Merry Christmas as Stocks End the Week on a Strong Close...

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You can listen to Dave on tastytrade today at the 121:50 minute mark by clicking here:  https://www.tastytrade.com/#/ 

Stocks ended the week higher on light pre-holiday volume and SPY/SPX/ES each had a symmetrical triangle breakout indicating a good probability that the 12-week up trend will continue. 

Those MACD Bullish Divergence Setups that I shared with you last Friday for the most part had an amazing week.  I hope you profited and also that you learned again that we really can trust techincal signals. 

All nine sectors moved higher on Friday.  XLY, XLK and XLB were the strongest sectors. 

Money Flow

Euro      -5 pips     1.3041

TNX      +0.79         20.30

TLT       -1.33        118.27

XLF      +0.10         13.15

SPX    +11.33    1,265.33

VIX        -0.43         20.73

INDU +1.02%

NDX +0.92%

SPX +0.90%

COMPQ +0.74%

RUT +0.33%

XLF and SPX did follow the TNX higher on Friday’s Money Flow.  The SPX closed near its high for the fourth straight day. The SPX, RUT and XLF broke out of symmetrical triangle and the INDU broke out of an ascending triangle.  In each case suggesting the indexes and ETF could be headed for higher prices over the next eight weeks.  The breakout of the Financials XLF suggests support for the SPX and increases the probability for the SPX to move higher going into earnings season next month.

(click image to enlarge)

SPY moved up $1.12 on 92.1 million shares on Friday, its second lightest volume day of the year.

AAPL, BIDU, GOOG, PCLN and QCOM moved higher.  AMZN moved lower

Breadth weakened as advancers led decliners 2.26 to 1 on the NYSE and 1.15 to 1 on the NASDAQ.

Exchange        NYSE        NASDAQ

Advancers       2,071          1,363

Decliners            915          1,181       

The VIX continued lower on Friday to its lowest level since July 26.  This continues to be a significant indication of a new 5 - 15% uptrend from the Dec 20 SPX level at 1,240, if the VIX remains under 25.

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Setups

Horizontal/Diagonal Breakout – WDC, CSTR, IL, URE, GES, DE, DOW, ENTR, HUM, F, NKE, UCO, AKS, ATI, CIEN, SNDK, ZION

Reversal – CERN, ATVI, FOSL, MOS, POT, SWKS

Flag – HANS, KLAC, FFIV, DTV, MAT, VRTX, TEVA

Recent High – ORLY, GRMN, ROST, VRSN, APOL, MYL, ADP AMGN, SBUX, FAST ISRG, AKAM, V, SWK, UNP

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Leading stocks > +2% on Friday ESI, CROX, SINA, GRPN, VMW, AKS, DOW, DECK, GLW, COH, BAC, GES, RCL, NKE, TBT, FAS, INFA

Losing stocks < -2.0% included LDK, PCX, CRM, FAZ, UAL

NDX 100 stocks stronger than the NDX included FOSL, EXPE, AMAT, ALXN, ATVI, ISRG, APOL, CERN, EA and DLTR.

Stocks weaker than the NDX include CTRP, NFLX, MRVL, ALTR, AMZN, NVDA, ESRX, HANS, CHKP and RIMM.

Eight NDX stocks ATVI, CSCO, FLEX, FOSL, GILD, INTC, MAT and QCOM closed above their 30 DMA making 64 NDX stocks above their 30 DMA. 

Stocks to Watch on Tuesday

Holding Above 30 DMA = 36

V, WDC, LDK, UAL, DLR, CSTR, IL, URE, GES, GRPN, CMG, DE, DOW, ENTR, FAS, HUM, SWK, UNP, F, NKE, UCO, AKS, ATI, C, CIEN, CRUS, FCX, MOS, POT, SMH, SNDK, STI, SWKS, TSL, X, ZION

Moving Above 30 DMA = 9

BAC, COH, CROX, DHR, ESI, ICE, JDSU, NGLS, TBT

Moving Below 30 DMA = 2

ANF, TLT

Staying Below 30 DMA

FFIV, IBM, NTES, FAZ, CAT, CDE, CLF, GS, NDAQ, NVDA, SLB, ANR, RCL, TSLA, A, INFA, CHL, CRM, DECK, HAL, HLF, JNPR, RVBD, VECO, KKD, LVS, SLW, GLW, TIF, VMW, ARUN, CF, CREE, SWN, WLT, PCX, TPX, SOHU, MCP, SINA, ZAGG, LNKD

Eleven Week Intermediate Term Market Trend: Up

Short Term Market Trend: Up

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