BA, NKE, GS Lead Dow Higher as SPX Pullbacks...AAPL Closes Lower, Above Open...

Four of ten sectors moved higher on Wednesday …XLF, XLI and XLU were the strongest sectors while XLRE was the weakest sector.  Oil futures fell .07 to close at 49.23.

Breadth weakened slightly as decliners led 1,927 to 1,093 on the NYSE and led 1,889 to 837 on the NASDAQ.

Wednesday – weakened slightly, advancers led, +4

Tuesday – weakened, decliners led, +2

Monday – strengthened, advancers led +8

Friday – strengthened, advancers led on the NYSE, +3

Thursday – weakened, decliners led, +1

SPY down .43 at 213.74 on 75.7 million shares, 16% below average volume

VIX up .78 at 14.24

TLT down .90 at 132.18…on 5.8 million shares, 25% below average volume

Technical Commentary:

DIA +0.16%, SPY -0.20%, QQQ -0.68%, IWM -0.99%,

SPX/SPY pulls back for the second straight day as Dow gains on strength in BA, NKE, GS, DIS, GE, CSCO, IBM and JNJ.  VIX closed higher and did confirm Wednesday’s lower SPX close.  

Earning season continued on Wednesday with both winners and losers.  Today winners included AKAM, JNPR, BA, NCR, OI, FLIR, ROL and TSS, while losers included AAPL, EW, CMG, LUV and CMCSA.

After the close Earning Reactions:

ORLY -8.16, -2.94%

FFIV +5.62, +4.70%

TSLA +8.71, +4.30%

WDC +2.98, +5.27%

SPX Leaders: AKAM, OI, JNPR, FLIR, TSS, WDC, HBAN, R, BA, NOC, CB, BIIB, MDLZ, MUR, FOXA, RIG, IR, SEE, NBL, CO, KEY, GWW, RHI, UDR, NWSA and FFIV

Institutional activity continues to indicate that last quarter’s trend on stock selectivity based on quarterly results as opposed to industry or sector rotation is a primary driver of price action.

Thus far the real determinate to market movement over the past two weeks has been the institutional reaction to earnings announcements.  NFLX on the upside and JNJ on the downside are just two examples.

Earnings Announcements

Monday – PCAR, SONC, TMUS, V, ZION

Tuesday – MMM, AKS, AKAM, AAPL, BHI, CMG, EW, ESRX, FCX, GM, JBLU, JNPR, KEY, LMT, P, PNRA, SAVE, UA, VLO, VRTX, WHR, 

Wednesday – BA, KO, CMCSA, FFIV, GD, NEM, NXPI, ORLY, LUV, STT, TSLA, WDC,

Thursday – AET, GOOGL, MO, AMZN, AMGN, BIDU, BX, CA, CRUS, CLF, COP, DOW, EXPE, LNKD, POT, TWTR, UPS, VRSN, SKYW

Friday – XOM, PSX, RCL, UBS

EPS Positive Reactions

AKAM, JNPR, BA, NCR, OI, FLIR, ROL, TSS, LMT, KEY, FCX, VLO, BHI, SAVE, AKS, TMUS, MCD, PYPL, MSFT, MXIM, AXP, SNA, MAT, BK, STLD, WBA, ALK, URI, HAL, MS, USB, NFLX, HOG, UNH, GS, CE, DPZ, CMA, UAL, HAS, DAL, CSX, COST, RHT, FDX, ADBE

EPS Negative Reactions

AAPL, EW, CMG, LUV, CMCSA, UA, P, WHR, PNRA, JBLU, GM, MMM, NLSN, WAT, SHW, MAS, PNR, MCO, EBAY, TRV, LRCX, TSCO, INTC, ISRG, ST, JNJ, IBM, AA, FAST, ILMN, MU, PAYX, CCL

EPS Neutral Reactions

STT, GD, KO, ESRX, VRTX, PCAR, AAL, NUE, XLNX, CTXS, LLTC, BAC, C, JPM, PNC

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.

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Strong Stocks: Setups and Moves You Can Use

Bull Flag Setups include: STLD, EXPE, FB, GOOG, DPZ, FSLR, ALK, AAL, WB, SWKS, LITE, DISH, UAL, HAL, LVS, STI, NXPI, DVN, RCL, SE, ULTA, CSX, SLCA, CTRP, ADSK, ADBE, HAS, MLM, AMZN, MAT, NCLH, SCHW, JBLU, WRK,

Bull Flag Bounces include: WDC, FL, CSX,

Horizontal Breakout Setups include: X, ZION, C, JPM, DAL, CAVM, CCL, QCOM, DO, RIG, SOXL,

Horizontal Breakouts include: USB, AKS,

New Highs include: AKAM, NVDA, BAC, GS, NFLX, CMA, MS, SCHN, NTES, SAVE, CE

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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 pointed down at 45, defensive. 

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

48 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Thursday:

Moving Above 30 DMA = 2

ESRX, WDC

Moving Below 30 DMA = 7

ADSK, CTXS, KHC, MNST, ORLY, TRIP, WFM

6-month Intermediate Term Market Trend: Up

3-day Short Term Market Trend: Neutral