Wednesday, October 15, 2014

RUT Leads...SPY, DIA, QQQ...Bullish Engulfing and Hammers Everywhere...INTC Down...NFLX Collapses on Subscriber Growth...

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.

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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,


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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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