SPY Breakout to New High Close...Energy, Materials and Small Caps Lead as Oil Nears $50...RIG, CHK, HP, CF, NOV, DO, BHI Surge...

Eight of nine sectors moved higher on Monday…XLE, XLB and XLI were the strongest sectors while XLU was the weakest sector.  Oil futures rose .81 to close at 49.71.

Breadth strengthened as advancers led 2,125 to 920 on the NYSE and led 1,829 to 781 on the NASDAQ.

Monday – strengthened, advancers led, +8

Friday – weakened, advancers led on NYSE, +3

Thursday – weakened slightly, advancers led, +7

Wednesday – strengthened, advancers led, +7

Tuesday – weakened, advancers led, +3

SPY up 1.07 at 211.35 on 64.8 million shares, 18% below average volume

VIX up .18 at 13.65

TLT down .99 at 132.24…on 7.5 million shares, 8% above average volume

Technical Commentary:

IWM +1.08%, DIA +0.63%, SPY +0.51%, QQQ +0.36%,

IWM led the broad indexes on Monday, it was SPY that made a new all-time high close helped by rising energy, materials, industrial and financial stocks.

Rising oil prices sent energy stocks higher leading all sectors while RIG, CHK, HP, NOV, DO, BHI, MRO, SWN, HAL, SLB, DVN, RRC, NBL and APC were leading SPX stocks on Monday.

TRIP, MYL, PCLN and WFM were NDX leaders.

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:  ADBE, AKAM, BIDU, MSFT, NFLX, NTES, NVDA, QCOM, TSCO, NXPI, GOOG, WFC, XLF, MLM, AMAT, CSCO, CTXS, MAT, XLNX, EQT, MAT, AXP, BAC, C,

ADP, ADSK, ATVI, CERN, CTRP, FB, ORLY, TSLA,

Bull Flag Bounces include: AMD, AAPL, VOD, STI, JPM, FAS, ALB, EQIX, OKE, EQT, XEC, MS,

Horizontal Breakout Setups include: CHK, SCTY, XLB, STLD, ULTA,

GLPI, STLD, SCHN, X, TXN, FTNT, WM, RRC, SWKS, CERN, WYNN, KHC, COST, UTX, ADSK, ADP, PCAR, CLR, EA, BSX, YELP, RSPP, WRK, CRZO, FLIR, CTXS

Horizontal Breakout include: SPY, DIA, XLI, ESV, NBR, RDC, RES, PTEN, JUNO, HP, SPN, BBBY, FISV, FMC, X, MOS, ZION, RRC,

New Highs include: JEC, AMZN, WWAV, CNP, SWN, JNJ, WMB, OKE

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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 pointed up at 93, bullish.

63 of 100 NDX stocks closed higher and one was unchanged on Monday.

80 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Tuesday:

Moving Above 30 DMA = 7

ADP, BBBY, CTRP, FOXA, GILD, LVNTA, YHOO

Moving Below 30 DMA = 1                                                                        

FAST

6-month Intermediate Term Market Trend: Neutral

3-day Short Term Market Trend: Up