Tuesday, April 26, 2016

SPY, DIA Continue Day 3 Bull Flag...

Four of nine sectors moved higher on MondayXLP, XLU and XLY were the strongest sectors while XLE was the weakest sector.  Oil futures fell .76 to close at 42.99

Breadth weakened as decliners led 2.02 to 1 on the NYSE and 1.62 to 1 on the NASDAQ.

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


SPY down .36 at 208.61 on 66.1 million shares, 21% below average volume
VIX up .86 at 14.08
TLT down .53 at 127.83…on 5.5 million shares, 14% below average volume


Technical Commentary:
IWM +0.99%, DIA +0.11%, SPY 0.00%, QQQ -1.51%,

SPY and DIA are in day three of a bull flag price pattern and both formed a hammer candle pattern on Monday.  Watch for a bounce as soon as Tuesday.

Wall Street continued to react to earnings in a mixed way.  LH had a positive earnings reaction while XRX reacted negatively.


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:  SPY, DIA, CTXS, TSCO, XLB, XLI, XLY, UA, GM, SLB, DFS, UNP, RIG, ISRG, CTRP, AXP, CAT, HD, JNJ, MMM, WMT, ADBE, AMZN, ATVI, BIDU, CMCSA, JD, MDLZ, NVDA, PCAR, PCLN, TSLA, TXN, ULTA, VOD,
Bull Flag Bounces include: ULTA,

Horizontal Breakout Setups include: CSX, ADSK, NBL, SKX, MXIM, QCOM, WDC

Horizontal Breakout include: DISH

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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 88. 


50 of 100 NDX stocks closed higher on Monday.

52 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Tuesday:
Moving Above 30 DMA = 2
CHTR, LVNTA

Moving Below 30 DMA = 8
ADI, BBBY, CTSH, DISCA, DLTR, EBAY, JD, MYL

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

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