Wednesday, February 12, 2014

Stocks Inch Higher Extend Rally to Five...QQQ New High Close...PCLN, TRIP All-time High...TWTR Bounces...

Four of nine sectors moved higher on Wednesday and two were unchanged…XLI, XLK and XLU were the strongest sectors…while XLP was the weakest sector.  

Breadth weakened as advancers led decliners 1.32 to 1 on the NYSE and 1.16 to 1 on the NASDAQ.

Wednesday – weakened, advancers led
Tuesday – strengthened, advancers led
Monday – weakened, advancers led
Friday – strengthened, advancers led
Thursday – strengthened, advancers led


SPY up .09 at 182.07 volume 94.4 million shares
VIX down .21 at 14.30…
TNX up .44 at 27.63…
TLT down .55 at 105.92...
XLF unchanged volume 38.8 million shares

AAPL down .04 at 535.92 volume 11 million shares
FB down .40 at 64.45…volume 47.2 million shares


Technical Commentary: 
DIA – 0.03%, SPY + 0.05%, QQQ + 0.19%, IWM + 0.39%.

U.S. stocks traded in a tight range pause day on Wednesday, after a powerful four-day rise, as small caps IWM led the broad index ETFs.  QQQ made a new high close with strength in MSFT +0.295, PCLN +32.71 and QCOM +0.80.  PCLN made a new all-time high close and QCOM finished with a new high close.  TRIP +6.07, +7.21% on a positive earnings reaction also made an all-time high close.

LIVE +2.11, +36.73% split 3 for 1 and had analyst coverage initiated with a speculative buy rating and a $12 price target.

ESI +8.39%, SHLD +4.31%, ZNGA +3.67% and MRVL +2.90% moved higher as CBOE +2.39% made an all-time high.

TWTR +5.28% made its highest close since it earnings reaction collapse closing above its low on Jan 27.  ANGI +4.46% and UNTD +4.14% along with ZNGA were social media leaders.

NVDA +3.92% gained while WFM -7.50%, CSCO -4.16%, NTAP -3.22% fell in after-hours trading on earnings’ reactions after the close.

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 = 182.54, 184.69…
QQQ = 89.00, 92.25, 94.26
IWM = 113.65, 117.37…

Support Levels
SPY = 179.81, 178.08
QQQ = 87.74, 86.97
IWM = 111.34, 110.40

Q4 earnings season
The majority of earnings season is done, however there are still several companies including AMAT, CSCO, DISCA, DISH, GRMN, KRFT, NTAP, NVDA, PCLN, REGN, TRIP, TSLA and WFM that will report over the next several days…

Q4 Earnings Reactions
Positive Reactions – 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 – 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

Reversal of Initial Reaction – CTSH, P, ADM, CERN, GILD, GLW, HON, FAST, FDO, AA


The Market Forecast Green Line is pointed up above 45 and rising.

____________________

Setups
H Breakout: CRM, DRYS, FSLR, GLW, GOGO, IWM, MTW, P, QIHU, SCSS, SWI, TSL, V, X, Z, CTSH, GILD, MSFT, WDC,
Diagonal Breakout: AAPL,  
Bull Flag: YELP,    
Potential Bullish Divergence: 
Gap Up
Gap Down
Bear Flag: 
At Support:  
C- Pattern:

Moves
New Highs: SWKS, ADBE, ADSK, ESRX, PCLN, QCOM, TRIP, XLNX,
Gap Up: TRIP,   
Gap Down:  
H Breakout: LVS, SWKS, EBAY, GRMN, XLNX,   
Diagonal Breakout:    
Breakout Test: 
Bounce: ESI,  
MACD Divergence Bounce: SSYS,  
Bear Flag:   
Support Break: LNKD,

______________________


69 out of 100 NDX stocks closed higher on Wednesday.


Leading NDX 100 stocks included: TRIP, CTRX, NVDA, ISRG, PCLN, XLNX, ADBE, GRMN, ADSK, AVGO

Lagging NDX stocks included: INTU, AMZN, NTAP, SPLS, REGN, MNST, WYNN, ILMN, VRTX, NFLX

Leading stocks > +2% on Wednesday included: ESI, TWTR, ANGI, SSYS, SWKS, Z

Lagging stocks < -2.0% included: LNKD, XONE, ANR, RAX, STI, YELP, JNPR

Stocks to Watch on Thursday
Holding Above 30 DMA= 60
ILMN, ESRX, CMCSA, EQIX, FFIV, SBAC, ISRG, MU, BIIB, MXIM, TSLA, NXPI, NFLX, CHTR, ALTR, ALXN, REGN, GOOG, WYNN, FB, GMCR, ADBE, ORLY, DISH, EBAY, ADSK, AKAM, AVGO, BRCM, CSCO, DTV, PCAR, VRTX, WFM, AMGN, ATVI, CERN, EXPE, GILD, MNST, MSFT, MYL, NTAP, NVDA, PCLN, QCOM, SIAL, SNDK, TRIP, MAR, XLNX, ADI, AAPL, AMAT, CHKP, COST, CTRX, DISCA, KLAC, TXN,

Moving Above 30 DMA = 8
CTSH, GRMN, HSIC, KRFT, LINTA, LLTC, VIAB, WDC

Moving Below 30 DMA = 0


Staying Below 30 DMA
SBUX, SRCL, CHRW, AMZN, VRSK, SYMC, SIRI, STX, CA, CELG, EXPD, FAST, FISV, VIP, VOD, ADP, BIDU, CTXS, INTC, INTU, LBTYA, MDLZ, YHOO, TSCO, PAYX, ROST, DLTR, BBBY, FOXA, SPLS, MAT, LMCA,

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

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