A QUICK LOOK AT SOME OF THE STOCKS THAT RESPONDED TO THE DOWNSIDE

Keep in mind the industry groups I posted, also keep in mind when many of these stocks started to reverse, at the end of Q1. Also note the false breakouts that began many of the reversals. It seems that TM Toyota's news that they will have to shut down North american factories, potentially affecting 25,000 jobs was the initial catalyst for the move out of the quiet zone. Because of time, I can't go into great depth on each chart, just keep in mind the aforementioned elements.

 AAPL as mentioned earlier looks to have found some support in the $338 area, well see how far it can take it, I doubt too far.

 Financials were among the weak sectors, DB here appears to be reversing on the daily chart.

 Here are a couple of breakout highs both hit with distribution in DB



 DRYS, a trade from Feb. 17 (short) made a marginal false breakout.

 Here's 3C at the false breakout on DRYS

 Note the volume on the failed early morning move today in GOOG

 GOOG's 5 min chart showing the failed move. There have been many recent posts on GOOG's apparent weakness.

 And a breakout above resistance in GOOG that fails. Above is the 3C chart showing the failure.

 GS, again financials showing weakness today.


 And it seems GS was kissing the top goodbye, with a shooting star candle on Friday and an engulfing candle thus far today, both bearish.


 GS 3C chart at breakout.

KSS weakness, note the dates.

 KSS false upside breakout in 3C

 M in retail, consumer discretionary, a negative 10 min 3C divergence at Friday's highs.

 Again, the date in which M started breaking down.

 QCOM-(Tech) today intraday

 Today's daily candle looks really bad.

 Other then the QCOM neg. divergence at the top, 3C barely responded to the bounce.

 RIMM, which has been featured a lot lately, a victim of the margin squeeze.. Today RIMM broke to an intraday new low, we'll see where it closes.

 Look at the early morning action today in RIMM.

 SHLD (retail)-note the date it started to reverse and the number of failed breakouts.

 SHLD daily 3C, again 3C didn't respond to the bounce at all and is leading negative.

 TGT (retail) intraday action.

 The red arrow is where there was a short call on TGT on Feb. 17th. Today appears to be a bearish engulfing candle.

 TGT's recent 3C negative divergences, right at the end of quarter.

 TM-here's the announcement-

 USO breaking higher, I do think it will pullback a bit.

 Here's the 1 min positive divergence sending USO to new highs today.

 UTX-(conglomerate) and the intraday action since 4/1

 Two attempted breakouts both fail and create a bearish reversal pattern  (shooting star confirmed with a bearish engulfing candle).

 UUP had some strange behavior Friday, but there's apparent accumulation ongoing.

 WDC (tech) breaking out above an important resistance area.

 On the daily chart of WDC, a closer look at 3C action at the breakout suggests a failure.

 WDC intraday action-note the date.

 WYNN (consumer discretionary) and what appears to be two false breakouts.

 WYNN and 3C 10 min appears to call both breakouts as failures.

And the intraday action in WYNN today, it's gapped up and lost all the gains.

Usual Suspects

Last week these were  few of the industry groups that were looking bad and they have continued deteriorating. These are all 15 min. 3C charts.

 Financials-with a couple of false breakouts which increases the chances of a bonafide reversal.

 Again, even though the Russell 2k was in a leadership position today, we had the lowest 3C reading at a false upside breakout and new high.

 Industrials have been falling apart since Q1 ended

 Technology as I have explained before is very interest rate sensitive and the hawkish tone from regional Fed president's and governors over the last week must have spooked tech. Of course the deterioration started before last week's heavy Fed speeches, but remember the information curve that we are behind and the proof last week of at least two Fed leaks.

 HealthCare hasn't been doing great 3C-wise, distribution started a couple of weeks back, but has picked up intensively since Q1 ended as I suspected.

Consumer Discretionary was also featured last week as showing weakness, once again, the negative tone and character increased dramatically April 1st, the end of Q1.this is a leading negative divergence.

And since the Qtr. ended, we've had 3 sub -1100 tick readings, today's nearly 1200. We haven't seen readings like this for awhile and when we did, they weren't as common as having 3 in the last 3 days.

The Quiet is Shattered

I just posted on the market's quiet nature at 12:30 saying, "One thing I'm pretty sure of is the quiet won't last for long one way or the other."


And it didn't last long,

 SPY 5 min negative divergence...

15 min negative divergence.


I'm not surprised in that this is what I've been looking for since March ended Q1, I'm not surprised given how 3C has looked. I am a little surprised there wasn't a false upside breakout first. We'll see how this continues. I'm going to check on market breadth.

TIV-SPECULATIVE LONG TRADE

I have a watchlist of stocks I've been running through as the market has been quiet, TIV was one of them. One of our members who does well with these speculative stocks just emailed me about TIV so  decided maybe it's time to put up some charts. Keep in mind, this is a VERY SPECULATIVE trade.

 Note the recent multi-year all time highs in volume recently (highest since late 2003 when it began trading). The volume is into a relatively lateral trend which is where accumulation often occurs.

 On a daily chart, a triangle has taken shape, these often act as bottoms and tops when they are larger then the typical consolidation triangle which this one is. Volume looks good for the price pattern as well. This is a very obvious triangle, but again since the stock is so speculative, it may fly under the radar of the pattern manipulating black box trading systems.

 Here's a closer look with the cross-over screen, note the last crossover was not a true signal with all 3 screens confirming, the recent crossover is a confirmed buy signal.

 The daily 3C/TSV 55 chart shows positive divergences at the lateral trending lows.

 The hourly chart had a nice positive divergence (accumulation) before the recent run up into the triangle.

 The 15 min chart is showing a rare positive divergence inside the triangle, most indicators get lost in consolidations so this must be fairly strong to show up.

 Here's the current Trend Channel stop if you were to take a position right now, I'd keep the stop below $.50 as $.50 would be a very obvious stop level. The stop is also on the close and if at all possible, keep it a mental stop and not on your broker's books where it can be seen by Wall Street locals.

Here the weekly Stochastics has done well calling the up/down trends or entry/ext signals, currently a long entry signal.

As I mentioned, this is a highly speculative trade at $.61. The % gain today makes it hard for many to buy, but you have to keep in mind how inexpensive the stock s which distorts the percentage gain. I prefer to make the decision based on the charts and not worry about % gains in these situations.

An alternative entry could also be on the breakout of the triangle around $.66. If you trade TIV, make sure risk management is in place and I prefer a more conservative approach in these speculative trades.