Healthcare Stocks Make Gains as Oil Stocks Drop as Oil Falls...VIX Rises...

Three of nine sectors moved higher and two were unchanged on Monday …XLU, XLV and XLP were the strongest sectors while XLE was the weakest sector.  Oil futures dropped 1.73 to close at 47.39.  CL oil futures formed a bearish engulfing pattern suggesting a short-term pullback.

Breadth strengthened as advancers led 1,476 to 1,460 on the NYSE and led 1,386 to 1,156 on the NASDAQ.

Monday – strengthened, advancers led, +3

Friday – weakened, decliners led, +3

Thursday – strengthened, advancers led, +7

Wednesday – strengthened, advancers led on the NYSE, +6

Tuesday – weakened, decliners led, +1

SPY down .01 at 218.53 on 61.3 million shares, 0% above average volume

VIX up .93 at 12.27

TLT up 1.17 at 139.88…on 5.5 million shares, 16% below average volume

Technical Commentary:

IWM +0.23%, QQQ +0.08%, SPY -0.00%, DIA -0.11%,

Following a 16-day sideways range in July, SPY is finished its 12th day in a new sideways range of just 2.48.  Momentum has slowed down in the broad market as individual stocks continue to dominate since July 11. 

Big movers on Monday included healthcare stocks INCY, BMRN, REGN, ALXN, VRTX, CELG, HUM, ILMN and DVA. 

Monday’s other movers CF, WFM, HRL, MAT, VMC, CMG, CBG, SBUX, CBS, NAVI, HBAN, MLM, ALB, ETR and PSA.

Losers were led by oil stocks MRO, HAL, RIG, OKE, MUR, NFX, HP, DO, RRC, PXD, TSO, MPC, FTI, SWN, HES, BHI, KMI, COP, NOV, SLB and NBL.

IWM and QQQ moved higher while SPY and DIA continued to grind sideways. 

There are still a large number of bull flags in the broad market, look at your stock list for potential setups for bull flag price patterns.

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.

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:  AMBA, C, QQQ, GPRO, XLV, CBL, CHTR, JCP, SBAC, BXP, MSFT, XLF, TMUS, TWTR, CTRP, M, KSS, SBAC, ETFC, CERN, COST, KMX, AAPL, PCLN, IBM, VLO, CHK, URBN, WRK, MPC, WMB, AAL, DISCA, GRMN, KMI, JWN, RL, CAT, JD, ADBE,

Bull Flag Bounces include: NVDA, MAT, CBG, ORLY, ALXN, CELG,

Horizontal Breakout Setups include: ZION, TSN, ALXN, AVGO, INTC, TIF, PAYX, WDC, MAT, SPY, IWM, CCL, BAC, WFC, BX, HLT, HPE, NFLX, MRK, URI, JPM, STX, FAS, KHC, KMI, CELG, BIIB,

Horizontal Breakout include:

New Highs include: NTAP, LB, XLNX, AVGO, HRL, MS, SYMC, GS, SWKS, PCAR, AMAT, ROST, MU, JD, ADSK, STT, TIF, EA, ULTA, BURL, MAR,

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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 89, bullish.

48 of 100 NDX stocks closed higher and three were unchanged on Monday.

68 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Tuesday:

Moving Above 30 DMA = 3

BMRN, CSCO, REGN

Moving Below 30 DMA = 0

6-month Intermediate Term Market Trend: Up

3-day Short Term Market Trend: Neutral