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SPY starting off the year in profit taking mode as the daily stochastics crossed back down with the daily 20 period moving average at 205.41 and 15 period ma at 205.08 and daily 50 period ma at 203.91. The daily 5 period ma sits at 207.14. A reversion bounce to test and reject that daily 5 period ma would set up a daily mini inverse pup.

Key fibs on the SPY at 212.67, 209.74, 207.86, 204.90, 204.24, 203.50, 201.94. The 204.94 and 204.24 were the bounce areas last week but lower highs were made on each bounce. Interesting to note that the weekly can still mini pup is we close above 205.80 the daily 5 period ma, but the monthly stochastic has crossed down to test that 80 band with the 5 period ma at 203.37 overlapping with that 203.50 fib. That will be a KEY support level to watch and a trap door if 203.19 breaks.

Volume and liquidity should be returning this week as we start off earnings season. This is the super bowl of trading (4 times a year) and opportunities will abound moving forward for the next 5 weeks. It’s important to have the ammo and allocate accordingly. 

<> Stocks to Watch <> : A lot of these are contingent on the SPY. If SPY forms daily mini inv pups, then SCRATCH the LONGS or cut down to shorter time frames. To be safe, make sure that the 60 min stochastics peaks out before taking short positions and short the RETEST FAILURES of the short area bumpers listed. DO NOT SHORT RIGHT INTO THE FIRST TEST if the 60 min is in a mini pup grind up. Get the 15/5 min to slip and 60 min to STALL at least on the stochastics and then position with a good 1 min stochs reversal down. Remember all stocks are anchored by the action of the SPY (or noodles) and contingent on the SPY movement unless there is a strong fade effect in place. * Don’t play breakout longs if the SPY is in a breakdown and vice versa *

*** Most stocks are mirroring the SPY intraday as well as daily. Therefore, track the SPY closely. Make note if your stocks are diverging or not as this could mean it’s a laggard that will ultimately revert to SPY or a fader that will magnify the mov e once the SPY reverses.

FSLR Long – FSLR has a weekly mini pup make or break with a daily mini pup. The daily 5 period ma sits at the 44.48 with 45.61 as a key break with upper bbs at 48 and 50 period ma at 48.88. Longs trigger on pullbacks to 44.40s and 43.70s with a trail stop under 43.20 for a mini pup coil back up through daily 5period ma at 45.30-45.60 range with secondary target near 47.50.

WFM Long/Short – WFM has been extremely resilient with the weekly pup 5 period ma support at 48.78. and upper bbs at 56.40. The weekly stochastics have been above the 80 band on a mini pup since mid Oct 2013. This one is either setting up for a squeeze or collapse. Longs trigger on pullbacsk to the 49.80s-49.50s range with a 49.18 trail stop for 50.80-51.20 upper bbs range and 52.40-52.60s stinky 2.50s range. Shorts trigger on at 48.49 break for leans towards the 47.70-47.40s and lower bbs near 46.50s.

AMD Long – AMD weekly has crossed up with daily mini pup, It will need to break the weekly 5pd ma before taking a long. Long triggers at 2.71 with would also trigger a weekly MSL. Use 2.35 as a trail stop for tightening towards the 3.05-3.20 area. 

Key Long/Short Bumper and Fibonacci levels:

SPY – 212.67, 209.74, 207.86, 204.90, 204.24, 203.50, 201.94, 198.62, 195.81, 191.05

FSLR – 51.74, 42.84 fibs

GPRO- 71.78, 63.54, 55.31, 43.50

BABA – 115.17, 111.09, 108.21, 103.24, 99.70, 98.21, 96.90. 94.70, 93.1591.61, 89.40, 88.10 – key fibs

YHOO- 47.68, 45.82, 44.59, 42.05, 41.01, 40.10, 38.57, 37.50, 36.42 – key fibs

AAPL- 111.32, 109.39, 107.17, 104.59, 103.17, 101.92, 101.04, 99.29, 98.69, 98.08- key fibs.

FB- 80.60, 78.66, 77.57, 76.72, 7636, 75,.53, 7512, 74.78, 73.97, 72.78 – key fibs

TWTR- 51.19, 50.51, 48.82, 47.95, 47.63, 45.38 – key fibs 

Earnings Reports This Week:

Tues: premarket: LNN, CMC, CVGW: postmarket: SD, MU, SONC, SHLM, TISI

Wed: premarket: MON, SVU, GBX, UNF: postmarket: GEF, HGR,RECN, DRWI, WDFC

Thurs: premarket: GPN, STZ, FDO, APOL, SCHN: postmarket: BBBY, PRGS, TCS, EOPN, ANGO, RT, CUDA, HELE, VOXX, PSMT

Fri: premarket: AZZ, INFY, AYI

Earnings season kicks off light this week and then speeds up next week. Pace carefully as the volume starts to come back into the market. The SPY daily make or break will try to resolve this week. - J