NDX Leads on Biotech Activity…DJIA Lags on TRV, DD, IBM Earnings…ATI, LRCX Gap Higher…Semis Gain
Three of nine sectors moved higher on Tuesday…XLV, XLP and XLY were the strongest sectors and XLE was the weakest.
Breadth weakenedas advancers led decliners 1.001 to 1 on the NYSE and decliners led advancers 1.02 to 1 on the NASDAQ.
Tuesday – weakened, mixed
Monday – strengthened, advancers led
Friday – weakened, decliners led
Thursday – weakened, decliners led
Wednesday – strengthened, advancers led
SPY down .25 at 209.65 on 71.3 million shares, 30% below average volume
VIX down .05 at 13.25…
TNX up .21 at 19.16…
TLT down .59 at 129.70…
XLF down .12 at 24.11on 21.6 million shares, 19% below average volume
AAPL down .69 at 126.91 on 32.3 million shares, 27% below average volume
FB up .53 at 83.62…on 26.8 million shares, 14% above average volume
Technical Commentary:
QQQ +0.43%, IWM -0.10%, SPY -0.12%, DIA -0.43%%.
The broad indices continue in consolidation just below horizontal resistance at all-time highs. SPY and IWM are above Friday’s support low. QQQ is near short-term resistance and poised for a potential breakout.
IWM is still in a bull flag pattern. SPY is an ascending triangle. The VIX was near unchanged and remains near its nine week low. Technically the long and intermediate-term trends are up and the short-term is in consolidation.
The DJIA pullback was led by TRV, DD, IBM, MCD and GS which accounted for 72 of the 85 negative points on Tuesday. TRV, DD and IBM were down on negative earnings reactions, MCD reports tomorrow and GS reported last week.
The NDX was led by gains in biotech’sGILD, MYL, AMGN, VRTX and FB, PCAR, CSCO, ILMN, AMZN and CMCSA.
The Semiconductor industry SOX +4.82, +0.69% rose on strength in LRCX, ARMH, ON, AMAT, ASML, SNDK, KLAC, LLTC, XLNX, MU and ADI.
FB 83.62 was up for the second straight day. Earnings after the close tomorrow, Wednesday.
Strong stocks in a bull flag pattern include: WBA, KMX, STZ, M, CCL, LULU, CPB, NVS
Tuesday’s Earnings
Winners: ATI +14.36%, LRCX +8.13%, PCAR +4.45%
Losers: HOG -9.79%, UA -4.83%, TRV -4.01%, DD -2.95%, IBM -1.14%, BHI -1.45%
Earnings reactions after-hours: AMGN +2.17%, BRCM +5.55%, ILMN +3.93%, YUM +3.90%, YHOO +0.97%, CMG -5.30%, ISRG -3.88%, URI -4.60%
This week more than 150 SPX companies will report earnings.
Trade with the trend of the chart you are trading and continue to move your profit protection stops. Continue to follow your rules.
Short-term Chart Targets:
SPY = 210.33, 210.70, 211.40…
QQQ = 108.38, 109.17…
IWM = 125.55, 127.13…
Support Levels
SPY = 207.01, 205.39…
QQQ = 105.55, 104.50…
IWM = 123.77, 122.90...
Earnings Week of April 6 – AA, BBBY, WBA, STZ
Earnings Week of April 13 – JNJ, JPM, FAST, WFC, INTC, BAC, CSX, DAL, LLTC, SNDK, NFLX, GS, C, AMD, AXP, CE, MAT, NOW
Earnings Week of April 20 – CHKP, HAL, HAS, MS, RCL, STI, IBM, LRCX, ZION, ARMH, ATI, BHI, DD, HOG, LMT, PCAR, TRV, UA, VZ, AMGN, BRCM, CMG, CREE, ILMN, ISRG, URI, UTX, YHOO, YUM, ABT, BA, EMC, KO, MCD, CTXS, EBAY, ETFC, FB, FFIV, ORLY, QCOM, T, TSCO, TXN, XLNX, ABBV, ALXN, BAX, CAM, CAT, DHR, DOW, DPS, ETFC, FCX, HP, HSY, LLY, LUV, MMM, MO, NDAQ, PEP, PG, SIAL, SWK, UNP, WHR, ALTR, AMZN, GOOGL, HBI, JNPR, KLAC, MSFT, SBUX, SRCL, SWN, AAL, BIIB, STT
Q1 Earnings Reaction
Positive Reactions – ATI, LRCX, PCAR, ARMH, HAS, CHKP, HAL, MS, STI, NFLX, CE, MAT, C, DAL, FAST, INTC, JPM, LLTC, STZ, WBA, KMX, DGLY,CTRP, JUNO, KBH, MFRM, NKE,
More than 10% – ATI, HAS, NFLX, CE, DGLY, CTRP, JUNO,
Negative Reactions – HOG, TRV, UA, DD, BHI, RCL, AXP, BAC, GS, JNJ, SNDK, AA, BBBY, MU, GME, YOKU, XONE,
More than -10% – NOW, AMD, YOKU,
Reversal in progress – AA, GS,
Reversal of Initial Reaction – GME, MU, YOKU, XONE
The SPX Market Forecast is pointed upat 77.
___________________
Setups
Horizontal Breakout: AAPL, EA, INTC, MAR, MNST, MU, GOGO, SPLK, SPY, TSL, UBNT, Z
Diagonal Breakout: AVGO, GRMN, GLD, NKE, SCHW, SCSS, SINA, SWKS, TWTR, UPL,
Bull Flag: NFLX, WBA, IWM, NTAP, PCLN, AIG, AMBA, BX, C, CCL, CMGE, DGLY, GME, GPRO, MBLY, MS, QIHU, SLCA, X, YOKU, ZION,
Potential Bullish Divergence: GMCR, BBY,
Gap Up: BRCM, AMGN, YUM, ILMN
Gap Down: CMG, ISRG, URI
Moves
New Highs: AKAM, PANW, SOHU,
H Breakout: AKAM, GILD, DAL, PANW, SPWR
Breakout Test: IBM, LOCO,
Bull Flag Bounce: ADSK, TSLA, CSIQ, CTRP, EXPE, FSLR, GOGO, JASO, JD, NTES, RAX, SCTY, SWI, YELP,
Bounce: ADBE, EA,
MACD Divergence Bounce: ROST, CRM, V,
Gap Up: ATI, LRCX, MYL, FEYE,
Gap Down: UA
______________________
73 of 100 NDX stocks closed higher and three were unchanged on Tuesday.
Leading NDX 100 stocks included: MYL, LRCX, VRTX, GILD, PCAR, AAL, ILMN, EA, TSCO, AKAM
Lagging NDX stocks included: WDC, WYNN, DISCA, MDLZ, STX, NFLX, ISRG, INTC, GMCR, MSFT
Leading stocks > +2% on Tuesday: ATI, PANW, YOKU, GOGO, CMGE, TSL, CTRP, FEYE, YELP, JD, SCTY, ZNGA
Lagging stocks < -2.0% included: SSYS, UA, SLCA, DDD, XONE, MRM, VJET, UPL
Stocks to Watch on Wednesday
Holding Above 30 DMA = 56
LVNTA, SIAL, KRFT, ORLY, ADI, ALTR, VRSK, XLNX, CTRX, ESRX, ISRG, MDLZ, VIP, CTXS, DISCA, TSLA, MYL, AMGN, CMCSA, DTV, NFLX, PCLN, SBUX, VRTX, YHOO, GILD, PCAR, VIAB, ALXN, STX, TSCO, VOD, MAT, AKAM, CSCO, ILMN, INTC, MU, WDC, SYMC, AAPL, ADSK, AMZN, ATVI, BIDU, CHKP, EA, FB, HSIC, LLTC, MNST, MSFT, REGN, SBAC, SIRI, TXN
Moving Above 30 DMA = 3
AAL, BRCM, LRCX
Moving Below 30 DMA = 2
WBA, WYNN,
Staying Below 30 DMA
BIIB, BRCM, CERN, CHTR, CTSH, NTAP, NVDA, NXPI, SPLS, SRCL, FAST, FISV, INTU, LMCA, DLTR, ADBE, ADP, BBBY, CA, COST, AVGO, AAL, EXPD, ROST, PAYX, GOOG, CELG, CHRW, EBAY, FOXA, MAR, SNDK, TRIP, KLAC, LBTYA, AMAT, GMCR, QCOM, DISH, LRCX, WFM, GRMN
6-month Intermediate Term Market Trend: Up
3-day Short Term Market Trend: Neutra
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NDX Leads on Biotech Activity…DJIA Lags on TRV, DD, IBM Earnings…ATI, LRCX Gap Higher…Semis Gain
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