Friday, October 24, 2014

SPY Posts Largest Weekly Gain in 2014...Massive Bullish Engulfing on Weekly Chart...FB New All-time High...

Seven out of nine sectors moved higher on Friday…XLV, XLU and XLF were the strongest sectors while XLE was the weakest. 

Breadth weakenedadvancers led decliners…1.64 to 1 on the NYSE and 1.30 to 1 on the NASDAQ.

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


SPY up 1.50 at 196.43 on 107.5 million shares
VIX down .42 at 16.11…
TNX down .02 at 22.73…
TLT up .12 at 119.72...
XLF up .22 at 23.10 on 26.2

AAPL up .39 at 105.22 on 44.1 million shares
FB up .63 at 80.67…on 32 million shares, new all-time high

Technical Commentary:
QQQ +0.82%, DIA +0.78%, SPY +0.77%, IWM +0.17%.

Last Friday we brought your attention to the weekly hammer on the SPY, QQQ and DIA while IWM formed a bullish harami.  This week SPY, QQQ and DIA formed massive bullish engulfing patterns while IWM formed a large white candle confirming last week’s bullish harami.

                   (click image to enlarge)

SPY, QQQ, DIA and IWM closed higher four of the days this week gaining between 5.98% on DIA to 9.29% on QQQ.

Positive earning reactions from AAPL, ALK, ALXN, CAT, CELG, CMCSA, HOG, ILMN, KLAC, MMM, MSFT, PG, STT, TRV, TXN, UNP and YHOO helped lift the market this week.  Earnings continue next week with many high visibility companies including BIDU, STX, TWTR, FB, MAR, EXPE, LNKD and GPRO.

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 = 197.62, 199.69, 201.90...
QQQ = 99.30, 100.56
IWM = 112.15, 114.51…

Support Levels
SPY = 194.27, 191.91...
QQQ = 96.62, 95.40
IWM = 109.77, 108.87...

Earnings next week
Monday: AMGN, BIDU, BWLD, CLF, MTW, MRK, STX, TMUS, TWTR
Tuesday: AET, AGN, ACI, CHRW, COH, CNX, GLW, EA, ESRX, FB, FISV, GILD, HCA, LLL, MAR, PCAR, PNRA, PFE, SCHN, SIRI, SWI, X, VRSK, WDC, WHR,
Wednesday: AEM, CAR, LNG, EQIX, FFIV, GRMN, GT, HSY, JDSU, KRFT, LVLT, RGR, SLCA, V, WLT,
Thursday: ANR, MO, ABC, COP, EXPE, GPRO, GRPN, JCI, K, LNKD, MDC, MA, MGM, MOS, MYL, NEM, SWKS, SBUX, TASR, TPX, TEVA, UPL, WWE,
Friday: CBOE, CLX, WY

Q3 Earnings Reactions
Positive Reactions – AAPL, ALK, ALXN, APOL, BMY, BRCM, CAT, CELG, CERN, CHKP, CMCSA, CNI, EMC, EW, GD, HAL, HAS, HOG, ILMN, IM, KLAC, KMB, LLY, LRCX, LXK, MMM, MXIM, MSFT, N, ORLY, PG, RMD, STLD, STT, SWK, TRV, TSCO, TXN, UNP, VRSN, WOOF, YHOO, YNDX, 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% - N, EW, TSCO, NKE, ULTA, LULU, PANW, MFRM,

Negative Reactions – ALTR, AMZN, BA, BTU, CMG, CREE, DECK, DNKN, DOW, EAT, F, GM, IBM, JNPR, KO, LMT, LUV, NDAQ, P, UA, VMW, XRX, YELP, AXP, BAC, COF, EBAY, GOOGL, INTC, JNJ, JPM, KEY, MAT, NFLX, WFC, AZO, ADBE, KKD, CIEN,

More than -10% - P, 

Reversal in progress – AZO,


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

The SPY Market Forecast is at 58.

___________________

Setups
Horizontal Breakout: AIG, ATI, BAC, BBRY, BBY, BX, CIEN, CTRP, FAS, FEYE, HOG, IWM, MFRM, MS, QIHU, RAX, SPLK, SPY, SUNE, STI, YNDX, EBAY, NTAP, SNDK, TRIP, TXN
Diagonal Breakout: CMGE, CSIQ, ETFC, GOGO, LOCO, MBLY, SCTY, SSYS, TSL, XONE, UBNT, MU
Bull Flag: LVS, NTES, TLT, ESI, YOKU, BRCM, COST, GMCR
Potential Bullish Divergence: JD
At Support: ANGI

Moves
New Highs: AAPL, FB, GILD, ILMN, AAL, BABA, DAL, NKE, NTES, PANW, SCSS, CELG, ROST, YHOO
H Breakout: AA, C, CRM, GME, NKE, VRSN, YY, INTC, QCOM, STX
D Breakout: EMC, ADBE, CMCSA
Breakout Test: NTES, MNST,
Bull Flag Bounce: RCL, XLNX
Gap Up: MSFT
Gap Down: P, AMZN

______________________

82 out of 100 NDX stocks closed higher on Friday and one was unchanged.

Leading NDX 100 stocks included: KLAC, STX, MXIM, GILD, CELG, CTXS, BIDU, NXPI, VOD, CTRX

Lagging NDX stocks included: AMZN, BBBY, ALTR, ISRG, EQIX, WFM, SRCL, FOXA, GOOGL, DTV

Leading stocks > +2% on Friday: SPLK, YY, DAL, YELP, VRSN, RCL, AAL, CRM, BX, SWI, CAR, FAS

Lagging stocks < -3.0% included: GPRO, ANGI, AMBA, JD, JDSU, SFUN, Z, CIEN

Stocks to Watch on Monday
Holding Above 30 DMA= 52
SIAL, GMCR, ROST, CHRW, GRMN, MYL, SRCL, DLTR, ISRG, MNST, PAYX, REGN, ADP, ALXN, BIDU, COST, FB, ORLY, TSCO, VRTX, XLNX, AAPL,AMGN, BBBY, CELG, ESRX, FISV, GILD, HSIC, ILMN, KRFT, MA, PCAR, QCOM, SPLS, SYMC, TXN, WYNN, BRCM, YHOO, CA, CERN, CHKP, CHTR, CTSH, EXPD, INTU, LBTYA, NVDA, SBAC, SBUX, STX

Moving Above 30 DMA = 12
ADBE, ADSK, BIIB, CMCSA, CTRX, KLAC, LMCA, MDLZ, MSFT, PCLN, VOD, VRSK

Moving Below 30 DMA = 1
WFM
                                                                                             
Staying Below 30 DMA
DTV, EBAY, FAST, NFLX, CSCO, EXPE, MU, DISH, AVGO, ALTR, CTXS, INTC, NTAP, NXPI, SNDK, AKAM, GOOG, FFIV, LLTC, AMAT, LMCK, MXIM, TRIP, VIAB, EQIX, SIRI, AMZN, ATVI, FOXA, TSLA, VIP, DISCA, MAT, ADI, WDC

6-month Intermediate Term Market Trend: Up/Neutral
3-day Short Term Market Trend: Up

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