Wednesday, March 12, 2014

Buyers are Back...SPY, QQQ, IWM Bull Flag Patterns...Poised to Bounce...

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

Breadth strengthened as advancers led decliners 1.37 to 1 on the NYSE and 1.28 to 1 on the NASDAQ.

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


SPY up .05 at 187.28 on 104.5 million shares, below average volume
VIX down .33 at 14.47…
TNX down .40 at 27.26…
TLT up .74 at 107.06...
XLF down .04 at 22.19 on 31.9 million shares, below average volume

AAPL up .52 at 536.61 on 7.1 million shares, below average volume
FB up .78 at 70.88…on 46.2 million shares, below average volume


Technical Commentary: 
QQQ + 0.38%, IWM + 0.30%, SPY + 0.03%, DIA – 0.12%.

Bull flags appeared as buyers were back in town on Wednesday.  SPY, QQQ, IWM, DIA, XLB, XLF, XLI, XLK, XLV and XLY made intra-day reversals in bull flag patterns.  XLU was a bull flag bounce entry on Wednesday.

The broad market appears poised for a bull flag trend continuation bounce that could continue as soon as Thursday.

KKD +2.02, +10.16% gained in after-hours trading on a positive earnings reaction.

Trade with the trend of the chart you are trading and continue to move your protective stops.  Continue to follow your rules.
Short-term up trend Chart Targets:
SPY = 189.25, 190.55…
QQQ = 90.96, 92.25, 93.05
IWM = 120.64, 121.84…

Support Levels
SPY = 187.15, 183.75, 182.60
QQQ = 88.87, 87.35, 86.49
IWM = 118.71, 115.58


Earnings this week… GOGO, KKD, MFRM

Q4 Earnings Reactions
Positive Reactions – KKD, BIG, FL, JOY, DRYS, TSL, DDD, MNST, ROST, YOKU, CRM, SHLD, ANF, TGT, DLTR, LOW, HD, M, SCTY, ZU, PCLN, DISH, INTU, AEE, MDRX, ALEX, DTV, TSLA, GRMN, SWY, KRFT, AMAT, CTRP, 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, UA, 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 – CIEN, COST, CSIQ, HOV, MCP, SSYS, ADSK, CRM, FSLR, SINA, ESRX, GRPN, YNDX, KO, A, GNC, WTW, VFC, WFM, ANGI, CSCO, DISCA, NTAP, RAX, CI, LNKD, TPX, VRSN, ADP, CTSH, HUM, MDC, P, TSO, TWTR, ADM, BWLD, CERN, CHRW, DDD, SFLY, 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 (104)

Reversal in progress –ADSK, ATI, A, CRUS CSX, CVX, GS, COF, JNJ, IBM, JCI, KEY, KO, LNKD, MA, RAX, STX, WFM (18, 18%)

Reversal of Initial Reaction – SINA, AA, AAPL, ABT, ADP, ADM, ALTR, BWLD, DISCA, CERN, CL, CSCO, CTSH, CTXS, DDD, HAL, EMC, ESRX, FAST, FDO, FSLR, HOG, BAX, VRSN, HUM, P, GILD, PCAR, MDC, MMM, CELG, HOG, POT, SHW, GLW, DD, HON, SWK, ISRG, KLAC, LMT, SFLY, TPX, TSCO, TSO, WHR,  UNH, VZ,  WDC, VFC, VMW, YHOO, XOM, ZION (54, 51%)


The Market Forecast Green Line closed above 92.

____________________

Setups
H Breakout: MTW, PANW, V, INTC, MU, QCOM,  
Diagonal Breakout: AAPL,
Bull Flag: AAL, BAC, BX, FAS, GLW, GME, IBM, IWM, LVS, MFRM, MS, NKE, QIHU, SFUN, SPY, STI, SWI, TSL, UAL, X, ZION, CTSH, DTV, FFIV, NFLX, WYNN, XLNX, QQQ
One Day:  
Potential Bullish Divergence: JNPR, RCL,
Gap Up: KKD,
Gap Down:    
Bear Flag: 
At Support: BBRY, CRM, DRYS, LNKD, NTES, SPWR, YNDX, YHOO,
C- Pattern:

Moves
New Highs: TXN,    
Gap Up: GLD,
Gap Down: C, MS, UNG,    
H Breakout: KKD, SBUX, WFM,  
Diagonal Breakout:    
Breakout Test:
Bull Flag Bounce: JDSU, SWKS, TPX, YELP, AMZN, EBAY, GOOG, GRMN, MSFT, PCLN, TRIP, TSLA, XLU, ATI, MTW,
Bounce: CIEN, CREE, CTRP, ESI, GRPN, P, SCTY, SPLK, WLT, Z, ADBE, GMCR, NTAP, WDC,   
MACD Divergence Bounce
Bear Flag
Support Break:     

______________________


65 of 100 NDX stocks closed higher on Wednesday.

Leading NDX 100 stocks included: REGN, TSLA, ATVI, EXPE, WFM, GMCR, AMAT, KLAC, AVGO

Lagging NDX stocks included: MYL, CTSH, SIRI, SPLS, LMCA, ADSK

Leading stocks > +2% on Wednesday included: SCTY, JDSU, Z, WLT, GRPN, P, CIEN, CTRP, SPLK, YELP

Lagging stocks < -2.0% included: DRYS, YNDX

Stocks to Watch on Thursday
Holding Above 30 DMA= 78
ILMN, EQIX, FFIV, ISRG, MU, BIIB, MXIM, TSLA, NXPI, NFLX, ALTR, ALXN, REGN, GOOG, WYNN, FB, ADBE, ORLY, DISH, EBAY, AKAM, AVGO, DTV, PCAR, AMGN, ATVI, CERN, EXPE, MNST, MSFT, MYL, NVDA, PCLN, SNDK, TRIP, XLNX, ADI, MAR, AMAT, CHKP, KLAC, TXN, CTSH, GRMN, HSIC, LINTA, LLTC, VIAB, KRFT, BIDU, MDLZ, FOXA, FISV, LBTYA, DISCA, CTXS, FAST, INTU, WFM, BBBY, DLTR, ROST, SIAL, ADP, TSCO, SBAC, AAPL, BRCM, ESRX, PAYX, QCOM, AMZN, SRCL, INTC, MAT, SBUX, COST, GMCR

Moving Above 30 DMA = 1
STX

Moving Below 30 DMA = 1
CA

Staying Below 30 DMA
YHOO, VRSK, ADSK, VOD, WDC, LMCA, CELG, GILD, SPLS, VRTX, SIRI, CTRX, CMCSA, CSCO, NTAP, CHTR, CHRW SYMC, EXPD, VIP

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

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