Thursday, January 28, 2016

SPX Rallies in ST Sideways Channel...FB Soars...PYPL, CAT, CTXS Gap Higher...

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Eight of nine sectors moved higher on ThursdayXLE, XLU and XLK were the strongest sectors while XLV was the weakest sector.  Oil rose $1.56 to close at 33.72.
                         
Breadth strengthened as advancers led decliners led 2.03 to 1 on the NYSE and 1.07 to 1 on the NASDAQ.

Thursday- strengthened, advancers led
Wednesday – weakened, decliners led
Tuesday – strengthened, advancers led
Monday – weakened, decliners led
Friday – strengthened, decliners led


SPY up .98 at 189.11 on 143.7 million shares, 6% below average volume
VIX down .69 at 22.42…
TNX down .16 at 19.85…
TLT up .18 at 126.23…on 10.5 million shares, 18% above average volume
XLF up .01 at 21.13…on 64.9 million shares, 13% above average volume

AAPL up .67 at 94.09 on 55.6 million shares, average volume
FB up 14.66 at 109.11 on 107.4 million shares, 250% above average volume

Technical Commentary:
QQQ +1.41%, DIA +0.76%, SPY +0.52%, IWM -0.02%.


After Hours Alert:  AMZN -85.35, -13.43%,  EA -5.54, -7.94% on negative earnings reaction,  MSFT +2.19, +4.22%, SWKS +2.42, +3.74% on positive earnings reaction


Regarding Wednesday’s FOMC reaction we wrote, “Remember, economic announcements generally may add volatility to the price action but typically don’t alter trend.  The nine-day trend is sideways and the five-day trend is up.  Wednesday’s selloff pushed price back to the three-day support area and still represents a higher low area in the five-day trendChart Signals does not view Wednesday’s price fluctuation as trend change.  “One day does not a trend make.”’

The SPX rallied on Thursday.

FB +14.66, +15.52%, gapped up on a positive earnings reaction.
PYPL +2.65, +8.39%, gapped up on a positive earnings reaction.
CAT +2.76, +4.73%, gapped up on a positive earnings reaction.
CTXS +2.61, +3.96%, gapped up on a positive earnings reaction.
CHKP +1.64, +2.18%, gapped up on a positive earnings reaction.

EBAY -3.29, -12.45%, gapped down on a negative earnings reaction.
QCOM -3.94, -8.29%, gapped down on a negative earnings reaction.
CELG -5.10, -4.98%, gapped down on a negative earnings reaction.
V -1.58, -2.23%, gapped down on a negative earnings reaction.


Earnings this week:
Monday:  MCD, HAL, KMB
Tuesday:  DD, JNJ, MMM, PG, AAPL, CA
Wednesday:  BA, BIIB, LRCX, CTXS, EBAY, FB, PYPL, QCOM, SNDK, TSCO, TXN, UTX, VRTX
Thursday:  CAT, CELG, CHKP, V, AMGN, AMZN, EA, KLAC, MSFT, SWKS, WDC
Friday:  AAL, CVX, PCAR, STX

YTD:
SPX Leaders:  SWN, EQT, SE, RRC, M, COG, NEM, VIAB, ED, TWX (80)
SPX Losers: ESV, URI, FCX, BWA, WRK, AN, MU, CHK, AA, ADS

NDX Leaders:  VIAB, DISCK, KHC, FB, CTSH, DLTR, XLNX, EA, ORLY, MAT (11)
NDX Losers: INCY, MU BMRN, NCLH, STX, VRTX, ADSK, JD, TRIP, TSLA

DJI Leaders:  VZ, WMT, MCD, PG

DJI Losers: AXP, DD, BA, CSCO, JPM, INTC, GS, IBM, DIS, AAPL


Remember:  “It’s a market of stocks, not just a stock market.”

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

The SPX MFC green line is pointed up at 29. 

__________________

Setups
Horizontal Breakout: AVGO, DPS, CA, DLTR, JNJ, WMT, TWX, EAT, SPWR, CSIQ, PSA, CTSH, ADI, ROST, XLNX,
Diagonal Breakout: TSL, EXR, CUBE,
Bull Flag: HAS, M
Gap Up: MSFT, SWKS  
Gap Down: AMZN, EA,
Bear Flag: JAH, LVLT, MAS, CSCO, HD, JPM, UTX,
At Support: AAPL, BA, X, GILD, AIG, TEVA, DIS, ESRX, DD, ADBE, BIDU, PCLN, TRIP


Moves
New Highs: MCD,
H Breakout: ITW
Gap Up: FB, PYPL, CAT, CTXS
Gap Down:  EBAY, QCOM, CELG
Bear Flag: ESRX, NVDA,
Support Break: AXP, AKAM, CRM, LUV,

______________________

49 of 100 NDX stocks closed higher on Thursday.

19 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Friday:
Moving Above 30 DMA = 7
AMZN, FAST, FB, FISV, PYPL, SBUX, TSCO

Moving Below 30 DMA = 0


6-month Intermediate Term Market Trend: Neutral
3-day Short Term Market Trend: Neutral





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