Friday, September 26, 2014

NDX Leads Bounce as FB, NKE, GPRO Hit New All-time Highs...NKE, MU, BBRY Gain After Earnings...

All nine sectors moved higher on Friday… XLE, XLK and XLY were the strongest sectors…XLU was the weakest sector. 

Breadth strengthened…advancers led decliners …2.94 to 1 on the NYSE and 2.15 to 1 on the NASDAQ.

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


SPY up 1.56 at 197.90 on 94.3 million shares
VIX down .79 at 14.85…
TNX up .24 at 25.35…
TLT down .17 at 116.00...
XLF up .22 at 23.29 on 39.8 million shares

AAPL up 2.88 at 100.75 on 61.6 million shares
FB up 1.57 at 78.79…on 27.3 million shares, new all-time closing high

Technical Commentary:
QQQ +1.06%, DIA +0.90%, IWM +0.90%, SPY +0.79%.

Stocks rebounded on Friday after Q2 GDP was revised upward to 4.6%.  NKE +12.23%, MU +6.72% and BBRY +4.69% gained on positive earnings reactions.  NKE, FB and GPRO closed at new all-time highs.  VRTX closed at its highest levels since 2000.

The NDX led the broad indexes with gains in FB, MSFT, AAPL, CSCO, MU, YHOO and GILD.  AAPL reversed most of Thursday’s selloff.  YHOO +4.39% sold off on the BABA IPO last Friday, as many traders shorted YHOO as a hedge against a long position in BABA


BABA +1.73% which found support in 86 – 88 area on Tuesday and Wednesday is scheduled to begin options trading on Monday September 30.

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...


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 60.

____________________

Setups
Horizontal Breakout: AMBA, SWKS, TWTR, UA, ZU
Diagonal Breakout: SPY, QQQ, FAS, MBLY, MFRM, PANW, SPLK, SSYS, SWI, TSL, UAL,
Bull Flag:  BBY, C, ETFC, KKD, MS, RCL, SCHW, STI, X, ZION, AVGO, CTXS, GMCR, KLAC, MAR, MAR, NTAP, NXPI, SNDK, TXN, XLNX, ALTR, AMGN, DLTR, INTU
Potential Bullish Divergence: CAR, CRM, HPQ, JCP, JD, KNDI, NTES, SINA, SOHU, VRSN, Z                                                                                            

Moves
New Highs: FB, GPRO, NKE, VRTX
Gap Up:  NKE, MU 

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88 of 100 NDX stocks closed higher on Friday.

Leading NDX 100 stocks included: MU, YHOO, VRTX, AAPL, DISCA, SNDK, DISH, GRMN, SBAC, FOXA, FB

Lagging NDX stocks included: MAT, VIP, SPLS, MDLZ, SYMC, ESRX, PCAR, ADSK, TSLA, CA

Leading stocks > +2% on Friday included: NKE, AMBA, BBRY, AA, UA, LNKD, TSL, KNDI, SPLK, MBLY, FAS, GOGO, AAL

Lagging stocks < -2.0% included: JCP

Stocks to Watch on Monday
Holding Above 30 DMA= 28
NTAP, COST, CERN, AMGN, MSFT, MNST, ROST, MAR, PAYX, AVGO, KLAC, ALTR, BRCM, TXN, NXPI, DTV, VRTX, SPLS, DLTR, INTU, ADSK, FB, GILD, REGN, XLNX, SIAL, CELG, BBBY

Moving Above 30 DMA = 9 
AAPL, ALXN, CSCO, GMCR, LBTYA, MU, SBAC, SNDK, YHOO

Moving Below 30 DMA = 0

                                                                                             
Staying Below 30 DMA
ADP, AKAM, BIDU, BIIB, CHKP, CTXS, FAST, FISV, GOOG, INTC, 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, 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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