OPEC Production Cut Coming in November? Market Acts So...Energy Stocks Lead SPX Rise...

Eight of ten sectors moved higher on Wednesday …XLE, XLB and XLI were the strongest sectors while XLV was the weakest sector.  Oil futures rose 2.23 to close at 47.16 as OPEC reaches deal to limit production in November.

Breadth strengthened as advancers led 2,308 to 753 on the NYSE and led 1,652 to 1,156 on the NASDAQ.

Wednesday – strengthened, advancers led, +8

Tuesday – strengthened, advancers led, +7

Monday – strengthened, advancers led, +1

Friday – weakened, decliners led, +1

Thursday – weakened slightly, advancers led, +10

SPY up 1.07 at 216.64 on 87.4 million shares, 2% below average volume

VIX down .71 at 12.39

TLT down .30 at 138.40…on 7.9 million shares, 4% above average volume

Technical Commentary:

IWM +0.77%, DIA +0.60%, SPY +0.50%, QQQ +0.17%,

SPY, QQQ and IWM bounced higher as reports of an OPEC production cut deal beginning in November circulated.  IWM gave a bull flag entry signal.  SPY and DIA continued their bounce that began on Tuesday and are rising to short-term horizontal support.

SPX leaders on Wednesday included energy stocks: MUR NOV, CHK, DVN, MRO, HP, DO, COP, APA, HES, NFX, RIG, EOG, CXO, XEC, APC, OKE, OXY, COG, NBL and HAL.

Leading NDX stocks on Tuesday included INCY, VIAB, EXPE, CA, PCAR, LMCA, DSICA, SRCL, AMZN, CTRP, CSX, LBTYA, FAS, SBAC, DIS, ADSK, CHKP and CTXS.

EPS Positive Reactions

RHT, FDX, ADBE

EPS Negative Reactions

PAYX, CCL

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: BIDU, TWTR, MA, ATVI, AMAT, NTES, BAC, URBN, DVA, FOSL, GILD, UAL,

Bull Flag Bounces include: IWM, APA, CHK, GT, CAVM, AKS, PCLN, LMCA, CSX, AAPL, SWKS, LVS, ZION, RL, ETFC, SYMC,

Horizontal Breakout Setups include: QQQ, ADSK, BABA, NUE, NUE, STLD, ATI, ISRG, PYPL, MU, QCOM, INTC, FL, JD, FB, NTAP, TXN, ROST, CHTR, REGN, ULTA, BURL, SINA, WRK, SCHW, JPM, WMB, SE, STT, CCL, NCLH, RCL

Horizontal Breakout include: SCHN, X, STLD, CTRP,

New Highs include: AMZN, NVDA, ISRG, STX, LITE, TWLO, CSX, WDC, EA,

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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 pointed up at 64, bullish. 

55 of 100 NDX stocks closed higher on Wednesday.

63 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Thursday:

Moving Above 30 DMA = 7

CTXS, FOXA, LRCX, MDLZ, PCAR, SBAC, SIRI,

Moving Below 30 DMA = 3

ADP, GILD, PAYX,

6-month Intermediate Term Market Trend: Up

3-day Short Term Market Trend: Neutral