Thursday's Reversal Confirmed as Stocks Move Higher

DJIA + 68.73, +0.84% SP500 + 6.38, +0.76% NASDAQ Comp. + 17.49, +1.16% Russell 2000 + 3.83, +0.83% Exchange NYSE NASD Advancing 2,499 1,521 Declining 1,276 1,229 Oil $36.51 +$1.11 Gold $839.30 +$32.60 SOX 214.42 +7.35 VIX 46.11 -4.89 The VIX moved down confirming the move up in the SPX on Friday. Take notice of the fact that the SPX on Thursday reached all but it lowest low for November, however the VIX was 10 to 25 points below its November highs. Strongest Sectors: XLU +1.98%...XLY+1.18%...XLB +1.12% Weakest Sectors: XLF -3.01%...XLI +0.55%...XLK +0.67% Sector Watch Up Trending: Sideways: XLE, XLP, XLU, XLY, XLV, XLI, XLB, XLK, XLF Down Trending: Did you catch Friday's Weekly Wrap with Tom Sosnoff and Dave Johnson? More than 1,000 other traders did! Markets rallied on Friday confirming Thursday's key reversal day. Friday was the break of the high of the low day on the DJIA, SPX, Nasdaq, RUT and several individual stocks. This is an entry signal for some short-term traders. Oil rallied on Friday after making a new multi-year low on Thursday. Oil is forming a potential double bottom. Gold formed a large bullish engulfing pattern on Friday breaking out of a bull flag pattern. Several gold stocks bounced in a bull flag pattern including: GDX, AEM, GG, GOLD, ABX, NEM Earnings Friday, Jan 16 - BAC -0.48 missed estimates +0.08, SCHW in line at +0.26, C -1.72 missed -1.31, JCI -0.14 missed +0.01. Tues: BMO - FAST, JNJ, LOGI, PETS, PCP, STT, AMTD AMC – CREE, IBM Wed: BMO – ABT, ATI, AMR, COH, DAL, FCX, IIVI, PJC, UAUA, UTX, USB AMC – AAPL, EBAY, FFIV, NE, SLM, TER Thur: BMO - BK, BAX, CIT, CY, F, IGT, ESI, KEY, NITE, KLIC, LMT, POT, SHW, LUV, STI, UNP, UNH, LCC AMC – AMD, COF, CBST, EZPW, GOOG, IBKR, ISRG, MSFT, SYNA, Fri: BMO - GE, HOG, MBFI, SLB, XRX Index Commentary The DJIA formed a white candle that confirmed Thursday’s hammer…continuation of support bounce…closed below its 20, 30 and 50 DMA. The SPX formed a white spinning top that confirmed Thursday’s hammer…made higher low and higher high on continuation of support bounce…closed below its 20, 30 and 50 DMA. The Nasdaq formed dragonfly doji-like pattern that confirmed Thursday’s bullish harami pattern…made a daily higher low and higher high in its support bounce continuation…closed just below its 20, 30 and 50 DMA. The RUT formed a white hammer pattern that confirmed Thursday’s bullish harami hammer pattern…daily higher low and higher high…closed just below its 50 DMA and below its 20 and 30 DMA. Stocks to Watch on Monday If you read our comment on Tuesday Jan. 13 under Stocks to Watch you are likely to be paying closer attention to the number of stocks Moving Above versus Moving Below. On Monday Above was 1 and Below was 17, Wednesday was Above 2 and Below 30. Did you notice Thursday and Friday Above 14 and 13, Below 4 and 1. Hopefully you understand our Tuesday comment and why we have been showing the number each day. Leading Stocks: Holding Above 30 DMA PCLN…JOSB…BIIB…QSII…BCO…ROST…AET…ESI…GES…JW.A…MYGN…DNA…HLF…OSIP…AGN…LAYN…AMED…BCR…CAM…FLIR…CTSH…HP…GME…MON…RIMM…ICLR…SYNA…BLUD…CERN…RTN…TEVA…AME…APH…DLTR…DV…KEX…MOS…MTD…NIHD…RIO…SPN…STRA…TECH…URBN Moving Above 30 DMA = 13 ATK…AYE…CCC…CIR…GIS…JEC…K…PCR…PETS…POT…SHW…UTX…VAR Moving Below 30 DMA = 1 IIVI Staying Below 30 DMA PTNR…AXYS…SINA…PRGO…PPD…ESRX…CHTT…IRIS…ISRG…SPTN…ENDP…ANSS…CHU…EZPW…NILE…PSSI…PSYS…VIVO…WAB…JCOM…MCRS…NDAQ…AAPL…AFAM…EPR…FSTR…HAS…LFC…MMM…MTW…NE…NEU…RCI…SOHU…VIP…AMX…CBST…DECK…FLR…MBT…SNA…VMI…WMS…ADBE…PCP…ACL…AMZN…ATW…BYI…CL…FLS…FWLT…GILD…HDB…LNN…NOV…OI…RIG…SWN…BAP…NGS…WCG Friday’s Action Moving Up: STRA, AEM, SOHU, FSLR, PNRA, POT, GDX, HANS, AGU, ESRX, NUE, CF, MON, LCC, UAUA, MOS, NDAQ, Moving Down: MA, V, ZION, GS, KBE Intermediate Term Market Trend: Neutral – DJIA, SPX, Nasdaq, RUT Short Term Market Trend: Neutral