Eight out of nine
sectors
moved lower on Wednesday…XLE, XLP and XLK were the strongest sectors…while
XLF was the weakest sector.
Breadth weakened
as decliners
led advancers 1.80 to
1 on the NYSE and 2.55 to
1 on the NASDAQ.
Wednesday – weakened, decliners led
Tuesday – strengthened,
advancers led
Monday – holiday
Friday – weakened,
advancers led
Thursday – strengthened,
advancers led
SPY down 1.22 at 183.02 volume 124.8 million shares
VIX up 1.62 at 15.49…
TNX up .23 at 27.34…
TLT down .45 at 106.37...
XLF down .30 volume 64.1 million shares
AAPL down 8.62 at 537.37 volume 11.1 million shares
FB up .76 at 68.06…volume 56.3 million shares
Technical
Commentary:
IWM – 1.02%,
QQQ – 0.69%, SPY
– 0.66%, DIA – 0.55%.
SPY touched its Jan 15 high
(resistance) before profit-takers pushed back the broad index ETF. Stocks fell on Wednesday on increased but
average volume after FOMC minutes indicated a lack of consensus on when short-term
interest rates may begin to rise. A
larger than expected drop in home construction in January was the latest economic
release that failed to meet estimates due to harsh weather.
GRMN +4.51,
+9.56% gained
after a positive earnings reaction Wednesday morning.
GOGO +0.56,
+2.80% rose after an analyst upgrade to overweight and a price target of $26. FNMA +0.28,
+8.97% following news of Lehman settlement with Freddie Mac FMCC
which had a similar rise following the news.
Short-term traders may use the pull
back as the place to raise profit protection stops below Wednesday’s bearish
candle. The intermediate-term trend is
still up
FB
after rising 76 cents on Wednesday as
the market pulled back, dropped -1.82, -2.67% in after-hours after reporting it
would acquire WhatsApp in a $16+ billion stock and cash deal.
WhatsApp is a smartphone messaging service with more than 400 million monthly users.
TSLA
+24.45, +12.63% gained after reporting better than expected fourth-quarter
results.
TSLA on an adjusted basis earned
33 cents vs. 21 cents estimate.
Trade with the trend of the chart
you are trading and move
your protective stops. Be mindful of
reversal patterns like double bottoms and MACD divergences. Continue to follow your rules.
Short-term
up trend Chart Targets:
SPY = 184.10, 187.99…
QQQ = 90.43, 92.25, 94.26…
IWM = 115.39, 117.37…
Support Levels
SPY = 181.85, 180.29 179.04
QQQ = 89.00, 87.74,
86.97
IWM = 113.65, 111.21
Q4 earnings season…
The majority of earnings
season is done, however there are still several companies including ADSK, CRM, DISH, DTV, ESRX, GRMN, GRPN, MCP, MNST, PCLN,
ROST, SCTY, SPLK, TSLA, WLT and YNDX that will report over the next several days…
Q4 Earnings Reactions
Positive Reactions – GRMN,
KRFT, AMAT, NVDA, SPWR, TRIP, REGN, CBOE, MCO, ATVI, AKAM, EXPE,
GMCR, NXPI, ONNN, ORLY, SCSS, SWI, TWX, DIS, YELP, AGNC, KORS, KEYW,
IDXX, XYL, YUM, NOV, SPG, TSN, ZNGA, ALXN, BRCM, BX, CMG, GOOG, JDSU,
MTW, PHM, RYL, VIAB, V, BA, DOW, FB, LVS, QCOM, VLO, AKS, AAL, CHKP, EA, F,
ILMN, LXK, CAT, RCL, JNPR, MSFT, KMB, PG, MXIM, SBUX, NFLX, FFIV, URI,
UNP, EBAY, MCD, CREE, TXN, UTX, NUAN, XLNX, BHI, DAL, RF, MS, SLB, STI, AXP,
SWKS, BAC, LLTC, WEN, MON, MU, STZ, APOL
Negative Reactions – KO,
A, GNC, WTW, VFC, WFM, ANGI, CSCO, DISCA, NTAP, RAX, CI, LNKD,
VRSN, ADP, CTSH, HUM, MDC, P, TSO, TWTR, ADM, BWLD, CERN, CHRW, GILD, CVX, MA,
MAT, PCAR, AMZN, MMM, CELG, CL, XOM, ESI, HOG, OSTK, POT, SHW, WHR, BA, CTXS,
EMC, TSCO, CRUS, GLW, DD, F, VMW, YHOO, AAPL, STX, ZION, HON, KSU, SWK, STT,
ALTR, ISRG, KLAC, KEY, JCI, LMT, WDC, ABT, BAX, ATI, COH, FCX, AMD, IBM, HAL,
JNJ, TRV, VZ, GE, COF, INTC, UNH, C, GS, CSX, FAST, AA, FDO, BBBY, SCHN (72)
Reversal of Initial
Reaction – VRSN, CSCO, ADP, CTSH, HUM, P, TSO, ADM, CERN, GILD, PCAR, MMM, CELG,
HOG, POT, SHW, EMC, GLW, DD, VMW, YHOO, ZION, HON, SWK, ALTR, ISRG, KLAC, LMT,
HAL, FAST, FDO, AA (32, 45%)
The Market Forecast Green Line is above 80.
____________________
Setups
H Breakout: SFUN, SOHU, MNST,
Diagonal Breakout:
Bull Flag: GLW, JDSU, RCL, SWKS, CELG,
Potential Bullish
Divergence:
Gap Up: TSLA
Gap Down:
Bear Flag:
At Support: BAC,
GRPN, MS, UAL, X, AMZN,
C- Pattern:
Moves
New Highs: TRIP, XLNX,
Gap Up: UNG, GRMN,
Gap Down: X,
H Breakout:
Diagonal Breakout:
Breakout Test:
Bounce: ANR, LNKD, TBT,
MACD Divergence Bounce:
Bear Flag:
Support Break: DRYS, MFRM, CMCSA,
______________________
27 out of 100 NDX
stocks closed higher and two were
unchanged on Wednesday.
Leading NDX 100 stocks included: GRMN, MYL, ALTR,
EXPE, MNST, NVDA, WFM, FB, SBAC
Lagging NDX stocks included: TSLA, CMCSA, REGN,
FFIV, PCLN, GMCR, NFLX, BIIB, SIAL
Leading stocks > +2% on Wednesday
included: UNG, GOGO, ANR, LNKD
Lagging stocks < -2.0% included: SCTY, X, DRYS, BBRY, TWTR, ANGI, XNE,
YNDX, FAS, CSIQ, Z
Stocks to Watch on Thursday
Holding Above 30 DMA= 69
ILMN,
ESRX, EQIX, FFIV, SBAC, ISRG, MU, BIIB, MXIM, TSLA, NXPI, NFLX, ALTR, ALXN,
REGN, GOOG, WYNN, FB, GMCR, ADBE, ORLY, DISH, EBAY, ADSK, AKAM, AVGO, BRCM,
DTV, PCAR, VRTX, AMGN, ATVI, CERN, EXPE, GILD, MNST, MSFT, MYL, NVDA, PCLN,
QCOM, SIAL, SNDK, TRIP, MAR, XLNX, ADI, AAPL, AMAT, CHKP, COST, KLAC, TXN,
CTRX, CTSH, GRMN, HSIC, LINTA, LLTC, VIAB, KRFT, BIDU, CELG, VRSK, MDLZ, LMCA,
FOXA, FISV, LBTYA
Moving Above 30 DMA = 1
DISCA
Moving Below 30 DMA = 4
CA, CMCSA, CSCO, WDC
Staying Below 30 DMA
SBUX, SRCL, CHTR, NTAP, WFM, CHRW, AMZN, SYMC, SIRI, STX, EXPD, FAST, VIP,
VOD, ADP, CTXS, INTC, INTU, YHOO, TSCO, PAYX, ROST, DLTR, BBBY, SPLS, MAT
Sixteen Week
Intermediate Term Market Trend: Up
3-Day Short Term Market
Trend: Neutral
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