Thursday, December 11, 2014

Stocks Rally as SPY, QQQ, DIA and IWM Form Inverted Hammer/Bullish Harami...LULU, CIEN Gap Up...ADBE Gains in After-hours...

Eight of nine sectors moved higher on Thursday…XLU, XLP and XLI were the strongest sectors and XLE was the weakest.
 
Breadth strengthened as advancers led decliners1.32 to 1 on the NYSE and 1.52 to 1 on the NASDAQ.

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


SPY up 1.03 at 204.19 on 150.3million shares
VIX up 1.55 at 20.08…
TNX up .09 at 21.78…
TLT up .51 at 124.61...
XLF up .06 at 24.62 on 32.1 million shares

AAPL down .33at 111.62 on 43.8 million shares
FB up 1.55 at 77.73…on 33 million shares


Technical Commentary:

SPY +0.51%, QQQ +0.47%, DIA +0.42%, IWM +0.40%.

Better than expected weekly jobless claims and retail sales numbers provided a backdrop for a market rallied on Thursday.  The SPY, QQQ, DIA and IWM each formed inverted hammer/bullish harami candle pattern which indicates a pending potential short-term bounce. The VIX closed at its highest level since Oct 17 and rose in unusual unison with the SPY.

Semiconductors $SOX +0.47% rebounded on Thursday led by strength in ATML, RFMD, SWKS, ALTR and AVGOADI, ALTR, AMAT, ATML, AVGO, BRCM, INTC, KLAC, LLTC, MU, SNDK, TXN and XLNX continue to be bull flag setups.

S&P futures trading began to shift today to the March contract ESH5 from the Dec contract ESZ4 which stops trading next Thursday.

The Market Forecast green line closed below confirming the shift defensively three days agoBe mindful of the potential for a break of short-term support below Wednesday’s low.

Lending Club, LC, went public today at 15, opened at 24.75 and closed at 23.43.

LULU +4.25, +9.11% and CIEN +1.18, +6.96% gained on positive earnings reaction before the open.

ADBE +5.26, +7.54% rose in after-hours on a positive earning reaction.


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 = 203.13, 201.90...
QQQ = 103.04, 102.42, 101.38
IWM = 115.04, 114.37, 113.35...

Earnings this week: COST, ADBE, CIEN, LULU

Q3 Earnings Reaction
Positive Reactions – 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 77.

___________________


78 of 100 NDX stocks closed higher on Thursday.


Leading NDX 100 stocks included: SPLS, ADBE, VRTX, CTSH, MAT, EBAY, LMCK, FB, MNST, ROST

Lagging NDX stocks included: VIP, GRMN, TSLA, XLNX, ATVI, SBAC, GILD, SNDK, CTXS, EXPE

Leading stocks > +2% on Thursday: CIEN, DAL, NTES, AAL, UAL, HPQ, UBNT, Z, CSIQ, LVS, SOHU


Lagging stocks < -2.0% included: DGLY, AMBA, GPRO, CREE, SPLK, ATI, LOCO, AA, UNG


Stocks to Watch on Friday
Holding Above 30 DMA= 60
ROST, SRCL, DLTR, ISRG, PAYX, REGN, ADP, COST, ORLY, TSCO, VRTX, XLNX, AMGN, BBBY, CELG, ESRX, FISV, HSIC, KRFT, MAR, PCAR, SPLS, SYMC, TXN, BRCM, CA, CHKP, EXPD, INTU, LBTYA, NVDA, SBAC, SBUX, STX, KLAC, MDLZ, MSFT, AMAT, MU, WFM, AVGO, FFIV, NXPI, VOD, WDC, CTRX, DISH, EQIX, ADI, ALTR, CSCO, EBAY, EXPE, FAST, INTC, LLTC, MXIM, SNDK, FOXA, SIAL, CMCSA, CHTR, CTXS, BIIB, TRIP, FB, VRSK

Moving Above 30 DMA = 6
CHRW, DISCA, MAT, MNST, VIAB, YHOO                                                                                     

Moving Below 30 DMA = 1
GILD,                                                                                       

Staying Below 30 DMA
AAPL, ADBE, 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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