Wednesday, July 27, 2016

EPS: AAPL, GRMN, STT, ILMN Soar...TWTR, AKAM, RH, GCI, TSS Sink...FOMC Rates No Change...Vol Rises, Falls...

Three of nine sectors moved higher on WednesdayXLK, XLV and XLB were the strongest sectors while XLP was the weakest sector.  Oil futures fell .73 to close at 41.91.

Breadth weakened as decliners led 1,597 to 1,379 on the NYSE and advancers led 1,485 to 1,095 on the NASDAQ.

Wednesday – weakened, advancers led on NASDAQ, +3
Tuesday – strengthened, advancers led, +5
Monday – weakened, decliners led, +1
Friday – strengthened, advancers led, +9
Thursday – weakened, decliners led, +2

SPY down .23 at 216.52 on 84.0 million shares, 15% below average volume
VIX down .22 at 12.83
TLT up 1.73 at 140.65…on 8.5 million shares, 7% below average volume


Technical Commentary:
QQQ +0.69%, IWM +0.28%, DIA -0.01%, SPY -0.11%,


QQQ, IWM, XLK new high
XLI, bull flag bounce
XLB, XLY, horizontal break out setup
XLF, bull flag setup
XLV bull flag bounce

The FOMC ended its two-day meeting on Wednesday with no change in interest rates as expected.

Consider moving up stops on short term bullish trades that could pull back.  All according to your profit protection rules.


Remember breakouts typically test about 70% of the time.


Earnings Reactions
GRMN +5.40, +11.64%
X +2.54, +11.07%
STT +5.43, +9.31%
ILMN +12.15, +8.09%
AAPL +6.28, +6.50%
TWTR -2.68, -14.53%
AKAM -7.58, -13.05%
RHI -4.59, -11.07%
GCI -1.25, -9.40%
TSS -5.10, -9.04%

After-hours
GRPN +0.90, +23.81%
CRUS +6.08, +14.56%
MRVL +1.07, +9.17%
FB +5.59, +4.53%
WFM -1.74, -5.17%


Earning’s Announcements:
Positive Reactions: GRMN, STT, ILMN, AAPL, EW, ZION, GT, NDAQ, GRPN, CRUS, MR VL, FB

Negative Reactions: TWTR, AKAM, RHI, GCI, TSS, WYN, R, JNPR, LVLT, UHS, EQR, CHRW, WFM


Technical analysis based trades should be closed before earnings. After-hours

Trade what you see, not…

Stocks below support should generally be traded bearishly until a reversal pattern forms.


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Strong Stocks: Setups and Moves You Can Use
Bull Flag Setups include:  HCN, LMT, CNP, CMG, COST, NKE, AIV, EA, INTU, ATVI, MAT, CINF, PCLN, CCL, JNJ, DHI, UNH, CCI, UA, ALB, BMRN, SBUX, MSFT, GGP, KSS, SPG, CBL, MAC, CNP, CTXS, TSN, PAYX, FISV, CSX, MNST, ESRX, CF, VRSK, ORLY,

Bull Flag Bounces include: BMRN, CCL,

Horizontal Breakout Setups include: ZION, STT, XLB, SCHN, STLD, AMAT, JD, AA, NUE, AMBA, JBLU, SWN, VIAB, AES, AAL, NCLH, TRIP, IRM, RCL, TSLA,

Horizontal Breakout include: FB, BURL, LRCX, ADSK,


New Highs include: X, GRMN, TXN, FB, QCOM, REGN, CPA, WHR, EW, ADI, NTES, DLTR, EBAY, NVDA, URI, GPS, ROST, CSCO, EXPE, KMX, STX, CERN, MLM, TJX, CBG, LB, NTAP, TGT, BXP, ULTA, BIIB, AMBA, 


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


The SPY MFC green line is in the upper zone at 96, bullish.

38 of 100 NDX stocks closed higher and one was unchanged on Wednesday.

85 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Thursday:
Moving Above 30 DMA = 0


Moving Below 30 DMA = 5
AKAM, CTSH, MDLZ, MNST, PYPL


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

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