QQQ, IWM, SPY, DIA all Gain in May...

Three of nine sectors moved higher on Tuesday…XLU, XLV and XLK were the strongest sectors while XLP was the weakest sector.  Oil futures fell 49 cents on Monday and today fell another .24 to close at 48.83.

Sectors in May:

XLK +4.89%, XLV +2.23%, XLF +1.89%, led

SPY +1.70% 

XLU +1.51%, XLP +0.69%, XLY +0.05%, XLB -0.34%, XLI -0.43%, XLE -0.93%

Breadth weakened as advancers led 1,629 to 1,409 on the NYSE and led 1,452 to 1,165 on the NASDAQ.

Tuesday – weakened, advancers led 

Monday – Memorial Day Holiday

Friday – strengthened, advancers led

Thursday - weakened, advancers led on NYSE

Wednesday – weakened, advancers led

SPY down .40 at 209.84 on 109.6 million shares, 36% above average volume

VIX up 1.07 at 14.19

TLT up .31 at 130.16…on 8.3 million shares, 21% above average volume

Technical Commentary:

IWM +0.35%, QQQ +0.19%, SPY -0.19%, DIA -0.48%,

QQQ +4.35% the broad index ETFs in May ahead of IWM +2.24%, SPY +1.70% and DIA +0.03%.  QQQ leaders in May included NVDA, NTES, EA, AMAT, MU, INCY, NFLX, ATVI, WDC, DLTR, ULTA, WFM, NXPI, VRTX and XLNX which all gained more than 10% for the month.

NVDA, NTES, EA, AMAT, INCY, ATVI, DLTR, ULTA and WFM had positive earnings reactions in May.

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.

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Strong Stocks: Setups and Moves You Can Use

Bull Flag Setups include:  MLM, WYNN, ISRG, KHC, GD, JPM, BAC, C, XLNX, XLB, CE, ORCL, NUE, STLD, XEC, MS, AMAT, ULTA, EQIX, ALB, TXN, ADSK, FCX, FTNT, WM,

Bull Flag Bounces include:  SWN, RRC, SWKS, WMB, CERN, CHKP, NXPI, VMW,

ADSK,

Horizontal Breakout Setups include: SWN, RRC, SWKS, WMB, CTXS, ZION, STI, CERN, VMW, GLPI, REGN, BMRN, OKE, EQT, MUR, MAT, FISV, DIA, XLI, XLF, FAS, PCAR, SCHN, TSCO, UTX, ADP, LUK, JEC, CLR, JNJ, ATVI, EA, BSX, YELP, FMC, WWAV, ADI, RSPP, WRK, CRZO, MXIM, AVGO

Horizontal Breakout include:  MSFT, NRG, FLIR, AMZN, CMCSA, MU, AXP

New Highs include: NVDA, DLTR, CNP, NXPI 

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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 SPY MFC green line pointed up at 80, bullish.

60 of 100 NDX stocks closed higher and on Tuesday.

77 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Wednesday:

Moving Above 30 DMA = 5

CHKP, CSX, DISCA, SWKS, SYMC

Moving Below 30 DMA = 2                                                                        

ADK, ORLY,

6-month Intermediate Term Market Trend: Neutral

3-day Short Term Market Trend: Up