Tuesday, October 7, 2014

Stocks Close Near Thursday's Low...VIX Highest Close Since March...Interest Rates Down as TLT at 2014 High...

All nine sectors moved lower on Tuesday…however…XLU, XLP, and XLE were the strongest sectors while XLI was the weakest. 

Breadth weakened…decliners led advancers…3.56 to 1 on the NYSE and 4.23 to 1 on the NASDAQ.

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


SPY down 3.24 at 193.05 on 147.4 million shares, above average volume
VIX up 1.74 at 17.20…
TNX down .75 at 23.50…
TLT up 1.59 at 119.36...
XLF down .40 at 22.81 on 51 million shares, above average volume

AAPL down .82 at 98.80 on 41.9 million shares, below average volume
FB down 1.24 at 76.32…on 25.2 million shares

Technical Commentary:
QQQ – 1.47%, DIA – 1.63%, SPY – 1.67%, IWM – 1.85%.

The SPX, Dow and NDX make a new closing low but above last Thursday’s intraday low while the RUT makes a lower low closing below last Thursday’s low.  Each of the four indexes are forming a potential MACD bullish divergence.

The SPX is now down 4.18% from its intraday high of since its high of 2,019 on Sep 19.

TLT +1.59, +1.39% hit its highest close in more than a year and interest rates continued to fall.  TNX -0.75, -3.09% closed at 23.50.

YUM +0.72, +1.03% gained in after-hours following its earnings release after the close.

AA reports earnings after the close on Wednesday which is the unofficial start to earnings season.  Bank stocks JPM, BAC, C and WFC report earnings next week.


GPRO +0.06, +0.06% pulled back from an intraday high 98.47 to close at 93.85 a new high close after Piper Jaffray downgraded GPRO from overweight to neutral and maintains a $90 price target.

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 = 198.98, 200.65, 201.90...
QQQ = 99.75, 100.56
IWM = 109.8, 111.27, 112.46...

Support Levels
SPY = 194.35, 193.03, 190.28...
QQQ = 96.94, 96.17, 95.06
IWM = 107.43, 106.74...


Earnings this week:  AA, COST, YUM

Sep Earnings Reactions
Positive Reactions – BBBY, BBRY, MU, NKE, PAYX, LULU, PANW, ULTA, MFRM, SPLK,

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

Negative Reactions – AZO, ADBE, KKD, CIEN,

More than -10% -

Reversal in progress –

Reversal of Initial Reaction – KKD,

The SPY Market Forecast green line is at 24 and lags price bounce.

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Setups
Horizontal Breakout: GPRO
Diagonal Breakout: AA, AMBA  
Bull Flag: MBLY, NKE, PANW,
At Support: CSIQ, CTRP, EMC, GME, GOGO, IWM, JCP, RCL, SPWR, SSYS, SWKS, V, ZION, DDD, FSLR, SOHU, SUNE, TSL, VJET, YNDX, YOKU,
C- Pattern

Moves
New Highs: GPRO
H Breakout: TLT,   
Gap Down: BAC, DAL, LVS,  
Support Break: AIG, BBRY, BBY, ETFC, IBM, JDSU, SCTY, STI, ATI, CAR, CREE, JNPR, TBT, WLT,


______________________

3 out of 100 NDX stocks closed higher on Tuesday.


Leading NDX 100 stocks included: GMCR

Lagging NDX stocks included: FFIV, VIP, TSCO, ALXN, NTAP, MXIM, VRTX, WFM, ADSK, PCAR,SPLS, LLTC, BIIB, INTU

Leading stocks > +2% on Tuesday included:

Lagging stocks < -2.0% included: V, BBY, SCCTY, RCL, RAS, HPQ, SCHW, ETFC, AMBA, SPWR, AIG, UAL JCP, UBNT, BBRY, MS

Stocks to Watch on Wednesday
Holding Above 30 DMA= 15
COST, MNST, PAYX, DTV, VRTX, ADSK, SIAL, BBBY, YHOO, ALXN, DLTR, ISRG, ADP, GMCR, MYL

Moving Above 30 DMA = 0
                                                  

Moving Below 30 DMA = 13
CELG, CERN, CSCO, EXPE, FAST, FB, INTU, MU, REGN, ROST, SBAC, SRCL, WFM
                                                                                             
Staying Below 30 DMA
AMGN, CHRW, DISH, EBAY, FISV, GILD, AVGO, ALTR, BRCM, CTXS, INTC, KLAC, MSFT, NTAP,BIDU, MAR, NXPI, SNDK, TXN, VOD, XLNX, AAPL, LBTYA, SPLS, AKAM, BIIB, CHKP, GOOG, QCOM, CHTR, CMCSA, FFIV, LLTC, WFM, AMAT, CA, ESRX, EXPD, LMCA, LMCK, MXIM, SYMC, TRIP, VIAB, VRSK, EQIX, ILMN, MDLZ, NVDA, ORLY, SIRI, CTRX, KRFT, ADBE, AMZN, ATVI, FOXA, NFLX, STX, TSLA, VIP, HSIC, SBUX, SRCL, TSCO, DISCA, MAT, ADI, WDC, GRMN, PCLN, PCAR, CTSH, WYNN

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

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