Wednesday, September 24, 2014

Bullish Engulfing on QQQ, DIA, SPY, IWM as Stocks Bounce at Support...as Biotechs, MSFT, AMZN, BIDU, GOOG, INTC, MU Lead NDX Higher...

Eight of nine sectors moved higher on Wednesday… XLV, XLP and XLY were the strongest sectors…XLU was the weakest sector. 

Breadth strengthened… decliners led advancers…1.44 to 1 on the NYSE and 2.02 to 1 on the NASDAQ.

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


SPY up 1.50 at 199.51 on 107.1 million shares, above average volume
VIX down 1.66 at 13.27…
TNX up .34 at 25.69…
TLT down .73 at 114.72...
XLF up .12 at 23.45 on 35.8 million shares

AAPL down 1.19 at 101.45 on 60 million shares
FB up .20 at 78.49…on 30.6 million shares

Technical Commentary:
QQQ + 1.03%, DIA + 0.90%, SPY + 0.76%, IWM + 0.60%.

QQQ, DIA, SPY and IWM each formed a bullish engulfing candle as buyers returned after three sell off days.  Coincidently BABA +3.40, +3.90% closed higher at 90.57 as traders bought aggressively after two pullback days.

The NDX +1.05% moved led by biotech’s GILD, BIIB, ALXN, VRTX, AMGN and CELG, and MSFT, AMZN, BIDU, GOOG, INTC, CSCO and MUMU reports earnings after the close on Thursday.

Sectors XLB, XLP and XLV triggered bull flag entry signals on Wednesday while XLF and XLK bounce in their bull flag setups.  Look for potential entry signals on Thursday.

Neutral sectors XLI and XLY bounced at support and have setups for channel bounce entries.  XLU is forming a potential MACD divergence at support.  Down trending XLE formed a bullish hammer after an inverted hammer on Tuesday.

BBBY +4.79, +7.64% on a positive earnings reaction after the close on Tuesday .

PAYX +1.36, +3.21% on a positive earnings reaction before the open on Wednesday.

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 = 200.00, 201.37, 204.32...
QQQ = 99.75, 101.13…
IWM = 115.73, 117.06, 118.76...

Support Levels
SPY = 197.46, 196.24, 195.16...
QQQ = 98.87, 97.82, 96.94…
IWM = 112.89, 111.56, 109.86...

Earnings this Week: AZO, BBBY, BBRY, CCL, MU, NKE, PAYX

Q2 Earnings Reactions
Positive Reactions – BBBY, PAYX, LULU, PANW, ULTA, MFRM, SPLK, AVGO, CRM, GPS, TFM, FL, AMAT, CSIQ, GME, HPQ, PCLN, NTES, ROST, SINA, NVDA, MNST, ANR, FSLR, GTAT, LNKD, SFUN, SSYS, SUNE, UBNT, YOKU, AKS, AMGN, CHRW, ESRX, HCA, HES, LRCX, TSN, TWTR, WYNN, X, YNDX, 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,

More than 10% - ULTA, LULU, PANW, MFRM, SPLK, TWTR, CMG, BIDU, BIIB, ISRG, LNKD, OSTK, SWI, SFUN, SSYS, SUNE, UA, VRSN, X

Negative Reactions – AZO, ADBE, KKD, CIEN, BBY, QIHU, TSL,  ADSK, CREE, GOGO, JASO, JDSU, JWN, M, RAX, YOKU, SCTY, YELP, CTSH, MYL, AEM, AET, AKAM,  BWLD, BZH, CL, CMI, COP, DDD, ESI, GLW, GRMN, HLF, JEC, KRFT, LNG, MTW, RYL, SLCA, UPL, UPS, VRTX, XOM, 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,

More than -10% - AMD, ANGI, BWLD, CAMP, DHI, HLF, MXIM, P, SNDK, XLNX,


Reversal in progress – AMZN, ATI, FAST, GIS, GRMN, ILMN, KO, KRFT, LLTC, P, RYL, SNDK, STX, XLNX

Reversal of Initial Reaction – KKD, AET, AKAM, ALXN, BA, BAC, BBY, BBBY, BZH, CELG, DNKN, EA, ETFC, FDO, GOGO, JNJ, JWN, KLAC, KO, LNG, M, NFLX, RAX, SLCA, STI, TPX, TRV, TSL, UPL, USB, VRTX, YELP, YHOO, APOL, KBH, MON,


The SPY Market Forecast green line is at 81.

____________________

Setups
Horizontal Breakout: FB, GOGO, MBLY, TWTR, AAPL, ADSK, NTAP
Diagonal Breakout: FEYE, IBM, SPLK, SWI
Bull Flag:  SNDK, BBY, C, ETFC, CSIQ, LOCO, MS, RCL, SCHW, STI, X, NXPI, TXN, XLNX, TSL
Potential Bullish Divergence: CAR, Z, GRMN, WDC, CRM, HPQ

Moves
New Highs: GPRO, AMBA, BAC, SWKS
H Breakout: ZU, CELG, GILD 
Bull Flag Bounce:  AVGO, YHOO, SSYS, PAYX, ADSK 
Gap Up: BBBY
MACD Divergence Bounce: UA, AMZN, NFLX, SBUX 

______________________

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


Leading NDX 100 stocks included: BBBY, VRTX, ALXN, BIIB, CELG, MU, PAYX, BIDU, GILD, LINTA

Lagging NDX stocks included: MAT, AAPL, CHTR, CTRX, MYL, ATVI, DISCA

Leading stocks > +2% on Wednesday included: GPRO, ZU, SUNE, SCTY, YNDX, UBNT, SWKS, UA, LNKD, SPLK, JCP, SPWR, AAL, LOCO, UPL, CSIQ

Lagging stocks < -2.0% included: X

Stocks to Watch on Thursday
Holding Above 30 DMA= 35
NTAP, COST, CERN, AMGN, CTXS, MSFT, MNST, ROST, MAR, PAY, FISV, AVGO, KLAC, ALTR, BRCM, TXN, NXPI, SNDK, GMCR, DTV, VRTX, SPLS, DLTR, QCOM, INTU, AAPL, LBTYA, ADSK, FB, GILD, GOOG, REGN, XLNX, SIAL, CELG

Moving Above 30 DMA = 12  
ADP, AKAM, ALXN, BBBY, BIDU, BIIB, CHKP, CSCO, FAST, INTC, MU, YHOO                                                  

Moving Below 30 DMA = 0

                                                                                             
Staying Below 30 DMA
CHTR, CMCSA, FFIV, LLTC, WFM, AMAT, CA, CHRW, ESRX, EXPD, ISRG, LMCA, MXIM, MYL, SBAC, SYMC, TRIP, VIAB, VRSK, DISH, EQIX, ILMN, MDLZ, NVDA, ORLY, SIRI, CTRX, EXPE, KRFT, ADBE, AMZN, ATVI, FOXA, LINTA, NFLX, STX, TSLA, VIP, HSIC, EBAY, SBUX, SRCL, TSCO, DISCA, MAT, ADI, VOD, WDC, GRMN, PCLN, PCAR, CTSH, WYNN

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

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