SPY, DIA, IWM, QQQ, XLB, XLF, XLI, XLK and XLV Finish Third Week of Rally Strong...Earnings Heat Up Next Week...

Two of nine sectors moved higher and one was unchanged on Friday …XLB, XLU and XLP were the strongest sectors while XLY was the weakest sector.  Oil futures rose .78 to close at 46.28.

For the week ended July 15,

XLB +3.88%, XLF +2.62%, XLI +2.55%, XLE +2.24%, XLK +1.99%,

SPY +1.50%,

Lagging sectors XLV +0.53%, XLY +0.45%, XLP +0.023%, XLU -1.03%,

YTD 135

Leading Sectors: XLU +20.15%, XLE +14.77%, XLB +12.34%, XLI +10.71%, XLP +10.32%,

SPY +5.87%,
Lagging Sectors: XLK +5.09%, XLY +3.61%, XLV +2.85%, XLF -1.30%, 

Breadth weakened as advancers led 1,615 to 1,359 on the NYSE and led 1,405 to 1,165 on the NASDAQ.

Friday – weakened, advancers led, +2

Thursday – strengthened, advancers led, +7

Wednesday – weakened, decliners led, +5

Tuesday – strengthened, advancers led, +7

Monday – weakened, advancers led, +7

SPY down .29 at 215.83 on 107.1 million shares, average volume

VIX down .15 at 12.67

TLT down 1.20 at 138.39…on 9.9 million shares, 6% above average volume

Technical Commentary:

IWM +0.28%, DIA -0.04%, SPY -0.13%, QQQ -0.16%,

DIA new all-time high weekly close

SPY new all-time high weekly close

XLI new all-time high weekly close

XLY new all-time high weekly close

XLP new all-time high weekly close

XLK new 15-year high weekly close

XLU bull flag from recent new all-time high

XLB new 52-week close high

XLE and XLV are near 52-week highs.  Relative to its 52-week high XLF is the laggard.

SPY, DIA, IWM, QQQ, XLB, XLF, XLI, XLK and XLV finish third week of rally strong.

Friday’s pause/pullback day increased the number of nice looking bull flag patterns.  See our list below.

It’s time to 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.

Monday starts Week Two of Earnings Season and includes: STLD, IBM, INTC, UNH, MAT, LMT, DHI, MSFT, TRV, AXP, JNJ, V, SYK, NUE, SWN, SWKS, AAL, GE

Earning’s Announcements:

Positive Reactions: USB

Negative Reactions: C, PNC, WFC

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:  ATVI, KHC, LRCX, MAR, NTES, NVDA, NXPI, PCLN, QCOM, STX, WDC, VIAB, CCI, CMS, KIM, NI, PNW, VTR, ADP, AMZN, CA, CMCSA, CSX, DLTR, EA, FB, FISV, INTU, JD, MAT, MDLZ, NCLH, NTAP, ORLY, PAYX, PYPL, TRIP, TSLA, AWK, BCR, DLR, EIX, NEE, WEC, GPRO, IRM, EQR, O, SWN, IRM, CCL, RCL, FOSL, DVN, BXP, AIV, CINF, EW,

Bull Flag Bounces include:  CNP, BIIB, REGN, VRTX,

Horizontal Breakout Setups include: BMRN, NEM, SBUX, UNH, HCN, RIG, SE, ADSK, AKAM, CTXS, ROST, SWKS, TMUS, AES, OKE, CF, NFX, UDR, CBG, URI

Horizontal Breakout include: 

New Highs include: AAL, ADI, AMAT, COST, CSCO, ESRX, EXPE, INTC, MNST, MSFT, TMUS, TXN, VRSK, ULTA, AA, CBL, CPA, X, NUE, SCHN, STLD, LMT, MAC, JNJ, GGP, DHI, SPG, ATI, SYK, CVX, AMBA, GPS, NKE, CERN, MLM, KMX

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Short-term Movers:

SPX gainers:  FCX, UAL, KMI, MOS, WMB, AA, CF, WRK, LNC, LM, NAVI, MET, ALK, RF, GS, FITB, LVLT, SIG, DAL, VZ, STT, MCO, NUE, LUV, FG, IP, SPGI, MS, HBAN, ADS, QRVO, FLS, RL, AMP, PBI, HPQ, NSC, PRU, MAS, HAR, CFG, C, ETFC, KEY, DO, DD, NWSA, DOW, COF, EMR, CMA, R, ZION, FMC, BHI, SCHW, +5, 64

SPX losers:  TAP, CHRW, DLR, FOSL, KR, ES, BCR, LNT,, DG, EQT, EQIX, RRC, BLL, PSA, CBS, AW, SCG, CCI, CTAS, ESS, PNW, -2, 26

NDX gainers:  STX, AAL, CSX, SWKS, EBAY, LBTYA, CTRP, AMAT, LVNTA, NTES, ILMN, ADSK, EXPE, WDC, PYPL, LRCX, ADI, MU, +4, 18

NDX losers:  FAST, ORLY, CHKP, DISCA, INCY, CELG, NCLH, VIAB, -2, 8,

YTD: 135

SPX Leaders:  NEM, OKE, FCX, SWN, RRC, SE, ALB, IRM, EQT, MLM (340, +16 > 10p 237, +18)

SPX Losers:  PRGO, CF, RCL, MPC, VLO, TSO, FSLR, LB, HRB, SIG

NDX Leaders:  NVDA, AMAT, ULTA, CHTR, ISRG, DLTR, KHC, MAT, FISV, CA (54, +1, >10p 22, -3)

NDX Losers:  ENDP, LMCA, ALXN, JD, REGN, NCLH, VRTX, LBTYA, INCY, ILMN

DJI Leaders:  XOM, VZ, MMM, WMT, UNH, JNJ, CVX, CAT, IBM, PFE (22, +3)

DJI Losers:  GS, BA, AXP, NKE, AAPL, DIS, MSFT, JPM


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 in the upper zone at 96, bullish.

35 of 100 NDX stocks closed higher and two were unchanged on Friday.

88 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Monday:

Moving Above 30 DMA = 3

CELG, REGN, VRTX

Moving Below 30 DMA = 2

BIDU, DISH 

6-month Intermediate Term Market Trend: Up

3-day Short Term Market Trend: Up