NASDAQ Momentum Rally Takes Earnings Hit | July 22

The NASDAQ momentum rally in place since last October, got hit with an upper-cut it didn’t see coming.

The giddy feeling from Google earnings is gone in a blink.

How price action trades around the first half hour will be the key to determine the resilience of this tape.

July 22 Stock Market Today: Map of the S&P 500

(click the map for a full view)

spy map july 22

Day Trading Game Plan: The SPY ETF Chart

SPY made it’s high for the day first thing in the morning and now a swing high on the daily. (a candle with lower highs on both sides) This implies lower prices and a short-term high.

(click the chart for a full view)

spy chart july 22

Stocks to Trade | Wednesday July 22, 2015

Pete’s Notes:

  • The smart trade today is to wait the open out.
  • Strong tape and a gap lower is a classic technical analysis buy, but too many big cap stocks reporting disappointing earnings yesterday.

Interesting Chart Lessons:

GPRO Go Pro Inc

GPRO had an impressive momentum move March-May but couldn’t hold the bid in June.

We liked the set up because it had roughly $10 room to go. Yesterday’s gap and close above resistance puts the stock back in play.

(click the chart for a full view)


Earnings in play today > 1M avg shares:  T, QCOM, EMC, NEM, KO, TXN, ABT, BA, AXP, XLNX, LVS, SNDK, FTNT, DFS,


Bearish Ideas ATR/Volume/Price: rrc, car, apa, uri, hes, pxd, utx, mon,

Weak Stock Weak Close: anf, apa, car, ctl, mur, nrg, symc

Strong Stock Weak Close: MBLY, EA, RCL, V, BMY, AAPL, DG

Weak Stock Strong Close: hal, hpq, kors, lng, slb, swn, wynn, yelp

Strong Stock Strong Close: FIT, GOOGL, GOOG, NFLX, JBLU, EBAY, GPRO, KKR, ESRX, BK

20 day Breakdown: chk, utx, kmi, ibm, gld, eog, apa

20 Day Breakout: DEPO, GOOGL, BK, GPRO


Watch List Longs: MO, TWC, DIS, PM, CVS, COF, USB, PNC, BK, MET, JPM, EBAY, LEN, C,

Watch List Short: swn, cop, adm, bby, xom, klac, dd, intc, emc orcl

Inside days: ebay, yhoo, v, cop, fit, aal, sbux, baba, low, mo, hd, kors, bby, oxy, rrc, dhi, pot, clr, scty, gmcr, tol, yoku

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NASDAQ Momentum Rally Takes Earnings Hit

Tech Rally Unraveling With Apple Poised for $50 Billion Slump

The biggest technology rally since October was knocked cold, as disappointing earnings reports punished Microsoft Corp. and left Apple Inc. in danger of its worst-ever loss of market value.

Five days after Google Inc.’s earnings spurred the largest one-day wealth creation by any U.S. stock, computer and software shares are tumbling. Apple, Microsoft and Yahoo! Inc. retreated on disappointing results. Apple, the world’s most valuable company, slid almost 7 percent in late trading Tuesday, a slump that would wipe more than $50 billion from its value. It traded 5.1 percent lower in Wednesday’s premarket.

Hopes were high for the industry as earnings season began, with technology shares leading a rebound in U.S. equities after overseas tensions eased. The Nasdaq Composite Index rallied to an all-time high on July 17 after Google surged 16 percent, adding $65 billion to its market capitalization.

More from Wall Street Lenders Growing Impatient With U.S. Shale Revolution

“The expectation coming into Apple earnings was ‘boy, they’re going to lift all boats!’” said Kevin Caron, a Florham Park, New Jersey-based market strategist at Stifel Nicolaus & Co., which manages about $170 billion. “There’s general earnings weakness across the board for the S&P.”

Futures on the Nasdaq 100 Index declined 1.1 percent at 4:36 a.m. on Wednesday in New York. The index lost 0.1 percent in the regular session Tuesday, halting an eight-day rally of 7.5 percent that pushed it to a 15-year high.

Continue Reading…

Stocks Drop as Apple Drags Techs Lower, Commodities Resume Slide

Stocks fell around the world as financial results from technology companies disappointed investors and a drop in commodities to a 13-year low dragged down mining shares.

Nasdaq 100 Index futures slid 1.1 percent at 7 a.m. in New York. Apple Inc.’s revenue forecast missed analysts’ estimates and Microsoft Corp. posted its largest quarterly loss, sending shares down in early trading. Oil fell with copper, and gold dropped below $1,100 an ounce. The pound gained after the Bank of England said a growing number of policy makers were concerned about rising inflation pressures.

Results from Apple hit shares of suppliers from China’s AAC Technologies Holdings Inc. to Dialog Semiconductor Plc, after a U.S. gauge of technology stocks reached a record this week. BHP Billiton Ltd., the world’s biggest miner, said its petroleum, copper and coal output will fall and Goldman Sachs Group Inc.’s Jeffrey Currie predicted gold may drop below $1,000 an ounce, underscoring a structural bear market in commodities.

Apple’s “supply chain clearly has ramifications for companies across the world,” said Daniel Murray, head of research at EFG Asset Management in London. “I would interpret the recent commodities selloff as partly a reflection of stronger dollar sentiment, as well as fears about China. None of that looks like it’s going to change any time soon.”


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