Wednesday, September 10, 2014

PANW Gaps Higher Leads Cloud Stocks...AAPL Rises...SPY Forms Bullish Harami...QQQ Engulfing...

Six of nine sectors moved higher and one was unchanged on Wednesday…XLV, XLK and XLF were the strongest sectors…XLU was the weakest sector. 

Breadth strengthened as advancers led decliners 1.14 to 1 on the NYSE and 1.56 to 1 on the NASDAQ.

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


SPY up .75 at 200.07 on 67.2 million shares, below average volume
VIX down .62 at 12.88…
TNX up .34 at 25.34…
TLT down .73 at 114.96...
XLF up .12 at 23.35 on 31.3 million shares

AAPL up 3.01 at 101.00 on 100.8 million shares
FB up .76 at 77.43…on 29.9 million shares

Technical Commentary:
QQQ +0.83%, IWM +0.59%, SPY +0.38%, DIA +0.32%.

Broad stock indexes traded higher as SPY formed a bullish harami, QQQ a gap bullish engulfing and IWM a piercing line.  Financial stocks bounced (see ETFC, SCHW, BAC, ZION, GS, MS, C, STI, FAS, AIG) as TNX interest rates climbed for the fifth straight day.  Bonds TLT dropped to new short-term low.

AAPL +3.01, +3.07% formed a bullish engulfing after Tuesday’s volatile reaction as it unveiled its new iPhone 6, 6 Plus, ApplePay and Apple Watch.

EBAY -1.63, -3.09% gapped lower following news on Tuesday of ApplePay which represents competition to EBAY’s PayPal.

PANW +9.47, +10.61% gapped higher on a positive earnings reaction leading cloud stocks SPLK, CTXS, WDAY and NOW higher.

KKD -0.54, -3.07% fell after earnings missed estimates.

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 = 197.59, 196.24, 195.16...
QQQ = 99.08, 97.99, 97.51…
IWM = 115.51, 114.31, 113.49...

Earnings this Week: KKD, PANW, LULU, VRA

Q2 Earnings Reactions
Positive Reactions – PANW, 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% - PANW, MFRM, SPLK, TWTR, CMG, BIDU, BIIB, ISRG, LNKD, OSTK, SWI, SFUN, SSYS, SUNE, UA, VRSN, X

Negative Reactions – 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 – AET, AKAM, ALXN, AMZN, ATI, EA, GIS, GRMN, ILMN, KO, KRFT, LNG, P, RYL, STX, TPX, VRTX,

Reversal of Initial Reaction – BBY, TSL, BBBY, BZH, BBBY, CELG, DNKN, ETFC, KLAC, NFLX, RAX, SLCA, UPL, YELP, YHOO, APOL, KBH, MON,


The SPY Market Forecast green line is at 88.

____________________

Setups
Horizontal Breakout: AA, CRM, FEYE, SCSS, SWI, RCL, SPLK, ETFC, V, BAC, SCTY, SWI, V,
Diagonal Breakout: ATI, IWM, SWKS, LOCO, NTES, SUNE,
Bull Flag: SPY, BBRY, CAR, CSIQ, CTRP, FAS, FSLR, GME, HPQ, JCP, JD, VRSN, X, YELP, UPL, GLW, JASO, MBLY, MS, RAX, SPWR, TPX, TSL, UA, VRSN, YY
Potential Bullish Divergence: 
Gap Up:
Gap Down:
Bear Flag: 
At Support: SFUN, GOGO,
C- Pattern

Moves
New Highs: GPRO, LNKD, MSFT, NKE, PANW, SCHW, SSYS, SWI, TWTR, UAL, UBNT,
H Breakout: SCHW, JDSU, SSYS, STI,  
D Breakout: ETFC, V,
Bull Flag Bounce: AIG, BBY, IBM,
Gap Up: PANW,
Gap Down: KKD, EBAY,
Bounce: C, Z, AAL, BAC, DAL, EMC, KNDI,
MACD Divergence Bounce:
C- Pattern:  
Bear Flag:
Support Break: GTAT,     

______________________

74 of 100 NDX stocks closed higher on Wednesday.


Leading NDX 100 stocks included: GRMN, GMCR, AAPL, ALXN, REGN, GILD, MNST, FFIV, VRTX, TRIP

Lagging NDX stocks included: EBAY, TSCO, WYNN, VIP, MXIM, ALTR, CTRX, TXN, LINTA, ADSK

Leading stocks > +2% on Wednesday included: PANW, GPRO, TWTR, KNDI, FEYE, SSYS, SPLK, JDSU, CSIQ, ETFC, JASO, SCHW, UBNT, YELP

Lagging stocks < -2.0% included: SFUN, KKD, RAX, QIHU, JD, YY


Stocks to Watch on Thursday
Holding Above 30 DMA= 74
INTC, SYMC, GILD, SBAC, NTAP, COST, FB, BBBY, CERN, EXPE, REGN, AMGN, CTXS, FFIV, ISRG, YHOO, ESRX, TSLA, FOXA, MSFT, NFLX, ADP, CTRX, MNST, NVDA, ROST, WFM, ATVI, CHKP, MAR, PAYX, EQIX, CELG, FISV, SIAL, SIRI, VRSK, AKAM, AVGO, DISH, HSIC, KLAC, LMCA, ORLY, STX, VIP, ALTR, AMAT, BRCM, TXN, ADBE, ILMN, LINTA, TSCO, FAST, NXPI, SNDK, GMCR, AMZN, CMCSA, DTV, KRFT, VRTX, MXIM, SPLS, LLTC, XLNX, BIDU, CA, CHTR, DLTR, GOOG, CHRW, EXPD, MU, QCOM, TRIP, INTU, SBUX

Moving Above 30 DMA = 5
AAPL, ALXN, CSCO, TRIP, WFM                                                

Moving Below 30 DMA = 0

                                                                                             
Staying Below 30 DMA
ADSK, CHRW, EBAY, MYL, SBUX, SRCL, TSCO, DISCA, MAT, ADI, VOD, BIIB, WDC, LBTYA, GRMN, PCLN, PCAR, CTSH, WYNN, MDLZ, VIAB

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

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