Four of nine
sectors
moved higher on Wednesday…XLY, XLB and XLK were the strongest sectors…while
XLU was the weakest sector.
Breadth weakened
as
decliners led advancers 1.43 to 1 on the NYSE and 2.14 to
1 on the NASDAQ.
Wednesday – weakened, decliners led
Tuesday – strengthened,
advancers led
Monday – weakened,
decliners led
Friday – weakened,
decliners led
Thursday – strengthened,
advancers led
SPY down .22 at 175.17 volume 163.7 million shares, above average volume
VIX up .84 at 19.95…
TNX up .43 at 26.67…
TLT down 1.00 at 107.16...
XLF down .02 at 20.71 volume 47.1
million shares
AAPL up 3.80 at 512.59 volume 11.7 million shares
FB down .56 at 62.19…volume 52.3 million shares…lower than average volume
Technical
Commentary:
DIA + 0.06%, IWM – 0.75%, QQQ – 0.26%, SPY – 0.12%.
Stocks and
indexes on Wednesday sold off early, tested Monday’s support low and bounced
again with SPY, QQQ and IWM forming hammer candle patterns and
the DIA forming a micro bullish engulfing. Interest rates, TNX +0.43 jumped while bonds TLT -1.00 gapped lower and VIX closed higher. The SPY, QQQ and DIA are still forming MACD
bullish divergences as we discussed in Tuesday’s post.
BWLD -13.63,
-9.68% reversed
its after-hours positive earnings reaction on Tuesday and fell on heavy volume. DDD -11.66, -15.39, CHRW
-5.48, -9.35% and CTSH -4.16, -4.29% gapped lower after negative earnings reactions.
GMCR +36.45,
+45.07% gapped
higher after the close on better than expected EPS and an announcement that
KO would take a 10% stake in GMCR.
TWTR -11.81,
-17.90%
was down
huge in after-hours trading after releasing its first earnings report as a
public company with surprise EPS of 2 cents (adjusted). The bad news was user growth and timeline
views were significantly weaker than expected.
P -3.55,
-9.91% and TSO -1.97, -3.94% also had negative earnings reactions after the
close on Wednesday.
Also after
the close positive earnings reactions included AKAM +8.46, +17.84%, YELP +5.57,
+7.40%, DIS +2.44, +3.40%, and SWI +1.16,
+2.72%. Look for potential
bullish gaps on these stocks Thursday morning.
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 = 179.81…
QQQ = 86.80…
IWM = 111.02, 113.65…
Support Levels
SPY = 173.95, 172.14
QQQ = 84.29, 83.50,
82.72
IWM = 108.39, 106.76
Q4 earnings season…
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 – TWX, MYGN, LVLT, CVD, AGNC, KORS, 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 – ADP,
CTSH, GILD, HUM, MDC, ADM, 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 turned up below 20 on
Wednesday.
____________________
Setups
H Breakout: GMCR,
Diagonal Breakout: BBRY, C, Z, ZION, DTV, MU, SBUX, TRIP,
Bull Flag: MTW, TSLA, JNPR, RCL, RCL, CMCSA,
FFIV, GOOG, NFLX, NTAP, WYNN
Potential Bullish
Divergence: BAC, CIEN, DRYS, FSLR, MCP, MFRM, NKE, NTES, SCSS, WLT, X,
Z, ADSK, COST, INTC, ROST, STX, WDC,
Gap Up: GMCR,
AKAM, SWI, DIS, YELP
Gap Down: TWTR,
P, TSO
Bear Flag:
At Support: CIEN, X,
C- Pattern:
Moves
New Highs:
Gap Up: TBT, MYGN, LVLT, CVD
Gap Down: ANGI, DDD, TLT, XONE, CTSH, CHRW
H Breakout: CRM, SWI,
Diagonal Breakout:
Breakout Test:
Bounce: GLW, BBRY, IBM, MS, RAX, V, YNDX, ADBE,
AKAM, EBAY, SNDK,
MACD Divergence
Bounce: GME,
Bear Flag:
Support Break: LVS, SFUN, SSYS,
______________________
41 out of 100 NDX
stocks closed higher on Wednesday.
Leading NDX 100 stocks included: PCAR, ADBE, AKAM,
DISCA, ISRG, MU, CHKP
Lagging NDX stocks included: CHRW, CERN, GILD,
CTSH, BIIB, SIRI, TSLA, BIDU, FFIV, VRTX, LMCA
Leading stocks > +2% on Wednesday
included: SWI, GME, RAX, GLW
Lagging stocks < -2.0% included: DDD, XONE, SFUN, ANGI, SSYS, ANR, QIHU
Stocks to Watch on Thursday
Holding Above 30 DMA= 27
ILMN,
ESRX, CMCSA, EQIX, FFIV, SBAC, ISRG, MU, BIIB, GILD, MXIM, TSLA, NXPI, GOLD,
NFLX, CHTR, ALTR, ALXN, REGN, GOOG, WYNN, FB, GMCR, ADBE, ORLY, SRCL, DISH
Moving Above 30 DMA = 1
EBAY
Moving Below 30 DMA = 5
AVGO, CERN, CHRW, NTAP, VRTX
Staying Below 30 DMA
ADSK, AKAM, AMGN, BRCM,
CHKP, HSIC, MSFT, MYL, QCOM, SIAL, XLNX, WDC, AMZN, DTV, MNST,CTRX, VRSK, SYMC,
SIRI, PCLN, AAPL, 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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