Tuesday, August 11, 2015

Stocks Slide In Early Trading Lead by Energy Stocks As Oil Falls...Chinese Central Bank Devalues YUAN By Nearly 2% Against The Dollar...Largest One Day Fall Since 1994...GOOG Leaps As New Parent Company Alphabet Is Organized...Closes Near High...

Only two sectors moved higher on Tuesday…as seven moved lower…the strongest sectors were XLU, XLE and XLP…the weakest sector was XLB. 

Breadth strengthened as decliners led advancers 1.67 to 1 on the NYSE and 2.32 to 1 on the NASDAQ.

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


SPY down 1.90 at 208.67 on 125.9 million shares
VIX up 1.48 at 13.71
TNX down 1.01 at 21.37…
TLT up 1.95 at 124.75…
XLF down .23 at 25.21…

AAPL down 6.23 at 113.49 on 97 million shares, above average volume
FB down .53 at 93.62 on 22.4 million shares

Technical Commentary:
QQQ -1.28%, DIA -1.18%, SPY -0.90%, IWM -0.86%.

Futures traded lower overnight after China devalued the Yuan and stocks continued to fall after the open until late afternoon when the broad indexes rallied in the final hour.  The broad indexes gave back most of Monday’s gains closing near Friday’s open.  Broad indexes are back near short-term horizontal support.  SPY, DIA and IWM each formed a spinning top.

Short-term traders should be defensive and be prepared for a potential break of support by the broad indices.  VIX closed at 13.71 near last Thursday’s close.  If the SPX breaks support the VIX is likely to rise to the mid to high teens.


On the NYSE there were 1,158 advancers.  Stocks including AMZN, SKX and FL closed higher.


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 10
VSLR, CYBR, CREE, FOGO, JASO, RAX, XONE, BABA, JUNO, JCP, SINA, VJET, YY, W, NTES

Q1 Earnings Reaction
Positive Reactions – CAR, CTRP, HLF, KBR, MGM, MNST, NUS, NVDA, PCLN, VMC, ZU, 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% - FSLR, HLF, NUS, NVDA, ZU, EXPE, CCE, MOH, YRCW, WAGE, COLM, SHOP, SKX, X, SSYS, BWLD, SVU, P, FTNT, SNDK, GOOG, GOOGL, HTZ, NFLX

Negative Reactions – AIG, ALL, AXTA, DIS, ETSY, GMCR, GOGO, HABT, NCLH, JD, SEDG, TSLA, UBNT, Z,  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, ETSY, FIT, GMCR, HABT, SEDG, SUNE, 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 = 206.80...
QQQ = 110.62, 109.78…
IWM = 121.01, 120.27...


The SPX Market Forecast is turned down at 51 defensive.

__________________


Setups
Horizontal Breakout:  DAL, SLCA, MTW, VJET, ADBE, ADSK,
Diagonal Breakout: BBY, ESRX,  
Bull Flag: EXPE, EA, NFLX, PCLN, SHOP
Bear Flag: FEYE, RPD, SWKS, TASR, TWTR, ASNA, BBY, DDD, GIMO, GLNG, GOGO, SSYS, UPL,
At Support: BABA, C, QQQ, SPWR, FB, MU, WYNN

Moves
Bull Flag Bounce: AAL, DXCM
Bounce: SBUX, SHOP
Gap Up: VXX, GOOGL
Gap Down: AIG, FAS, LVS, MS, RCL, SCHW, SVXY, BIDU                                                  Bear Flag: AAPL, BIDU, YHOO, SCSS, XONE,

Support Break: CIEN, GPRO, JD, LVS, SCTY, GLW, KWEB, LOCO, RAX, 

______________________

Watch List Stocks
Leading stocks > +2% on Tuesday: ETSY, SHOP, VXX, SLCA
                                                       
Lagging stocks < -2.0% included: SUNE, X, GPRO, CTRP, JD, CYBR, YOKU, SINA, NTES, SCTY, SVXY, AMBA, SPWR, LVS, CSIQ, BABA, FSLR, CIEN, NCLH, RUN , ETFC, QIHU, BX, MS, SHAK, TSL, Z, ZION, FAS, SOHU, SWKS, RPD, AXTA, SPLK

10 of 100 NDX stocks closed higher on Tuesday.

Leading NDX 100 stocks included: GOOG, AAL

Lagging NDX stocks included: SYMC, JD, AAPL, BIDU, MU, WYNN, SNDK, GMCR, NXPI, YHOO


NDX Stocks to Watch on Wednesday
Moving Above 30 DMA = 0


Moving Below 30 DMA = 14
GILD, INTC, INTU, KLAC, LLTC, MNST, MU, NTAP, WYNN, ADI, LBTYA, CHTR, DISH, WBA

6-month Intermediate Term Market Trend: Up

3-day Short Term Market Trend: Down

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