Sector Trend Strength:
Up Trend: XLF, XLI, XLB, XLY, XLE, XLK, XLP, XLRE, XLV
Breadth weakened as decliners led 1,659 to 1,352 on the NYSE and led 2,008 to 820 on the NASDAQ.
Monday – weakened, decliners led, +5 sectors
Friday – strengthened, advancers led, +6
Thursday – weakened, decliners led, +3
Wednesday – strengthened on the NYSE, advancers led, +8
Tuesday – strengthened, advancers led, +6
Oil futures were up .16 to close at 52.53 on Tuesday.
SPY down .80 at 226.25 on 60.5 million shares, 26% below average volume,
VIX up .96 at 12.20
TLT up 1.27 at 122.58…on 7.8 million shares, 20% below average volume
QQQ -0.30%, DIA -0.31%, SPY -0.35%, IWM -1.36%,
QQQ fell 37 cents from Friday’s all-time new high close in a bull flag like one day pullback.
SPY continues is a narrow short-term sideways trading range near resistance for a potential horizontal resistance breakout.
DIA and IWM are in a narrow short-term sideways trading range near support for a potential breakout of either support or resistance.
Financial stocks were weak on Tuesday following an earnings beat by MS and an eps miss by CMA.
SPX down 7 points at 2,267
SPX gainers NBL, PVH, NRG, MAT, RL, HBI, DLTR, RAI STZ, KORS, ADM, CHTR, BBY, CVS, CERN, HRL, MCO, KR, PM, GPS, COTY, WYNN, PCG, CCI, HCA, WMT
QQQ closes up 42 cents at 123.16 a new all-time closing high.
NDX point leaders: AAPL, CHTR, KHC, ESRX, COST, DLTR, MDLZ, NTES, WBA, CERN and MAT
Earnings this week:
Tuesday – CMA, MS, UNH
Wednesday – C, CSX, FAST, GS, NFLX, NTRS, UAL, USB,
Thursday – ALK, AXP, CHKP, IBM, KEY, SWKS, UNP,
Friday – CFG, GE, RF, SLB,
CMA -4.68, -6.72% on a negative earnings reaction on 0.92 vs estimate of 0.94.
MS -1.66, -3.79% on a revenue and earnings beat.
UNH -1.14, -0.70% on a negative earnings reaction.
2016 Q4 EPS
EPS Positive Reactions
WFC, SNX, MSM, CUDA, GPN, MU, CAG, NKE, KMX, CCL, JBL
EPS Negative Reactions
CMA, MS, UNH, AYI, CMC, STZ, SCHN, RHT, BBBY, FINL, AGN, FDX, GIS, ADBE
Trade with the trend of the chart you are trading and continue to move your profit protection stops. Continue to follow your rules.
Follow your rules and look for potential re-entry if you were stopped out of any profitable trades.
Remember breakouts typically test about 70% of the time.
Technical analysis based trades should be closed before earnings.
Trade what you see, not…
Stocks below support should generally be traded bearishly until a reversal pattern forms.
Strong Stocks: Setups and Moves You Can Use
Bull Flag Setups include: XLRE, LNG, WBA, SBUX, HAL, MT, GM, CLF, SQ, MTL, F, CCL, AKAM, RCL, ADBE, EBAY, XLV, ETFC, TMUS, FCAU, DE, ADP, DAL, NCLH, TXN, AAL, BA,
One Day Pullback: QQQ, AMZN, CSX, TSLA, SOXL, PCAR, ADSK,
Bull Flag Bounces include: NTES, TLT, COST, AAPL,
At Support Setups include: IWM, DIA, UTX, PAYX, BAC, WFC, XLNX, ETFC, GS, SCHW, NVDA, STLD, MMM, MSFT, ICE, X, MAR, MU, TRV, UPS, APA, MGM, PWR, FTI, HBAN, KEY,
Support Bounce: EA, HES, DISCA, BHI, ADI, ATI, STX,
Horizontal Breakout Setups include: NTES, TLT, FSLR, SPY, ROST, AVGO, GOOG, GD, AMAT, KLAC, CTXS, LRCX, AVGO, EA, INTC, WDC, FAST, LUV, ATVI, HIG, MCD, PCLN, ADI, NUE
Horizontal Breakouts include: CHTR, BBY,
New Highs include: FISV, VALE, CHKP, FB, ALK, CMCSA, NFLX,
Break of Support: CMA, JPM, PNC, C, FAS, MS, USB, AKS, STI, ZION, CFG, RF,
The SPY MFC green line is in the upper zone at 89 bullish.
31 of 100 NDX stocks closed higher and two were unchanged on Tuesday.
74 NDX stocks are above their 30 DMA.
NDX Stocks to Watch on Wednesday:
Moving Above 30 DMA = 2
Moving Below 30 DMA = 10
AAL, ADI, CELG, CSCO, INTU, NVDA, NXPI, QCOM, VRSK, XLNX,
6-month Intermediate Term Market Trend: Up3-day Short Term Market Trend: Neutral