All nine sectors moved lower on Thursday…XLY,
XLF and XLV were the strongest sectors…while XLU was the weakest sector.
Breadth weakened as decliners
led advancers…2.02 to 1 on the NYSE and 1.78 to
1 on the NASDAQ.
Thursday – weakened, decliners led
Wednesday – New Year’s
Tuesday – strengthened,
advancers led
Monday – weakened,
decliners led
Friday – weakened, mixed
SPY down 1.77 at 182.92 volume 119.5 million shares, slightly higher volume
VIX up .51 at 14.23…
TNX down .41 at 29.85…
TLT up .31 at 102.17...
XLF down .12 at 21.74 volume
35.4 million shares
AAPL down 7.89 at 553.13 volume 8.3 million shares
FB up .06 at 54.71…volume 43.2 million shares
Technical
Commentary:
QQQ – 0.78%,
DIA – 0.82%, SPY – 0.96%,
IWM – 1.08%.
The first
trading session of 2014 saw stocks close lower with the S&P 500 down
16.38 and the DJIA closing lower
by 135.31 points fueled by concerns of
China’s manufacturing growth in spite of the upbeat weekly jobless claims
showing a decline of 2,000 by the Labor Dept.
CSIQ had a large bounce today breaking
horizontal resistance to end the session at an all-time high…up 4.37 or 14.65%
on 7.9 million shares of volume.
MCP continued its uptrend gapping up
today .67 or 11.92% on increased volume of 35.9 million
shares and closed the session at 6.29. TSL
had a bounce and broke horizontal resistance up 1.31
or 9.58% on 7.9 million shares.
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%
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: AMGN,
BIDU, CELG, CHTR, GILD, BBRY, SCTY, SINA, SPLK, XONE, YOKU,
Diagonal Breakout: BIIB,
MU,
Bull Flag: AAPL, ESRX, INTU, MAT, MNST, PAYX, SIAL,
STX, TSLA, YHOO, ATI,
Potential Bullish
Divergence:
Gap Up:
Gap Down:
Bear Flag:
At Support: SWKS,
C- Pattern:
Moves
New Highs: FOXA, WYNN, LVS, VRSN,
Gap Up: GLD, MCP,
Gap Down: ADI, ADP, GRMN, TXN,
H Breakout: BAC, CSIQ, SPWR, TSL,
Diagonal Breakout: GOLD,
Breakout Test:
Bounce: FSLR,
MACD Divergence
Bounce:
Bear Flag:
Support Break:
______________________
15 out of 100 NDX
stocks closed higher on Thursday.
Leading NDX 100 stocks included: GOLD, WYNN, CELG,
AMGN, ATVI, FOXA, BIDU
Lagging NDX stocks included: ADI, TRIP, GRMN,
BRCM, FFIV, ADSK, CTSH, YHOO, MYL, SPLS, TXN
Leading stocks > +2% on Thursday
included: CSIQ, MCP, TSL, SPWR, TWTR, FSLR, SCTY, YOKU, SPLK, XONE,
BAC, BBRY, X, MFRM
Lagging stocks < -2.0% included: ANGI, DRYS, LNKD, SWKS, RAX, JCP
Stocks to Watch on Friday
Holding Above 30 DMA= 81
CTSH,
AAPL, FISV, INTU, WDC, GOOG, AMZN, ILMN, LLTC, EXPE, 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, 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, SYMC, SBAC, CHTR, AMGN, CHRW, ISRG, DLTR, WFM,
MU, ROST
Moving Above 30 DMA = 0
Moving Below 30 DMA = 7
FAST, HSIC, MYL, NTAP,
ADI, VRSK, NFLX
Staying Below 30 DMA
PCLN, GRMN, MSFT, CERN, SRCL, TRIP, COST, SBUX, LMCA, SIRI, REGN, GOLD,
MXIM
Sixteen Week
Intermediate Term Market Trend: Up
3-Day Short Term Market
Trend: Neutral
