Friday, July 25, 2014

SPY Pullback Following New High as Earnings Continue...BIDU, SWI, VRSN, SWK, DECK Soar...AMZN, MXIM, P, TPX,V Flop...

Only one of nine sectors moved higher on Friday… XLB, XLK and XLI were the strongest sectors…XLY was the weakest sector.

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


Breadth weakened as decliners led advancers 1.98 to 1 on the NYSE and 2.10 to 1 on the NASDAQ.

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


SPY down .93 at 197.72 on 76.8 million shares, below average volume
VIX up .85 at 12.69…
TNX down .40 at 24.69…
TLT up 1.35 at 115.67...
XLF down .13 at 22.89 on 36.3 million shares

AAPL up .64 at 97.67 on 43.4 million shares
FB up .21 at 75.19…on 45.9 million shares


Technical Commentary:

 QQQ – 0.39% SPY – 0.47%, DIA – 0.75%, IWM – 0.91%.

The SPX continued its recent sideways consolidation for a third week.  The SPX traded in a 25 point range and closed just +0.12 at 1978.34, its second highest weekly close every.  The NDX traded in a 79 point range and closed up +25.27 at 3965.16, a new bull market weekly high.

                  (click image to enlarge)

NDX gains came from AAPL, AMGN, BIDU, BIIB, CTXS, FB, ISRG and YHOO.
                  (click image to enlarge)

                  (click image to enlarge)

Next week there are several economic announcements including the FOMC meeting on Tuesday and Wednesday with announcement expected Wednesday at 2 pm ET.  GDP Q2 will be out Wednesday at 8:30 am ET.  The Unemployment report for July will be out Friday morning 8:30 am.

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 – CMI, TSN, WYNN, JEC, HLF
TuesdayAET, AKS DLR, FISV, GLW, HCA, MDC, YNDX, AMGN, AXP, BWLD, CHRW, ESRX, MAR, MRK, PFE, SLCA, X, UPS, VRTX
WednesdayGRMN, HES, AEM, AKAM, CTRP, EQIX, KRFT, LRCX, MTW, WDC, WFM, YELP
ThursdayDDD, BZH, CL, COP, DTV, XOM, ESI, RYL, TEVA, TWC, EXPE, LNG, LNKD, MA, MCHP, SPWR, TSLA, TRLA

FridayCBOE, CVX, HLT, PG, BRK.A

Earnings week in review:
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
Thursday – MMM, ALK, ALXN, BMY, CAT, CELG, 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, VRSN
Friday – MCO, SWK, STO, WLB, XRX

Q2 Earnings Reactions
Positive Reactions – CMG, BIIB, ISRG, SWI, UA, VRSN, AAPL, APD, CA, CHKP, CMCSA, CTXS, DAL, DECK, DOW, FFIV, FB, FTI, GD, LXK, LMT, NBR, NDAQ, NOK, OSTK, ORLY, PETS, RHI, STLD, SWK, TSCO, TXN, WHR, XRX, ZION, BX, C, GOOGL, GS, HON, INTC, KSU, JPM, PM, SCSS, SWKS, URI, AA, STZ, APOL, BKS, KBH, MON, MU, NKE, SCHN

Negative Reactions – ALK, ALXN, AMZN, ANGI, ATI, BA, CAT, CELG, DHI, DNKN, EA, ETFC, FCX, GM, HOG, ILMN, JNPR, KLAC, KMB, KO, LLTC, MCD, NFLX, P, PHM, QCOM, SBUX, STI, STO, T, TPX, TRIP, TRV, UTX, V, XLNX, AMD, BAC, BHI, JCI, JNJ, LVS, MAT, SLB, SNDK, STX, USB, YHOO, FAST, FDO, CAMP, BBBY, GIS, CCL, WAG

Reversal in progress – GIS, WAG,


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


The SPY Market Forecast green line is in the upper zone at 90.

____________________

Setups
Horizontal Breakout: BBRY, NKE, QIHU, SCTY, TLT, CRM, CMCSA,
Diagonal Breakout: IWM, CELG, MU,
Bull Flag: SPY, BX, C, FAS, KNDI, MS, SWKS, FB, GILD, GOOG, ILMN, INTC, MSFT, STX,
Potential Bullish Divergence: CSIQ, JASO, JDSU,
Gap Up:  
Gap Down:  
Bear Flag: MNST, ROST,
At Support: SUNE, CREE, ADSK, TXN,
C- Pattern:

Moves
New Highs: CTRP, QIHU, RCL, Z, AAPL, CTSH, CTXS, NTAP, HPQ,
H Breakout: CTRP, UAL, AAPL, HPQ,
Diagonal Breakout:  
Bull Flag Bounce
Gap Up: SWI, VRSN, BIDU, SWK, DECK, TLT, ZION,
Gap Down: MXIM, P, AMZN, TPX, V, STO, KLAC,
Breakout Test: DAL,
Bounce:     
MACD Divergence Bounce:  GLD,
Bear Flag
Support Break: AIG, ETFC, AVGO,
C- Pattern
      

______________________

26 of 100 NDX stocks closed higher on Friday and two were unchanged.

Leading NDX 100 stocks included: BIDU, CERN, VOD, CHKP, CELG, CTXS, APPL

Lagging NDX stocks included: MXIM, AMZN, AVGO, NXPI, TSCO, BRCM, AMA, ADI, TXN, SBUX, KLAC

Leading stocks > +2% on Friday included: SWI, VRXN, Z, CTRP, KNDI, UAL, RCL, QIHU, SOHU, KKD

Lagging stocks < -2.0% included: P, TPX, V, SWKS, YNDX


Stocks to Watch on Friday
Holding Above 30 DMA= 60
CHRW, SIAL, MU, CHTR, ADP, EQIX, ATVI, CSCO, ADBE, INTU, MSFT, BIDU, CMCSA, GOOG, SBUX, INTC, STX, WDC, LMCA, SYMC, DTV, VRTX, FISV, GILD, SBAC, MDLZ, NTAP, EBAY, VRSK, COST, PCAR, PAYX, DISCA, CTRX, FB, BBBY, MYL CERN, SIRI, AAPL, CELG, CTSH, EXPD, EXPE, MAR, REGN, ALXN, AMGN, CTXS, FFIV, PCLN, VOD, WYNN, BIIB, CHKP, ISRG, CA, ORLY, TSCO, YHOO

Moving Above 30 DMA = 0


Moving Below 30 DMA = 8
ADSK, AMZN, BRCM, DLTR, HSIC, KLAC, LINTA, SPLS

Staying Below 30 DMA
AVGO, DISH, ILMN, QCOM, TRIP, ALTR, GMCR, KRFT, LLTC, NXPI, TXN, VIAB, XLNX, AMAT, NFLX, SRCL, LBTYA, NVDA, VIP, SNDK, AKAM, FOXA, MAT, MNST, TSLA, ADI, ROST, GRMN, FAST, MXIM, WFM, ESRX

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

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