Monday, December 15, 2014

SPY Reaches -4.65% Correction on Monday...Healthcare, Biotech Weak...

All nine sectors moved lower on Monday…XLI, XLB and XLK were the strongest sectors and XLV was the weakest.
 
Breadth strengthened as decliners led advancers3.15 to 1 on the NYSE and 2.47 to 1 on the NASDAQ.

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


SPY down 1.38 at 199.51 on 182 million shares
VIX down .66 at 20.42…
TNX up .13 at 21.16…
TLT down .26 at 126.04...
XLF down .22 at 23.92 on 34.4 million shares

AAPL down 1.50 at 108.22 on 66.8 million shares
FB down .84 at 76.99…on 29.2 million shares


Technical Commentary:

SPY -0.69%, DIA -0.70%, IWM -1.01%, QQQ -1.03%.

SPY was down -4.65% from its Dec 5 high at Monday’s low before closing at 199.51.  S&P futures opened higher and closed lower.  The VIX did not confirm the down move in the SPX on Monday

Semiconductors $SOX -0.84% continued lower with the broad market on Monday led by weakness in RFMD, SUNE, ASML, FSL, NXPI, ARMH and XLNXADI, ALTR, AMAT, ATML, AVGO, INTC, KLAC, LLTC, TXN and XLNX continue to be bull flag setups.  

RFMD -.57, -3.68% was lower on an analyst downgrade.

Short-term posture is bearish.  If the broad market finds support and bounces, look for bull flag setups in stocks that are still in an uptrend.

S&P futures trading continued to shift on Monday to the March contract ESH5 from the Dec contract ESZ4 which stops trading next Thursday.

Lending Club, LC, +0.28, +1.13% gained on its third day of trading.

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 = 200.06...
QQQ = 102.42, 101.38
IWM = 114.37, 113.35...


Q3 Earnings Reaction
Positive Reactions – ADBE, CIEN, LULU, AVGO, 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 – COST, AMBA, 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 48.

___________________


33 of 100 NDX stocks closed higher on Monday.


Leading NDX 100 stocks included: SPLS, MYL, BRCM, FFIV, EXPD, ROST, PAYX, MAR, BBBY, CTXS

Lagging NDX stocks included: VIP, ADBE, REGN, ILMN,VRTX, SBUX, AMGN, PCLN, LMCA, SIRI

Leading stocks > +2% on Monday: SCSS

Lagging stocks < -2.0% included: DGLY, KNDI, GPRO, LOCO, CTRP, MTW, BBRY, JD, JASO, SFUN, SUNE, CSIQ, SSYS, GLD, FAS, SPLK, FEYE, TSL


Stocks to Watch on Tuesday
Holding Above 30 DMA= 38
ROST, DLTR, ORLY, TSCO, BBBY, CELG, ESRX, PCAR, SPLS, TXN, CHKP, EXPD, INTU, LBTYA, SBUX, KLAC, AMAT, WFM, AVGO, FFIV, WDC, DISH, ADI, ALTR, CSCO, EBAY, EXPE, FAST, INTC, LLTC, MXIM, FOXA, SIAL, CHTR, BIIB, FB, VIAB, ADBE

Moving Above 30 DMA = 2
BRCM, MAR

Moving Below 30 DMA = 11
AMGN, CHRW, CMCSA, EQIX, GILD, HSIC, KRFT, REGN, VRTX, XLNX, YHOO

Staying Below 30 DMA
ADP, CA, COST, CTRX, DISCA, MAT, MDLZ, MNST, MU, NVDA, NXPI, SNDK, SRCL, STX, SYMC, VOD, VRSK, AAPL, ADSK, AKAM, ALXN, ATVI, CERN, CTSH, FISV, ISRG, MYL, NTAP, QCOM, ILMN, CTXS, MSFT, PAYX, SBAC, TRIP, AMZN, LMCA, LMCK, SIRI, GRMN, DTV, PCLN, BIDU, GOOG, TSLA, VIP, GMCR, WYNN, NFLX

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

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