Thursday, March 24, 2016

Buyers Return as Advancers Lead Headed into 3-Day Weekend...Bull Flags Galore...Trader's Choice on Monday...

Four of nine sectors moved higher on ThursdayXLE, XLK and XLU were the strongest sectors while XLG was the weakest sector.  Oil futures fell .20 to close at 39.59

XLV +1.64% was the only positive sector for the four-day holiday shortened week.  XLE, XLB, XLF and XLP lost more than -1% for the week.
                         
Breadth strengthened as advancers led decliners 1.04 to 1 on the NYSE and 1.26 to 1 on the NASDAQ.

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

Markets are closed on Friday in observance of Good Friday.  Have a great holiday weekend and be safe.

SPY down .09 at 203.12 on 84.3 million shares, 22% below average volume
VIX down .20 at 14.74…
TNX up .25 at 19.00…
TLT up .05 at 129.54…on 6.3 million shares, 23% below average volume
XLF down .14 at 22.31…on 39.3 million shares, 36% below average volume

AAPL down .46 at 105.67 on 26.1 million shares, 25% below average volume
FB up .51 at 113.05 on 17.8 million shares, 34% below average volume

Technical Commentary:
IWM +0.30%, DIA +0.07%, QQQ +0.03%, SPY -0.66%.

After five strong weeks of gains SPY, DIA, QQQ and IWM moved slightly lower for the week each forming a bull flag price pattern.  A positive and healthy pause in the trend.  Sector ETFs XLB, XLE, XLF, XLI, XLK, XLP and XLY also formed bull flag price patterns this week.

After five strong weeks of gains SPY, DIA, QQQ and IWM moved slightly lower for the week each forming a bull flag price pattern.  A positive and healthy pause in the trend.  Sector ETFs XLB, XLE, XLF, XLI, XLK, XLP and XLY also formed bull flag price patterns this week.

A bull flag is a short-term trend continuation pattern.  We look for a potential bounce up as early as Monday in the direction of the six week uptrend.  Trader's choice of many great looking bull flags.

NDX +2.97 on Thursday was led by point gainers AMZN, GILD, MSFT, CMCSA, GB, CTSH, CSCO and TSLA. 

NDX percentage leaders: INCY, NCLH, AMZN, TSLA, CTSH, ILMN, REGN, GILD, CMCSA, CSX

NDX percentage losers: STX, PYPL, AAL, CERN, CHTR, JD, MU, MAR, COST, ROST, EA, NFLX, WDC, MNST, EXPE, ATVI


The DJIA was led by gains in CAT, IBM, CVX, VZ and WMT as 16 of 30 stocks moved higher.


On Tuesday March 29 after the close HOLX and CNC will replace POM and ESV in the S&P 500.


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:  FCX, ADBE, ADI, ADP, ADSK, AMAT, AVGO, BIDU, CHTR, CSX, CTRP, CTXS, EXPE, FAST, FISV, JD, LRCX, MAR, NCLH, NXPI, PCAR, PCLN, SWKS, SYMC, TSLA, TXN, WBA, WDC, YHOO, AAPL, AXP, BA, CAT, CSCO, CVX, DD, HD, IBM, INTC, JPM, KO, MCD, MMM, NKE, TRV, WMT, XOM, NUE, AKS, BABA, SPY, DIA, QQQ, IWM, XLB, XLE, XLF, XLI, XLK, XLP, XLY, SVXY, FDX, OI, LUK, R, JBHT, FTI, WYNN, UHS, SCHW, NWSA, QRVO, THC, STT, DVN, RCL, TK

Bull Flag Bounces include: CMCSA, CTSH, VZ, XLU


Horizontal Breakout Setups include: AMZN, JNJ, V, EBAY, ULTA, ATVI, ETFC, PG, AMGN, GILD, ZTS


Horizontal Breakouts include: 


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Short-term Movers:
SPX gainers:  MNK, SPLS, ZTS, PVH, TSO, THC, ACN, WYNN, BXLT, SIG, MCK, UHS, HCA, EW, TXT, UNH, ADS  3
SPX losers:  RIG, WMB, CHK, MRO, SWN, CF, DO, MOS, RRC, NOV, HP, NEM, FCX, COP, ESV, FSLR, APC, NRG, WYN, OKE, NBL, KSS, GGP, MCO, ADB, BHI, PFG, KIM, FRT, UNM, MET, FLS 4

NDX gainers:  INCY, ILMN, NVDA, WDC, BMRN, CTRP, AMZN, ALXN, CELG, ISRG, AMGN, BIIB, MYL 3
NDX losers:  NTES, STX, TRIP, MAR, VIAB, DISCA, AAL, MNST, MU, PCLN, EXPE, MDLZ 3

YTD:
SPX Leaders:  FCX, URBN, NEM, KORS, WYNN, PVH, EXC, SE, TSN, CPGX (277, > 10p 98)
SPX Losers: WMB, ESV, MPC, RCL, RIG, ADS, LNC, CF, MS, MCK,

NDX Leaders: FAST, MAT, PCAR, FISV, ORLY, CHTR, FB, AMAT, CA, PYPL (46,)
NDX Losers:  ENDP, VRTX, INCY, REGN, ALXN, TRIP, MU, ESRX, BMRN, NTES

DJI Leaders:  VZ, WMT, CAT, UNH, MMM, XOM, IBM, KO, CVX, JNJ (17,)
DJI Losers: GS, AXP, JPM, BA, DIS, INTC, PFE, V, DD, MSFT


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 at 95.7. 


51 of 100 NDX stocks closed higher and one was unchanged on Thursday.

79 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Monday:
Moving Above 30 DMA = 1
MYL

Moving Below 30 DMA = 7
AAL, CERN, COST, EXPE, NTES, STX, WFM


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

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