Four of nine sectors moved higher on
Friday… XLV, XLU and XYY were
the strongest sectors…XLB was the
weakest sector.
Breadth weakened…decliners
led advancers…1.10 to 1 on the NYSE and 1.63 to 1 on the NASDAQ…
Friday
– weakened, decliners led
Thursday – strengthened,
advancers led
Wednesday – weakened,
decliners led
Tuesday – weakened,
mixed
Monday – strengthened,
advancers led
SPY
up .18…volume 107.8 million shares
VIX
down .25 at 12.72…
TNX
down .46 at 25.61…
TLT
up .66 at 108.14...
XLF
down .02 at 20.64…volume 30.7 million shares
AAPL
up 2.49 at 440.99…volume
7.1 million shares
FB
down .35 at 34.01…volume 136 million shares
Technical Commentary:
QQQ + 0.53%, SPY + 0.11%, DIA + 0.03%, IWM
– 0.40%.
The third week of Q2 earnings is
the book with many big name stocks AAPL, AMZN, BIDU, CELG, FB, GILD, SBUX, TRIP,
V and EA on the winning side of earnings reactions. On the negative side of the reactions were CAT,
CROX, CRUS, DECK EQIX, EXPE, STX, SWI, TPX and WDC. All of this led to a typical broad market
reaction in the SPY 169.11 down 6 cents for the week, almost no
change after trading 491.9 million shares. Big moves canceling each other out in the
broad market.
The big news for the SPY is
that it held above its horizontal resistance breakout area of 168.18. IWM was down 19
cents for the week while QQQ was up 78 cents for
week on the strength of AAPL, AMZN, BIDU, CELG, SBUX and other NDX
winners.
TSLA +5.32 made its
second highest close 129.39 on Friday just below its all-time high close
on July 12.
Earnings announcements continue as the fourth week of earnings season begins on Monday. Chart Signals
is focusing on stocks with
announcements and stocks that have had a positive earnings reactions over the
past two weeks.
This Week Earnings of Interest
Monday – ESRX, MTW, SOHU, VECO, VRTX, WYNN
Tuesday – DDD, AET, AMGN, ACI,
BWLD, COH, GLW, DISCA, FISV, MDC, NYX, QCOR, RVBD, X
Wednesday – CMCSA, CTRP, HES, HUM,
LRCX, MA, MCHP, SODA, WFM, YELP
Thursday – ATVI, AIG, APA, ADP,
BZH, CME, CTRX, CHK, COP, XRAY, XOM, K, KRFT, LNKD, MELI, MYL, NUS, ZAGG
Friday – ANR, EAT, CBOE, CVX,
VIAB, YOKU
Q2 Earnings Reactions
Positive Reactions – 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 – 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 and is in the upper
zone.
____________________
Setups
H Breakout: AKAM, AMGN, FAST, QCOM, SYMC, XLNX, ALK, ATI, CMG,
DDD, ESI, GMCR, GRPN, RCL, TIF, YELP,
Diagonal Breakout: AAPL, SHDL, GLD, TLT, XONE,
Bull
Flag: ADBE, ADSK, AMAT, CMCSA, COST, CSCO, CTSH, DTV, GRMN, MNST, NTAP, ROST, BAC,
C, CIEN, CREE, F, FAS, FIVE, GS, SPY,
Potential Bullish Divergence:
Gap Up:
Gap Down:
Bear Flag:
At Support: GOOG, MSFT,
MU, STX, UNG, ZION,
Moves
New Highs: CELG, MYL, CME, KKD, LNKD, SOHU,
Gap Up: ATVI, GILD, SBUX, TSLA,
Gap Down: BBBY, MFRM, TPX, UNG,
H&D Breakout: AMZN, CLF,
Breakout Test:
Bounce: ESRX, MAT, WFM, DNKN, JCP, LVS, SCTY,
MACD Divergence Bounce:
Bear Flag:
Support Break: PCLN, SNDK,
______________________
47 of 100 Leading NDX stocks closed higher on Friday and two were unchanged.
Leading NDX 100 stocks included: ATVI, SBUX, ALXN, AKAM, TSLA,
AMZN, GILD, MYL, CELG, GOLD, MXIM, EXPD, QCOM, ISRG, WFM, EBAY
Lagging NDX stocks included:
EXPD, VRTX, SNDK, MU, STX, CERN, BIIB, KLAC, NUAN, BBBY, WDC, PCLN, FB
Leading stocks > +2% on Friday included: CLF,
UAL, GRPN, TSLA, ANR, VRXN, AKS, SOHU, LDK, LNKD, GMCR
Lagging stocks < -2.0% included: SWI,
CRUS, TPX, DECK, CIEN, ESI, JNPR, A, NTES, VMW
Stocks to Watch on Monday
Holding Above 30 DMA= 77
TSLA, SPLS, CSCO, AMZN, DLTR,
ADBE, INTU, BBBY, MCHP, PCLN, SRCL, ALTR, CA, LINTA, MNST, ORLY, PCAR,
ROST,VOD, VIAB, FB, LBTYA, KRFT, LMCA, FOXA, CMCSA, HSIC, DISCA, VRSK, ADP,
ALXN, CHKP, CTSH, DTV, FOSL, NTAP, SYMC, WFM, NFLX, BMC, CELG, ESRX, FISV,
LLTA, XLNX, ADI, ATVI, BIIB, CHRW, COST, CTXS, EXPD, GILD, LIFE, MYL, PAYX,
XRAY, TXN, SIAL, AKAM, AMAT, GRMN, KLAC, YHOO, AMGN, REGN, SBAC, ADSK, BIDU,
FFIV, MDLZ, CTRX, GOLD, QCOM, AAPL, FAST, SBUX
Moving Above 30 DMA = 2
MXIM, WYNN
Moving Below 30 DMA = 4
CERN, EXPE, NUAN, VRTX
Staying Below 30 DMA
GOOG, SNDK, EQIX, WDC, MU, STX,
AVGO, SHLD, EBAY, MSFT, NVDA, BRCM, MAT, DELL, ISRG, INTC
Four-Week Intermediate Term Market Trend: Up
Short Term Market Trend: Neutral
