Monday, August 14, 2017

Trend Amplified as Geopolitical Noise is Reduced...



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After the close Review of Monday’s action…IWM, QQQ, SPY, DIA, VIX, TLT, bull flags AAPL, TSLAA, NCLH, DLTR, FB, EA, MCHP, AVGO, ATVI, TSCO, CC, NKE, BA, DIA, ADSK, CHTR, SIRI, COST, GILD, BIDU, TMUS, ADP, NFLX, VALE, MACD divergences MU, LRCX, KLAC, AMAT, SWKS, MSFT, XLNX, WYNN, GOOGL, AMZN, EBAY, SBUX, AAL, Monday bounces lead to Tuesday breakout setups…
© 2017

DIA bull flag bounce.
QQQ, SPY bull flag bounce.
IWM sideways channel support bounce.

Nine sectors were higher led by real estate XLRE +1.66% and technology XLK +1.59%.

SPY up 2.42 at 246.54 on 73.3 million shares, 30% above avg.  Up on equal volume.
VIX down 3.18 at 12.33.
Oil down 1.29 to 47.50
TLT down .65 at 125.78…on 5.1 million shares, 27% below avg.  Down on lower volume. 

V +1.78% and AAPL +1.50% led the DJIA, 26 advancers.
AMD +4.33%, QRVO +3.66% and NRG +3.24% led the SPX.
NVDA +7.98%, MU +4.39%, WDC +3.67%, and LRCX +2.78% led the NDX.

Intermediate and long term up trend intact.  3-day short term trend is down.

Up: IWM, QQQ, SPY, DIA
Down:

Breadth strengthened on Monday as advancers led 2,253 to 692 on the NYSE and led 2,199 to 694 on the NASDAQ.

The SPY MFC green line is at 64, defensive.

Uptrend sectorsXLK, XLU,
Neutral sectors: XLF, XLY, XLRE, XLP, XLE, XLV, XLB, XLI
Down trend sectors:

Intermediate-term trending stocks:  PYPL, ADBE, NVDA, FB, JD, ATVI, EA, BA, MCD, V, CCL, RCL, ALGN, SQ, MOMO, CC, BZUN, AABA, TTWO, PGR, TRU, LYV, ALL, TAL, BABA, EDU, SHOP, EXPE, MAR,


84 of 100 NDX stocks closed higher and one was unchanged on Monday.

48 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Tuesday:
Moving Above 30 DMA = 10
ADI, AVGO, CTAS, FAST, GILD, LRCX, MDLZ, NVDA, TSCO, VOD

Moving Below 30 DMA = 2
NFLX, ROST


The intermediate and long-term trends are still up.

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



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4 comments:

lsbeller said...

Ha! No - no one else that I listened to last week (3 other trade set up focused commentators) talked about continuation of the existing trend if tensions subsided. That's why I follow you daily, Dave. Rational, weight of the evidence. Thank you!!

Bruce and Susan said...

Hi Isbeller

We have followed Dave Johnson for many years now and we can state that if you follow Dave you will not need to listen to other commentators.

Bruce & Susan

Unknown said...

The BGO's are coming left and right. When doing verticals I was more focused on the credit amount and not even really looking at the max loss amount. Why haven't I been taking that into account when position sizing my verticals? Thanks again, Dave!!

Jamee and Sue said...

Great job Dave -- your daily commentaries are re-enforcing the principles we've learned in the past -- and expanding them too.

Dave's commentary interpreting the candles (R-1, R-2, R-3) and using the fibonnaci retracements to find hidden support levels was so helpful. His detailed logical analysis gives us confidence to follow our rules and follow the trends made by the institutions. He makes us much more prepared and focused traders. The comments on the high number of advancers -- likely to be followed the next day by a large number of decliners (resulting in a test/pullback) was very helpful too.

We love all the one line written comments throughout the day. When Dave highlights some stocks that are really moving, we can evaluate them and sometimes enter positions (i.e. MU). We love all the simulated paper trades, as we use them to help us learn how to better trade. Thanks Dave!