SPY, XLY, AAPL New All-time Closing High...QQQ Leads New High Close...

Five out of nine sectors moved higher on Friday…XLE, XLK and XLY were the strongest sectors while XLV was the weakest.

 

Breadth strengthened as advancers led decliners…1.10 to 1 on the NYSE and decliners edged advancers 1.05 to 1 on the NASDAQ

Friday – strengthened, advancers led NYSE

Thursday – weakened, decliners led

Wednesday – strengthened, advancers led

Tuesday – mixed, mixed

Monday – strengthened, advancers led

SPY up .05 at 204.24 on 80.4million shares, below average volume

VIX down .48 at 13.31…

TNX down .27 at 23.20…

TLT up .58 at 119.49...

XLF down .08 at 24.06 on 11.4 million shares

AAPL up 1.36 at 114.18 on 44.0 million shares

FB up .63 at 74.88…on 19.4 million shares, below average volume

Technical Commentary:

QQQ +0.31%, SPY +0.02%, DIA -0.05%, IWM -0.18%,.

QQQ led on Friday as QQQ closed at a new 14-year high; SPY closed at a new all-time high.  SPY had it smallest weekly trading range, $1.70, since the week of Aug 25.  Upward weekly momentum slowed in SPY this week and turned slightly negative in IWM.

                    (click image to enlarge)

The SOX +5.76, +0.90% was a leading tech industry on Friday as 29 of the 30 components gained, led by SWKS, XLNX, RFMD, AVGO, NXPI, CREE, SNDK and LRCX.  MU -.32, -0.97% was the only losing component after Greenlight Capital’s 13F Filing showed it had reduced its position from 40.34 million shares to 30.47 million shares during the third quarter ending Sep 30.

On Friday BABA 115.10, +.26, +0.23% ended the day with a market cap of $283.722 billion.  Only four companies AAPL $669.6 B, MSFT $408.6 B, XOM 402.6 B and JNJ 302.7 B in the SP500 had a larger market cap.  Even WFC $276.7 B, WMT $267.3 B, GE $265.7 B, PG $238.0 B, JPM $225.3 B and CVX $219.8 B have a smaller market cap than BABA.

Do you remember Sep 19 when BABA went public with the largest IPO in history at 68 and the opening secondary trade at 92.70?  Do you remember how some extremely short-sighted talking heads speculated that day might be the market top?  Of course a single factor like an IPO is not going to cause a bull market to end, however there was talk about that for several weeks.

Chart Signals believes that Sep 19 is a significant day in market history because the bastion of capitalism funded a company from the bastion of communism with the largest IPO in history.  Something that no one imagined just a few years ago.  This indicates that there is a shift a foot in world macro-economic trends.

This is similar to July 25, 2013 when FB 74.88, finally proved to the institutional world that they could monetize social media and they could monetize mobile apps successfully.  Since then there has been a major shift in the way companies and individuals communicate. 

In the 12 quarters up to and including FB’s July 2013 earnings release total revenues were $12.071 billion.  In just the five quarters since July 2013, FB has reported revenues of $13.216 billion and their quarterly revenues continue to accelerate.

The global macro-economic environment continues to evolve and insightful investors and traders will evolve with it learning to look at Chart Signals, seeing what institutions are doing, rather than listening to what short-sighted, self-promoting, over simplistic talking heads are saying.  Where will you be in the months and years ahead?  Trading what you see or trading what you hear?

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 = 204.61, 207.33...

QQQ = 103.37, 106.94…

IWM = 117.48, 119.37, 121.27…

Support Levels

SPY = 201.90, 199.61, 198.06...

QQQ = 100.56, 99.59…

IWM = 115.04, 113.35...

Earnings this week:  CMGE, CRM, GME, JASO, JD, MBLY, SPLK,

Q3 Earnings Reactions

Positive Reactions – GOGO, RAX, NTES, XONE, YOKU, VJET, BABA, MNST, WFM, ABC, ACI, AMGN, BIDU, BWLD, CBOE, CLF, CLX, CNX, EA, ESRX, EQIX, EXPE, FISV, GLW, GPRO, GRPN, GT, HSY, JCI, JDSU, LNKD, LVLT, MA, MAR, MO, MTW, MYL, PCAR, FE, SCHN, STX, SWI, SWKS, TASR, V, WY, X, WHR,  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% - GOGO, RAX, WFM, GPRO, GPRN, LNKD, BWLD, SWI, N, EW, TSCO, NKE, ULTA, LULU, PANW, MFRM,

Negative Reactions – SINA, YY, SWKS, FEYE, FSLR, PCLN, QCOM, TRIP, SCTY, SSYS, SUNE, UBNT, Z, ZU, AEM, CHRW, COH, FB, GRMN, KRFT, MDC, MRK, NEM, PNRA, RGR, SLCA, TPX, TWTR, 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% - CSIQ, FSLR, UBNT, ZU, AEM, P, TPX,

Reversal in progress – P, PCLN, TPX, NFLX, COH, GRMN, KO, MDC, VMW,

Reversal of Initial Reaction – AMZN, FEYE, SWKS, Z, BA, BAC, CHRW, CMG, COF, CREE, DECK, DNKN, DOW, EAT, EBAY, F, GM, GOOGL, INTC, JNJ, JNPR, JPM, KEY, LMT, LUV, MAT, NDAQ, UA, WFC, XRX, ADBE, ALTR, ALTR, AXP, AZO, BTU, K, KKD, KRFT, MRK, PNRA,

The SPY Market Forecast is at 98.

___________________

Setups

Horizontal Breakout: AA, ATI, BBY, CTRP, EMC, FEYE, GPRO, HPQ, LNKD, SOHU, SPLK, SWKS, UAL, UBNT, YOKU, CREE, BRCM, EXPE, GMCR, GRMN, MAR, MNST, QCOM, SNDK, TXN,

Diagonal Breakout: BX, SUNE, X, XONE, YNDX, GOOGL,

Bull Flag: IWM, AMBA, BABA, BAC, C, CAR, FAS, GLW, GOGO, JDSU, MTW, QIHU, SCSS, UNG, KNDI, WLT, ZION, MU, ROST, WFM, XLNX,

Potential Bullish Divergence: CSIQ, DGLY, FSLR, SPWR,

Moves

New Highs: AAPL, SPY, HOG, MFRM, NTES, PANW, RCL, SPLK, SWKS, VRSN, ADSK, FFIV, SBUX, YHOO

H Breakout: GLD, LVS, Z, P, AKAM, AMZN, AVGO,

D Breakout: SFUN,    

Breakout Test: ETFC,

Bull Flag Bounce: GPRO, WDC,

Bounce: NTAP, STX, TSLA,  

C- Pattern: GPRO,

______________________

61 of 100 NDX stocks closed higher on Friday.

Leading NDX 100 stocks included: AKAM, AMZN, NTAP, TSLA, CSCO, YHOO, VIAB, BIDU, FFIV, DISCA

Lagging NDX stocks included: BIIB, CELG, ALXN, ILMN, GILD, AMGN, ROST, MYL, VRTX, ATVI

Leading stocks > +2% on Friday: P, Z, SFUN, YY, CSIQ, TWTR, SCTY, KNDI, JCP, SSYS, ATI, YOKU, UBNT, GPRO, SWKS, YELP, X, NTES, QIHU, GLD, TSL, EMC, CTRP

Lagging stocks < -2.0% included: BBRY, SINA

Stocks to Watch on Monday

Holding Above 30 DMA= 91

GMCR, ROST, CHRW, GRMN, MYL, SRCL, DLTR, ISRG, MNST, PAYX, REGN, ADP, ALXN, BIDU, COST, ORLY, TSCO, VRTX, XLNX, AAPL, AMGN, BBBY, CELG, ESRX, FISV, HSIC, ILMN, KRFT, MAR, PCAR, SPLS, SYMC, TXN, BRCM, YHOO, CA, CERN, CHKP, CTSH, EXPD, INTU, LBTYA, NVDA, SBAC, SBUX, STX, ADBE, ADSK,  KLAC, LMCA, MDLZ, MSFT, VRSK, AMAT, LMCK, MU, WFM, AVGO, FFIV, NTAP, NXPI, VOD, WDC, AKAM, BIIB, CTRX, DISH, EQIX, SIRI, ADI, ALTR, ATVI, CSCO, DTV, EBAY, EXPE, FAST, INTC, LLTC, MAT, MXIM, SNDK, FOXA, QCOM, TSLA, CTXS, PCLN, SIAL, AMZN, CHTR, VIAB, WYNN

Moving Above 30 DMA = 0

                                                                                                                                          

Moving Below 30 DMA = 1

BIIB

                                                                                       

Staying Below 30 DMA

GILD, GOOG, QCOM, VIP, TRIP, DISCA, FB, NFLX

6-month Intermediate Term Market Trend: Up

3-day Short Term Market Trend: Up