Monday, February 3, 2014

Stocks See Drop In Today's Session...DJIA Off 2.08%...IWM Off 3.13%...SPY Off 2.30%...Many Stocks Break Support...

All nine sectors moved lower on Monday…XLI, XLY and XLF were the strongest sectors…while XLU was the weakest sector. 

Breadth weakened as decliners led advancers 5.60 to 1 on the NYSE and 6.07 to 1 on the NASDAQ.

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


SPY down 4.01 at 174.17 volume 253.8 million shares, above average volume
VIX up 3.03 at 21.44…
TNX down .87 at 25.81…
TLT up 1.32 at 109.32...
XLF down .53 at 20.53 volume 105.1 million shares, above average volume

AAPL up .93 at 501.53 volume 14.3 million shares
FB down 1.09 at 61.48…volume 74.8 million shares


Technical Commentary: 
IWM – 3.13%, QQQ – 2.30%, SPY – 2.25%, DIA – 2.05%.


January Performance
SPX    -3.56%
NDX   -1.95%
RUT   -2.82%

XLU    +2.98%
XLV    +0.94%
XLK    -2.57%
XLF    -3.66%
XLI      -4.27%
XLB    -4.72%
XLP    -5.17%
XLE    -5.80%
XLY    -6.00%

FB         +14.49%
NFLX   +11.18%
GILD       +7.39%
MU          +5.93%
GOOG    +5.38%
PCLN     -1.51%
BIDU    -12.02%
AMZN   -10.06%


Monday’s trading session saw a big drop with the DJIA having its biggest drop since June of last year…down 326.05 points to close at 15,372.80 or 2.08%...S&P losing 40.70 or 2.28% and the NASDAQ off 106.92 or 2.61%...With only 3 out of 100 NDX stocks closing up…it’s easy to see why it was one of the worst selloffs in several months.  Many stocks ended the trading session at support…but most broke their recent support.  Today’s loss was contributed to a weaker than expected reading on manufacturing data.

HLF ignored the rest of the crowd mentality and gained 4.65 or 7.22% in today’s trading…breaking horizontal resistance and near breaking of its diagonal resistance on volume of 8.8 million shares.  Perhaps investors saw today’s over-all market loss as an agitate syndrome and that investors would be pulling stock off the shelves of HLF in droves!



(The Following was posted last Friday):
The SPX finished lower in January for just the third month in the past year.  The other two lower months were June and August.  The short-term market trend was neutral this week as the SPX held the 1,770 area of support five times this week suggesting that institutions are buyers at this support area, as they were back in November and December at this same horizontal level.  If support holds next week look for a bounce back to the 1,800 resistance area and then the 1,820 – 1,830 resistance area if the buyers can break 1,800 resistance.

Be prepared to trade to the downside if the SPX does break short-term support.

Monday kicks off another week for earnings with GILD, AKAM, GMCR, P, SWI, TWTR, YELP, LNKD and CBOE among other reporting this week.

Trade with the trend of the chart you are trading and move your protective stops.  Continue to follow your rules.


Short-term up trend Chart Targets:
SPY = 181.34, 183.40, 184.69
QQQ = 88.18, 89.00
IWM = 114.48, 116.70

Support Levels
SPY = 179.12, 177.74, 176.36
QQQ = 86.38, 85.67, 84.93
IWM = 112.14, 111.02, 110.71, 109.31


Q4 earnings season continues into the fourth full week…

Monday – AEIS, AGNC
Tuesday – ADM, BWLD, CHRW, CME, GILD, HCA, IP, KORS, KEYW
Wednesday – AKAM, ADP, BIDU, CTSH, FISV, GMCR, HUM, MDC, MRK, NXPI, ORLY, P, SCSS, SWI, TSO, NDAQ, TWX, TWTR, DIS, YELP
Thursday – ATVI, LNKD, SIAL, TPX, VRSN
Friday – CBOE, CI, MCO

Q4 Earnings Reactions
Positive Reactions – 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 – 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 – HON, FAST, FDO, AA


The Market Forecast Green Line is below 20.

____________________

Setups
H Breakout:  
Diagonal Breakout:  
Bull Flag: RCL, TSLA,  
Potential Bullish Divergence: MFRM,      
Gap Up:  
Gap Down:
Bear Flag: 
At Support: SCIQ, DRYS, FSLR, SFUN, SSYS, STI, X, Z, ZION, ADBE, ADSK, AKAM, MNST, STX,
C- Pattern:

Moves
New Highs
Gap Up:        
Gap Down: 
H Breakout:  
Diagonal Breakout:
Breakout Test: 
Bounce:  
MACD Divergence Bounce: 
Bear Flag:  
Support Break: A, ANR, ATI, CREE, ESI, FAS, GOGO, IBM, IWM, MCP, MS, NKE, NTES, RAX, SCSS, SOHU, SPWR, SPY, UAL, V, WLT, XONE, YNDX, YOKU, BIDU, CTSH, GRMN, PCLN, SNDK, XLNX,

______________________


3 out of 100 NDX stocks closed higher on Monday.

Leading NDX 100 stocks included: GOLD

Lagging NDX stocks included: NXPI, MAT, TSCO, TRIP, HSIC, GOOG, VIAB, BIIB

Leading stocks > +2% on Monday included: TLT, TWTR, GLD

Lagging stocks < -2.0% included: SPWR, ANR, CSIQ, GOGO, WLT, FAS, TSL, QIHU

Stocks to Watch on Tuesday

Holding Above 30 DMA= 26
ILMN, ESRX, CMCSA, EQIX, FFIV, VRTX, SBAC, ISRG, MU, BIIB, GILD, MXIM, TSLA, NXPI, NTAP, GOLD, NFLX, CHTR, ALTR, ALXN, REGN, CERN, GOOG, WYNN, FB, GMCR

Moving Above 30 DMA = 0


Moving Below 30 DMA = 15
ADSK, AKAM, AMGN, AVGO, BRCM, CHKP, CHRW, HSIC, MSFT, MYL, QCOM, SIAL, SRCL, XLNX, WDC


Staying Below 30 DMA
AMZN, DTV, MNST, ORLY, CTRX, VRSK, DISH, SYMC, SIRI, CSCO, STX, EBAY, [CLN, AAPL, ADBE, AMAT, CA, CELG, CTSH, EXPD, FAST, FISV, KLAC, LLTC, NVDA, PCAR, SNDK, VOD, TXN, VIP, ADP, BIDU, CTXS, GRMN, ADI, KRFT, EXPE, INTC, INTU, MDLZ, LBTYA, TRIP, YHOO, VIAB, LINTA, TSCO, ATVI, PAYX, ROST, DLTR, BBBY, SPLS, FOXA, MAT, DISCA, WFM, COST, SBUX, LMCA


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


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