Small Caps, Financial, Steel, Airlines and Cruise Stocks Continue to Climb on Monday...

Six of ten sectors moved higher on Monday …XLF, XLRE and XLE were the strongest sectors while XLK was the weakest sector.  Oil futures up .60 to close at 43.72.

Breadth weakened as advancers led 1,600 to 1,478 on the NYSE and led 1,961 to 828 on the NASDAQ.

Monday – weakened, advancers led, +6

Friday – strengthened, advancers led, +5

Thursday – weakened, advancers led on NASDAQ, +6

Wednesday – strengthened, advancers led, +6

Tuesday – weakened, advancers led, +10

SPY up .17 at 216.59 on 94.5 million shares, average volume

VIX up .31 at 14.48

TLT down .73 at 121.31…on 21.1 million shares, 125% above average volume

Technical Commentary:

IWM +1.41%, DIA +0.16%, SPY +0.08%, QQQ -1.01%,

DIA and IWM hit new all-time highs

SPY in sideways trend near resistance

QQQ in sideways trend near support

SPX unchanged at 2,164

VIX did confirm the SPX

SPY average volume

TLT again had high selling volume

Money continued to rotate from bonds and into stocks

XLF, XLI, XLV money rotates in

XLK, XLP, XLU money rotates out

XLB, XLY sideways at resistance

HAR +22.07, +25.18% on buyout from Samsung.

Steel stocks MTL, AKS, X, ATI, CLF, MT, STLD, SCHN and NUE continued rise with big gains on Monday.

Airline stocks UAL, ALK, LUV, SAVE, SKYW, JBLU, DAL, HA and AAL continued to soar on Monday.

NDX point losers: AAPL, AMZN, FB, MSFT, GOOGL, PCLN, CHTR, NVDA, AVGO, PYPL and QCOM

SPX Leaders: HAR, SWN, SNI, RF, AN, FOSL, BAC, NRG, HST, JEC, RRC, CSRA, FLR, NOV, HCP, GRMN, DGX, UAL, CMG, RL, BBY, BEN, UNH, ZION, AET, VTR, TROW, KMX, URI, SYF, SLG, KSU, NTRS, ANTM, JPM, GGP, URBN, AIZ, HCN, GPS, WY, GCI, C, ADM, ALK, CFG, LUV, COF, DRI, IP, HCA, MUR, KR, VNO, DFS, FITB, LEG, STI, HRB, CBG, MOS, MAC, NEM, MCD, FSLR, NAVI, WYN, LMT and PLD

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.

2016 Q3 EPS, Oct - Nov

EPS Positive Reactions

NVDA, QVCA, JCI, MAR, SYY, FDC, RACE, CTSH, PCLN, LVS, UBNT, SLCA, SBUX, MCHP, FOSL, CAR, RIG, DDD, YELP, SHOP, ABC, SQ, HSIC, ZTS, DVN, NBL, ANTM, ADP, EA, VRSK, ADM, HRS, MOS, CHKP, COH, TSO, RCL, HBI, SRCL, HSY, EMN, VRSN, UBS, BIDU, CRUS, EXPE, MO, CVX, FFIV, WDC, COP, DOW, 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

NTES, TRIP, CVS, ENDP, NWSA, ALB, IFF, EXPD MNST, ATVI, FSLR, WYNN, CS, APA, FB, UVE, AIG, CHTR, PAYC, DATA, CAVM, BABA, X, GILD, HLF, ILMN, NFX, DO, SCTY, AMZN, MCK, ABC, CAH, GT, ABBV, LM, COG, CA, AMGN, AET, LITE, XOM, CLF, ORLY, NEM, POT, 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

SWKS, LBTYA, CI, QCOM, FOXA, GOOGL, PSX, SKYW, BX, CA, TWTR, UPS, TSLA, MO, NXPI, STT, GD, KO, ESRX, VRTX, PCAR, AAL, NUE, XLNX, CTXS, LLTC, BAC, C, JPM, PNC

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Strong Stocks: Setups and Moves You Can Use

Bull Flag Setups include: AKAM, EXPE, QCOM, MXIM, CHKP, GILD, NVDA, NXPI, PCLN, VRTX

Bull Flag Bounces include: SQ, HSY, MCHP, ESRX, MAR, REGN,

Horizontal Breakout Setups include: SQ, BBBY, CMCSA, COST, CSCO, DISCA, DLTR, ESRX, FOXA, MAT, MU, PCAR, STX, TMUS, ULTA, WDC

Horizontal Breakouts include: MAR, NCLH, ALK, BBBY, TMUS, WFM

New Highs include: AAL, DAL, UAL, ALK, LUV, SAVE, AKS, X, SCHN, STLD, NUE, BAC, C, JPM, WFC, USB, RF, STI, ZION, GS, MS, CMA, CE, RCL, CCL, CC, MLM, HAS, ADI, ADP, CSX, REGN,

Horizontal Break of Support Setups include: MDLZ,

Break of Support: GOOGL, FB, AMZN, JD, TSLA, NEM, NTES, TRIP, ATVI, CERN,

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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 up at 81, bullish. 

49 of 100 NDX stocks closed higher and one was unchanged on Monday.

55 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Tuesday:

Moving Above 30 DMA = 3

AMAT, LRCX, MAT

Moving Below 30 DMA = 4

CA, CTXS, MSFT, SYMC

6-month Intermediate Term Market Trend: Up

3-day Short Term Market Trend: Up