As Summer Begins...Bonds Cool Off and Stocks Heat Up...Futures Gain, VIX Falls, Oil Continues Bounce...SPY Green Line Turns Up...

Eight of nine sectors moved higher on Monday …XLI, XLY and XLE were the strongest sectors while XLU was the weakest sector.  Oil futures rose .98 to close at 49.84.

Breadth strengthened as advancers led 2,344 to 703 on the NYSE and led 1,892 to 691 on the NASDAQ.

Monday – strengthened, advancers led, +8

Friday – strengthened, advancers led on the NYSE, +4

Thursday – weakened, decliners led, +8

Wednesday – strengthened, advancers led, +4

Tuesday – strengthened, decliners led, +5

SPY up 1.33 at 207.85 on 82.7 million shares, average volume

VIX down 1.04 at 18.37

TLT down 1.45 at 134.16…on 8.47.3 million shares, 10% above average volume

Technical Commentary:

IWM +1.09%, DIA +0.73%, SPY +0.64%, QQQ +0.63%,

Summer began with first Asian stocks, then European stocks and finally U.S. stocks all making strong gains.  Bonds TLT and VIX fell on Monday.  All in front of the Brexit vote on Thursday. 

Oil rose for the second straight day gaining almost 80% of its move down over the prior six days.  Energy stocks MRO, SWN, MUR, DVN, TSO, CHK, MPC, EOG and APA were among SPX leaders.

NDX +25.78 was led by point gains in AMZN, INTC, PCLN, ADBE, BIDU, CTSH, EBAY, AMGN, ADP, FB and GOOG. 

The SPY MFC green line turned up today, generally a good indication it’s time to go long in the short-term.

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:  UNH, JNJ, CSCO, XRX, WDC, FISV, AVGO, AMZN, CMCSA, ESRX, INCY, MDLZ, WBA, IRM,

Bull Flag Bounces include: SPY, IWM, SWN, NUE, STLD, AKS, SCHW, AMAT, DISH, EA, INTC, PAYX, PCLN, MUS,

Horizontal Breakout Setups include: LRCX, WRK, SCHN, SE, OKE, MAT, EQT, WMB, HPE, CSX, RIG, CHK, RRC, CVX, CAT, IBM, WYNN, NOV, DVN, MU, STX, LB, XOM, WYNN, NVDA, ULTA, CA, VIAB, MNST, ATVI, NFLX, ROST, TXN,

Horizontal Breakout include: ADP, DLTR, X, GPS

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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 SPY MFC green line is turned up at 54, bullish.

86 of 100 NDX stocks closed higher on Monday.

65 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Tuesday:

Moving Above 30 DMA = 24

ADBE, ADI, AMZN, ATVI, CMCSA, CTSH, CTXS, EBAY, FISV, FOXA, HSIC, LLTC, MAR, MXIM, NTES, ORLY, SBAC, SBUX, SIRI, SWKS, TMUS, TSLA, VRSK, YHOO

Moving Below 30 DMA = 1

ESRX

6-month Intermediate Term Market Trend: Neutral

3-day Short Term Market Trend: Up