Eight of nine sectors moved higher on
Wednesday… and one was unchanged…XLV, XLY and XLI were
the strongest sectors…XLU was the
weakest sector.
Breadth strengthened…advancers
led decliners…2.49 to 1 on the NYSE and 1.89 to 1 on
the NASDAQ…
Wednesday
– strengthened, advancers led
Tuesday – strengthened,
advancers led
Monday – Labor Day
Holiday
Friday – weakened,
decliners led
Thursday – strengthened,
advancers led
SPY
up 1.36 at 165.75…volume 97.3 million shares
VIX
down .73…at 15.88…
TNX
up .49 at 28.97…
TLT
down .23 at 103.99...
XLF
up .15 at 19.75…volume 31.3 million shares
AAPL
up 10.77 at 498.69…volume
12.3 million shares
FB
down .09 at 41.78…volume 42.5
Technical Commentary:
QQQ + 1.07%, SPY + 0.83%, IWM + 0.88%,
DIA + 0.72%.
After trying traders for three days plus a long holiday
weekend, the SPY and QQQ MACD bullish divergences finally gained momentum on
Wednesday and closed higher.
NDX +32.78 was led by big names AAPL, GOOG, INTC, AMZN,
BIIB, CSCO, EBAY CELG and QCOM with over 22 NDX points. The rest of the 79 NDX stocks
offset a 5 NDX point drop in MSFT and added the other 10 NDX
points.
Solar stocks continued to heat up on Wednesday as JASO +15.91%, YGE +12.79%,
TSL +5.08%, JKS +3.39%,
CSIQ +1.89% were once again sizzling.
Mattress stocks made comfy gains on Wednesday with TPX +5.56% and SCSS +4.14%.
CIEN +13.83% gained after
a positive earnings reaction this morning which helped lead JNPR +6.53% and JDSU +5.92%
higher.
Short-term market posture continues defensive.
Support Levels
ES = 1,647, 1,629, 1,611
SPY = 165.15, 163.35, 161.55
Q2 Earnings Reactions
Positive Reactions – CIEN, SPLK, CRM, GES, DSW, ADSK,
ROST, GME, JRCC, RAX, SSYS, TMUS, SGMS, FWLT, MNST, GRPN, TSLA,
AGU, BOFI, FOSL, ADM, MGM, WPO, CNK, KORS, SATS, MGM, EAT, VIAB,
YOKU, AIG, CTRX, CHK, COP, LNKD, MELI, MYL, NUS, ZAGG, CMCSA, CTRP, GRMN, HES,
MA, MCHP, SODA, YELP, QCOR, FISV, BWLD, MTW, VRTX, WYNN, SWK,
SBUX, ALK, AMZN, CELG, CB, CLF, GILD, IP, MXIM, RCL, HSY, UA, UAL, V, FB,
BIDU, TRIP, COG, CTXS, ETFC, FFIV, AKAM, AAPL, EA, VMW, DAL, LCC, EMC, LLY,
MCO, AKS, FCX, BTU, UTX, HAS, TXN, GE, HON, SLB, STI, WHR, CHKP,
CMG, JCI, KEY, MS, OSTK, SWKS, UNP, UNH, BAC, IBM, SNDK, XLNX, CSX, GS, URI,
YHOO, C, WFC
Negative Reactions – P, SHLD, PWRD, CREE, MCP, GMCR, SCTY, SUNE, Z, CAR,
CHRW, FSLR, LINTA, ANR, CVX, CME, XOM, K, DTV, RVBD, X, COH, DISCA,
ESRX, SOHU, DLR, CERN, CRUS, DECK, DNKN, EXPE, KLAC, POT, PCP, SWI, TPX,
EQIX, ABC, CROX, ANGI, ATI, CAT, WDC, PNRA, STX, NSC, USNA, TRV, MCD, MO,
NFLX, ZION, BHI, AMD, GOOG, ISRG, MSFT, EBAY, INTC, MAT, SCSS,
USB, AXP, KO, MOS
Chart Signals Strategy Guidelines
When the market
is trending up Chart Signals looks
for support bounce and resistance breakout entries.
When the market
is trending down Chart signals looks
for resistance pull back and support break entries.
When the market
is sideways in consolidation Chart Signals
will look for support bounce, diagonal breakouts and pull backs
at resistance where price action stays between support and resistance.
Technical setups for
short-term option trades be in and out by earnings release.
Over earnings release use earnings option strategies such as straddles, strangles, OTM calls
or puts.
After earnings look for
bullish setups in positive reaction stocks and bearish setups in negative
reaction stocks.
The Market Forecast Green Line turned
up and is pointed up.
____________________
Setups
H Breakout: AKAM, AMGN, BRCM, CELG, CTSH, GRMN, NTAP, SHLD, XLNX,
C, CMG, F, RAX, UNG, WLT, YELP,
Diagonal Breakout: ESRX, FFIV, MAT, NVDA, STX, BAC, FAS, GS,
PWRD, SINA, SPY, SWI,
Bull Flag: GMCR, ANR, NTES,
Potential Bullish Divergence: CREE, GMCR,
Gap Up:
Gap Down:
Bear Flag:
At Support: BIDU, MSFT, ATI,
Moves
New Highs: NFLX, LVS, Z, SPLK,
Gap Up: MU, CIEN, JCP, TPX,
Gap Down:
H&D Breakout: YELP, BBRY, CMCSA, GOOG, YHOO, SPY, ADBE, AMAT,
EBAY, FAST, INTC, SBUX, SNDK, TXN, SOHU,
Breakout Test:
Bounce: AAPL, PCLN, TIF, SCSS, SIRI, STX, QQQ, IWM
MACD Divergence Bounce: SPY, QQQ,
Bear Flag:
Support Break: BBBY, FSLR,
______________________
88 of 100 NDX stocks closed higher on Wednesday.
Leading NDX 100 stocks included: KLAC, MU, BIIB, VRTX, MNST,
ALTR, REGN, EXPE, AMAT, SNDK, DLTR, BRCM, XLNX, INTC, WDC, ADBE, ALXN
Lagging NDX stocks included: SYMC, MSFT
Leading stocks > +2% on Wednesday included: CIEN, HLF, YELP, LDK, JNPR, CRUS, JEP,
JDSU, TPX, BBRY, TSL, SOHU, ESSS, F, ESI, MOS, CREE, TIF, VECO, UAL, FAS, CROX,
A, SMH
Lagging stocks < -2.0% included: LNKD,
SSYS, FAZ, UCO
Stocks to Watch on Thursday
Holding Above 30 DMA= 40
TSLA, GRMN, PCLN, VIAB, FB, NFLX
QCOM, AAPL, WYNN, DELL, GOLD, NVDA, ADSK, AMGN, AVGO, BMC, CTSH, GILD, MYL,
VOD, SBAC, NUAN, SHLD, AKAM, ALTR, BIIB, CELG, EXPD, LIFE, MU, MXIM, NTAP,
ROST, SBUX, YHOO, EQIX, LBTYA, REGN, VRSK, FOXA
Moving Above 30 DMA = 12
ADBE, ADP, ALXN, ATVI, CHRW, DLTR, INTC, INTU, KLAC, SNDK,
XLNX, TXN
Moving Below 30 DMA = 2
BIDU, SYMC
Staying Below 30 DMA
FOSL, MSFT, CTXS, CTRX, CA, CHKP,
FISV, ISRG, ORLY, FFIV, MDLZ, WDC, PAYX, SPLS, SIAL, HSIC, CSCO, EBAY, LLTC,
MCHP, SIRI, SRCL, XRAY, ADI, LMCA, BBBY, CMCSA, ESRX, PCAR, WFM, DISCA, MNST,
FAST, COST, AMAT, AMZN, CERN, KRFT, GOOG, LINTA, DTV, EXPE, VRTX, STX, BRCM,
MAT
Thirteen Week Intermediate Term Market Trend: Neutral
5-Day Short Term Market Trend: Up
