Tuesday, January 27, 2015

MSFT, CAT, DD, PG Lead SPX Lower on Tuesday...After the Close AAPL Crushes Estimates...FSL, X, YHOO, JNPR, EA, WDC Rise on EPS...

One of nine sectors moved higher on Tuesday…XLU, XLE and XLB were the strongest sectors and XLK was the weakest.
 
Breadth weakened as decliners led advancers 1.31 to 1 on the NYSE and 1.68 to 1 on the NASDAQ.

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


SPY down 2.71 at 202.74 on 134.0 million shares
VIX up 1.70 at 17.22…
TNX down .03 at 18.25…
TLT up .21 at 134.57...
XLF down .21 at 23.63 on 28.5 million shares

AAPL down 3.96 at 109.14 on 95.5 million shares
FB down 1.71 at 75.78…on 20.1 million shares

Technical Commentary:
IWM -0.48%, SPY -1.32%, DIA -1.65%, QQQ -2.59%.

The NDX crumbled -110.22 points led by a -31.7 NDX point drop in MSFT.  INTC, CSCO, GOOG, AAPL, FB and GILD contributed another -24.9 NDX points to the downside.  The other -53 NDX points were spread across 86 stocks as only 7 stocks in the NDX rose on Tuesday.

S&P futures dropped before the open on a combination of weak earnings reactions from MSFT, CAT, DD, PG and a lower than expected durable goods report.

Stocks were led lower by weak earnings late Monday and Tuesday before the open.  After the close AAPL +6.06, +5.55% blew estimates away earning $18 billion,  selling 74.5 million iPhones during the holiday season, and led a bevy of positive earnings reactions in after-hours trading:
FSL +3.15, 11.95%
X +1.88, +8.84%
YHOO +3.35, +6.98%
JNPR +1.13, +5.18%
EA +1.99, +4.11%
WDC +3.37, +3.45%

IWM was the strongest market segment on Tuesday and during mid-afternoon was down just one cent.  IWM closed lower but above its open and did form a white candle.

RUT Movers:  XON, PBYI, MNKD, KITE, SLCA

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 = 205.10, 206.42, 208.97...
QQQ = 105.26
IWM = 117.89, 118.72, 121.41…

Support Levels
SPY = 204.02, 202.33, 201.50...
QQQ = 103.72, 102.59, 101.35
IWM = 116.57, 115.10, 114.20...


Earnings this week:
Monday:  MSFT, STX, TXN, ZION
Tuesday:  AAL, AAPL, AMGN, EA, ILMN, WDC, YHOO, FSL, GLW, JNPR, X,
Wednesday: BIIB, FB, LRCX, QCOM, TSCO, VRTX, CAVM
Thursday:  ALXN, AMZN, BRCM, CELG, CHKP, MAT, VIAB, WYNN, MCHP, BABA, BX, HOG, JDSU, RCL, SWI,
Friday:  PCAR

Q4 Earnings Reaction
Positive Reactions – AAPL, EA, FSL, GLW, JNPR, WDC, X, YHOO, NFLX, ALK, BHI, CREE, DAL, EBAY, ETFC, GE, HON, KMB, LUV, MXIM, SBUX, SWKS, TRV, UAL, UNH, UNP, SNX, LLTC, TSM

More than 10% - NFLX

Negative Reactions – MSFT, STX, AAL, ZION, AXP, ALTR, FFIV, IBM, ISRG, JNJ, KLAC, KSU, MCD, STT, XLNX, AA, BAC, C, JPM, KBH, WFC,

More than -10% - FFIV, KBH,

Reversal in progress – BAC, C, IBM, JNJ, JPM, 

Reversal of Initial Reaction – WFC


The SPX Market Forecast is pointed up at 61.

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Setups
Horizontal Breakout: IWM, NTES, MGM, MAR, TXN, FEYE, JD, KKD, MBLY, KEY, TSL, FSLR, SSYS,
Diagonal Breakout: SPY, AMBA, FAS,
Bull Flag: KRFT, MNST, AVGO, AAL, DAL, ADBE, EBAY, GRMN, CTRP, ETFC, STI, Z, LOCO
Gap Up:  AAPL, EA, FSL, JNPR, WDC, X, YHOO

Moves
New Highs: NFLX, SBUX, ILMN, GLW, SCSS,
Bull Flag Bounce: GLD, JNUG, GDX,    
Gap Down: MSFT, INTC, HOG, HPQ, QQQ, CAT, PG   
Bear Flag:  MU,

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7 out of 100 NDX stocks closed higher on Tuesday.


Leading NDX 100 stocks included: NFLX, DLTR, XLNX, ILMN, SBAC, SBUX, SPLS

Lagging NDX stocks included: MSFT, VIP, AAL, NVDA, INTC, MU, CSCO, ADSK, AAPL, STX

Leading stocks > +2% on Tuesday: GLW, LC, SCSS, TSL, GPRO

Lagging stocks < -2.0% included: MTW, HPQ, HOG, RAX, CRM, DGLY, EMC, CREE, FAS, TWTR, UAL, V, VSLR, SPLK, SWI, SCHW


Stocks to Watch on Wednesday
Holding Above 30 DMA = 51
WFM, SIAL, CHKP, KRFT, MNST, SRCL, AVGO, HSIC, CTSH, FISV, NXPI, PAYX, SIRI, CELG, ADP, ATVI, BIIB, CERN, CTRX, EA, GILD, NFLX, VOD, VRTX, AAL, ILMN, LLTC, REGN, TXN, BBBY, BIDU, DISH, GOOG, LMCA, LRCX, LVNTA, SBAC, SBUX, AMZN, CHRW, DLTR, EXPD, GRMN, MAR, ROST, SYMC, TSCO, VRSK, ORLY, MYL, WYNN

Moving Above 30 DMA = 0
      

Moving Below 30 DMA = 13
AAPL, ADBE, CA, CMCSA, COST, CSCO, DTV, EBAY, EQIX, ESRX, MSFT, NVDA, YHOO                        

Staying Below 30 DMA
FB, AMAT, FAST, GMCR, INTC, ISRG, KLAC, MDLZ, BRCM, VIP, SPLS, WDC, QCOM, STX, TRIP, ADI, AKAM, CHTR, DISCA, FOXA, LBTYA, PCAR, PCLN, VIAB, ADSK, MAT, MU,  ALTR, CTXS, INTU, NTAP, SNDK, AMGN, XLNX, ALXN, TSLA

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

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