Tuesday, October 20, 2015

Stocks Pull Back Slightly Following IBM, UTS, TRV, VZ Earnings...Financials Penetrate Horizontal Resistance...

Five sectors moved higher on Tuesday…XLI, XLF, XLU were the strongest sectors while XLV was the weakest sector.

Breadth strengthened as advancers led decliners 1. 60 to 1 on the NYSE and decliners led advancers 1.06 to 1 on the NASDAQ.

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


SPY down .28 at 203.09 on 78.4 million shares, 38% below average volume
VIX up .77 at 15.75…
TNX up .43 at 20.71…
TLT down .76 at 122.83…on 6.4 million shares
XLF up .14 at 23.67…on 19.4 million shares, 46% below average volume

AAPL up 2.04 at 113.77 on 48.9 million shares, 4% below average volume
FB down 1.47 at 97.00 on 30.8 million shares, 12% above average volume

Technical Commentary:
DIA -0.06%, SPY -0.14%, IWM -0.14%, QQQ -0.51%,

The DJIA finished down just 13 points following earnings reactions that led to a large selloff in IBM -5.75%, offset by impressive gains in UTX +3.88%, TRV +2.47% and VZ +1.21%.

Financial stocks XLF closed just above short-term horizontal resistance.

Other positive earnings reactions included RF +3.02%, ZION +1.65%, HA +1.19%,

Negative earnings reactions included HOG -13.92%, ATI -11.66%, LMT -0.91%,

After the close earnings reactions included ISRG +7.76%, MANH +2.73%, CMG -7.18%, VMW -4.01%, IBKR -1.65%, and YHOO +1.40%.

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

Earnings this Week:
Monday – HAL, HAS, HA, IBM, MS, STLD, UTX, ZION
Tuesday – ATI, CMG, HOG, IBKR, ISRG, LMT, MANH, RF, TRV, VZ, VMW, YHOO
Wednesday – ABT, AXP, BHI, BA, CA, CTXS, KO, EBAY, GM, LVS, OSTK, SNDK, TXN, TSCO,
Thursday – MMM, ALK, AMZN, T, ETFC, FCX, GIMO, JNPR, LLY, NDAQ, NUE, SIRI, SKX, LUV, SWK, UA, UAL, VRSN,
Friday – AAL, RCL, STT, WHR


Short-term Chart Targets:
SPY =...204.15, 205.38
QQQ = 108.46, 109.03
IWM = 116.30, 118.55…

Support Levels
SPY = 201.92, 198.94...
QQQ = 105.49
IWM = 112.66...


The SPX Market Forecast is pointed up at 93.6.

__________________

Setups
Horizontal Breakout: SPY, QQQ, IWM, BAC, C, CIEN, EXPE, GPRO, JCP, SCHW, ULTA, PCLN,
Diagonal Breakout: BX, CCL, SEDG, SUM, SUNE, ZION,
Bull Flag: CRM, FSLR, GLD, HPQ, NKE, SOHU, STI, SVXY, V, ADI, ADBE
Potential Bullish Divergence: AMBA, PANW, PLAY, SWKS
At Support: RPC, RUN, SHOP, TASR, NFLX

Moves
New Highs: AIG, SINA, SWI, TSL, VRSN, W,
H Breakout: FAS, CTRP, GME
Bull Flag Bounce: JBL, SCHW,
MACD Divergence Bounce: BBY,
Bounce: AAPL,
Gap Up: ETSY,  
Gap Down: HOG, IBM
Support Break: SCTY, UBNT, X

______________________

Watch List Stocks
Leading stocks > +2% on Tuesday: ETSY, VXX, SCHW, FIT, TSL, GPRO
           
Lagging stocks < -2.0% included: HOG, TASR, UBNT, IBM, SHOP, X, SCTY, MBLY, SVXY, P, RUN, JUNO, SFUN, SEDG

47 of 100 NDX stocks closed higher on Tuesday and one was unchanged.

Leading NDX 100 stocks included: MNST, SNDK, LRCX, MAT, AMAT, AKAM, MAR, SIRI, AAPL

Lagging NDX stocks included: MU, WDC, TSLA, VRTX, VIP, BMRN, MYL, NFLX, CELG, BIIB

73 NDX stocks are above their 30 DMA on Tuesday.

NDX Stocks to Watch on Wednesday:
Moving Above 30 DMA = 3
AAPL, AKAM, MNST

Moving Below 30 DMA = 4
ALXN, CELG, GILD, WDC

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

No comments: