QQQ Hits a New Closing High...SPY, IWM, DIA Move Higher...Light Volume Continues...NVDA, TSLA Lead NDX...

Sector Trend Strength:

Up Trend: XLF, XLI, XLB, XLY, XLE, XLK, XLP

Sideways: XLV, XLU, XLRE

Down Trend:

Breadth strengthened as advancers led 1,861 to 1,154 on the NYSE and led 1,666 to 1,097 on the NASDAQ.

Tuesday – strengthened, advancers led, +9

Monday – Christmas Holiday Observance

Friday – strengthened, advancers led, +7

Thursday – weakened, decliners led, +3

Wednesday – weakened, decliners led, +2

Oil futures were up .64 to close at 53.89 on Tuesday.  

SPY up .56 at 226.27 on 42.6 million shares, 49% below average volume,

VIX up .55 at 11.99

TLT down .38 at 117.67…on 5.2 million shares, 50% below average volume

Technical Commentary:

QQQ +0.52%, IWM +0.45%, SPY +0.25%, DIA +0.08%,

Volume increased but remained light with SPY volume increasing just 6 million shares from Friday’s light holiday trading. Volume did increase from Friday’s level on AAPL, AMAT, AMZN, CSCO, FB, INTC, NFLX, NVDA and TSLA but remained lower on many other NDX stocks.

Broad market SPY, QQQ and DIA rallied higher on Tuesday.

SPX up 5 at 2,268

SPX Leaders NVDA, FSLR, RIG, MOS, NFLX, NRG, HP, CHK, LEN, FTI, VIAB, MLM, LM, TRIP, TIF, COG, VMC, MUR, NWSA, EBAY, AMZN, NOV, DHI, TDC, AMAT, PHM, LKQ, FLS, BIIB, MAC, PPG, VRTX, COO, AN, KLAC, XLNX, FMC, AES, ADM

QQQ posted a new all-time closing high on Tuesday, continuing above resistance for nine straight day.

  

NDX point gainers: AMZN, NVDA, AAPL, FB, NFLX, TSLA, CSCO, BIIB, CMCSA, QCOM, AMGN and GOOG

2016 Q4 EPS

EPS Positive Reactions

MU, CAG, NKE, KMX, CCL, JBL

EPS Negative Reactions

RHT, BBBY, FINL, AGN, FDX, GIS, ADBE

Follow your rules and look for potential re-entry if you were stopped out of any profitable trades.

Continue to move up stops on short term bullish trades that could pull back.  All according to your profit protection rules.  If you moved stops you may have been stopped out today.

Remember breakouts typically test about 70% of the time.

Technical analysis based trades should be closed before earnings.

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: COST, PAYX, FISV, SQ, TSCO, USB, GS, ALK, CTXS, WFM, INTC, FDX, UPS, ADBE, CHTR, DISCA, FAST, GILD, GOOG, MAR, BAC, ICE, CE, APA, BHI, STLD, LUV, UAL, AAL, WDC,

One Day Pullback:

Bull Flag Bounces include: SPY, IWM, QQQ, AVGO, AAPL, CHKP, PCAR, STX, PWR, LNG, FTI, DAL, AMAT, ADSK,

At Support Setups include: ROST, SBUX, WBA, BBY, NCLH, CC, ATVI, ATI

Support Bounce: PCLN,

Horizontal Breakout Setups include: EA, EBAY, DIA, FAS, MSFT, JPM, C, CMA, ETFC, HBAN, KEY, MS, RF, TRV, CSX, NUE, HIG, MGM, HAL, ADI, WDC, KLAC, TMUS, AKS, X, RCL, CCL, GD, DAL, BA, UTX, MMM, CHK, HES,

Horizontal Breakouts include: SOXL, STI, XLNX, LRCX, NFLX,

New Highs include: NVDA, TSLA, ADP, MU, CMCSA, ZION, CFG, SCHW, MCD,

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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.

CTAS, HAS, HOLX and KLAC were added to the NDX on Dec 19.  BBBY, NTAP, SRCL and WFM were removed in the annual changes to the NASDAQ-100.

The SPY MFC green line is in the upper zone at 92 bullish. 

79 of 100 NDX stocks closed higher on Wednesday.

66 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Tuesday:

Moving Above 30 DMA = 7

AMZN, HSIC, LBTYA, NTES, QCOM, SIRI, SYMC,

Moving Below 30 DMA = 4

ADSK, CELG, CTAS, ENDP,

6-month Intermediate Term Market Trend: Up

3-day Short Term Market Trend: Neutral