Financials Breakout...QQQ Poised for Breakout...SPY Bounces in Triangle...

Seven of ten sectors moved higher on Wednesday …XLF, XLE and XLB were the strongest sectors while XLRE was the weakest sector.  Oil futures rose .51 to close at 49.70.

Breadth strengthened as advancers led 1,843 to 1,182 on the NYSE and led 1,921 to 880 on the NASDAQ.

Wednesday – strengthened, advancers led, +7

Tuesday – weakened, decliners led, +1

Monday – weakened, decliners led, +1

Friday – strengthened, advancers led, +8

Thursday – weakened, decliners led, +0

SPY up .95 at 215.63 on 72.8 million shares, 25% below average volume

VIX down .64 at 12.99

TLT down .63 at 134.58…on 8.9 million shares, 7% above average volume

Technical Commentary:

DIA +0.65%, IWM +0.60%, SPY +0.44%, QQQ +0.35%,

Breakouts were plentiful as financials led all sectors.  SPY is in day 19 of its third trading range since July 14. Numerous individual stocks including TRIP, TWTR, SCHW, ZION, ETFC, BAC, and ADSK (see list below) broke through horizontal resistance on Wednesday

QQQ horizontal breakout setup

IWM bull flag setup

SPY, DIA symmetrical triangle setup

MU -.10, -0.56%, reversed Tuesday’s after hours drop and was up more than 60 cents on Wednesday but closed slightly lower after Tuesday’s beat on revenues and lower than expected loss and raised guidance.  Watch for the trend to continue to the upside.

This Friday the Labor Department will release the September Jobs report and next Monday October 10 is the “unofficial” kickoff of earnings season with the release of AA Q3 report after the close.

AA kicks of the Q3 earnings season next Monday October 10.

 

EPS Positive Reactions

COST, RHT, FDX, ADBE

EPS Negative Reactions

MU, PAYX, CCL

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.

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.

______________________

Strong Stocks: Setups and Moves You Can Use

Bull Flag Setups include: IWM, QCOM, TWLO, NUE, X, STLD, AKS, ISRG, TSLA, SCHN, ULTA, BIDU, ADBE, CHTR, REGN, AMBA

Bull Flag Bounces include: FOSL, BABA, ADSK, FL, ATVI,

Horizontal Breakout Setups include: QQQ, EXPE, BAC, CHK, NTES, INTC, NCLH, SWKS, AMAT, AKAM, RCL, AAL, PYPL, MU, NTAP, TXN, PCAR, RL, ATI, UAL, GT, CAVM, SINA, WMB, SE, SYMC, ISRG, FB, LMCA, AAPL, URBN, GPRO

Horizontal Breakout include: TRIP, TWTR, SCHW, STT, ZION, ETFC, BAC, JPM, C, MA, CTRP, ADSK, LRCX, ROST, URBN,

New Highs include: NFLX, AMZN, LITE, PCLN, ILMN, ADSK, CSX, WDC, APA, STX, LVS, JD, HA, WB, NXPI, EA, NVDA,

______________________

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 pointed down at 57, defensive. 

69 of 100 NDX stocks closed higher on Wednesday.

64 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Thursday:

Moving Above 30 DMA = 10

AMAT, AVGO, BBBY, BMRN, CA, ENDP, FAST, MSFT, MXIM, NTAP,  

Moving Below 30 DMA = 1

TMUS,

6-month Intermediate Term Market Trend: Up

3-day Short Term Market Trend: Neutral