Eight of nine sectors
moved higher on Tuesday…XLE, XLB and XLP were the strongest sectors and XLV was the weakest.
Breadth strengthened
on the NYSE as advancers led decliners…1.83 to 1 on
the NYSE and
1.04 to 1 on
the NASDAQ.
Tuesday – mixed, advancers
led
Monday – strengthened,
advancers led
Friday – weakened,
advancers led
Thursday – weakened
slightly, advancers led
Wednesday –
strengthened, advancers led
SPY up .28 at 207.75 on 122 million shares
VIX down .45 at 14.80…
TNX up .95 at 22.57…
TLT down 2.50 at 123.54...
XLF up .14 at 24.99 on 15.5 million shares
AAPL down .40 at 112.54 on 45.1 million shares
FB down .84 at 80.61…on 31.7 million shares
Technical Commentary:
DIA +0.37%,
IWM +0.13%, SPY +0.13%, QQQ -0.35%.
The SPX
hit a new all-time high for the 51st time in 2014. The SPX was led by gains in CHK,
ESRX, CF, WAG, TIF, CVC, WYNN, NFX, BWA and MAT.
Oil was up
46 cents to 55.84. XLE was the leading sector rising 97 cents, +1.22% to
close at 80.72.
Volume
rose in XLB, XLF, XLK, XLP, XLV, XLY and IWM and declined in XLE,
XLI, XLU, DIA, SPY and QQQ headed into Wednesday’s half day of trading on
Christmas Eve and the Christmas holiday on Thursday.
XLV fell for the second straight day
on heavier volume as biotech and other healthcare stocks continued to be under
selling pressure. CELG, ALXN, BIIB, REGN, AMGN, GILD, ILMN and VRTX were the eight largest losers on the NDX.
Gains in MSFT,
ESRX, GOOG, CMCSA and INTC helped offset in part the NDX losses in
biotech stocks. The NDX formed a
dark cloud cover.
CAR +5.83,
+9.94% broke out
of horizontal resistance. Four-week Chart Target: 71.64
ESRX +3.54,
+4.31% broke out
of horizontal resistance by 16 cents. Four-week
Chart Target: 92.55
Look for new high horizontal breakout setups in stocks that are
up trending or reversal breakouts from stocks that recently pulled back.
AAL, EA and LRCX were added to the NDX on Monday.
Trade with the trend of
the chart you are trading and
continue to move your profit protection stops. Continue to follow your rules.
Short-term Chart Targets:
SPY = 207.33, 209.06, 210.49...
QQQ = 106.94…
IWM = 118.25, 119.37,
121.27…
Support Levels
SPY = 200.06...
QQQ = 102.42, 101.38…
IWM = 114.37, 113.35...
Q3 Earnings Reaction
Positive Reactions – ADBE, CIEN, LULU, AVGO,
ADI, HPQ, PANW, QIHU, ADSK, JASO, ROST, SPLK, GOGO, RAX, NTES, XONE,
YOKU, VJET, BABA, MNST, WFM, ABC, ACI, AMGN, BIDU, BWLD, CBOE,
CLF, CLX, CNX, EA, ESRX, EQIX, EXPE, FISV, GLW, GPRO, GRPN, GT, HSY, JCI, JDSU,
LNKD, LVLT, MA, MAR, MO, MTW, MYL, PCAR, FE, SCHN, STX, SWI, SWKS, TASR, V, WY,
X, WHR, AAPL, ALK, ALXN, APOL,
BMY, BRCM, CAT, CELG, CERN, CHKP, CMCSA, CNI, EMC, EW, GD, HAL, HAS, HOG, ILMN,
IM, KLAC, KMB, LLY, LRCX, LXK, MMM, MXIM, MSFT, N, ORLY, PG, RMD, STLD, STT,
SWK, TRV, TSCO, TXN, UNP, VRSN, WOOF, YHOO, YNDX, ZION, AMD, C, CSX,
DAL, GE, HON, LVS, MS, SCHW, SLB, STI, URI, XLNX, COST, BBBY,
BBRY, MU, NKE, PAYX, LULU, PANW, ULTA, MFRM, SPLK,
More than 10% - GOGO, RAX, WFM, GPRO,
GPRN, LNKD, BWLD, SWI, N, EW, TSCO, NKE, ULTA, LULU, PANW, MFRM,
Negative Reactions – COST, AMBA,
MFRM, GME, CRM, JD, MBLY, SINA, YY, SWKS, FEYE,
FSLR, PCLN, QCOM, TRIP, SCTY, SSYS, SUNE, UBNT, Z, ZU, AEM, CHRW, COH, FB,
GRMN, KRFT, MDC, MRK, NEM, PNRA, RGR, SLCA, TPX, TWTR, ALTR, AMZN, BA,
BTU, CMG, CREE, DECK, DNKN, DOW, EAT, F, GM, IBM, JNPR, KO, LMT, LUV, NDAQ, P,
UA, VMW, XRX, YELP, AXP, BAC, COF, EBAY, GOOGL, INTC, JNJ, JPM, KEY,
MAT, NFLX, WFC, AZO, ADBE, KKD, CIEN,
More than -10% - GME, CSIQ, FSLR,
UBNT, ZU, AEM, P, TPX,
Reversal in progress – PCLN, TPX, KO,
Reversal of Initial
Reaction – AMZN, FEYE, SWKS, Z, ADBE, ALTR, ALTR, AXP, AZO, BA, BAC, BTU, CHRW, CMG,
COF, COH, CREE, DECK, DNKN, DOW, EAT, EBAY, F, GM, GOGO, GOOGL, GRMN, INTC,
JNJ, JNPR, JPM, KEY, KKD, KO, KRFT, LMT, LUV, MAT, MDC, MRK, NDAQ, PNRA, UA,
VMW, WFC, XRX,
The SPY Market Forecast is at 61.
___________________
Setups
Horizontal Breakout: AAL,
ATI, BAC, BBRY, BBY, CTRP, DAL, EMC, ETFC, FAS, FEYE, GOGO, IBM, JCP, LNKD, RAX,
SCHW, SPWR, SUNE, TWTR, V, YELP, ZION,
ESI, ZNGA, AKAM, AVGO,
BRCM, COST, EBAY, ESRX, GMCR, GOOGL, INTC, MAR, MNST, MSFT, NFLX, NTAP, QCOM, SBUX,
TRIP, WFM,
Diagonal Breakout: LC,
MBLY, MYL,
Bull Flag: BX, UBNT,
Bear Flag: HOG, MFRM, TSL,
At Support: CMGE,
C- Pattern: CREE, KKD, SPLK, AAPL,
BIDU,
Moves
New Highs: DIA, SPY,
IWM, FAS, CIEN, GLW, HPQ, JNPR, MS, RCL, STI, ROST, STX,
H Breakout: AIG, CAR,
CRM, GPRO, MTW, SCHW, SCTY, CMCSA,
Breakout Test: FB,
Bounce: JCP,
MACD Divergence Bounce:
CSIQ,
C- Pattern: ADSK,
Support Break: TLT, XONE, CELG, GILD,
______________________
53 out of 100 NDX stocks
closed higher and two were unchanged on Tuesday.
Leading NDX 100 stocks included: ESRX, VIP, WYNN, MAT, CTRX, SPLS, SYMC, CHTR,
CTXS, TSCO
Lagging NDX stocks included: CELG, ALXN, BIIB, REGN, AMGN, GILD, ILMN,
VRTX, GMCR, YHOO
Leading stocks > +2% on Tuesday:
CAR, GPRO, MTW, JCP, SCTY, ATI, SCHW,
Lagging stocks < -2.0% included:
CMGE, XONE, BABA, LC, Z, GOGO, DGLY,
UAL, NTES, TWTR
Stocks to Watch on
Wednesday
Holding Above 30 DMA = 72
ROST, DLTR, ORLY, TSCO, AAL, BBBY, PCAR, SPLS, INTU, EA, AMAT, WFM, AVGO, WDC, ADI, ALTR, EBAY, LLTC, FOXA, SIAL, BIIB,
ADBE, ADP, CHKP, CHTR, CMCSA, CSCO, DISCA, EQIX, FAST, FB, HSIC, INTC, KLAC,
KRFT, LBTYA, LVNTA, MNST, NXPI, QCOM, STX, TRIP, TXN, VIAB, VRSK, AKAM, BRCM,
CA, CERN, CHRW, COST, CTSH, DISH, FISV, ISRG, LRCX, MAR, MU, MYL, NTAP, SRCL, SYMC, ADSK, CTRX,
NVDA, SNDK, DTV, ESRX, EXPD, MSFT, PCLN, SBUX
Moving Above 30 DMA =
2
CTXS, PAYX
Moving Below 30 DMA = 7
AMGN, CELG, ILMN, REGN,
VOD, VRTX, YHOO
Staying Below 30 DMA
GILD, MAT, XLNX, MDLZ, AAPL, ALXN, ATVI, SBAC, AMZN, LMCA, SIRI, GRMN, BIDU,
GOOG, TSLA, VIP, GMCR, WYNN, NFLX
6-month Intermediate
Term Market Trend: Up
3-day Short Term Market
Trend: Up
