Friday, February 5, 2016

Stocks Fall After Jobs Report of 151K New Jobs Below Expectations...Be Defensive...

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One of nine sectors moved higher on FridayXLU, XLP and XLI were the strongest sectors while XLY was the weakest sector.  Oil fell 69 cents to close at 31.00.
                         
Breadth weakened as decliners led advancers 3.23 to 1 on the NYSE and 4.50 to 1 on the NASDAQ.

Friday – weakened, decliners led
Thursday- strengthened, advancers led
Wednesday – strengthened, advancers led on the NYSE
Tuesday – weakened, decliners led
Monday – weakened, decliners led


SPY down 3.65 at 187.95 on 180.7 million shares, 15% above average volume
VIX up 1.54 at 23.38…
TNX down 0.16 at 18.48…
TLT up .15 at 128.72…on 9.2 million shares, 1% below average volume
XLF down .28 at 20.95…on 66.2 million shares, 9% above average volume

AAPL up 1.87 at 96.38 on 45.9 million shares, 14% below average volume
FB down 1.92 at 112.69 on 56.9 million shares, 63% above average volume

Technical Commentary:
DIA -1.34%, SPY -1.91%, IWM -2.74% QQQ -3.47%.

The NDX -143.30 fell below last week’s support low led by AMZN, MSFT, FB, GOOG, INTC, AMGN and ADBE which combined for -53 points on Friday.  AMZN, MSFT, GOOG, INTC and ADBE also closed below last week’s support low.

In 2015 QQQ led SPY and DIA with Friday’s selloff QQQ is down -10.5% year-to-date, significantly underperforming SPY and DIA.  On Friday twenty-seven NDX lost 5% or more including: TRIP, ADBE, TMUS, NFLX, NXPI, TSLA, NCLH, ADSK, WDC, SBUX, EXPE, AMZ, NVDA, SWKS,FB, AVGO, LVNTA, PYPL,VRTX, EA, LBTYA, CERN, ULTA, JD, INTU, ILMN and PCLN. 

Stocks below support should generally be traded bearishly until a reversal pattern forms.

Nine Dow stocks MRK, VZ, WMT, IBM, PG, XOM, CAT, PGE, and MMM rose on Friday.  This was in contrast to only seven NDX 100 stocks that rose on Friday. 

DIA closed well above last week’s support low while SPY closed at last week’s support low.  Be defensive if SPY breaks support at 187.06Next SPY support levels are 184.64 and 181.02.

Three sectors XLB, XLU and XLI rose for the week. 

XLB Materials was led by weekly gains in DOW, DD, MON, APD, PX, LYB and IP.


XLI Industrials was led by weekly gains in MMM, UNP and UPS.



YTD:
SPX Leaders:  NEM, SWN, KORS, RRC, SE, EXC, MAT, COG, CNX, M, ()
SPX Losers: MPC, ESV, URI, WMB, MRO, ADS, CHK, BWA, TRIP, RCL

NDX Leaders:  MAT, FAST, PCAR, DISCK, CMCSA, VIAB, FISV, XLNX, KHC, FB  ()
NDX Losers: BMRN, INCY, NCLH, TSLA, TRIP, VRTX, ILMN, NFLX, REGN, JD

DJI Leaders:  VZ, WMT, XOM, PG, MMM,
DJI Losers: AXP, CSCO, INTC, BA, GS, JPM, HD, DD, AAPL, DIS


Remember:  “It’s a market of stocks, not just a stock market.”

Trade with the trend of the chart you are trading and continue to move your profit protection stops.  Continue to follow your rules.

The SPX MFC green line is pointed down at 37. 


______________________

7 of 100 NDX stocks closed higher on Friday.

11 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Monday:
Moving Above 30 DMA = 0


Moving Below 30 DMA = 14
ADP, AMAT, AVGO, CERN, CHKP, INTU, ISRG, KHC, KLAC, LLTC, MYL, ORLY, ROST, STX


6-month Intermediate Term Market Trend: Neutral
3-day Short Term Market Trend: Down

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