Three of nine sectors
moved higher on Tuesday… XLK, XLU and XLP were the strongest sectors…XLE
was the weakest sector.
Breadth weakened…decliners
led advancers…1.70 to 1 on the NYSE and 2.26 to 1 on the
NASDAQ.
Tuesday – weakened, decliners led
Monday – weakened,
decliners led
Friday – strengthened,
advancers led
Thursday – weakened,
decliners led
Wednesday –
strengthened, advancers led
SPY down .52 at 197.02 on 131.3 million shares
VIX up .33 at 16.31…
TNX up .17 at 25.08…
TLT down .66 at 116.27...
XLF down .04 at 23.17 on 33 million shares
AAPL up .64 at 100.75 on 55.2 million shares
FB up .04 at 79.04…on 35.9 million shares
Technical Commentary:
QQQ +0.14%,
DIA -0.15%, SPY -0.26%,
IWM -1.51%.
Before the open the
S&P Case-Shiller home price index came in lower than expected -0.5%
contraction in prices. This set the
stage for a slightly lower open as futures sold off after the release. After the open the Chicago PMI was released
with a strong 60.5 reading but was lower than forecast 62.0. Shortly thereafter at 10 am ET, Consumer
Confidence came out at 86.0 level, lower than the 92.5 forecast.
After the Consumer Confidence
release QQQ, SPY and DIA rallied into positive territory and
above Monday’s high. Just before noon
the indexes started to pull back and DIA
and SPY closed slightly lower
while QQQ closed 14 cents above
Monday’s close. IWM traded below Monday’s close all day and closed near its low of
the day.
Gains in EBAY, CSCO, WYNN, AAPL, REGN, AMZN, AMGN
and GOOG helped lift the NDX +2.26 points on Tuesday.
EBAY +3.97, +7.54% gapped higher on news
that eBay and PayPal will be split into two public companies in 2015.
BABA +.10, +0.11% continues to trade in
two to three dollar range below 92.70, its initial post IPO trading price. BABA options
began trading on Monday and traded more than 61,000 contracts on Tuesday.
GPRO +2.76, +3.03% after C raised its price target from $70 to
$94 and maintains a Neutral rating. GPRO introduced its new Hero series of
cameras with a price range of $130 to $500.
AMBA -.80, -1.80% which makes chip for GPRO
cameras pulled back after hitting a new high of 46.78 today.
CYBR +4.62, +16.87% bounce after going
public last week.
RWLK +1.05, +3.17% bounced and is setting
up a horizontal breakout setup after going public on Sep 12.
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 = 198.98, 200.65, 201.90...
QQQ = 99.75, 100.56…
IWM = 112.43, 113.40, 114.36...
Support Levels
SPY = 197.46, 196.24, 195.16...
QQQ = 98.87, 97.82, 96.94…
IWM = 109.56, 108.15, 106.74...
Sep Earnings Reactions
Positive Reactions – BBBY,
BBRY, MU, NKE, PAYX, LULU, PANW, ULTA, MFRM, SPLK,
More than 10% - NKE, ULTA, LULU, PANW,
MFRM,
Negative Reactions –
AZO, ADBE, KKD, CIEN,
More than -10% -
Reversal in progress –
Reversal of Initial
Reaction – KKD,
The SPY Market Forecast green line is at 47.
This is a
bearish reading. Be on alert for a bearish shift if SPX/SPY break short-term
support.
____________________
Setups
Horizontal Breakout: AA,
SFUN, SPLK, SWKS, UA, V, CELG, MNST, WDC, WYNN,
Diagonal Breakout: MFRM,
PANW, SSYS, STI, TWTR, X, AAPL, AVGO, MAR, MSFT, NTAP, ROST,
Bull Flag: BAC, BBY, C, ETFC,
MS, RCL, SCHW, ZU, GILD, TXN, XLNX,
Potential Bullish
Divergence: AMZN, PCLN,
Bear Flag: CRM, RAX, SCSS, TLT, ADBE, AKAM, CMCSA, GRMN, NFLX, SBUX, STX,
At Support: GOGO, SCTY, SPY, SWI, UBNT, YELP, YOKU, YY, BRCM, SNDK,
Moves
New Highs: FB, GPRO,
H Breakout: EXPE,
Breakout Test: MBLY
Bounce: V, NTAP,
MACD Divergence Bounce:
HPQ, JCP, WDC, WYNN,
Gap Up: EBAY
Support Break: FSLR, IWM, JASO, SPWR, SUNE, TSL, YNDX,
______________________
43 of 100 NDX stocks
closed higher on Tuesday and one was
unchanged.
Leading NDX 100 stocks included: EBAY, WYNN, WFM, NTAP, EXPE, WDC, CA, VIP,
CTSH, LINTA
Lagging NDX stocks included: CHTR, NXPI, VOD, SNDK, LBTYA, XLNX, VRTX,
KLAC, ALXN, CTRX
Leading stocks > +2% on Tuesday
included: RWLK, GPRO
Lagging stocks < -2.0% included:
TSL, CAR, SPWR, SUNE, QIHU, JASO, CSIQ,
YY, GOGO, X, KNDI, UPL, ATI, ZU, BBRY FEYE, Z, SCTY SOHU, FSLR, TPX, MBLY, GME
Stocks to Watch on Wednesday
Holding Above 30 DMA= 29
NTAP,
COST, CERN, AMGN, MNST, MSFT, ROST, PAYX, AVGO, KLAC, ALTR, BRCM, DTV, VRTX, DLTR,
INTU, ADSK, FB, GILD, REGN, SIAL, CELG, BBBY, CSCO, MU, YHOO, CTXS, EXPE, INTC
Moving Above 30 DMA =
1
EBAY
Moving Below 30 DMA = 8
ALXN, BIDU, MAR, NXPI, SNDK, TXN,
VOD, XLNX
Staying Below 30 DMA
AAPL, GMCR, LBTYA, SBAC, SPLS, ADP, AKAM, BIIB, CHKP, FAST, FISV, GOOG, QCOM,
CHTR, CMCSA, FFIV, LLTC, WFM, AMAT, CA, CHRW, ESRX, EXPD, ISRG, LMCA, MXIM,
MYL, SYMC, TRIP, VIAB, VRSK, DISH, EQIX, ILMN, MDLZ, NVDA, ORLY, SIRI, CTRX,
KRFT, ADBE, AMZN, ATVI, FOXA, LINTA, NFLX, TSLA, VIP, HSIC, SBUX, SRCL, TSCO, DISCA,
MAT, ADI, WDC, GRMN, PCLN, PCAR, CTSH, WYNN
Sixteen Week
Intermediate Term Market Trend: Up
3-Day Short Term Market
Trend: Neutral/Down
