on 29 million shares to gain 3.90 or  14.14% and is pennies away from an all-time high. SCSS gapped down losing 4.07 or 19.06% on 7.1 million shares.


Chart Signals is looking for a potential support bounce this week as markets head into the start of earnings season.

Trade with the trend, move your protective stops. 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 unofficially starts next Thursday, January 9 with the AA earnings release after the close.

Tuesday – APOL, MU
Wednesday – BBBY, MON, SCHN
Thursday – AA, FDO,

Q4 Earnings Reactions
Positive Reactions –



Negative Reactions –

The Market Forecast Green Line is above 80.

____________________

Setups 
H Breakout: GMCR, NVDA, SFUN,
Diagonal Breakout: 
Bull Flag: ADSK, AMAT, BIDU, CA, CMCSA, CTSH, CTXS, DISCA, ESRX, EXPE, FFIV, FISV, FOXA, INTU, MAT, MDLZ, PAYX, QCOM, SIAL, SYMC, TSCO, VIAB, ATI, DRYS, LVS, NTES, SPY, X,
Potential Bullish Divergence:  
Gap Up:
Gap Down:
Bear Flag: 
At Support: BIIB, COST, SBUX, TRIP,
C- Pattern:

Moves
New Highs: DTV, LBTYA, GS,  
Gap Up: SIRI, BAC, P, SCTY, SWI, TSL,         
Gap Down: CELG, EBAY, WFM, FSLR, SCSS, TPX, TWTR,     
H Breakout: BBRY, C, ESI, YELP, YOKU, Z,
Diagonal Breakout: 
Breakout Test: 
Bounce: FB, VRTX,  
MACD Divergence Bounce: 
Bear Flag: 
Support Break: VRSK,  

______________________


27 out of 100 NDX stocks closed higher on Monday.

Leading NDX 100 stocks included: SIRI, FB, VRTX, GMCR, LBTYA, NVDA, CHTR, GOOG, PCAR, VOD

Lagging NDX stocks included: CELG, WFM, SPLS, EBAY, GOLD, CTXS, VRSK, LMCA, MSFT, ADBE

Leading stocks > +2% on Monday included: P, YOKU, SCTY, Z, YELP, ESI, BBRY, TSL, SOHU, SINA

Lagging stocks < -2.0% included: SCSS, FSLR, SSYS, TPX, DRYS, DDD, MCP, TWTR, MFRM, WLT

Stocks to Watch on Tuesday
Holding Above 30 DMA= 65
CTSH, FISV, INTU, WDC, GOOG, AMZN, ILMN, LLTC, EXPE, ADSK, ESRX, ALXN, MDLZ, MNST, YHOO, DISH, SIAL, CMCSA, LBTYA, GMCR, DTV, STX, BIDU, BRCM,  FB, WYNN, AVGO, EQIX, INTC, TSLA, ORLY, ADBE, AKAM, VIAB, CA, CHKP, FFIV, LINTA, PCAR, TSCO, VOD, SNDK, VRTX, XLNX, ADP, ATVI, CTRX, CTXS, DISCA,  FOXA, KRFT, PAYX, AMAT, MAT, NVDA, ALTR, BBBY, CHTR, CSCO, SBAC, SYMC, DLTR, ROST, HSIC, MXIM

Moving Above 30 DMA = 1
SIRI

Moving Below 30 DMA = 10
ADI, AMGN, CELG, EBAY, GILD, KLAC, NXPI, SPLS, TXN, VIP

Staying Below 30 DMA
AAPL, BIIB, CHRW, EXPD, ISRG, MU, QCOM, WFM, FAST, MYL, NFLX, NTAP, VRSK, PCLN, GRMN, MSFT, CERN, SRCL, TRIP, COST, LMCA, SBUX, REGN, GOLD

Sixteen Week Intermediate Term Market Trend: Up

3-Day Short Term Market Trend: Down/Neutral

1 comment:

Anonymous said...

Thanks Dave, I read your analysis daily and rely on our observations.