Wednesday, January 27, 2016

SPX Rolls Down on FOMC Reaction...BA, AAPL Fall...FB Mega-Rise After-hours on Earnings...

Are you interested in finding strong stocks?  If so, let us know of your interest at chartsignals@yahoo.com.  We can help you find leaders like: SWN, RRC, COG, XLNX, LLTC, MCHP, EQT, ISRG, EA, TWX, FLIR, WMT, STZ, SE ...



After Hours Alert:  FB +11.45, +12.12% reports 79 cents EPS vs. estimate 68 cents, revenues $5.84 billion vs. estimate $5.37 billion


Eight of nine sectors moved lower on WednesdayXLU, XLP and XLF were the strongest sectors while XLK was the weakest sector.  Oil rose $1.60 to close at 32.16.
                         
Breadth weakened as decliners led advancers 1.64 to 1 on the NYSE and 2.44 to 1 on the NASDAQ.

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


SPY down 2.07 at 188.13 on 240.7 million shares, 19% above average volume
VIX up .61 at 23.11…
TNX up .07 at 20.01…
TLT down 0.03 at 126.05…on 7.9 million shares, 12% below average volume
XLF down .08 at 21.12…on 62.7 million shares, 9% above average volume

AAPL down 6.57 at 93.42 on 133.3 million shares, 151% above average volume
FB down 2.89 at 94.45 on 56.7 million shares, 113% above average volume

Technical Commentary:
SPY -1.09%, IWM -1.37%, DIA -1.39%, QQQ -2.49%.

Just like gravity, BA -11.43, -8.93% and AAPL -6.57, -6.57% dropped on a negative EPS reaction and contributed approximately -123 of the -222 points that the DJIA fell on Wednesday.

Notwithstanding the BA and AAPL selloff, the DJIA managed to turn positive by midday before the FOMC announcement.  The post FOMC drop was not primarily BA and AAPL, rather it was the combination of all 30 Dow stocks falling after the announcement.

As the expression elegantly goes “darned if you do, darned if you don’t” seems to describe the FOMC reactions since last September when it was expected that the Fed would raise rates and did not.  The market fell and the Fed was criticized for not raising rates.  Then in December the Fed raised rates and the market fell.  Since that time the Fed has been criticized for raising ratesToday the Fed did not raise rates and…you guessed it… the market fell.

Even with the late selloff VZ, JNJ, MMM, MCD, UT, TRV and KO finished positive for the day.  PG finished one cent lower and JPM was down just four cents.

BIIB +13.39, +5.15%, gapped up on a positive earnings reaction.

Remember, economic announcements generally may add volatility to the price action but typically don’t alter trend.  The nine-day trend is sideways and the five-day trend is up.  Today’s selloff pushed price back to the three-day support area and still represents a higher low area in the five-day trendChart Signals does not view Wednesday’s price fluctuation as trend change.  “One day does not a trend make.”

Earnings this week:
Monday:  MCD, HAL, KMB
Tuesday:  DD, JNJ, MMM, PG, AAPL, CA
Wednesday:  BA, BIIB, LRCX, CTXS, EBAY, FB, PYPL, QCOM, SNDK, TSCO,, TXN, UTS, VRTX
Thursday:  CAT, CELG, CHKP, CVX, V, AMGN, AMZN, EA, KLAC, MSFT, SWKS, WDC
Friday:  AAL, PCAR, STX


YTD:
SPX Leaders:  SWN, M, EQT, SE, RRC, COG, TWX, SNI, NEM, O (65)
SPX Losers: ESV, BWA, FCX, MRO, AA, WRK, WDC, QRVO, CHK APC

NDX Leaders:  VIAB, DISCK, KHC, XLNX, CTSH, EA, DLTR (7)
NDX Losers: INCY, WDC, MU VRTX, STX, ADSK, BMRN, NCLH, TSLA, JD

DJI Leaders:  VZ, WMT, MCD
DJI Losers: DD, AXP, BA, GS, CAT, CSCO, JPM, INTC, IBM, AAPL


Remember:  “It’s a market of stocks, not just a stock market.”

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

The SPX MFC green line is pointed up at 27.

__________________

Setups
Horizontal Breakout: JNJ, WMT, TWX, EAT, SPWR, CSIQ, PSA, CTSH, EA, ADI, FFIV, ROST, XLNX,
Diagonal Breakout: EXR, CUBE,
Bull Flag: TSL, HAS, M
Gap Up: FB
Bear Flag: ESRX, NVDA, JAH, LVLT, MAS, CSCO, HD, JPM, UTX,
At Support: DD, ADBE, AKAM, BIDU, PCLN, TRIP, CRM, LUV, CAT


Moves
New Highs: MCD, DG, VZ
H Breakout: NEM,
D Breakout: DLTR
Gap Up: BIIB, CA, ITW,
Gap Down:  BA, AAPL, X
Bear Flag: AVGO, GILD, AIG, LOW, TEVA, AXP, DIS, IBM, DPS,

______________________

8 of 100 NDX stocks closed higher on Wednesday.

12 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Thursday:
Moving Above 30 DMA = 1
CA

Moving Below 30 DMA = 7
ENDP, FISV, FOXA, MYL, QCOM, TMUS, TSCO

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



No comments: