Broad Markets Consolidate as NFLX, NKE EXPE Up in Harmony with Sly and Family Stone...

Two of nine sectors moved higher on Monday…and one was unchanged...the strongest sectors were XLB, XLY and XLP…the weakest sector was XLU.

Breadth strengthened as decliners led advancers 1.22 to 1 on the NYSE and 1.03 to 1 on the NASDAQ.

Tuesday – strengthened, decliners led

Monday – weakened, decliners led

Friday – strengthened, advancers led

Thursday – weakened, advancers led

Wednesday – unchanged, advancers led

SPY down .41 at 209.38 on 81.7 million shares, -26.1% below average volume

VIX up .44 at 13.00…

TNX up .61 at 22.11…

TLT down .98 at 122.57…

XLF down .04 at 25.14…

AAPL down 3.80 at 114.64 on 123.8 million shares, 155% above average volume

FB down .08 at 94.06 on 29.2 million shares, -40.4% below average volume

Technical Commentary:

IWM -0.53%, DIA -0.53%, SPY -0.34%, QQQ -0.31%.

Broad markets continued to consolidate as individual stocks marched to the beat of institutional buying and selling.  NFLX, EXPE, NKE, TPX, PCLN and SBUX continued to take shareholders higher.

AAPL -3.80, -3.21% which broke support on Monday, fell to its 161.8% fib extension (from its July 23 high) at 114 and took chip suppliers CRUS -6.43%, NXPI -2.75%, QRVO -4.28% and SWKS -4.14% lower.

                     (click image to enlarge)

Earning announcements continue to generate buying and selling depending on institutional expectations and results.  As with every earnings season there are many winners and many losers.

SWKS replaced SIAL in the NDX 100 on Monday.

PCLN reports before the open on Wednesday and TSLA and FIT report after the close.

NCLH -2.57, -4.15% after EPS beat by 2 cents, in-line revenues and in-line guidance.  NCLH gapped higher last Friday in sympathy with RCL earnings.

Amplify Snack Brands, BETR, priced its IPO at 18 and is expected to begin trading on the NYSE on Wednesday. 

After the close:

Z +10.50, +14.15% soared on revenue gains and better than expected EPS results.

FSLR +3.48, +7.82% jumped on better than expected revenues and EPS.

ETSY -2.93, -15.24% negative EPS reaction.

DIS -7.24, -5.95%, negative EPS reaction after revenue shortfall.

Trade with the trend of the chart you are trading and continue to move your profit protection stops.  Continue to follow your rules.

Earnings week of Aug 3

AIG, ALL, CAR, CTRP, SUM, VMC, AXTA, DIS, ETSY, FSLR, KBR, LC, MGM, NCLH, Z, FIT, GMCR, HABT, PCLN, SEDG, TSLA, GOGO, MBLY, MNST, MYL, SUNE, UBNT, JCP, JD

Q1 Earnings Reaction

Positive Reactions – CAR, CTRP, KBR, MGM, VMC, EXPE, CCE, MOH, YRCW, WAGE, COLM, RCL, WETF, TPX, WU, AEE, FE, PKI, TUC, AMGN, VLO, UHS, WDC, AEL, ALGT, EEFT, GILD, JBLU, SHOP, SKX, X, SSNC, BWLD, PODD, SVU, NUVA, SCTY, ULTI, WYNN, CTRP, FISV, SLCA, SPWR,  NCLH, AMZN, P, MXIM, JNPR, V, SBUX, LUV, QLIK, SNDK, TXN, UA, WHR, GM, VRSN, CHKP, FFIV, FTNT, LVS, PKG, TMO, TSCO, VMW, ACE, APH, OC, BA, CHKP, IPG, CLI, CMG, LVS, MANH, TRV, VMW, LAD, HOG, WWW, ZION, HAS, HAL, GOOG, HTZ, HON, GE, NFLX, SCHW, EBAY, C, USB, DAL, BAC, WFC, JPM, NKE, AA

More than 10% - EXPE, CCE, MOH, YRCW, WAGE, COLM, SHOP, SKX, X, SSYS, BWLD, SVU, P, FTNT, SNDK, GOOG, GOOGL, HTZ, NFLX,

Negative Reactions – AIG, ALL, AXTA, NCLH, LNKD, FEYE, OCN, ESI, FB, MAR, SSYS, TWTR, YNDX, YELP, BIDU, BIIB, TRIP, STT, AAL, FSL, KLAC, MCD, UNP, SAVE, CELG, CA, CMCSA, ETFC, CAT, DOW, FCX, MMM, OSTK, IBM, KO, QCOM, AXP, AAPL, IBKR, ILMN, XLNX, VZ, BEAV, BHI, LLTC, MSFT, YHOO, EXAS, STI, UNH, MAT, KEY, YUM, FAST, CUDA, MU

More than -10% - ALL, LNKD, OCN, ESI, WFM, TWTR, YELP, BIDU, BIIB, TRIP, GIMO, SCSS, BEAV, SWI, CUDA, MU

Reversal in progress – LAD,

Reversal of Initial Reaction – HTZ, HON, GE, AA,

Short-term Chart Targets:

SPY = 211.45, 212.55...

QQQ = 113.17, 114.39…

IWM = 123.71, 125.09…

Support Levels

SPY = 210.82, 206.80...

QQQ = 110.62, 109.78…

IWM = 121.01, 120.27...

The SPX Market Forecast is turned up at 65.

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Setups

Horizontal Breakout: DAL, MFRM, SCHW, SCTY, SHOP, SVXY, X, GILD, MSFT, ROST, STX,

Diagonal Breakout: QQQ, BAC, BX, C, CIEN, CYBR, ETFC, FAS, JNPR, YOKU, ESRX, MU,

Bull Flag: AMBA, CCL, GPRO, MS, PANW, RCL, UA, V, VRSN, AMZN, EA, FB, GOOGL, SNDK, WBA, WDC,

Potential Bullish Divergence: LC, GME, STI, TBT, TSL,

Gap Up: Z, FSLR,

Gap Down: DIS, ETSY,

Bear Flag: IWM, YELP,

At Support: JCP, LNKD, SPLK

Moves

New Highs: NFLX, EXPE, NKE, TPX, PCLN, SBUX,  

H Breakout: SONC, CTRP, P, SOHU, ADSK,

D Breakout: QIHU, SCHW,

Bull Flag Bounce: SCTY, EBAY

MACD Divergence Bounce: BABA, YHOO

Bounce: ETFC, W,

Gap Up: CTRP, KBR

Gap Down: SWKS                                                        

Bear Flag: AXTA,

Support Break: AAPL, SWKS

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Watch List Stocks

Leading stocks > +2% on Tuesday: CTRP, W, SOHU, TASR, P, NTES, JD, ETFC, SINA, YOKU 

                                                       

Lagging stocks < -2.0% included: ETSY, SEDG, SHOP, NCLH, SWKS, AXTA, Z, AIG, HABT, GLNG

51 of 100 NDX stocks closed higher on Monday and one was unchanged.

Leading NDX 100 stocks included: NFLX, REGN, PCLN, JD, AAL, TSLA, VRTX, CHKP, BIIB, ADSK, MSFT

Lagging NDX stocks included: SWKS, LRCX, AAPL, NXPI, MNST, BMRN, AVGO, WDC, QCOM, KLAC, CSCO

NDX Stocks to Watch on Wednesday

Moving Above 30 DMA = 4

ADBE, CHKP, JD, TSCO

Moving Below 30 DMA = 2

NXPI, QCOM

6-month Intermediate Term Market Trend: Up

3-day Short Term Market Trend: Neutral