Financials, Small Caps Lead Friday the 13th Rally...QQQ Moves to a New All-time High...

Sector Trend Strength:

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

Sideways: XLU

Down Trend:

For the week ended January 13, four of ten sectors moved higher.

XLY +0.77%, XLK +0.53%, XLB +0.49%, XLI +0.13%, XLV -0.04%,

SPY -0.07%,

Lagging sectors XLF -0.13%, XLU -0.66%, XLP -1.15%, XLE -1.99%, XLRE -2.26%,

YTD 9

Leading Sectors: XLY +3.14%, XLV +2.87%, XLK +2.69%, XLB +2.35%, XLI +1.61%,

SPY +1.57%,

Lagging Sectors: XLF +1.12%, XLU -0.12%, XLRE -0.20%, XLP -0.37%, XLE -1.25%

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Breadth strengthened as advancers led 1,793 to 1,198 on the NYSE and led 1,802 to 965 on the NASDAQ.

Friday – strengthened, advancers led, +6 sectors

Thursday – weakened, decliners led, +3

Wednesday – strengthened on the NYSE, advancers led, +8

Tuesday – strengthened, advancers led, +6

Monday – weakened, decliners led, +1

Oil futures were down .51 to close at 52.52 on Friday.  

SPY up .52 at 227.05 on 62.7 million shares, 23% below average volume,

VIX down .31 at 11.23

TLT down .58 at 121.31…on 9.8 million shares, average volume

Technical Commentary:

IWM +0.72%, QQQ +0.34%, SPY +0.23%, DIA -0.03%,

QQQ made another all-time high close on Friday.

SPY, DIA and IWM continue is a narrow trading range near resistance for a potential horizontal resistance breakout.

Financial stocks BAC, BLK, JPM, PNC and WFC all reported positive earnings Friday morning and finished moderately higher for the day.

SPX up 4 points at 2,274

SPX  gainers NFLX, MNST, QRVO, FSLR, PNR, PDCO, TAP, LRCX, LLL, KSU, WAT, SWKS, ZION, TRIP, FOSL, CMCSA, NAVI, PCAR, PBI, PKI, PH, RF, KR, MCK, SYMC, TIF, KLAC, DOV, KEY, XRX, NRG, VMC, WFC, AMAT, XRAY, PWR, FITB

QQQ closes up 42 cents at 123.16 a new all-time closing high.

   

NDX point leaders: FB, CMCSA, NFLX, AMZN, TSLA, QCOM, MNST, MSFT, AVGO, AMAT, GOOG and AMGN

Earnings next week:

Tuesday – CMA, MS, UNH

Wednesday – C, CSX, FAST, GS, NFLX, NTRS, UAL, USB,

Thursday – ALK, AXP, CHKP, IBM, KEY, SWKS, UNP,

Friday – CFG, GE, RF, SLB, 

2016 Q4 EPS

EPS Positive Reactions

SNX, MSM, CUDA, GPN, MU, CAG, NKE, KMX, CCL, JBL

EPS Negative Reactions

AYI, CMC, STZ, SCHN, RHT, BBBY, FINL, AGN, FDX, GIS, ADBE

Trade with the trend of the chart you are trading and continue to move your profit protection stops.  Continue to follow your rules.

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

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: PAYX, ETFC, NTES, SBUX, XLV, CMA, JPM, SQ, F, UTX, COST, CCL, XLNX, C, LNG, HAL, EBAY, XLRE, TMUS, FCAU, AKAM, RCL, ADBE, AAPL, WBA, MT, MTL,

One Day Pullback: TLT,

Bull Flag Bounces include: TSLA, NFLX, FISV, DE, QQQ, AVGO, FAS, MS, ADP, GOOG, GD, USB,

At Support Setups include: NVDA, FTI, STLD, MMM, MSFT, ICE, ATI, X, MAR, STX, MU, TRV, UPS, APA, MGM,

Support Bounce: EA, HES, DISCA, ADI,

Horizontal Breakout Setups include: QQQ, IWM, AMAT, KLAC, CTXS, USB, LRCX, AVGO, ETFC, ZION, EA, PWR, INTC, SPY, WDC, SOXL, FAST, CFG, GM, CLF, CHTR, PCAR, NCLH, LUV, BBY, TXN, DIA, AAL, ATVI, GS, BA, STI, HBAN, KEY, RF, HIG, MCD, ADSK, PCLN, ADI, ROST, NUE

Horizontal Breakouts include: TSLA, FISV, FSLR, VALE, DAL,

New Highs include: AMZN, CHKP, CSX, FB, ALK, QQQ, SCHW, CMCSA,

Break of Support: BHI, AKS,

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Short-term Movers for the week:

SPX gainers:  ZBH, NRG, QRVO, ALK, AA, BSX, FSLR, TIF GPN, SYK, MCHP, UAL, FB, +10, 1,  +4, 20

SPX losers:  WMB, AYI, PRGO, SIG, EXR, CINF, PSA, BMY, FTR, TSO, EQT, HES, BHI, DVN, GGP, MAC, COG, NOV, MNK, -4, 23

NDX gainers:  ILMN, INCY, CERN, AMAT, LBTYA, VRTX, NTES, SYMC, ISRG, SWKS, MXIM, TRIP, +4, 13

NDX losers:  ENDP SHPG, ALXN, MYL, STX, -4, 5,

YTD: 9

SPX Leaders:  NRG, AA, FCX, GPN, ZBH, FSLR, QRVO, CNC, CRM, BSX (344, > 10p 17,)

SPX Losers:  XRX, KSS, M, SIG, TSO, WMB, LB, JN, CINF, SWN, AYI

NDX Leaders:  ILMN, INCY, LBTYA, TRIP, VRTX, ALXN, FB, TSLA, NTES, VIAB, (86, >10p 11)

NDX Losers:  ENDP, QVCA, MYL, STX, NVDA, XLNX, CTAS, TMUS, CSCO, KHC

DJI Leaders:  MRK, NKE, V, DIS, AXP, AAPL, GS, BA, CAT, INTC, (18, >10p 0,)

DJI Losers:  TRV, XOM, WMT, VZ, KO, CVX, GE, MMM, JNJ, CSCO
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The SPY MFC green line is in the upper zone at 89 bullish. 

71 of 100 NDX stocks closed higher and one was unchanged on Friday.

82 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Tuesday:

Moving Above 30 DMA = 2

ADI, QCOM

Moving Below 30 DMA = 2

ORLY, TMUS

6-month Intermediate Term Market Trend: Up

3-day Short Term Market Trend: Neutral