Wednesday, January 15, 2014

IWM All-time High...QQQ New High Close...AAPL Jumps...BAC EPS Reaction Lifts Financials...Oil Rises...Solar Still Hot...


Six of nine
sectors
moved higher on Wednesday…XLK, XLF and XLI were the strongest sectors…while
XLE
was the weakest sector. 





Breadth weakened
as
advancers led decliners 1.86 to 1
on the NYSE and 1.84
to 1 on the NASDAQ.





Wednesday – weakened, advancers led


Tuesday – strengthened,
advancers led


Monday – weakened,
decliners led


Friday – strengthened,
advancers led


Thursday - mixed








SPY up .99 at 184.66 volume 91.5 million shares


VIX down .01 at 12.27…


TNX up .15 at 28.84…


TLT down .11 at 104.34...


XLF up .27 at 22.15 volume 61.5
million shares, above average volume





AAPL up 10.97 at 557.36 volume 13.8 million shares, above
average volume


FB down .14 at 57.60…volume 33.6 million shares, below average volume








Technical
Commentary: 


QQQ + 0.82%,
IWM + 0.75%, DIA + 0.69%, SPY + 0.54%.





IWM and QQQ make new high close while SPY closes within
3 cents of all-time high.  BAC
helped
lift financial stocks which added momentum to the broad market.





Oil prices
rose USO +0.73, +2.21% on Wednesday and airline stocks DAL -0.51, -1.59%, ALK -0.65,
-0.82%,
UAL -0.25, -0.53%
pulled back.





Social
media stocks
were led
by TWTR +5.77%, P +2.70%, ANGI +1.66%, and Z +1.19%.   Solar stocks
still had sizzle with CSIQ +5.80%, SCTY +4.50%, TSL +2.72%, AEIS
+2.61%, FSLR +1.84%,
YGE +1.74%, SUNE +0.97%
.





JPM +1.75,
+3.03%
and WFC
+0.81, +1.78%

which had neutral reactions after reporting earnings on Tuesday bounced
along with many financial stocks after BAC +0.28,
+2.27%
gapped up after reporting before
the open on Wednesday. 





LLTC +0.95,
+2.10%
which gained
+0.36, +0.80%

in after-hours on Tuesday extended gains from its positive earnings
report.





CREE +0.91,
+1.44%
gained for
the second day after selling off Monday following an analyst downgrade.  As often occurs, the downgrade was a net one
day negative impact.








The intermediate-term trend is still
up, while the short-term trend is neutral
.





Trade with the trend, move your protective stops.  Continue to follow your rules.





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:


SPY = 184.69, 186.06, 186.90


QQQ = 87.79, 88.74


IWM = 115.98, 116.70, 118.54





Q4 earnings season is underway.





Monday – WEN


Tuesday – JPM, LLTC, WFC


Wednesday – BAC, CSX,
FAST


Thursday – AXP, COF, C,
GS, INTC, SWKS, UNH


Friday – GE, MS, SLB,
STI





Q4 Earnings Reactions


Positive Reactions – BAC,
LLTC, WEN, MON, MU, STZ, APOL











Negative Reactions – FAST,
AA, FDO, BBBY, SCHN,





Reversal of Initial
Reaction – FDO, AA,








The Market Forecast Green Line is pointed up above 80.





____________________





Setups 


H Breakout: ESI,
F, FAS, LNKD, MFRM, QIHU, SCTY, YOKU, FB, GILD, GOOG, GRMN, YHOO


Diagonal Breakout:


Bull Flag: AAL, ANGI, BBRY, BX, CMG, DDD, GLD, NTES, SINA,
SOHU, SPWR, AMZN, BRCM, DISH, GMCR, MNST, MU, SNDK, TRIP,


Potential Bullish
Divergence: GOGO, NKE,


Gap Up:


Gap Down:


Bear Flag: 


At Support: ANR, CLF,


C- Pattern:





Moves


New Highs: IWM, QQQ, ADSK, AVGO, A, ATI, CRM, CSIQ, GLW,
JNPR, P, RCL, STI, SWI, SWKS, VRSN, CMCSA, CTSH, DTV, ESRX, FFIV, STX, WDC,
WYNN,


Gap Up:  BAC,
       


Gap Down:  XONE, FAST,    


H Breakout: IWM, QQQ, CRM, CSIQ, ADBE, AKAM, CMCSA, NTAP, PCLN, TSLA, TXN,


Diagonal Breakout: F,


Breakout Test: 


Bounce: SPY, ATI, C, CNX, CREE, DRYS, FAS, GS,
IBM, LVS, MCP, MFRM, RAX, SCTY, SFUN, TSL, TWTR, V, VECO, Z, ZION, AAPL, DTV, QCOM,


MACD Divergence
Bounce:  FSLR, MSFT,


Bear Flag: 


Support Break





______________________








69 out of 100 NDX
stocks closed higher
on Wednesday
and one was unchanged.








Leading NDX 100 stocks included: NTAP, CTXS, AKAM,
SYMC, FFIV, AVGO, XLNX, CHRW, MSFT, CMCSA





Lagging NDX stocks included: FAST, REGN, NFLX,
ISRG, MYL, GMCR, MU, BIDU, CELG, CHTR





Leading stocks > +2% on Wednesday
included: MFRM, DRYS, MCP, CSIQ, TWTR, RAX, CNX, SCTY, WLT, CRM, SWI,
FAS, SSYS, QIHU, BBRY, ANR, TSL, VECO, P, BAC, ATI





Lagging stocks < -2.0% included: XONE, GRPN





Stocks to Watch on Thursday


Holding Above 30 DMA= 72


CTSH,
FISV, WDC, GOOG, ILMN, LLTC, EXPE, ADSK, ESRX, ALXN, MDLZ, YHOO, MNST, DISH, SIAL,
CMCSA, LBTYA, GMCR, STX, DTV, BRCM, WYNN, FB, INTC, AVGO, EQIX, ORLY, ADBE,
AKAM, VIAB, CA, PCAR, CHKP, FFIV, XLNX, VRTX, SNDK, CTRX, KRFT, AMAT, CSCO,
SBAC, CHTR, HSIC, SIRI, AMGN, ISRG, MYL, MU, TRIP, BIIB, CHRW, EXPD,
ADI, ADP, ALTR, AMZN, CTXS, EBAY, GILD, INTU,
KLAC, MXIM, NVDA, NXPI, QCOM, REGN, SRCL, TSLA, TXN, VIP, VOD





Moving Above 30 DMA =
8


AAPL, CERN, GRMN, LINTA, NTAP, PCLN, SYMC, TSCO





Moving Below 30 DMA = 3


BIDU, CELG, FAST





Staying Below 30 DMA


ATVI, PAYX, ROST, DLTR, BBBY, SPLS, FOXA, MAT, DISCA, WFM, VRSK, NFLX, MSFT,
COST, SBUX, LMCA, GOLD








Sixteen Week
Intermediate Term Market Trend:
Up

3-Day Short Term Market
Trend:
Up

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