Stocks Slip...FNMA Plunges 30.76%...And FMCC Joins In... Down 26.81%...After Senate Bill Draft Proposal To Reform US Housing-Finance System...

None of the nine sectors moved higher on Tuesday…however…XLP, XLV and XLK were the strongest sectors…while XLE was the weakest sector.    

Breadth weakened as decliners led advancers 2.06 to 1 on the NYSE and 2.69 to 1 on the NASDAQ.

Tuesday – weakened, decliners led

Monday – weakened, decliners led

Friday – weakened, decliners led

Thursday – strengthened, advancers led

Wednesday – weakened, decliners led

SPY down .93 at 187.23 on 98.8 million shares, below average volume

VIX up .60 at 14.80…

TNX down .18 at 27.66…

TLT up .28 at 106.32...

XLF down .15 at 22.23 on 45.1 million shares

AAPL up 5.17 at 536.09 on 9.9 million shares, below average volume

FB down 1.93 at 70.10…on 59.3 million shares

Technical Commentary: 

IWM – 1.04%, SPY – 0.49%, QQQ – 0.43%, DIA – 0.35%.

The NASDAQ fell for the fourth day in a row while the DJIA and S&P 500 also fell.  NASDAQ fell 27.26 with the S&P 500 closing down 9.54 and the DJIA losing 67.43.

With most stocks pulling down AAPL managed to buck the trend in today’s trading session…breaking horizontal resistance gaining 5.17 or .97% on 10 million shares.

With the news of a Senate bill draft being proposed to reform the US housing-finance system…and quite possibly the breakup and elimination of Fannie Mae and Freddie Mac…both FNMA and FMCC closed down sharply in today’s trading…FNMA plunged 1.79 or 30.76% on 214.4 million shares…while FMCC was down 1.48 or 26.81% on 84.7 million shares. 

PLUG traded 243.9 million shares today…after a record high posted yesterday of 10.31…PLUG reversed its trend and traded down today…losing 4.28 or 41.51%.  In after-hours trading PLUG is off another 3%.

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 – 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 94.

____________________

Setups

H Breakout: KKD, MTW, PANW, V, MU, SBUX,

Diagonal Breakout:

Bull Flag: AAL, BAC, C, DRYS, FAS, FSLR, GLW, GOGO, IWM, LVS, MFRM, MS, QIHU, RAX, SFUN, SPY, STI, SWI, SWKS, TSL, UAL, ZION, AMZN, BIDU, CTSH, DTV, EBAY, FFIV, GOOG, NFLX, PCLN, TRIP, WYNN, XLNX, YHOO,

One Day:  

Potential Bullish Divergence: 

Gap Up: 

Gap Down:    

Bear Flag: 

At Support: CRM, CSIQ, JDSU, RCL, SPWR, YNDX,

C- Pattern:

Moves

New Highs:   

Gap Up:

Gap Down:    

H Breakout: AAPL,  

Diagonal Breakout: MNST,   

Breakout Test:

Bull Flag Bounce:

Bounce: SSYS, WFM,   

MACD Divergence Bounce: 

Bear Flag: 

Support Break: BBRY, JNPR, YELP,  

______________________

22 of 100 NDX stocks closed higher on Tuesday.

Leading NDX 100 stocks included: GMCR, SBUX, LBTYA, AKAM, DISH, MYL, NVDA, AAPL

Lagging NDX stocks included: BIDU, FB, VIP, TRIP, ALXN, WDC, FOXA, TSLA, LMCA, MXIM

Leading stocks > +2% on Tuesday included: MTW, CRM

Lagging stocks < -2.0% included: WLT, YOKU, TSL, CSIQ, ANR, P, Z, RAX, BBRY, GOGO

Stocks to Watch on Tuesday

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, CA, DLTR, ROST, SIAL, ADP, TSCO, SBAC, AAPL, BRCM, ESRX, PAYX, QCOM, AMZN, SRCL, INTC, MAT, SBUX, COST

Moving Above 30 DMA = 1

GMCR

Moving Below 30 DMA = 2

YHOO, VRSK

Staying Below 30 DMA

ADSK, VOD, WDC, LMCA, CELG, GILD, SPLS, STX, 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