All nine sectors moved lower on Monday…XLP,
XLV and XLU were the strongest
sectors…while XLY was the weakest
sector.
Breadth weakened
as decliners
led advancers 2.49 to
1 on the NYSE and 2.57 to
1 on the NASDAQ.
Monday – weakened, decliners led
Friday – strengthened,
advancers led
Thursday - mixed
Wednesday – weakened,
decliners led
Tuesday – strengthened,
advancers led
SPY down 2.45 at 181.69 volume 149.8 million shares, above average volume
VIX up 1.14 at 13.28…
TNX down .33 at 28.27…
TLT up .52 at 104.93...
XLF down .33 at 21.70 volume 42.6
million shares
AAPL up 2.79 at 535.73 volume 13.5 million shares
FB down 2.03 at 55.91…volume 63.1 million shares
Technical
Commentary:
DIA – 1.18%,
SPY – 1.33%, IWM –
1.37%, QQQ – 1.48%.
Broad
stock indexes sold off sharply just after noon eastern reportedly after
comments from the Atlanta Fed president.
The SPY and DIA broke short-term support while the QQQ and IWM
held at their short-term support level.
Be prepared for a potential support break.
CREE -6.11,
-9.10%
and SCHW
-0.83, -3.23% on
analyst downgrades.
SWKS +0.69,
+2.49%, FFIV +3.49, +3.94% on analyst upgrades.
JNPR +1.78,
+7.56% after
institutional shareholder presents value plan.
WEN +0.54,
+6.40% positive
earnings reaction and raised guidance before the open.
The intermediate-term trend is still
up, while the short-term trend is down.
Trade with the trend, move your protective stops. If stopped out on Monday look for potential
re-entry and bearish break of support setups. 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 – WEN,
MON, MU, STZ, APOL
Negative Reactions – AA,
FDO, BBBY, SCHN,
Reversal of Initial
Reaction – FDO
The Market Forecast Green Line is pointed up above 80.
____________________
Setups
H Breakout:
Diagonal Breakout: RAX, SSYS,
Bull Flag: AVGO, BIDU, CMCSA, DISH, EXPE, FB, GMCR, MU,
VIAB, YHOO, BBRY, CMG, CRM, DDD, GLW, LVS, NTES, P, SCTY, SINA, SOHU, SPLK, SWI,
UAL, VECO, XONE, YELP, Z, ZION
Potential Bullish
Divergence:
Gap Up:
Gap Down:
Bear Flag:
At Support: AKAM,
AMZN, CERN, DLTR, FOXA, MAT, GILD, NFLX, ROST, TSLA, FAS, SCSS, TPX,
C- Pattern:
Moves
New Highs: A, ADSK, F, CCL,
Gap Up: FFIV, JNPR, SWKS, UNG, WEN, EXPD,
Gap Down: CREE,
H Breakout: GLD,
Diagonal Breakout:
Breakout Test: RCL,
Bounce: FAZ,
MACD Divergence
Bounce:
Bear Flag: LNKD,
Support Break: SPY, MSFT, SBUX, ADP, NKE, TIF, FISV, INTU, NVDA, NTAP, PAYX, TXN, CIEN, GRPN,
MFRM,
______________________
13 out of 100 NDX
stocks closed higher on Monday.
Leading NDX 100 stocks included: FFIV, GOLD, VIP,
NFLX, EXPD, SBAC, GRMN, EBAY, AAPL
Lagging NDX stocks included: ISRG, SYMC, BIIB,
BIDU, TSLA, TSCO, AKAM, FB, ALXN, FOXA
Leading stocks > +2% on Monday
included: JNPR, UNG, FAZ, SWKS
Lagging stocks < -2.0% included: CREE, YELP, TSL, SCTY, FIVE, GRPN, Z,
TSLA, FAS, NTES
Stocks to Watch on Tuesday
Holding Above 30 DMA= 55
CTSH,
FISV, WDC, GOOG, ILMN, LLTC, EXPE, ADSK, ESRX, ALXN, MDLZ, MNST, YHOO, DISH, SIAL,
CMCSA, GMCR, LBTYA, DTV, STX, BRCM, FB, WYNN,
AVGO, EQIX, INTC, ORLY, ADBE, AKAM, VIAB, CA, CHKP, FFIV, PCAR, SNDK, VRTX,
XLNX, ATVI, CTRX, KRFT, AMAT, CSCO, SBAC, HSIC, SIRI, AMGN, ISRG, MU, MYL, TRIP,
BIIB, CHRW, EXPD, FAST,
Moving Above 30 DMA =
0
Moving Below 30 DMA = 19
ADI, ADP, AMZN, BIDU,
CELG, CTXS, GILD, INTU, KLAC, LINTA, NVDA, PAYX, QCOM, ROST, SYMC, TSCO, TSLA,
TXN, VOD
Staying Below 30 DMA
DLTR, MXIM, NTAP, SRCL, BBBY, SPLS, FOXA, NXPI, SPLS, VIP, ALTR, EBAY,
MAT, DISCA, AAPL, WFM, NFLX, VRSK, PCLN, GRMN, MSFT, CERN, COST, LMCA, SBUX, REGN,
GOLD
Sixteen Week
Intermediate Term Market Trend: Up
3-Day Short Term Market
Trend: Down
