Eight of nine
sectors
moved higher on Tuesday…XLU, XLE and XLB were the strongest sectors…while
XLY was the weakest sector.
Breadth strengthened as advancers
led decliners 1.89 to
1 on the NYSE and 1.65 to
1 on the NASDAQ.
Tuesday – strengthened, advancers led
Monday – holiday
Friday – weakened,
decliners led
Thursday – weakened,
mixed
Wednesday – weakened,
advancers led
SPY up .55 at 184.18 volume 88.4 million shares, below average volume, bull flag
VIX up .43 at 12.87… did not confirm
TNX down .02 at 28.25…
TLT up .08 at 105.56...
XLF up .02 at 21.95 volume 41.5
million shares, bull flag
AAPL up 8.40 at 549.07 volume 11.7 million shares
FB up 2.21 at 58.51…volume 48.6 million shares, ascending triangle bounce
Technical
Commentary:
QQQ +0.76%,
IWM +0.60%, SPY +0.30%, DIA -0.21%.
IWM and QQQ each made a new high close
on Tuesday. QQQ rose on the
strength of big moves in AAPL, GILD, FB, GOOG, AMZN, BIIB, PCLN, EBAY and
QCOM.
The Dow
was down as weak earnings reaction included three Dow stocks JNJ -1.03,
-1.08%, TRV -1.47, -1.70%, VZ -0.65, -1.34% and HAL
-0.88, -1.74% which
released earnings before the open. AMD
-0.49, -11.75%, IBM -5.83,
-3.09% and XLNX -1.77, -3.72% fell in after-hours trading.
Positive
earnings reactions included BHI
+2.59, +4.78%, DAL +1.01,
+3.25% and RF +0.29, +2.74% gained
after releasing earnings before the open. CA +1.02,
+2.98% and CREE +1.66, +2.64% gained
in after-hours trading on Tuesday.
The weight of the technical evidence
still favors the uptrend. Trade the trend in this week’s holiday shortened trading week and
be mindful of when individual stocks are reporting earnings. Earning releases increase over the next two
weeks.
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, 186.76, 188.04…
QQQ = 88.74, 89.38, 90.25…
IWM = 116.70, 118.54…
Q4 earnings season is underway.
Monday – holiday
Tuesday – AMD, BHI, CA,
CREE, DAL, HAL, IBM, JNJ, RF, TXN, TRV, VZ, XLNX
Wednesday – ABT, ATI,
COH, EBAY, FFIV, FCX, NFLX, SNDK, USB, URI, UTX, WDC
Thursday – ALK, ALTR,
BAX, ETFC, ISRG, JCI, JNPR, KEY, KLAC, LMT, MXIM, MCD, MSFT, LUV, SBUX, UAL, UNP,
Friday – HON, KSU, KMB,
PG, SWK, STT
Q4 Earnings Reactions
Positive Reactions – BHI,
DAL, RF, MS, SLB, STI, AXP, SWKS, BAC, LLTC, WEN, MON, MU, STZ, APOL
Negative Reactions – HAL,
JNJ, TRV, VZ, GE, COF, INTC, UNH, C, GS, CSX, FAST, AA, FDO, BBBY, SCHN,
Reversal of Initial
Reaction – FAST, FDO, AA
The Market Forecast Green Line is above 80.
____________________
Setups
H Breakout: ANGI,
RAX, SPY, AMZN, FB, GRMN, TXN,
Diagonal Breakout: DDD, DRYS, FSLR, GRPN, KKD, SOHU, TWTR, UNG,
YNDX, AAPL, BIDU,
Bull Flag: BAC, CSIQ, FAS, LNKD, MFRM, MS, P, RCL, SCTY,
SFUN, SPWR, SWI, SWKS, TSL, VRSN, YOKU, Z, AKAM, CMCSA, GMCR, MU,
Potential Bullish
Divergence: WFM,
Gap Up: CREE,
Gap Down: AMD, IBM,
Bear Flag: FSLR,
GME, SCSS,
At Support: ANR, ATI,
C, DDD, GLD, MCP, SINA, SSYS, TPX, X, CTSH, INTC, NFLX, ROST, YHOO,
C- Pattern: GOGO,
Is GOGO ready to Go? After a 30%+ pullback over the past six weeks
and a MACD histogram bullish divergence bounce and a potential C-pattern setup, is GOGO ready to move to the upside?
(click image to enlarge)
Moves
New Highs: A, AAL, BX, CRM, DAL, ESI, GLW, IWM, JNPR,
LVS, SPLK, STI, UAL, V, YELP, ZION, ADSK, DTV, ESRX, FFIV, GILD, GOOG, NTAP,
PCLN, QCOM, STX, TSLA, WDC, WYNN,
Gap Up: BBRY,
Gap Down: SNDK,
H Breakout: QIHU, PCLN,
Diagonal Breakout: CIEN,
Breakout Test: ADBE,
Bounce: NTES, TLT, UNG, AMZN, CELG, EBAY, FB, FFIV,
MNST, TXN,
MACD Divergence
Bounce: GOGO,
Bear Flag: XONE, COST,
Support Break: WLT, SBUX, TRIP,
______________________
54 out of 100 NDX
stocks closed higher on Friday and two were unchanged.
Leading NDX 100 stocks included: BIIB, VRTX, GOLD,
GILD, FB, TSLA, ILMN, MU, PCLN, ISRG
Lagging NDX stocks included: EXPE, TRIP, SNDK,
MDLZ, TSCO, SBUX, WYNN, DLTR, DISH, MAT
Leading stocks > +2% on Tuesday
included: BBRY, QIHU, GOGO, CIEN, ZION, SCSS, DAL, ANGI, UNG, CSIQ,
SSYS, SPLK, SWKS, AAL
Lagging stocks < -2.0% included: WLT, ATI, DDD, CLF, MCP, FIVE, X, ANR,
MS
Stocks to Watch on Wednesday
Holding Above 30 DMA= 70
CTSH, WDC,
GOOG, ILMN, LLTC, EXPE, ADSK, ESRX, ALXN, SIAL, CMCSA, GMCR, STX, DTV, BRCM,
WYNN, FB, AVGO, INTC, EQIX, ORLY, ADBE, AKAM, CA, CHKP, FFIV, PCAR, SNDK, VRTX,
XLNX, CTRX, KRFT, AMAT, CSCO, SBAC, CHTR, HSIC, SIRI, AMGN, ISRG, MU, MYL, BIIB,
CHRW, EXPD, ADP, ALTR, AMZN, CTXS, EBAY, GILD, INTU, MXIM, NVDA, QCOM, SRCL,
VOD, TXN, REGN, TSLA, NXPI, CERN, GRMN, NTAP, PCLN, SYMC, CELG, GOLD, FAST
Moving Above 30 DMA = 1
ADI
Moving Below 30 DMA = 4
LBTYA, MDLZ, TRIP, VIP
Staying Below 30 DMA
AAPL, FISV, KLAC, VIAB, YHOO, LINTA, DISH, TSCO, BIDU, ATVI, PAYX, ROST,
DLTR, BBBY, SPLS, FOXA, MAT, DISCA, WFM, VRSK, NFLX, MSFT, COST, SBUX, LMCA
Sixteen Week
Intermediate Term Market Trend: Up
3-Day Short Term Market
Trend: Up – IWM, QQQ, Neutral -
SPY
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