Tuesday, July 15, 2014

Earnings JPM, GS, INTC Higher...JNJ Lower...DIA Higher, SPY, QQQ Lower...AAPL, IBM Join Forces...

Three of nine sectors moved higher on Tuesday…XLF, XLU and XLI were the strongest sectors…XLP was the weakest sector.

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


Breadth strengthened…as decliners led advancers 1.90 to 1 on the NYSE and 2.54 to 1 on the NASDAQ.

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


SPY down .37 at 197.23 on 111.3 million shares above average volume
VIX up .14 at 11.96…
TNX unchanged at 25.49…
TLT down .23 at 112.86...
XLF up .16 at 22.99 on 29.5 million shares

AAPL down 1.13 at 95.32 on 45.6 million shares
FB down .74 at 67.17…on 44.2 million shares


Technical Commentary:

DIA +0.05%, SPY – 0.19%, QQQ – 0.34%, IWM – 0.99%.

This week has been positive for financial stocks C, JPM and GS all higher today after positive earnings from all three Monday and today.  Wednesday morning BAC, SCHW and USB report earnings.  As a result both XLF +0.16, +0.70% and FAS +1.86, +1.83% moved higher.

Stocks started slightly stronger, but reversed course after Fed Chairwoman Janet Yellen began two days of congressional testimony.  The DJIA +5.26 closed above 17,000 for just the fourth time in history today.  The SPX, NDX and RUT all closed lower on the day. 

JNJ -2.10 was lower on a negative earnings reaction.  GPRO +4.79, +13.00% after analyst initiated coverage with an Outperform rating and a $60 price target.

After the close INTC +1.42, +4.48% report EPS of 55 cents vs. 52 cents estimate and revenues of 13.8 billion vs. 13.71 estimate.  Both QQQ and SPY were higher in after hours.

IBM +3.79, +2.01% and AAPL +1.48, +1.55% gained in after-hours on news of a business partnership between the two giants.


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


Short-term up trend Chart Targets:
SPY = 198.12, 199.06…
QQQ = 94.89, 96.31…
IWM = 116.46, 120.51…

Support Levels
SPY = 196. 59, 194.13, 193.11…
QQQ = 93.57, 91.73, 90.44…
IWM = 114.66, 113.16…


Earnings this week:
Monday – C,
Tuesday – GS, INTC, JPM, JNJ, YHOO
Wednesday – BAC, SCHW, USB, EBAY, LVS, SNDK, SCSS, URI
Thursday – BHI, BAX, BX, ESI, MAT, MS, OSTK, PM, AMD, GOOGL, IBM, SLB, STX, SWKS
Friday – GE, HON, JCI, KSU


Q2 Earnings Reactions
Positive Reactions – C, GS, JPM, AA, STZ, APOL, BKS, KBH, MON, MU, NKE, SCHN,


Negative Reactions – JNJ, FAST, FDO, CAMP, BBBY, GIS, CCL, WAG,


Reversal in progress – GIS,


Reversal of Initial Reaction – BBBY, APOL, KBH, MON,


The SPY Market Forecast green line is in the upper zone at 83.

____________________

Setups
Horizontal Breakout:  AAL, C, FAS, NTES, SPY, STI, BIDU, CMCSA, FB, MU,
Diagonal Breakout: ADBE, AVGO, CELG, GMCR, TRIP,
Bull Flag: BBRY, CREE, CTRP, DDD, ETFC, GME, MTW, SSYS, SUNE, TPX, TWTR, XONE, YELP, YOKU, Z, CTSH, MAR, SBUX, TSLA, TXN, XLNX,
Potential Bullish Divergence:  
Gap Up:  INTC,
Gap Down: YHOO,
Bear Flag: DAL,
At Support: AKAM,
C- Pattern:

Moves
New Highs: INTC, MSFT, MU, STX, WDC,
H Breakout:   
Diagonal Breakout:   
Bull Flag Bounce: GPRO, NKE, EXPE,
Gap Up:  JPM,
Gap Down:   
Breakout Test: AMZN,
Bounce: KKD,
MACD Divergence Bounce: CTXS,      
Bear Flag: GOGO,
Support Break:   
C- Pattern:
      

______________________

37 of 100 NDX stocks closed higher on Tuesday and three were unchanged.

Leading NDX 100 stocks included: CERN, MYL, SYMC, BBBY, VOD, MU, SPLS, CSCO, CHRW, NTAP, FFIV, MSFT, BIDU, ATVI

Lagging NDX stocks included: ILMN, TSLA, BIIB, ALXN, VRTX, MAT, REGN, CELG, AMGN, MNST, GMCR

Leading stocks > +2% on Tuesday included: GPRO, CSIQ, STI, KKD

Lagging stocks < -2.0% included: GOGO, YOKU, SPLK, SCSS, VJET, YELP, XONE, KNDI, UBNT, SCTY, ANR

Stocks to Watch on Wednesday
Holding Above 30 DMA= 62
MAR, CHRW, SIAL, MU, SNDK, CHTR, AAPL, ADP, CELG, EQIX, NXPI, AVGO, ATVI, KRFT, ADSK, NFLX, CSCO, ADBE, AMAT, INTU, MSFT, BIDU, CMCSA, BRCM, GOOG, EXPE, SBUX, ALTR, TXN, KLAC, INTC, STX, WDC, ORLY, SRCL, LMCA, XLNX, SYMC, CTSH, DISH, DTV, VRTX, FISV, GILD, SBAC, DLTR, MDLZ, NTAP, EBAY, REGN, VRSK, COST, PCAR, PAYX, AMZN, DISCA, NVDA, CTRX, FB, LBTYA, YHOO, BBBY, MYL, PCLN, SPLS

Moving Above 30 DMA = 3 
CERN, CTXS, VOD,                   

Moving Below 30 DMA = 12
AKAM, ALXN, AMGN, BIIB, FOXA, GMCR, ILMN, LLTC, MAT, MNST, SIRI, TSLA

Staying Below 30 DMA
ADI, TRIP, VIP, FFIV, QCOM, ROST, VIAB, WYNN, GRMN, CA, CTXS, FAST, HSIC, ISRG, LINTA, VOD, CHKP, MXIM, WFM, CERN, ESRX, EXPD, TSCO

Sixteen Week Intermediate Term Market Trend: Up

3-Day Short Term Market Trend: Up, RUT: Neutral

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