Tuesday, December 2, 2014

Dow Hits New All-time Closing High as SPY, IWM, QQQ Bounce...Bull Flags in Abundance...DGLY Soars...

All nine sectors moved higher on Tuesday…XLE, XLV and XLF were the strongest sectors and XLK was the weakest.
 
Breadth strengthened as advancers led decliners…1.96 to 1 on the NYSE and 2.08 o 1 on the NASDAQ.

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


SPY up 1.32 at 207.08 on 74.5 million shares
VIX down -1.44 at 12.85…
TNX up .67 at 22.85…
TLT down 1.18 at 120.32...
XLF up .23 at 24.46 on 21.7 million shares

AAPL down .44 at 114.63 on 59.3 million shares, above average volume
FB up .36 at 75.46…on 16.8 million shares


Technical Commentary:
IWM +1.20%, SPY +0.64%, DIA +0.54%, QQQ +0.40%.

Small cap stocks led a rally on Tuesday following Monday’s selloff that left indexes at a higher low close in a bull flag type pull back.  SPY formed a bullish engulfing pattern, while DIA gapped past its doji.  QQQ and IWM formed bullish harami patterns.

DIA made another new all-time closing high.  DIA and SPY bounced in a bull flag pattern while QQQ and IWM are in bull flag setup with a potential entry bounce on Wednesday.

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



TRIP +5.63, +7.92% broke out of an inverse head and shoulders reversal pattern following news of a regulatory filing indicating that CEO Stephen Kaufer purchased 13,785 shares at $72.55, totaling just over a million dollars.  Reversal pattern Chart target: 81.84.

MFRM -5.50, -7.90% dropped on a negative earnings reaction from earnings after the close on Monday.


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, EBAY, GILD, MSFT, AIG, BBRY, C, CRM, HPQ, P,
Diagonal Breakout: EXPE, ILMN, NTAP, AAL, BABA, CREE, ETFC, FEYE, GOGO, GPRO, MS, SCHW, SPLK, XONE, YELP, Z
Bull Flag: QQQ, IWM, XLB, XLI, XLK, XLY, AAPL, ADSK, AKAM, AMZN, BRCM, FB, FFIV, GRMN, MAR, MNST, MU, MYL, ROST, SBUX, SNDK, WDC, WFM, YHOO, DAL, UAL, LUV, AA, ATI, BBY, BX, CAR, CIEN, EMC, JASO, JCP, JNPR, NKE, NTES, PANW, QIHU, RAX, SUNE, SWKS, UA,
Potential Bullish Divergence: GOOGL, KNDI, SOHU, SPWR, SSYS, UBNT,
At Support: GMCR, WYNN, GME, SCTY, TSL, TWTR, X, YY,

Moves
New Highs: CELG, COST, ESRX, INTC, STX, TXN, XLNX, KKD, RCL, SWI, V,
H Breakout: TRIP, QCOM, TRIP,  
D Breakout: GILD,   
Breakout Test: GLD,  
Bull Flag Bounce: SPY, DIA, XLF, CMCSA, AIG, FAS,
Bounce: BBRY, C, STI,
MACD Divergence Bounce: NFLX, BAC,  
Gap Up: DGLY, RCL,

______________________


65 of 100 NDX stocks closed higher and two were unchanged on Tuesday.


Leading NDX 100 stocks included: TRIP, BIIB, ALXN, NFLX, VRTX, REGN, STX, MXIM, QCOM, CELG

Lagging NDX stocks included: SBAC, DISH, VIP, MNST, SNDK, PCLN, WFM, DTV, GMCR, INTU

Leading stocks > +2% on Tuesday: DGLY, JD, SFUN, RCL, FEYE, CSIQ, BABA, AMBA, BBRY, SUNE, JASO, ETFC, TSL, FAS, SCHW, P, BAC, XONE

Lagging stocks < -2.0% included: WLT, MFRM, MBLY, UNG, TPX, CTRP, CMGE, QIHU


Stocks to Watch on Wednesday
Holding Above 30 DMA= 85
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, DTV, EBAY, EXPE, FAST, INTC, LLTC, MXIM, SNDK, FOXA, SIAL, AMZN, CMCSA, CHTR, VIAB, ATVI, CTXS, DISCA, VRSK

Moving Above 30 DMA = 2
BIIB, QCOM                                        

Moving Below 30 DMA = 2
ILMN, PCLN
                                                                                       
Staying Below 30 DMA
BIDU, FB, GOOG, MAT, TSLA, VIP, GMCR, WYNN, GILD, TRIP, NFLX

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

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