Wednesday, July 23, 2014

QQQ New High...SPY, AAPL All-time High...FB All-time High After-hours...TRIP Down as Earnings Continue...

Six of nine sectors moved higher on Wednesday… XLV, XLE and XLB were the strongest sectors…XLI was the weakest sector.

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

Breadth weakened as advancers led decliners 1.37 to 1 on the NYSE and 1.01 to 1 on the NASDAQ where decliners led advancers.

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

SPY up .44 at 198.64 on 65.5 million shares, below average volume
VIX down .72 at 11.52…
TNX down .02 at 24.64…
TLT down .15 at 115.18...
XLF up .05 at 22.97 on 14.3 million shares

AAPL up 2.47 at 97.19 on 92.8 million shares, double average volume
FB up 2.02 at 71.29…on 77.5 million shares, close to double average volume


Technical Commentary:

QQQ + 0.64%, SPY + 0.22%, IWM + 0.12%, DIA – 0.11%.

QQQ hit a new bull-market high on strength in earning reactions and anticipation of earnings after the close on BIIB +33.92, +11.17%, FB, ISRG +69.47, +17.71%, GILD and AAPL +2.47, +2.61%.  

                  (click image to enlarge)

FB +3.93, +5.51% in after-hours following +2.92% before the close.  FB expected move +/-4.407, CELG +/-3.028 reports BMO on Thursday.  ILMN +1.85% and ORLY +4.36% also gained in after-hours.

XLNX -14.31% and LLTC -5.73% lost on earning reactions on Tuesday after the close.

                  (click image to enlarge)

The SPY made a new all-time high and broke out of horizontal resistance and its ascending triangle on positive earning reactions on ISRG, BIIB, RHI +7.26%, APD +4.42%, DAL +3.90%, FTI +3.13% and DOW +3.04%.

In after-hours TRIP -11.86, -11.05% down on improved earnings that were below estimates.  This is larger than the options pricing expected move of +/-6.662QCOM, ANGI and CRUS were also lower in after-hours following earnings.

DIA lost ground today following a negative earning reaction on BA -2.34% and continued weakness following negative earning reactions on Tuesday in KO, MCD and UTX.


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 = 96.31, 97.52, 98.28
IWM = 116.46, 119.09…

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 – HAL, HAS, PETS, STI, CMG, NFLX, STLD, TXN, ZION  
TuesdayATI, MO, KO, CMCSA, DD, HOG, KMB, LXK, LMT, MCD, BTU,  RF, STT, TRV, UTX, VZ, AAPL, BRCM, EA, HTZ, ISRG, JNPR, LLTC, MSFT, NBR, VMW, XLNX
WednesdayAPD, BIIB, BA, CHKP, DAL, DOW, FTI, GD, NSC, RHI, WHR, ANGI, T, CA, CRUS, CTXS, ETFC, FFIV, FB, FCX, GILD, ILMN, NXPI, ORLY, QCOM, TSCO, TRIP
ThursdayMMM, ALK, ALXN, BMY, CAT, CELG, CNX, DNKN, F, GM, DHI, JBLU, LLY, LUV, NOK, NUE, OSTK, POT, PHM, SIAL, NDAQ, UA, UNP, UAL, AMZN, BIDU, DECK, KLAC, MXIM, P, SBAC, SWI, SBUX, SRCL, TPX, V,
FridayMCO, SWK, STO, WLB, XRX


Q2 Earnings Reactions
Positive Reactions – CMG, BIIB, ISRG, AAPL, APD, CHKP, CMCSA, DAL, DOW, FTI, GD, LXK, LMT, NBR, PETS, RHI, STLD, TXN, WHR, ZION, BX, C, GOOGL, GS, HON, INTC, KSU, JPM, PM, SCSS, SWKS, URI, AA, STZ, APOL, BKS, KBH, MON, MU, NKE, SCHN,


Negative Reactions – ATI, BA, EA, HAS, HOG, JNPR, KMB, KO, LLTC, MCD, NFLX, STI, TRV, UTX, XLNX, AMD, BAC, BHI, JCI, JNJ, LVS, MAT, SLB, SNDK, STX, USB, YHOO, FAST, FDO, CAMP, BBBY, GIS, CCL, WAG,


Reversal in progress – GIS, YHOO,


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


The SPY Market Forecast green line is in the upper zone at 86.

____________________

Setups
Horizontal Breakout: CTRP, DAL, FAS, GLW, QIHU, RCL, TPX, TWTR, BAC, LNKD, SPLK, YELP, SINA, CTSH, EXPE, MU, MYL, SBUX, TSLA,
Diagonal Breakout: AAL, AIG, CSIQ, NKE, LVS, MFRM, VJET, YNDX, PCLN, WFM, WYNN,
Bull Flag: SWKS,  
Potential Bullish Divergence:  
Gap Up: FB, ILMN, ORLY,
Gap Down: TRIP, QCOM, ANGI, CRUS,
Bear Flag: 
At Support: ATI, MTW, VRSN, NFLX,  
C- Pattern:

Moves
New Highs: SPY, BX, BIDU, GILD, MAR,  
H Breakout: DAL, GME, MS, SFUN, UAL, AAPL, EBAY, ILMN, NTAP, TRIP,
Diagonal Breakout:   
Bull Flag Bounce:  
Gap Up: CELG,
Gap Down: JNPR, XLNX, LLTC,
Breakout Test:
Bounce: AAL, HOG,   
MACD Divergence Bounce: ARWR
Bear Flag
Support Break:  
C- Pattern:
      

______________________

56 of 100 NDX stocks closed higher on Wednesday and one was unchanged.


Leading NDX 100 stocks included: ISRG, BIIB, YHOO, TRIP, ALXN, CERN, FB, CELG, AAPL, ILMN, CHKP, REGN, TSLA, SPLS

Lagging NDX stocks included: XLNX, LLTC, ADI, ALTR, MXIM, AMAT, NXPI, KRFT, AVGO, NVDA, FOXA, TXN

Leading stocks > +2% on Wednesday included: SFUN, DAL, UAL, AAL, LNKD,

Lagging stocks < -2.0% included: KNDI, ATI, SUNE, GPRO, JD, JDSU, FEYE, VRSN, JNPR, ANGI, CIEN, CREE, ANR


Stocks to Watch on Thursday
Holding Above 30 DMA= 63
CHRW, SIAL, MU, CHTR, ADP, EQIX, ATVI, CSCO, ADBE, INTU, MSFT, BIDU, CMCSA, BRCM, GOOG, SBUX, KLAC, INTC, STX, WDC, LMCA, SYMC, DISH, DTV, VRTX, FISV, GILD, SBAC, MDLZ, NTAP, EBAY, VRSK, COST, PCAR, PAYX, AMZN, DISCA, CTRX, FB, BBBY, MYL, CERN, SIRI, AAPL, ADSK, AVGO, CELG, CTSH, EXPD, EXPE, ILMN, MAR, REGN, SPLS, ALXN, AMGN, QCOM, CTXS, FFIV, LINTA, PCLN, VOD, WYNN

Moving Above 30 DMA = 5
BIIB, CHKP, DLTR, ISRG, TRIP

Moving Below 30 DMA = 8
ALTR, GMCR, KRFT, LLTC, NXPI, TXN, VIAB, XLNX

Staying Below 30 DMA
AMAT, NFLX, SRCL, HSIC, LBTYA, ORLY, NVDA, VIP, SNDK, YHOO, AKAM, FOXA, MAT, MNST, TSLA, ADI, ROST, GRMN, CA, FAST, MXIM, WFM, ESRX, TSCO

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

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