AAPL Beats the Street, Stocks Soar...QQQ, XLE Lead...CMG, KO and IBM Negative After Earnings...

All nine sectors moved higher on Tuesday…XLE, XLV and XLI were the strongest sectors while XLU was the weakest. 

Breadth strengthened…advancers led decliners…4.83 to 1 on the NYSE and 3.00 to 1 on the NASDAQ.

Tuesday – strengthened, advancers led

Monday – strengthened, advancers led

Friday – weakened, mixed

Thursday – strengthened, advancers led

Wednesday – weakened, mixed

SPY up 3.77 at 194.07 on 144 million shares

VIX down 2.49 at 16.08…

TNX up .27 at 22.08…

TLT down .97 at 120.54...

XLF up .42 at 22.87 on 50.7 million shares

AAPL up 2.71 at 102.47 on 93 million shares, above average volume

FB up 1.74 at 78.69…on 31.9 million shares, fourth highest close

Technical Commentary:

QQQ +2.63%, SPY + 1.98%, IWM + 1.65%, DIA + 1.31%.

AAPL +2.71, +2.72% gapped higher following better than expected Q3 results after the close on Monday.  The NDX 100 had 99 stocks gain on Tuesday led by BRCM, ILMN, AVGO, TXN and YHOO.  The S&P 500 had 483 stocks rise led by WAT, HOG, PSX, CCL, AVGO and TRIP.

Today’s rally was deep and wide and anyone who went short the SPX on Friday based on market guessers (“we think”) are down 54 points in the past two days and not only missed one of the strongest two-day rallies of the year, but lost money instead.  Short one ES futures contract would be down approximately $2,700 over the past two days alone.

Chart Signals really encourages all readers to, “don’t sell your hair to a wig shop.”

Stop guessing and trade what you see, not what someone else imagines they know about the future.

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 Chart Targets:

SPY = 194.27, 197.62...

QQQ = 97.10, 98.76…

IWM = 112.15, 114.51…

Support Levels

SPY = 191.48, 190.45...

QQQ = 95.32, 94.47…

IWM = 109.22, 107.00...

Earnings this week: 

Monday: AAPL, CMG, HAL, HAS, ILMN, IBM, BTU, STLD, TXN, ZION,

Tuesday: ATI, APOL, EAT, BRCM, CNI, KO, CREE, ETFC, HOG, ISRG, KMB, LXK, LMT, MCD, TRV, UTX, VZ, VMW, YHOO

Wednesday: T, BA, DOW, EMC, EQIX, GD, LRCX, NXPI, ORLY, SWK, TSCO, WHR, XRX, YELP

Thursday: MMM, ALK, ALXN, ALTR, AMZN, CAT, CELG, CERN, CHKP, CMCSA, DECK, DNKN, GM, JNPR, KLAC, LLY, MXIM, MSFT, P, LUV, UA, UNP, UAL, WYNN, YNDX, ZNGA,

Friday: BMY, F, NDAQ, PG, STT, UPS

Q3 Earnings Reactions

Positive Reactions – AAPL, APOL, HAL, HAS, HOG, ILMN, KMB, LXK, STLD, TRV, TXN, ZION, AMD, C, CSX, DAL, GE, HON, LVS, MS, SCHW, SLB, STI, URI, XLNX, COST, BBBY, BBRY, MU, NKE, PAYX, LULU, PANW, ULTA, MFRM, SPLK,

More than 10% - NKE, ULTA, LULU, PANW, MFRM,

Negative Reactions – CMG, EAT, IBM, KP. LMT, BTU, AXP, BAC, COF, EBAY, GOOGL, INTC, JNJ, JPM, KEY, MAT, NFLX, WFC, AZO, ADBE, KKD, CIEN,

More than -10% -

Reversal in progress – AZO,

Reversal of Initial Reaction – AXP, KKD, BBRY, MU,

The SPY Market Forecast is at 36.

___________________

Setups

Horizontal Breakout: AA, BABA, BAC, BBY, C, CTRP, DAL, FEYE, JD, MBLY, PANW, SCHW, SCTY, SPLK, SPWR, SSYS, TPX, X, YY, Z, AIG, ATI, BX, CIEN, GME, STI, TSL, AAPL, AVGO, COST, GMCR, INTC, MU, NTAP, QCOM, SNDK, TRIP,

Diagonal Breakout: CRM, GOGO, MS, SFUN, XONE, ZU, QIHU, BRCM,

Bull Flag: TLT,

Potential Bullish Divergence: 

Gap Up: BRCM, ISRG, YHOO,

Gap Down: CREE,

Moves

New Highs: NKE, NTES, MNST, ROST,

H Breakout: SPY, IWM, AAL, HPQ, SUNE, SWKS, UAL, CAR, UBNT, PCLN, XLNX,

D Breakout: AMBA, FAS, GPRO, V,

Bull Flag Bounce: LVS,

Bounce: EBAY, GMCR,  

Gap Up: CSIQ, X, HOG, AAPL, ILMN, TXN,

Gap Down: IBM, UNG,

______________________

99 out of 100 NDX stocks closed higher on Tuesday.

Leading NDX 100 stocks included: BRCM, ILMN, AVGO, TXN, YHOO, TRIP, MU, SNDK, GILD, EXPE, XLNX, EBAY

Lagging NDX stocks included: SBUX

Leading stocks > +2% on Tuesday: AAL, CSIQ, AMBA, GPRO, X, SUNE, SWKS, FAS, UAL, SPWR, SPLOK, CTRP, AA, DAL, PANW, RCL, YELP, UA, LNKD, SCTY, BABA, SCHW, YY, HPQ, JDSU, V, SFUN, CMGE, SSYS, VRSN, TPX, NTES, MS, CRM, BAC, RAX

Lagging stocks < -3.0% included: ANGI, IBM

Stocks to Watch on Wednesday

Holding Above 30 DMA= 12

SIAL, GMCR, ROST, CHRW, GRMN, MYL, SRCL, DLTR, ISRG, MNST, PAYX, REGN, ADP, ALXN, BIDU, COST, FB, ORLY, TSCO, VRTX, XLNX

Moving Above 30 DMA = 10

AAPL, CELG, ESRX, GILD, ILMN, MAR, QCOM, TXN, WFM, WYNN

Moving Below 30 DMA = 0

                                                                                             

Staying Below 30 DMA

ADSK, BBBY, YHOO, AMGN, CERN, CTSH, DTV, EBAY, FAST, LBTYA, MSFT, NFLX, CSCO, EXPE, INTU, MU, SBAC, DISH, FISV, AVGO, ALTR, BRCM, CTXS, INTC, KLAC, NTAP, NXPI, SNDK, VOD, SPLS, AKAM, BIIB, CHKP, GOOG, CHTR, CMCSA, FFIV, LLTC, AMAT, CA, EXPD, LMCA, LMCK, MXIM, SYMC, TRIP, VIAB, VRSK, EQIX, MDLZ, NVDA, SIRI, CTRX, KRFT, ADBE, AMZN, ATVI, FOXA, STX, TSLA, VIP, HSIC, SBUX, DISCA, MAT, ADI, WDC, PCLN, PCAR

6-month Intermediate Term Market Trend: Up/Neutral

3-day Short Term Market Trend: Up