Wednesday, December 3, 2014

DIA, SPY Another New Record Closing High...IWM Bull Flag Bounce...AVGO Gaps Higher in After-hours...

Seven of nine sectors moved higher on Wednesday…XLB, XLI and XLE were the strongest sectors and XLP was the weakest.
 
Breadth weakened as advancers led decliners…1.87 to 1 on the NYSE and 1.61 o 1 on the NASDAQ.

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


SPY up .81 at 207.89 on 68.9 million shares
VIX down -.38 at 12.47…
TNX up .02 at 22.87…
TLT up .47 at 120.79...
XLF up .11 at 24.57 on 14.5 million shares

AAPL up 1.30 at 115.93 on 43 million shares, average volume
FB down .58 at 74.88…on 16.7 million shares


Technical Commentary:
IWM +0.96%, SPY +0.39%, DIA +0.22%, QQQ +0.18%.

Small cap stocks again led the rally on Wednesday.  DIA and SPY made another new all-time closing high on Wednesday.  QQQ formed a dragon fly doji.

DIA broke out of horizontal resistance by 27 cents
SPY is a horizontal resistance breakout setup just 5 cents above its recent high. 
QQQ is in bull flag setup with a potential entry bounce on Thursday. 
IWM was a bull flag bounce entry today.

Semiconductors SOX +13.92, +2.04% rose on the strength of FSL, ONN, MCHP, ARMH, ATML, MXIM, AVGO, KLAC, CREE, ADI and AMAT as 28 of 30 stocks rose.

Sectors
XLK, XLP and XLY are in a bull flag pattern.
XLF and XLU are a horizontal resistance breakout setup.
XLB and XLI, bounced in a bull flag pattern and are also a horizontal resistance breakout setup.
XLV made an all-time closing high.
XLE continued to bounce off a horizontal support low.

AVGO +6.49, +6.82% jumped in after-hours on a positive earnings reaction.  Watch for a bullish gap on Thursday.

TRIP paused on Wednesday and stayed above S1 of Tuesday’s large white candle after breaking out of an inverse head and shoulders reversal pattern on Tuesday.  Reversal pattern Chart target: 81.84.

DGLY -.77, -4.12% pulled back and stayed above S1 of Tuesday’s large white candle after rising 45% on Tuesday.

MFRM formed a spinning top following its negative earnings reaction on Tuesday.


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 = 207.33, 209.06, 210.49...
QQQ = 106.94
IWM = 118.25, 119.37, 121.27…

Support Levels
SPY = 205.71, 203.13, 201.90...
QQQ = 104.42, 102.42, 101.38
IWM = 115.04, 114.37, 113.35...


Earnings this week: AMBA, AVGO, MFRM

Q3 Earnings Reaction
Positive Reactions – ADI, HPQ, PANW, QIHU, ADSK, JASO, ROST, SPLK, 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 – MFRM, GME, CRM, JD, MBLY, 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% - GME, CSIQ, FSLR, UBNT, ZU, AEM, P, TPX,

Reversal in progress – GOGO, P, PCLN, TPX, KO,

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

The SPY Market Forecast is at 96.

___________________

Setups
Horizontal Breakout: XLF, XLU, STI, GILD, CMCSA, AIG, EBAY, CRM, HPQ, P,
Diagonal Breakout: MSFT
EXPE, ILMN, NTAP, AAL, BABA, CREE, ETFC, FEYE, GOGO, GPRO, MS, SCHW, SPLK, XONE, YELP, Z
Bull Flag: QQQ, XLK, XLY, AAPL, AKAM, AMZN, FB, GRMN, MAR, MNST, MYL, ROST, SBUX, WDC, WFM, YHOO, DAL, UAL, LUV, AA, BBY, BX, EMC, JNPR, NKE, NTES, PANW, SUNE, SWKS, UA,
Potential Bullish Divergence: GOOGL, KNDI, SOHU, SSYS, UBNT,
Gap Up: AVGO 
Gap Down:  
Bear Flag:
At Support: JCP, QIHU, WYNN, TSL, TWTR, YY,
C- Pattern:

Moves
New Highs: DIA, SPY, ESRX, TXN, XLNX, RCL, SWI, V,
H Breakout: C, BAC, FAS,
D Breakout:   
Breakout Test:  
Bull Flag Bounce: IWM, XLB, XLI, ADSK, BRCM, FFIV, GRMN, MU, SNDK, ATI, CAR, CIEN, JASO, RAX, AMBA,
Bounce: GME, SCTY, X, GLD, BBRY, NFLX,
MACD Divergence Bounce: SPWR,
Gap Up: DGLY,  
Gap Down:
C- Pattern:
Bear Flag:  
Support Break: GMCR,

______________________


62 of 100 NDX stocks closed higher and one was unchanged on Wednesday.


Leading NDX 100 stocks included: BIIB, MXIM, PCAR, AVGO, KLAC, FAST, ADI, AMAT, NTAP, NVDA

Lagging NDX stocks included: AMZN, WYNN, MNST, BIDU, GILD, GMCR, CTXS, CELG, ALXN, DISH

Leading stocks > +2% on Tuesday: AMBA, MBLY, ATI, X, CIEN, JASO, BBRY, CREE, GME, JNPR, JD, CAR, TSL, SCHW, GLW, GOGO, SWKS, MS, JDSU

Lagging stocks < -2.0% included: DGLY, SSYS, BBY, FEYE, JCP


Stocks to Watch on Thursday
Holding Above 30 DMA= 86
ROST, CHRW, GRMN, MYL, SRCL, DLTR, ISRG, MNST, PAYX, REGN, ADP, ALXN,  COST, ORLY, TSCO, VRTX, XLNX, AAPL, AMGN, BBBY, CELG, ESRX, FISV, HSIC, 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, AMAT, LMCK, MU, WFM, AVGO, FFIV, NTAP, NXPI, VOD, WDC, AKAM, CTRX, DISH, EQIX, SIRI, ADI, ALTR, CSCO, EBAY, EXPE, FAST, INTC, LLTC, MXIM, SNDK, FOXA, SIAL, AMZN, CMCSA, CHTR, VIAB, ATVI, CTXS, DISCA, VRSK, BIIB, QCOM

Moving Above 30 DMA = 1
ILMN                                       

Moving Below 30 DMA = 1
DTV
                                                                                       
Staying Below 30 DMA
PCLN, BIDU, FB, GOOG, MAT, TSLA, VIP, GMCR, WYNN, GILD, TRIP, NFLX

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

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