Wednesday, January 8, 2014

Rotation Keeps Indexes in Range...While Many Stocks MU, STX, FAS, LVS, YELP and More Are At or Near New Highs...Bull Flags Continue to Fly...


Three of nine sectors moved
higher on Wednesday…XLV, XLB and XLF were the strongest sectors…while XLP was the weakest sector. 





Breadth weakened
as
decliners led advancers…1.30 to 1
on the NYSE and 1.07 to
1
on the NASDAQ.





Wednesday – weakened, decliners led


Tuesday – strengthened,
advancers led


Monday – weakened,
decliners led


Friday – strengthened,
advancers led


Thursday – weakened,
decliners led








SPY up .04 at 183.52 volume 96.5 million shares


VIX down .05 at 12.87…


TNX up .56 at 29.93…


TLT down .28 at 102.58...


XLF up .08 at 21.99 volume 35.9
million shares





AAPL up 3.42 at 543.46 volume 9.2 million shares


FB up .31 at 58.23…volume 56.8 million shares








Technical
Commentary: 


QQQ +
0.22%,
IWM + 0.13%, SPY + 0.02%, DIA – 0.38%.





QQQ led the broad market for the
second straight day on the strength of gains in BIIB, AAPL, MU, AMZN, CELG,
ESRX, GILD, SNDK and BIDU
.  The SPX
-0.39
was near
even and the VIX -0.05 confirmed as it closed near unchanged on Wednesday.





Rotational buying and selling before the start of earnings
season has kept the broad indexes in a short-term neutral range over the
first five trading days of 2014
.  A
look at the list of stocks in our lists below indicates that a large number
of stocks are at new highs, have had horizontal breakouts
or are at
horizontal resistance setting up a potential breakout.  The trend is still up.





FOMC minutes were released on Wednesday with
comments on the economic outlook, the labor market, and the impact of bond
purchases.  The stability in the labor
market was a major factor in beginning the reduction of bond purchases in
December.





QIHU +7.60,
+9.34%
gapped
higher after announcing the appointment of a senior Google VP in China to be
its new Chief Business Officer.  Volume
soared to 9.4 million shares.





MU +2.14,
+9.85%
which
released better than expected EPS after the close on Tuesday and gained 1.55 in
after-hours increased that gain on Wednesday open with its highest close in
more than ten years.





MON +2.42,
+2.15%
gained and
SCHN -0.98, -3.16% fell after both companies released earnings before the open





BBBY -6.68,
-8.38%

fell in
after-hours trading after missing earnings and revenue estimates and lowering
Q4 guidance.





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 unofficially starts next Thursday,
January 9
with the AA earnings release after
the close.





Tuesday – APOL, MU


Wednesday – BBBY, MON,
SCHN


Thursday – AA, FDO,





Q4 Earnings Reactions


Positive Reactions – MON,
MU, APOL











Negative Reactions –
BBBY, SCHN,





The Market Forecast Green Line closed below 80.





____________________





Setups 


H Breakout: FB, SCTY,
TSL, ADSK, ALXN, AMGN, AMZN, ATVI, AVGO, BIDU, BRCM, CA, CHKP, ILMN, MYL, A,
CIEN, CMG, CRM, ESI, SINA, SOHU, SPWR, SWI, V, YNDX, ZION


Diagonal Breakout: ADBE,
NTAP, BX, KKD, MFRM,


Bull Flag: ATI, X, AKS, DRYS, GRPN, INTC, XLNX, TSCO,
ANGI, GS, MCP, RAX, RCL, SPY, IWM, TIF, TPX, NUE, STLD, XONE,


Potential Bullish
Divergence: GME,  


Gap Up:


Gap Down:


Bear Flag: LNKD,


At Support: MSFT, ANR,
FSLR, GOGO, SCSS, TWTR, UNG, WLT,


C- Pattern:





Moves


New Highs: SNDK, STX, WDC, WYNN, YHOO, C, BBRY, CREE, FAS,
GLW, JNPR, LVS, NTES, P, VRSN, YELP,


Gap Up: MU, MCK, APOL,          


Gap Down:       


H Breakout: A, SNDK, NVDA, AAL, DAL, FIVE, LVS, QIHU, UAL,
YELP,


Diagonal Breakout: 


Breakout Test: SPLK, VECO, Z,


Bounce: TSLA, TSN, BIIB, NXPI, CHKP, ALK, CRM, DDD,
SCTY, SSYS, SWI, V,


MACD Divergence
Bounce: SBUX, TRIP,


Bear Flag: 


Support Break: JCP,





______________________








55 out of 100 NDX
stocks closed higher
and two were unchanged on Thursday.








Leading NDX 100 stocks included: MU, BIIB, SNDK, MYL,
NXPI, CTXS, WYNN, DISH, ISRG, CELG





Lagging NDX stocks included: DISCA, SIRI, LMCA,
WFM, MSFT, CERN, FOXA, EXPE, COST, CHTR





Leading stocks > +2% on Wednesday
included: QIHU, YELP, UAL, SCTY, CIEN, DDD, CRM, DAL, NTES, LVS, ESI,
GME, AAL, SOHU, ALK, FIVE





Lagging stocks < -2.0% included: JCP, GOGO, YOKU, TWTR, YNDX, MCP, UNG, WLT,
ANGI





Stocks to Watch on Thursday


Holding Above 30 DMA= 74


CTSH,
FISV, INTU, WDC, GOOG, AMZN, ILMN, LLTC, EXPE, ADSK, ESRX, ALXN, MDLZ, MNST,
YHOO, DISH, SIAL, CMCSA, LBTYA, GMCR, DTV, STX, BIDU, BRCM,  FB, WYNN, AVGO, INTC, EQIX, TSLA, ORLY, ADBE,
AKAM, VIAB, CA, CHKP, FFIV, LINTA, PCAR, TSCO, SNDK, VRTX, XLNX, ADP, ATVI,
CTXS, PAYX, CTRX, FOXA, KRFT, AMAT, NVDA, BBBY, CSCO, SYMC, SBAC, CHTR, DLTR,
ROST, HSIC, MXIM, SIRI
, AMGN,
ISRG, MU, MYL, NTAP, QCOM, SPLS, SRCL, ADI, VIP, TRIP





Moving Above 30 DMA = 4


BIIB, CELG, NXPI, TXN





Moving Below 30 DMA = 4


ALTR, DISCA, EBAY, MAT





Staying Below 30 DMA


GILD, KLAC, AAPL, CHRW, EXPD, WFM, FAST, NFLX, VRSK, PCLN, GRMN, MSFT,
CERN, COST, LMCA, SBUX, REGN, GOLD





Sixteen Week
Intermediate Term Market Trend:
Up

3-Day Short Term Market
Trend:
Neutral

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