January Closes as SPX Bounces from Bull Flag Lows...AAPL Jumps 3% on EPS Beat...Biotechs Lift...Small Cap IWM Leads...

January Review

Up Trend: XLI, XLB, XLY, XLK, XLP (all are bull flag setups, XLP 2 cents from trigger)

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Sideways: XLU, XLF. XLRE, XLV

Down Trend: XLE

January 20

Leading Sectors: XLB +4.55%, XLY +4.21%, XLK +3.56%, XLV +2.29%, XLI +1.86%,

SPY +1.79%,

Lagging Sectors: XLP +1.70%, XLU +1.55%, XLF +0.26%, XLRE -0.13%, XLE -3.21%

Breadth strengthened as advancers led 1,889 to 1,096 on the NYSE and led 1,724 to 1,090 on the NASDAQ.

Tuesday – strengthened, advancers led, +5 sectors

Monday – weakened, decliners led, +1

Friday – weakened, decliners led, +2 sectors

Thursday – weakened, decliners led, +6

Wednesday – weakened slightly, advancers led, +7

Oil futures were up .23 to close at 52.80 on Tuesday.     

SPY down .02 at 227.53 on 77.8 million shares, average volume,

VIX up .11 at 11.99

TLT up .83 at 120.10…on 6.0 million shares, 32% below average volume

Technical Commentary

IWM +0.70%, SPY -0.01%, QQQ -0.20%, DIA -0.51%,

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January is in the books. 

NDX gained 5.20% to close at 5,116.

NDX finished with 83 stocks higher led by CSX, ILMN, SWKS, INCY, VIAB

NDX had 29 stocks with gains of 10 to 29% YTD.

SPX gained 1.79% to close at 2,098.

SPX finished with 321 stocks higher led by NRG, AA, FCX QRVO, URI.

SPX had 37 stocks with gains of 10 to 34% YTD.

DJX gained 0.51% to close at 19,864.

DJX finished with 18 stocks higher led by DIS, V, BA

RUT gained 0.35% to close at

RUT leaders over $10 included TGH, CENX, CARA, SN, CLVS

The Dow Jones Industrial Average ended at 19,864, after an all-time high last week of 20,100.91, and closing above 20,000 for the three straight days. 

The VIX closed at 11.99 after making a new 52-week closing low Friday at 10.58.

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SPX down 2 points at 2,279 forming bull flag on Tuesday.

SPX  gainers TMO, MNK, MYL, DHR, ABC, REGN, COH, NEM, GGP, ENDP, NDQ, SPG, GT, AGN, LLY, A, COP, FOSL, PKI, CELG, DLTR, LB, ZBH, DG, OKE, FCX

QQQ closes down .25 at 124.57

   

NDX point leaders: CELG, AMGN, REGN, GILD, TMUS, MYL, INCY, ALXN, ATVI, ESRX and DLTR

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Earnings

This week:

Monday – AMG

Tuesday – AAPL, ABC, AET, AMD, DHR, EA, HCA, LLY, MA, NDAQ, NUE, PCAR, S, UAA, X, XOM

Wednesday – FB, SYMC, CRUS, NXPI, QRVO, ADP, BAX, CAVM,

Thursday – AMZN, V, CME, CMG, HIG, EL, FEYE, FTNT, HBI, R, SIRI, VOD, SKYW,

Friday – CLX, HSY, PSX, WETF,

Today's Earnings Reports

Positive earnings reactions

DHR +3.56, +4.43%

ABC +3.66, +4.38%

NDAQ +2.36, +3.46%

LLY +2.33, +3.12%

AET +1.90, +1.63%

Negative earnings reactions

UAA -7.45, -25.74%

UPS -7.90, -6.75%

NUE -2.01, -3.34%

MA -2.97, -2.72%

XOM -0.97, -1.14%

After-hours reports

AAPL +3.65, +3.01%

AMD +0.36, +3.47%

2016 Q4 EPS

EPS Positive Reactions

DHR, NDAQ, ABC, LLY, AET, HCA, AMG, MXIM, VMW, WYNN, MSFT, KLAC, INTC, GD, ETFC, CMCSA, URI, RCL, LUV, EBAY, WDC, STX, LOGI, ROK, BA, HBAN, ISRG, NSC, ATI, GLW, RMD, DHI, DD, MB, BABA, CA, YHOO, SWKS, KSU, PG, CFG, COL, IBM, CHKP, NFLX, UNP, FAST, WFC, SNX, MSM, CUDA, GPN, MU, CAG, NKE, KMX, CCL, JBL

EPS Negative Reactions

UAA, UPS, MA, NUE, XOM, JNPR, SBUX, PYPL, GOOGL, JBLU, F, CAT, WHR, FFIV, LVS, CTXS, QCOM, MUR, FCX, STLD, CA, FCX, HES, STT, AKS, VZ, JNJ, LMT, MMM, TRV, HAL, MCD, GE, NTRS, CSX, C, CMA, MS, UNH, AYI, CMC, STZ, SCHN, RHT, BBBY, FINL, AGN, FDX, GIS, ADBE

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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.

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: QQQ, SPY, DIA, SOXL, XLI, XLB, XLY, XLK, XLP

AAPL, TMUS, WDC, MSFT, ADSK, YHOO, TSLA, MAR, NVDA, LRCX, AMAT, DISCA, SWKS, PCAR, JD, ADBE, CSX, CHTR, AVGO, KLAC, INTC, TXN, FAST, ADI, NCLH, AMZN, FB, SYMC,

BA, AXP, IBM, V, CAT, CSCO, DD, UNH, JPM,

ETFC, ATI, BABA, WB, LUV, LNG, WFC, PNC, HAL, DE, GD, RCL, CCL, CF, VALE, STI, SCHW, CFG, HBAN, MS, BAC, FAS, RF, SHOP,

                   (click image to enlarge)

One Day Pullback: PCLN,

Bull Flag Bounces include: NTES, PG, ICE, NRG, FCAU, CC, SQ,

At Support Setups include: COST, CHK, C, GM, ALK, GOOGL, SBUX, MT, STLD, X, AKS, FTI, BHI, TRV, ADP, CLF, UTX, XLNX, MMM, FISV, ZION, KEY, MGM,

Support Bounce: IWM, TLT, COST, ROST, CTXS,  

Horizontal Breakout Setups include: NFLX, CHKP, MCD, CMA, MGM, HIG,

Horizontal Breakouts include:

New Highs include: STX, DIS, ATVI, VIAB, MU, MXIM, EA, EBAY, USB, CMCSA,

Break of Support: UPS, GS, PAYX, NUE, AAL, HES, DAL, APA, XOM,

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January Leaders: 20

SPX Leaders:  NRG, AA, FCX, QRVO, URI, WYNN, PHM, CRM, ZBH, RCL, (321, -5 > 10p 37, +18)

SPX Losers:  UAA, XRX, KSS, M, SWN, SIG, BMY, HES, VAR, TDG

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NDX Leaders:  CSX, ILMN, SWKS, VIAB, TSLA, STX, NTES, WDC, CHKP, MXIM (78, -5 >10p 28)

NDX Losers:  ENDP, QCOM, ORLY, AAL, CTSH, MAT, XLNX, MNST, BIIB, TSCO

With active options trading

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DJI Leaders:  MRK, V, NKE, PG, AAPL, DIS, AXP, IBM, BA, CAT, (18, +3, >10p 0,)

DJI Losers:  VZ, XOM, GE, CVX, GS, TRV, WMT, PFE, MMM, JNJ

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The SPY MFC green line is in the upper zone at 84 bullish. 

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

67 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Wednesday:

Moving Above 30 DMA = 5

AKAM, ALXN, BMRN, MYL, SBAC

Moving Below 30 DMA = 4

GOOG, INTC, NXPI, XLNX

6-month Intermediate Term Market Trend: Up

3-day Short Term Market Trend: Down