AAPL Down, AKAM Soars in After-hours...SPX Takes a Pause as Earning Releases Move Stocks Up and Down...

Two of ten sectors moved higher on Tuesday …XLU, XLP and XLF were the strongest sectors while XLY was the weakest sector.  Oil futures fell 1.19 to close at 49.30.

Breadth weakened as decliners led 1,815 to 1,185 on the NYSE and led 1,885 to 822 on the NASDAQ.

Tuesday – weakened, decliners led, +2

Monday – strengthened, advancers led +8

Friday – strengthened, advancers led on the NYSE, +3

Thursday – weakened, decliners led, +1

Wednesday – weakened slightly, advancers led, +7

SPY down .72 at 214.17 on 66.5 million shares, 29% below average volume

VIX up .44 at 13.46

TLT up .35 at 133.08…on 5.1 million shares, 37% below average volume

Technical Commentary:

DIA -0.26%, QQQ -0.32%, SPY -0.34%, IWM -0.75%,

SPX/SPY open lower and close below Monday’s low.  VIX closed higher and did confirm Tuesday’s lower close.  

Earning season continued with the same split decision between winners and loser as did Q2 in July and August.  Today winners included LMT, KEY, FCX, VLO, BHI, SAVE and AKS, while losers included UA, WHR, JBLU, GM and MMM.

After the close Earning Reactions:

AAPL -3.30, -2.79%

EW -14.94, -13.14%

P -0.88, -7.22%

CMG -8.17, -2.01%

AKAM +4.93, +8.35%

JNPR +1.73, +7.29%

VRTX +4.90, +6.22%

PNRA +10.69, +5.49%

ESRX +1.13, +1.61%

SPX Leaders: LMT, KEY, VLO, BHI, CNC, FCX, PG, ENDP, MYL, MU, MNK, MKC, NEM, MJN, MRK, AAP, SRCL, UTX, SIG, CHD, NVDA, AA, RTN, BAX, PDCO, CSX, NOC, REGN, GRMN, NI and BA

Institutional activity continues to indicate that last quarter’s trend on stock selectivity based on quarterly results as opposed to industry or sector rotation is a primary driver of price action.

Thus far the real determinate to market movement over the past two weeks has been the institutional reaction to earnings announcements.  NFLX on the upside and JNJ on the downside are just two examples.

Earnings Announcements

Monday – PCAR, SONC, TMUS, V, ZION

Tuesday – MMM, AKS, AKAM, AAPL, BHI, CMG, EW, ESRX, FCX, GM, JBLU, JNPR, KEY, LMT, P, PNRA, SAVE, UA, VLO, VRTX, WHR, 

Wednesday – BA, KO, CMCSA, FFIV, GD, NEM, NXPI, ORLY, LUV, STT, TSLA, WDC,

Thursday – AET, GOOGL, MO, AMZN, AMGN, BIDU, BX, CA, CRUS, CLF, COP, DOW, EXPE, LNKD, POT, TWTR, UPS, VRSN, SKYW

Friday – XOM, PSX, RCL, UBS

EPS Positive Reactions

LMT, KEY, FCX, VLO, BHI, SAVE, AKS, TMUS, MCD, PYPL, MSFT, MXIM, AXP, SNA, MAT, BK, STLD, WBA, ALK, URI, HAL, MS, USB, NFLX, HOG, UNH, GS, CE, DPZ, CMA, UAL, HAS, DAL, CSX, COST, RHT, FDX, ADBE

EPS Negative Reactions

UA, WHR, JBLU, GM, MMM, NLSN, WAT, SHW, MAS, PNR, MCO, EBAY, TRV, LRCX, TSCO, INTC, ISRG, ST, JNJ, IBM, AA, FAST, ILMN, MU, PAYX, CCL

EPS Neutral Reactions

PCAR, AAL, NUE, XLNX, CTXS, LLTC, BAC, C, JPM, PNC

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.

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: FSLR, ALK, AAL, STLD, WB, SWKS, FL, LITE, DISH, UAL, HAL, WDC, LVS, STI, NXPI, DVN, RCL, SE, ULTA,

Bull Flag Bounces include: CSX, APA,

Horizontal Breakout Setups include: SLCA, X, ZION, C, JPM, USB, DAL, CTRP, ADSK, CAVM, ADBE, HAS, MLM,

AMZN, CCL, MAT, QCOM, DO, RIG, NCLH, SCHW, JBLU, SOXL, WRK,

Horizontal Breakouts include: AKS,

New Highs include: NVDA, AKAM, NTES, SCHN, SAVE, CE, CMA, GS, EXPE, FB, GOOG, DPZ, BAC, NFLX, LUV, MS,

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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 pointed up at 46, bullish. 

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

53 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Wednesday:

Moving Above 30 DMA = 3

MDLZ, MU, WFM

Moving Below 30 DMA = 5

ADP, CA, EA, FISV, INTU

6-month Intermediate Term Market Trend: Up

3-day Short Term Market Trend: Neutral