Eight of nine sectors moved higher on Tuesday, the last day of 2013…XLE, XLK and XLI were the strongest sectors…while
XLV was the weakest sector.
Breadth strengthened as advancers
led decliners…1.88 to
1 on the NYSE and 1.36 to
1 on the NASDAQ.
Tuesday – strengthened, advancers led
Monday – weakened,
decliners led
Friday – weakened, mixed
Thursday – weakened
slightly, advancers led
Wednesday – Closed Christmas
SPY up .87 at 184.69 volume 86.2 million shares
VIX up .06 at 13.72…
TNX up .50 at 30.26… highest
close since July 7, 2011
TLT down .65 at 101.86...
XLF up .11 at 21.86 volume 18.5
million shares
AAPL up 6.50 at 561.02 volume 8 million shares
FB up 94 cents at 54.65…volume 43.1 million shares
Technical
Commentary:
QQQ +0.65%, DIA +0.53%, SPY +0.47%, IWM +0.23%.
Markets will be closed on Wednesday
for New Year’s Day. Happy New Year
everyone!
2013 was a great year in the broad indexes led by
sector gains in XLY, XLV, XLI and XLF and many individual
stocks. Gains included:
SPX +29.6%
NDX +34.99%
RUT +37.00%
XLY +40.87%
XLV +39.02%
XLI +37.89%
XLF +33.37%
NFLX +297.63%
MU +243.06%
FB +105.30%
GILD +104.47%
PCLN +87.37%
BIDU +77.37%
AMZN +59.02%
GOOG+58.43%
Tuesday:
TWTR +5.19%
started to bounce in its bull flag pattern.
FB +1.75% formed a bullish harami in its
bull flag pattern.
DRYS +7.31% formed a gap engulfing candle in its bull flag pattern.
S +1.61% formed a bullish harami in its pennant
pattern.
The trend continues
higher for the overall market with basic materials, industrial,
energy, technology and financial sectors leading the way. Trade with the trend, move your protective
stops. Continue to follow
your rules.
The economic outlook continues to strengthen heading into 2014. While the stock market does not go straight
up and instead moves in a zig zag manner of higher highs and pull backs to
higher lows, currently the weight of the technical evidence at the end of 2013 suggests
trend continuation into 2014.
Chart Signals hopes you have taken the time to
evaluate your 2013 trading performance and that you have NOW identified specific improvements that
you can make for 2014.
Albert Einstein: “Insanity: doing the same thing over and over
again expecting different results.”
Remember it is big money
that creates and sustains the trend. As Granville wrote,
“technical analysis is the art of tracking the market, following the
footsteps of the ‘smart money’ crowd.
The ‘smart money crowd’ is no mysterious ‘THEY.’ It is simply a collection of people who are reading the market correctly,
seeing through the maze, unconfused by this hall of mirrors.”
Short-term
up trend chart targets:
Chart Targets:
SPY = 183.37, 185.02…
QQQ = 87.79, 88.74…
IWM = 117.15, 119.00…
Q3 Earnings Reactions
Positive Reactions – LEN, BBRY, RHT, WAG,
ORCL, AVGO, MFRM, SPLK, MRVL, GMCR, JCP, LZB, JKS,
BRCD, TSN, YOKU, SINA, NTAP, SLXP, PCLN, NVDA, GRPN, AWAY,
PRU, TPX, TSO, CTSH, FSLR, TRMB, MDVN, NATI, SPR, ONNN, EXPE, CRR, HAR, GTI,
ATML, THOR, TRN, FLT, MCHP, ITT, DICSA, ANR, SWKS, FB, CMCSA, GILD, DWA, LVLT,
EA, SEE, SPW, TFX, JCI, X, XRAY, XYL, JLL, PBI, ALR, HUN, ACT, DECK, AMZN,
MSFT, FLS, AVY, ALXN, WOOF, COG, BA, CLGX, ESI, EQIX, WLL, TSCO, RRD, PHM, RCL,
ALXN, APOL, BCR, NDAQ, NSC, WHR, ILMN, NUS, GNTX, LXK, DD, VFC, CMG, GOOG, BHI,
GE, KSU, MS, SLB, STI, LVS, VZ, SNDK, NUE, BTU, AXP, KEY, STLD, URI, USB, INTC,
JNJ, SCHW, COST, AA
Negative Reactions – ROST, GME, BBY,
CPB, JEC, TSL, CRM, CSCO, RAX, MNST, QCOM, SCTY, IPGP,
AIG, BRKR, HME, NEM, XLS, Z, NIHD, AVP, WTW, ROVI, GRMN, JDSU, OSK, CNW,
ITRI, CTRX, KRFT, GRMN, MYL, DLR, XCO, WU, LNKD, IACI, MSM, INGR, HTS,
VRTX, AAPL, PMCS, MWV, SOHU, AGNC, AGCO, PCL, GT, CMI, VSH, ALSN, ROP,
EW, MRK, RYN, RMD, NCR, KBR, FSL,
ESRX, EMN, FIO, SIRI, CAM, TKR, SYMC, CVA, CDNS, AKAM, XRX, CRI, ORLY,
CAT, NFLX, COH, ZION, WAT, EMC, UTX, TXN, HON, ISRG, GS,
UNP, UNH, EBAY, IBM, XLNX, SCSS, SWK, MU, FAST
The Market Forecast Green Line is above 80.
____________________
Setups
H Breakout: ALK,
ANGI, CIEN, CREE, CRM, MCP, NKE, RAX, SCTY, SOHU, SPWR, SWI, SWKS, TBT, TSL, VECO,
YELP, YNDX, Z, ZION, BIDU,
Diagonal Breakout: BAC,
C, CMG, CSIQ, SPLK, UAL, DAL, AAL, YOKU, GILD, MU,
Bull Flag: A, ATI, BBRY, CLF, GME, GRPN, MFRM, SCSS,
SFUN, IWM, TWTR, X, XONE, AMZN, FB, NFLX,
Potential Bullish
Divergence: ESI, FIVE, FSLR, GLD, LNKD, P, PCLN
Gap Up:
Gap Down:
Bear Flag:
At Support: GOGO,
UNG,
C- Pattern:
Moves
New Highs: BX, DDD, FAS, GLW, GS, JNPR, LVS, NTES, RCL,
SPY, DIA, QQQ, SSYS, TIF, TPX, V, VRSN, YNDX, GOOG,
Gap Up:
Gap Down:
H Breakout: IBM, JCP, SINA, BIDU,
Diagonal Breakout: QIHU, RAX,
Breakout Test:
Bounce: STI,
VRSN, YELP, Z, AAPL,
MACD Divergence
Bounce:
Bear Flag: UNG,
Support Break: UNG,
______________________
77 out of 100 NDX
stocks closed higher on Tuesday.
Leading NDX 100 stocks included: EQIX, BIDU, MU,
GOLD, CHTR, TSCO, FB, LBTYA, EBAY, ADSK
Lagging NDX stocks included: TSLA, AMGN, REGN,
GRMN, STX, SIRI, CTRX, MAT, SPLS, ADP
Leading stocks > +2% on Tuesday
included: ANGI, TWTR, MCP, YELP, GRPN, SSYS, SINA, BBRY, RAX, YNDX
Lagging stocks < -2.0% included: UNG, GOGO, SCSS, TSL
Stocks to Watch on Thursday
Holding Above 30 DMA= 85
CTSH,
AAPL, FISV, INTU, WDC, GOOG, AMZN, ILMN, LLTC, EXPE, NFLX, ADSK, ESRX, ALXN, MDLZ,
MNST, YHOO, QCOM, DISH, SIAL, CELG, BIIB, CMCSA, LBTYA, GMCR, DTV, STX, BIDU,
BRCM, WYNN, FB, AVGO, INTC, EQIX, TSLA, ORLY, ADBE, AKAM, EBAY, VIAB, VRSK, CA,
CHKP, FFIV, LINTA, PCAR, VOD, TSCO, SNDK, VRTX, XLNX, ADP, ATVI, CTXS, GILD,
PAYX, ADI, CTRX, DISCA, KRFT, FOXA, NXP, AMAT, EXPD, KLAC, MAT, NVDA, SPLS,
TXN, VIP, ALTR, BBBY, CSCO, HSIC, SYMC, SBAC,
CHTR, AMGN, FAST, CHRW, ISRG, NTAP, DLTR, MYL, WFM
Moving Above 30 DMA =
2
MU,
ROST
Moving Below 30 DMA = 0
Staying Below 30 DMA
PCLN, GRMN, MSFT, CERN, SRCL, TRIP, COST, LMCA, SBUX, REGN, SIRI, GOLD, MXIM
Sixteen Week
Intermediate Term Market Trend: Up
3-Day Short Term Market
Trend: Up
