Friday, July 22, 2016

SPY Another New All-time Closing High...

All nine sectors moved higher on FridayXLU, XLF and XLK were the strongest sectors while XLI was the weakest sector.  Oil futures fell .28 to close at 44.26.

For the week ended July 22,
XLK +1.82%, XLU +1.46%, XLV +1.23%, XLY +0.77%, XLF +0.68%,
SPY +0.65%,
Lagging sectors XLB -0.25%, XLP -0.36%, XLI -0.68%, XLE -1.31%,

For the week money rotated into YTD laggards XLK technology, XLV healthcare, XLY discretionary, XLF financials and YTD leader XLU utilities.  Money rotated out of YTD leaders XLE energy, XLI industrials, XLP staples and XLB materials.

YTD 140
Leading Sectors: XLU +21.90%, XLE +13.26%, XLB +12.07%, XLI +9.96%, XLP +9.92%, XLK +7.00%,
SPY +6.56%,

Lagging Sectors: XLY +4.40%, XLV +4.11%, XLF -0.63%, 


Breadth strengthened as advancers led 1,958 to 996 on the NYSE and led 1,673 to 915 on the NASDAQ.

Friday – strengthened, advancers led, +9
Thursday – weakened, decliners led, +2
Wednesday – strengthened, advancers led, +6
Tuesday – weakened, decliners led, +2
Monday – strengthened, advancers led, +7

SPY up .98 at 217.24 on 62.7 million shares, 39% below average volume
VIX down .72 at 12.02
TLT up .24 at 138.80…on 5.8 million shares, 37% below average volume


Technical Commentary:
IWM +0.74%, SPY +0.45%, QQQ +0.42%, DIA +0.23%,

SPY, DIA, QQQ and IWM bounce on Friday.  DIA rose with 22 of 30 stocks moving higher with strong stocks V, MSFT, AXP, VZ, INTC, IBM, DD and MCD leading gainers. 

Chart Signals is about helping traders see entry and exit points on charts.  Too many traders trade what they think or what they hear.  They don’t seem to understand that basic life concepts like “talk is cheap” or “actions speak louder than words” apply to trading the markets.

For all practical purposes the noise in the markets in infinite.  Notwithstanding the immense level of noise that exits the signal exerts itself in a stock chart through the trend or direction of trading.


Consider moving up stops on short term bullish trades that could pull back.  All according to your profit protection rules.

Remember breakouts typically test about 70% of the time.

Earning’s Announcements:
Positive Reactions: AMD, SWN, CMG, SWK, AAL, WHR
Negative Reactions: SWKS, PYPL, SYK, HON, STI 

Earnings Reactions
AMD +0.62, +11.88%
SWN +1.26, +9.54%
CMG +24.41, +5.84%
SWK +5.52, +4.80%
AAL +1.40, +4.00%
QCOM +1.22, +2.04%
SWKS -6.11, -8.62%
PYPL -2.71, -6.75%
SYK -5.53, -4.51%
HON -3.05, -2.57%
STI -0.77, -1.78%

Technical analysis based trades should be closed before earnings. After-hours

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:  AA, KIM, GPRO, SCHN, ADI, AMAT, COST, LMT, AMBA, JD, ESRX, OKE, NKE, BCR, AIV, MDLZ, EA, KHC, INTU, CF, NFX, ATVI, MAT, NCLH, PAYX, DVN, CINF, CVX, NKE, NUE, STLD, PCLN, FISV, CCL, ORLY, CSX, FB, LRCX, TSLA, NTES,

Bull Flag Bounces include: SWN, X, EQR, ATI, NEM, O, AES, MNST, AAL, INTC, MSFT, TMUS, CCI, AWK, CMCSA, NEE, WDC, CA, NI, PNW, EIX, VRSK, ADP, TRIP,

Horizontal Breakout Setups include: SWN, MAR, CMS, VIAB, WEC, X, NE, AES, MNST, AAL, MSFT, NI, VRSK, TRIP, NXPI, DLTR, AKAM, VTR, BMRN, UNH, SE, ADSK, UDR, SBUX, EW, N, AMZN, IRM, RCL,

Horizontal Breakout include:  SPG, NVDA, NTAP, CNP, CTXS,


New Highs include: EBAY, URI, KMX, QCOM, BIIB, GGP, HCN, STX, GPS, JNJ, CBL, REGN, ROST, CSCO, EXPE, TXN, ULTA, CPA, MAC, DHI, CERN, MLM, BXP, CBG,

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Short-term Movers:
SPX gainers:  CHK, URI, CI, HUM, CTAS, CMG, ADS, SWN, PHM, WHR, MNK, ANTM, TYC, FFIV, CNC, HST, CBG, BAC, SLB, KMX, JCI, GPS, GM, CSRA, SCHW, HOG, CMA, RHI, TSN, , +4, 40
SPX losers:  LUV, DO, MUR, CF, MRO, NUE, RIG, APA, HAS, GWW, HP, COP, HES, CPB, NFL, FTI, RRC, NOV, NRG, OKE, SYK, SHW, -4, 24

NDX gainers:  EBAY, QCOM, BIIB, STX, NXPI, LMCA, MSFT, LVNTA, NTAP, REGN, CELG, YHOO, VRTX, +4, 13

NDX losers:  NFLX, PYPL, SWKS, FOXA, FAST, SYMC, -2, 6, 

YTD: 140
SPX Leaders:  NEM, SWN, FCX, OKE, RRC, SE, IRM, ALB, MLM, EQT (346, +6 > 10p 246, +9)
SPX Losers:  CF, PRGO, VLO, HRB, TSO, RCL, SIG, FLSR, MPC, LB

NDX Leaders:  NVDA, AMAT, ULTA, CHTR, ISRG, DLTR, QCOM, KHC, FISV, MAT (59, +5, >10p 32, +10)
NDX Losers:  ENDP, LMCA, ALXN, JD, NCLH, REGN, LBTYA, VRTX, NFLX, ILMN

DJI Leaders:  UNH, JNJ, VZ, XOM, WMT, MMM, IBM, CVX, CAT, PFE (23, +1)
DJI Losers:  GS, NKE, BA, AXP, DIS, AAPL, JPM


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 in the upper zone at 96, bullish.

76 of 100 NDX stocks closed higher on Friday.

92 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Monday:
Moving Above 30 DMA = 4
CHKP, DISCA, EA, VOD

Moving Below 30 DMA = 0



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

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