XLY New All-time High as Oil Falls and SPX Pauses...Oil Stocks Lead SPX Decliners...VIX Moves Higher...

One of nine sectors moved higher on Monday …XLY, XLP and XLV were the strongest sectors while XLE was the weakest sector.  Oil futures fell 1.21 to close at 43.05.

Breadth weakened as decliners led 1,871 to 1,098 on the NYSE and led 1,510 to 1,101 on the NASDAQ.

Monday – weakened, decliners led, +1

Friday – strengthened, advancers led, +9

Thursday – weakened, decliners led, +2

Wednesday – strengthened, advancers led, +6

Tuesday – weakened, decliners led, +2

SPY down .59 at 216.65 on 55.8 million shares, 45% below average volume

VIX up .85 at 12.87

TLT down .10 at 138.70…on 4.2 million shares, 54% below average volume

Technical Commentary:

QQQ +0.01%, IWM -0.15%, SPY -0.27%, DIA -0.38%,

XLY new all-time high

XLP, XLI, XLB, near all-time high bull flag setup  

XLY, XLU horizontal break out setup

IWM, DIA, XLF bull flag setup

Falling oil prices weighed on energy as the weakest sector on Tuesday as 23 of the top 34 SPX decliners were in the energy sector including: CHK, DVN, NFX, XEC, MRO, WMB, CXO, COG, APA, FTI, NOV, HP, PXD, HAL, EOG, RIG, CVX, MPC, HES, MUR, DO, XOM, BHI

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

ROP -9.98, -5.76%

After-hours

TXN +4.08, +6.16%

Earning’s Announcements:

Positive Reactions: TXN

Negative Reactions: ROP,

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, KIM, GPRO, SCHN, ADI, AMAT, COST, LMT, AMBA, JD, ESRX, OKE, NKE, BCR, AIV, MDLZ, EA, KHC, INTU, CF, NFX, ATVI, MAT, NCLH, PAYX, DVN, CINF, CVX, NKE, NUE, STLD, PCLN, FISV, CCL, ORLY, CSX, FB, LRCX, TSLA, NTES, JNJ, DHI, BURL, UNH, SE, CCI, NI,

Bull Flag Bounces include: ALB, AWK, PNW,

Horizontal Breakout Setups include: SWN, VIAB, X, AES, MNST, AAL, MSFT, VRSK, TRIP, DLTR, VTR, BMRN, ADSK, UDR, EW, IRM, RCL,

Horizontal Breakout include: SBUX,

New Highs include: , MSFT, DLTR, EBAY, TSN, NVDA, WHR, URI, GGP, HCN, GPS, ROST, BXP, CSCO, EXPE, TXN, ULTA, KMX, QCOM, BIIB, STX, GPS, CBL, REGN, CPA, MAC, CERN, MLM, CBG, TGT, TJX, LB, UA, KSS, SPG, NTAP, CNP, CTXS

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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.

54 of 100 NDX stocks closed higher on Monday.

91 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Tuesday:

Moving Above 30 DMA = 0

Moving Below 30 DMA = 1

SYMC

6-month Intermediate Term Market Trend: Up

3-day Short Term Market Trend: Neutral