Monday, June 16, 2014

Stocks End Session With Small Gains...Big Gains For FIO Up 22.41%...COV Up 20.45%...WMB Up 18.74%...Nuan Up 9.71%...TSLA Bounces And Closes Up 8.81% After News Of Expanding Network Of Charging Stations...

Five of nine sectors moved higher on Monday and one was unchanged…XLU, XLE and XLP were the strongest sectors…XLF was the weakest. 

Sector Posture – all sectors are positive 
Positive trend: XLB, XLE, XLF, XLI, XLK, XLP, XLV, XLY, XLU
Neutral trend near resistance:
Neutral trend near support:

Breadth was mixedas advancers led decliners 1.04 to 1 on the NYSE and 1.12 to 1 on the NASDAQ.

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


SPY up .16 at 194.29 on 74.8 million shares
VIX up .47 at 12.65…
TNX down .07 at 25.97…
TLT up .28 at 112.43...
XLF down .11 at 22.50 on 32.4 million shares

AAPL up .92 at 92.20 on 34.9 million shares
FB down .31 at 64.19…on 30.7 million shares


Technical Commentary:
IWM +0.48%, QQQ +0.08%, SPY +0.30%, DIA +0.1404. 

SPY, QQQ, DIA form higher high and higher low than Friday…poised for support bounce bull flag entry.

IWM makes 20 cent bounce gives potential entry signal.

XLE makes new all-time closing high.  XLF, XLI, XLK, XLP, XLU, XLV and XLY in bull flag price pattern.

FIO +2.08, +22.41% gaps higher after $1.1 cash buyout offer from SNDK.

COV +14.73, +20.45% gaps up following $42.9 billion cash and stock buyout offer from MDT.

WMB +8.84, +18.74% gaps up following analyst upgrade and $65 price target.

NUAN +1.66, +9.71% gains on news of discussions with possible suitors.

While the bull flag pattern is a short-term trend continuation pattern, wait for the bounce as the entry Chart Signal.


We’ll be watching AAPL for a potential bounce, XLF for continued strength and a potential bounce on dozens of bull flags on Tuesday.

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 = 196.05, 197.87, 198.99 …
QQQ = 93.02, 94.31…
IWM = 117.48, 118.48…

Support Levels
SPY = 193.11, 191.96, 190.88…
QQQ = 91.73, 90.44…
IWM = 114.66, 113.62…


Q1 Earnings Reactions
Positive Reactions – CIEN, BIG, PANW, GLNG, QIHU, AAPL, ADSK, AET, ALL, ALXN, AMAT, ANGI, ANR, APA, ATVI, BA, BHI, BIDU, BTU, BWLD, BX, C, CHRW, CNX, COG, CTRP, CTRX, CTXS,  DAL, DAVE, DDS, DECK, DHI, DNB, DO, DTV, DV, EA, ENR, ETFC, FCX, FISV, FNMA, FOXA, GE, GILD, GMCR, GME, GOGO, GRMN, HAL, HAS, HOG, HPQ, HUM, IBKR, INTC, JCP, JNJ, KO, LPNT, LRCX, LVLT, MA, MAR, MGM, MNST, MRK, MS, NOK, NTAP,NXPI, PBI, PCLN, POT, PRU, RF, S, SCHW, SCTY, SNDK, SPWR, STI, SWK, SWKS, TKR, TMUS, TPX, TRIP, TRV, TSL, TSO, TWX, UNP, URI, UTHR, VRSK, WFC, WLP, WYNN, XRX, YELP, YHOO, Z

Negative Reactions – KKD, SPLK, ACI, ADM,  AEIS, AIG, AKAM, AKS, ALTR, AMGN, AMZN, ARWR, ATI, BAC, BBRY, BIIB, BMY, BRCM, CAR, CBOE, CELG, CHKP, CLF, CLX, COF, CREE, CTSH, DDD, DIS, DISCA, DISH, DKS, DVA, EBAY, ESI, ESRX, EXPE, F, FAST, FEYE, FFIV, FXCM, GOOG, GRPN, IBM, JAZZ, JCI, JDSU, JPM, K,  KLAC, KMB, KRFT, LLTC, LLY, LNKD, LVS, LXK, MCP, MMM, MOS, MTW, MU, MXIM, NKE,NSC, NUE, NVDA, P, PCAR, PFE, PG, PNRA, PRGO, QCOM, REGN, SAVE, SEE, SFUN, SIRI, SOHU, SPLS, SSYS, STLD, STT, STX, SUNE, SWI, T, TJX, TSLA, TSN, TWTR, UA, UBNT, UNH, UPS, V, VECO, VIAB, VMW, VRTX, VZ, WDC, WFM, XLNX, YNDX, YY, ZION, ZNGA,

Reversal in progress – AEIS, AMGN, BRCM, CHKP, CTSH, EXPE, FEYE, GRPN, KLAC, KMB, LLTC, LXK, MOS, NUE, PCAR, STLD, WDC, ZION

Reversal of Initial Reaction – ADM, AIG, AKAM, AKS, ARWR, ATI, BAC, BMY, BRCM, CAR, CELG, COF, DDD, DIS, DISCA, DVA, ESRX, F, FFIV, IBM, JCI, K, KRFT, LLY, LNKD, LVS, MMM, MU, NKE, NSC, NUE, NVDA, PG, PRGO, QCOM, SAVE, SIRI, SOHU, STX, SUNE, T, UPS, VIAB, VMW, VZ, YNDX, YY, ANGI, ANR, BTU, COG, DECK, ETFC, RF, SCHW, SWK, INTC, YHOO


The SPY Market Forecast green line is in the upper zone at 84.

____________________

Setups
Horizontal Breakout: SSYS,
Diagonal Breakout:
Bull Flag: SPY, QQQ, IWM, DIA, AXP, CAT, CSCO, DD, GE, JNJ, JPM, MMM, MRK, UNH, UTX, XLB, XLF, XLI, XLK, XLV, XLY, BAC, BX, CIEN, DAL, FAS, JD, MS, MTW, RAX, RCL, SCHW, SCSS, STI, TPX, YNDX, ZION, AAPL, ADSK, AMZN, CELG, CMCSA, FB, GRMN, ILMN, MAR, NTAP, TRIP, ALL, BBY, BHI, CL, CNX,
Potential Bullish Divergence: IBM, WMT,
Gap Up:    
Gap Down:
Bear Flag: EBAY,
At Support:       
C- Pattern:

Moves
New Highs: MU, TRV, XLE, APA, AMAT, EQIX, CVX, SPWR, Z, SNDK, STX,
H Breakout: UBNT, Z, TWTR, SNDK, STX,
Diagonal Breakout:
Bull Flag Bounce: DIS, HD, AAL, AIG, CTRP, GOGO, MFRM, SWI, ADBE, MNST, NFLX, SBUX,
Gap Up:
Gap Down: VRTX, YHOO
Breakout Test:
Bounce:
MACD Divergence Bounce:  
Bear Flag:    
Support Break:
C- Pattern: FSLR
      

______________________

57 of 100 NDX stocks closed higher and one was unchanged on Monday.


Leading NDX 100 stocks included: TSLA, SNDK, ISRG, AKAM, MU, MNST, TRIP, ALTR, CTRX, ADBE

Lagging NDX stocks included: VRTX, YHOO, LBTYA, GOOG, VIP, ESRX, TSCO, WYNN, DISCA, SRCL

Leading stocks > +2% on Monday included: SUNE, SPWR, Z, CTRP, SCTY, UBNT, DDD, SPLK, FSLR, GOGO, CSIQ, TWTR, JASO, SFUN, PANW, SSYS, TSL, GTAT, MFRM, MTW

Lagging stocks < -2.0% included: WLT, JD, ANR, ANGI,


Stocks to Watch on Tuesday
Holding Above 30 DMA= 78
MAR, CHRW, SIAL, MU, SNDK, CHTR, AAPL, CTXS, ADP, CELG, EQIX, NXPI, AVGO, ATVI, KRFT, FOXA, GMCR, ALXN, CTRX, ILMN, ADSK, NFLX, CSCO, ADBE, AMAT, HSIC, INTU, MSFT, MXIM, BIDU, CMCSA, FFIV, TRIP, BRCM, GOOG, SIRI, AKAM, AMGN, BIIB, ESRX, EXPE, LLTC, SBUX, VIAB, FB, ALTR, CERN, DLTR, NTAP, TXN, DISCA, REGN, TSLA, AMZN, GRMN, KLAC, NVDA, ADI, INTC, LINTA, MYL, STX, WDC, VIP, COST, ORLY, SRCL, FAST, ISRG, LMCA, CHKP, WFM, MNST, XLNX, ADP, PAYX, PCAR, SYMC

Moving Above 30 DMA = 2
PCLN, VRSK,

Moving Below 30 DMA = 5
EXPD, MDLZ, TSCO, VRTX, YHOO          

Staying Below 30 DMA
SBAC, GILD, LBTYA, MAT, FISV, BBBY, CTSH, DTV, QCOM, ROST, CA, WYNN, DISH, SPLS, VOD, EBAY

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

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