QQQ New All-time High...SPY Grinds Sideways as Energy Stocks Sell Off...

Five of nine sectors moved higher on Monday …XLV, XLK and XLY were the strongest sectors while XLE was the weakest sector.  Oil futures fell 1.30 to close at 40.08.

Breadth weakened as decliners led 1,761 to 1,209 on the NYSE and advancers led 1,313 to 1,283 on the NASDAQ.

Monday – weakened, decliners led on NYSE, +5

Friday – strengthened, advancers led on NYSE, +6

Thursday – mixed, advancers led on NYSE, +6

Wednesday – weakened, advancers led on NASDAQ, +3

Tuesday – strengthened, advancers led, +5

SPY down .18 at 216.94 on 73.3 million shares, 22% below average volume

VIX up .57 at 12.44

TLT down 1.79 at 139.77…on 9.8 million shares, 6% above average volume

Technical Commentary:

QQQ +0.53%, IWM +0.08%, SPY -0.08%, DIA -0.14%,

SPY continued in its 13-day sideways trend while QQQ closed at a new high.

QQQ made a new all-time closing high on the strength of health-care and leading stocks:  BIIB, ALXN, ILMN, CELG, REGN, GILD, AMGN and VRTX.

Energy stocks led the SPX with 25 of the weakest 30 SPX stocks were energy related stocks including:  DO, RIG, MUR, DVN, CHK, WMB, MRO, SWN, APA, CXO, AP, FTI, NFX, HES, BHI, OKE, COG, KMI, XEC, NBL, EOG, XOM, CVX, PXD and HAL.

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.

Earnings Reactions

DO -1.74, -7.66%

VMC -7.67, -6.19%

Earning’s Announcements:

Positive Reactions: MAC,

Negative Reactions: DO, VMC, 

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:  FB, AVGO, MXIM, TXN, NTAP, EBAY, LMT, CBG, CSCO, LRCX, ADI, NTES, MU, BA, ROST, GPS, BX, EW, EXPE, PAYX, CNP, NKE, AES, CMG, INTU, DHI, UA, SBUX, CSX, ESRX, CF, URI, QCOM, MLM, ZION, AMAT, JBLU, CINF,

Bull Flag Bounces include: AMBA, HLT,

Horizontal Breakout Setups include: AIV, GGP, SPG, KSS, PCLN, MSFT, COST, JNJ, CCI, UNH, AAL, CTXS, MNST, XLB, SCHN, STLD, JD, AA, NUE, SWN, NCLH, TRIP, IRM, CCL,

Horizontal Breakout include: HCN, TSN,

New Highs include: GRMN, STT, TSN, BMRN, BIIB, BXP, ADSK, REGN, CPA, MAC, DLTR, TJX, LB, WHR, BURL, NVDA, KMX, STX, CERN, ULTA, BIIB, ORLY, X, CBL

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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 96, bullish.

51 of 100 NDX stocks closed higher on Monday.

80 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Tuesday:

Moving Above 30 DMA = 3

BIDU, CTSH, NFLX

Moving Below 30 DMA = 0

6-month Intermediate Term Market Trend: Up

3-day Short Term Market Trend: Neutral