Two of nine sectors
moved higher on Wednesday…XLB, XLE and XLI were the strongest sectors
while XLF was the
weakest.
Breadth weakened…
decliners led advancers…1.14 to 1 on the NYSE and advancers
led decliners 1.22 to 1 on the
NASDAQ.
Wednesday – weakened, mixed
Tuesday – strengthened,
advancers led
Monday – strengthened,
decliners led
Friday – strengthened,
decliners led
Thursday – weakened,
decliners led
SPY down 2.57 at 185.13 on 380.4 million shares, almost triple average volume
VIX up 3.46 at 26.25…
TNX down 1.16 at 20.90…
TLT up 1.12 at 122.69...
XLF down .43 at 22.04 on 109.1 million shares, above average volume
AAPL down 1.73 at 97.02 on 100.8 million shares, above average volume
FB down 1.07 at 72.52…on 61.4 million shares
Technical Commentary:
IWM +
0.45%, SPY – 1.38%, QQQ – 1.40%, DIA – 1.46%.
Stocks opened lower,
rose for about 30 minutes and began to fall like there was no bottom. Around 1:30 sellers exhausted and buyers took
over for a 40 point SPX rally into
the close. Impressive institutional buying after heavy selling. SPY volume of 364.2 million shares was
the heaviest trading volume of 2014. The
long-tailed hammer appears to be a capitulation day: sellers surrender and
buyers take control.
While SPY, QQQ and DIA finished down, they
had a powerful rally from the low. IWM closed higher with a bullish
engulfing candle, semiconductor stocks rallied.
INTC -0.86,
-2.69% was down after
reporting better than expected earnings Tuesday after the close and gapping
higher on Tuesday.
After the close NFLX -118.59, -26.44% reported
earnings and dropped after reporting and new subscriber numbers didn’t meet expectations.
EBAY -0.58, -1.15% dropped in after-hours after profit beat but sales missed
estimates.
Numerous stocks formed bulling engulfing patterns including: IWM, XLB, AMBA,
BBRY, BBY, CSIQ, CTRP, FEYE, GOGO, JD, JDSU, KKD, LNKD, MFRM, PANW, SCHW, SCSS,
SPLK, SPWR, SWI, SWKS, TPX, TWTR, UA, YELP, YY, Z, ZU, ANR, ATI, CAR, CIEN,
DDD, ETFC, FSLR, GME, JNPR, KNDI, P, SINA, SOHU, SUNE, TSL, UBNT, WLT, XONE,
YOKU, ADBE, AVGO, BIDU, GMCR, ILMN, NTAP, PCLN, SNDK, TSLA, TXN, WYNN and XLNX.
Long tailed hammers which often represent the bottom of a pullback appeared on many
stocks including SPY, DIA, QQQ, XLF,
FAS, XLK, XLP, XLV, XLY, HPQ, IBM, LOCO, MS, RCL, V, X, BX, HOG, JCP, YNDX,
ZION, AAPL, AMZN, CMCSA, DTV, EBAY, EXPE, GILD, GOOGL, MAR, MSFT, WDC and YHOO.
Watch for the end of the
current correction and a bounce into the long-term uptrend.
Earnings continue on Thursday with AMD, BHI, BX, COF, DAL, GS, GOOGL, MAT,
OSTK, SNDK, SLB, SCHW and XLNX among others.
Let the games continue.
Trade with the trend of
the chart you are trading
and continue to move your profit protection stops. Continue to follow your rules.
Earnings this week:
Tuesday: C, CSX, INTC, JNJ, JPM, LLTC, WFC
Wednesday: AXP, BAC, EBAY, KEY, LVS, NFLX, URI
Thursday: AMD, BHI, BX,
COF, DAL, GS, GOOGL, MAT, OSTK, SNDK, SLB, SCHW, XLNX,
Friday: BK, GE, HON,
KSU, MS, STI
Q3 Earnings Reactions
Positive Reactions – C,
COST, BBBY, BBRY, MU, NKE, PAYX, LULU, PANW, ULTA, MFRM, SPLK,
More than 10% - NKE, ULTA, LULU, PANW,
MFRM,
Negative Reactions – JNJ,
WFC, AZO, ADBE, KKD, CIEN,
More than -10% -
Reversal in progress – AZO,
Reversal of Initial
Reaction – KKD, BBRY, MU,
The SPY Market Forecast is at 6.
___________________
Setups
Diagonal Breakout: FEYE,
SSYS, GRMN,
At Support: ESRX,
Moves
New Highs:
H Breakout: KKD, NTES,
RAX,
Bounce: AMBA, BABA, BBY,
CSIQ, CTRP, GOGO, HPQ, IWM, JD, JDSU, KKD, LNKD, PANW, SCSS, SPLK, SPWR, TPX,
TWTR, UA, YELP, YY, Z, ANR, CAR, CIEN, FSLR, JASO, JNPR, KNDI, P, SOHU, SUNE, TSL,
UBNT, WLT, YOKU, BIDU, NTAP, PCLN, TSLA, XLNX,
MACD Divergence Bounce:
BBRY,
Gap Down: BAC, EMC, FAS, V, HOG, STI, ZION, AKAM, CMCSA, MSFT,
Support Break: AAPL, COST, EBAY,
______________________
30 out of 100 NDX stocks closed higher
on Wednesday and four were unchanged.
Leading NDX 100 stocks included: NXPI, BIDU, CHRW, ALTR, ADBE, GRMN, REGN
Lagging NDX stocks included: MNST, INTC, VRTX, AMZN, VOD, GOOG, EBAY
Leading stocks > +2% on Wednesday:
GOGO, AMBA, Z, YY, SFUN, NTES, PANW, SPWR, CTRP, KKD, TWTR, BBY, ZU
Lagging stocks < -3.0% included:
GPRO, BAC, FAS, C
Stocks to Watch on Thursday
Holding Above 30 DMA= 3
SIAL,
GMCR, ROST
Moving Above 30 DMA = 2
CHRW, GRMN
Moving Below 30 DMA = 5
COST, MNST, PAYX, SRCL,
VRTX
Staying Below 30 DMA
AAPL, ALXN, DLTR, MYL, ADP,
ADSK, BBBY, ISRG, YHOO, AMGN, CELG, CERN, CTSH, DTV, EBAY, FAST, FB, GILD,
LBTYA, MSFT, NFLX, REGN, CSCO,
EXPE, INTU, MU, SBAC, WFM, CHRW, DISH, FISV, AVGO, ALTR, BRCM, CTXS, INTC,
KLAC, NTAP, BIDU,MAR, NXPI,SNDK, TXN, VOD, XLNX, SPLS, AKAM, BIIB, CHKP,GOOG,
QCOM, CHTR, CMCSA, FFIV, LLTC, AMAT, CA, ESRX, EXPD, LMCA, LMCK, MXIM, SYMC,
TRIP, VIAB, VRSK, EQIX, ILMN, MDLZ, NVDA, ORLY, SIRI, CTRX, KRFT, ADBE, AMZN,
ATVI, FOXA, STX, TSLA, VIP, HSIC, SBUX, TSCO, DISCA, MAT, ADI, WDC, GRMN, PCLN,
PCAR, WYNN
5-month Intermediate
Term Market Trend: Neutral
3-day Short Term Market
Trend: Down
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