NFLX, ESI Soar, AAPL Collapses, TPX, GMCR Move Up ,

Eight of nine sectors moved higher on Thursday… XLY, XLV and XLI were the strongest sectors.   XLK was the weakest sector. 

Breadth strengthened as advancers led decliners…1.27 to 1 on the NYSE and 1.24 to 1 on the NASDAQ…

Thursday – strengthened, advancers led

Wednesday – weakened, decliners led

Tuesday – strengthened, advancers led

Monday – MLK Holiday

Friday – weakened, advancers led

The SPY inched to another new high close as NFLX +42.22%, FFIV +4.46% and AAPL -63.50, -12.35% traded following earnings on Wednesday.  TPX gained and SCSS fell after the close.

AAPL big selloff sent the NDX lower, but SPX held even for the day.  Be prepared to protect profits if markets start to pull back on Friday.

The chart continues to indicate that the uptrend is more likely to continue, but may be ready for a bull flag pullback.

SPY up 4 cents at 149.41...volume 146.4 million shares…

VIX up 0.23 at 12.69…
TNX up .11 at 18.44…

TLT down 42 cents at 119.67…
XLF up 9 cents at 17.39…volume 67 million shares

AAPL down -63.50 at 450.50…volume 52.1 million shares…

FB up 26 cents at`31.08…on volume of 43.8 million shares…EPS Jan 30…bull flag bounce

Look for stocks with good earnings and guidance to likely rise and those with either weak earnings or guidance likely to fall in price.  The earnings pause seems to be vanishing as traders reacted to strong earnings today.

Thursday Price Action to AM EPS – ESI +17.74%, MMM +0.18%, UAL +2.16%, SWK -0.95%, KEY -0.65%, ALK -0.56%

Earnings to Watch this Week:

Tuesday – AMD, CA, CREE, CSX, DAL, DD, FCX, GOOG, IBM, ISRG, JNJ, PETS, RF, TXN, TRV, VZ

Wednesday – ATI, ALTR, AMGN, AAPL, BHI, CHKP, COH, FFIV, MCD, NFLX, SNDK, URI, UTX, WDC

Thursday – MMM, ALK, T, BMY, CHRW, CELG, CRUS, CY, INFA, ESI, JNPR, KEY, KLAC, MXIM, MSFT, SCSS, LUV, SWK, SBUX, TPX, UNP, UAL, VRSN,

Friday – HAL, PG, WY

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Technical Commentary:

The SPY formed a potential shooting star as it crawled to another new high close.  DIA +0.41%, IWM +0.33%, SPY +0.03% and QQQ +0.61% as AAPL shares gapped down after reporting earnings.  FB closed slightly higher.

The Euro was up 60 pips to close at 1.3375 on Thursday rising to resistance in a sideways consolidation pattern in its strong uptrend.

Trade what you see on the chart of your position.  If it is breaking out of resistance take the trade or stay with the uptrend according to your rules.  If the stock begins to rollover protect your profits.

Disk storage stocks rose as WDC +1.53% following earnings and STX +0.68% EPS Jan 28. 

Coal stocks ANR, ACI, CNX and BTU sold off as did chinese solar stocks TSL and LDK settled back.

The Market Forecast Green Line is in the upper reversal zone. 

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Setups

Breakout:  C, GMCR, VIAB, CERN, QCOM, ZION, MGM, TRIP, COST, ADSK, SNDK, FB

Diagonal Breakout:  BAC, DECK, JDSU, CLF

Bull Flag:  BRCM, BIDU, GES, SMH, SWI, HLF, STRZA, ANF, CTSH, TIF, STI, RIMM, STX, CTRP, F, JOY, NUAN, LCC, LF, GM, VECO, UNG, KBH, X, ATI, ANR, AKS,

Gap Up:  TPX,

Gap Down:  AAPL, ALTR, SNDK, WDC, CRUS

Moves

Gap Up:  NFLX, FFIV, AVT, BPOP

Gap Down:  AAPL, CRUS,

Breakout:  ROST, GOOG, ISRG, NTAP, MOS, SOHU, SBAC, NTES, IBM, CREE, PCAR, SINA, SWK, LEN, LNKD, EQIX, DE, IWM, SPY, FAS, LIFE, A, PHM, TOL, SHLD, JNPR, EXPD, WAG

Bounce:  EBAY, C, CRM, SNDK, AMZN, FOSL, YELP, RAX, FAST, EXPE, NKE, ADSK, STI, GILD, UAL, GCMR, ADBE, CTXS, VMW, RCL, REGN, TSL, WDC, FSLR, FB, LVS, V, AKS, ADI, APOL

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65 of 100 NDX stocks closed higher on Thursday… and one remained the same…

Leading NDX 100 stocks included:  FFIV, BBBY, ROST, PCAR, EBAY, FOSL, DLTR, VOD, SNDK, ISRG

Lagging NDX stocks included:  AAPL, ALTR, PRGO, REGN, PAYX, MNST, BRCM, NUAN, AVGO, NWSA

Leading stocks> +2% on Thursday included: NFLX, ESI, TPX, GMCR, RVBD, DECK, TSLA, MOS, YELP, RIMM, UAL, CMG

Lagging stocks < -2.0% included:  CRUS, MCP, ANR, TSL, CDE, ZAGG, VECO, CLF, X, AKS, ATI

Stocks to Watch on Friday…

Holding Above 30 DMA = 83
SBUX, CSCO, VMED, SBAC, EXPD, LLTC, PCAR, XLNX, TXN, ADI, SIAL, ADSK, DELL, FFIV, ORCL, COST, ADBE, NWSA, DISCA, AMAT, CTSH, FOSL, KLAC, VIAB, NUAN, STX, LBTYA, WDC, CHKP, FAST, MCHP, SNDK, EQIX, STRZA, CTXS, CHRW, SIRI, BIDU, VRSK, ADP, AMZN, BRCM, CMCSA, DTV, EBAY, EXPE, LINTA, MU,  SRCL, SYMC, VRTX, WYNN, FB, CA, CELG, GILD, HSIC, INTU, LIFE, PCLN, QCOM, MDLZ, CTRX, ROST, SPLS, BMC, AVGO, ATVI, SHLD, YHOO,MAT, MSFT, MYL, NTAP, MXIM, CERN, WFM, XRAY, VOD, DLTR, ISRG, GOOG, ORLY

Moving Above 30 DMA = 2

AKAM, BBBY               

Moving Below 30 DMA = 4

ALTR, FISV, INTC, PAYX                                                                            

Staying Below 30 DMA

ALXN, ESRX, PRGO, REGN, AMGN, GRMN, NVDA, MNST, AAPL, BIIB, GOLD

Nine Week Intermediate Term Market Trend: Up

Short Term Market Trend: Up