SPY, DIA Another All-time New High...MSFT Leads DIA, SPY, QQQ Higher After EPS...

Six of nine sectors moved higher on Wednesday …XLK, XLV and XLY were the strongest sectors while XLU was the weakest sector.  Oil futures rosel .21 to close at 45.66.

Breadth strengthened as advancers led 1,997 to 983 on the NYSE and led 1,753 to 839 on the NASDAQ.

Wednesday – strengthened, advancers led, +6

Tuesday – weakened, decliners led, +2

Monday – strengthened, advancers led, +7

Friday – weakened, advancers led, +2

Thursday – strengthened, advancers led, +7

SPY up .90 at 217.09 on 58.1 million shares, 44% below average volume

VIX down .20 at 11.77

TLT down .76 at 138.28…on 6.9 million shares, 24% below average volume

Technical Commentary:

QQQ +1.17%, IWM +0.65%, SPY +0.41%, DIA +0.19%,

SPY, DIA, XLI, XLY new all-time high close

QQQ, IWM, XLV new YTD high close

XLB near 52-week close high bull flag

XLE, XLF bull flag

XLK new 15-year high close

XLP, XLU near all-time high bull flag

XLY near all-time high bull flag

SPY and DIA made a new closing high on Wednesday. DIA was led by gains in MSFT, CSCO, INTC, IBM, V, AXP, UTX and HD.

SPY volume was again light on Wednesday.   

Consider moving up stops on short term bullish trades that could pull back.  All according to your profit protection rules.

Remember breakouts typically test about 70% of the time.

Earnings Reactions

MSFT +2.82, +5.31%

ISRG +31.15, +4.64%

CTAS +9.43, +9.68%

MS +0.59, +2.09%

Earning’s Announcements:

Positive Reactions: MSFT, CTAS, ISRG, MS,

Negative Reactions:

Technical analysis based trades should be closed before earnings. After-hours

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:  AA, X, ESRX, TMUS, EQR, NEM, OKE, MAR, NKE, CMS, VIAB, FOSL, CCI, AWK, BCR, SYK, DLR, AIV, O, KIM, MDLZ, CMCSA, EA, NEE, SWN, KHC, WDC, CA, INTU, NI, PNW, CF, EIX, WEC, RIG, NFX, ATVI, MAT, NCLH, PAYX, GPRO, DVN, CINF, CVX, NKE, AES, VRSK, NUE, SCHN, STLD, ATI

Bull Flag Bounces include:  AMZN, PCLN, SBUX, EW, PYPL, IRM, MNST, SPG, FISV, ADP, N, TRIP, CCL, RCL, ORLY, CSX, URI, KMX,

Horizontal Breakout Setups include: PYPL, BXP, NTES, DLTR, AKAM, VTR, NTAP, CNP, BIIB, BMRN, UNH, SE, ADSK, CTXS, CBG, UDR,

Horizontal Breakout include:  NVDA, LRCX, NXPI, STX, SWKS, TSLA, JD, QCOM, REGN,

New Highs include: FB, ROST, AAL, ADI, AMAT, COST, CSCO, EXPE, INTC, TXN, ULTA, CBL, CPA, LMT, MAC, JNJ, GGP, DHI, AMBA, GPS, CERN, MLM, HCNM MSFT,

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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 is in the upper zone at 96, bullish.

85 of 100 NDX stocks closed higher and three were unchanged on Wednesday.

91 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Thursday:

Moving Above 30 DMA = 5

ALXN, CHKP, NXPI, VRTX, WBA

Moving Below 30 DMA = 0

6-month Intermediate Term Market Trend: Up
3-day Short Term Market Trend: Up