Stocks Stumble on Weakness in Discretionary and Healthcare...EA Soars...DIS Drops...

Two of nine sectors moved higher on Wednesday…XLU, XLE and XLB were the strongest sectors while XLY was the weakest sector.  Oil futures rose 1.46 to close at 45.99.

Breadth weakened as decliners led 1,935 to 1,102 on the NYSE and led 1,676 to 744 on the NASDAQ.

Wednesday – weakened, decliners led

Tuesday – strengthened, advancers led

Monday – weakened, decliners led on the NYSE

Friday – strengthened, advancers led

Thursday - strengthened, decliners led

SPY down 1.95 at 206.50 on 81.7 million shares, average volume

VIX up 1.06 at 14.69

TLT up .74 at 131.61…on 9.2 million shares, 39% above average volume

Technical Commentary:

QQQ -0.90%, SPY -0.94%, DIA -1.06%, IWM -1.24%,

QQQ, SPY, DIA and IWM pulled back after Tuesday’s massive rally.  All four are still above support and trend is still bullish.  In general consumer discretionary and healthcare stocks weighed on the broad market on Tuesday and led many stocks lower.

Energy stocks were mostly leaders on Tuesday.

FOSL -11.66, -29.08 and M -5.61, -15.17% collapsed on missed earnings reports and lowered sales forecast.  This led many retail and consumer discretionary stocks to roll over and move lower including: SPLS, KORS, PVH, JWN, VFC, KSS, TIF, COH, TGT, RL, ROST, URBN, BBBY, BBY, UA, HBI, AN, SIG, GPS, FL, NKE, WYN

DIS -6.08, -5.70% negative earnings reaction.

Earning’s Announcements:

Positive Reactions:  EA, ALB, PBYI

Negative Reactions: FOSL, M, DIS, WEN 

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:  ATVI, DIA, XLF, FAS, TSN, VIAB, ULTA, HOG, TSCO, CHK, NXPI, DFS, AXP, AFL, BG, CL, MJN, SCI, SDRL, URI, ETFC, SCHW, BAC, C, JPM, WFC, MS

Bull Flag Bounces include:  NOV, EGN, HAL, NEM, AEM, MRO, MUR,

Horizontal Breakout Setups include: SVXY, PXD, SWN, FTNT, IR, PNR, DNR, SM, WLL, HES, DVN, APC, DOV, OI, RRC, LNC, NBL, BSX, ISRG, CTXS, EQT, FB, MMM, HAS, BMY, OLN, ETP, CHTR, GLPI, WYNN, TRIP, DISCA, DE, JNJ, MDLZ,

Horizontal Breakout include:  AMZN, LUK, HRL

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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 turned up at 46, short-term bullish.

13 of 100 NDX stocks closed higher and two were unchanged on Wednesday.

35 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Thursday:

Moving Above 30 DMA = 2

EA, NVDA

Moving Below 30 DMA = 14

BIIB, BMRN, CSX, DLTR, FAST, FOXA, INTU, LVNTA, PAYX, ROST, ULTA, VOD, VRSK, VRTX

6-month Intermediate Term Market Trend: Neutral

3-day Short Term Market Trend: Up