Five of ten sectors moved higher on Friday …XLI, XLP and XLU were the strongest
sectors while XLV was the weakest sector. Oil futures dropped .94 to close at 48.66.
For the week ended October 28 only four of ten sectors
moved higher,
XLU +0.96%,
XLP +0.42%, XLF +0.61%, XLI +0.19%, XLK
-0.19%,
SPY -0.67%,
Lagging sectors XLB -0. 70%, XLE -1.17%, XLY
-1.95%, XLV -2.77%, XLRE -3.39%,
YTD 209
Leading Sectors: XLE +15.00%, XLU +11.97%,
XLK +10.76%, XLI +7.72%,
XLB +7.62%, XLP +4.32%,
SPY +4.25%,
Lagging Sectors: XLF +2.17%, XLY -0.15%, XLRE
-2.89%, XLV -5.90%
Breadth strengthened as decliners led 1,799 to 1,212 on the NYSE and led 1,581 to 1,129
on the NASDAQ.
Friday
– strengthened, decliners led, +5
Thursday – weakened slightly, decliners led, +2
Wednesday – weakened slightly, advancers led, +4
Tuesday –
weakened, decliners led, +2
Monday – strengthened, advancers led +8
SPY down
.63 at 212.54 on 140.6 million shares, 63%
above average volume
VIX up
.83 at 16.19
TLT down
.29 at 130.45…on 7.5 million shares, 3% below average volume
Technical Commentary:
DIA -0.09%, %, IWM -0.28%, SPY
-0.30%, QQQ -0.63
The SPX/SPY
opened near Thursday’s low and move higher until about 1 pm ET when FBI announced that it was looking into additional
emails that it had found that could be related to the earlier Clinton
investigation. Within the next several minutes the SPX
dropped 20 points to the 2,120 area and VIX spiked over 17. At the 2,120 area buyers stepped up and the
SPX rallied ultimately closing at 2,126.
For
the seventh time since September 12, institutions bought at the SPX 2,120 value
area. SPY volume jumped from 77 million on Thursday to 140 million on
Friday which was 63% above average.
Five
sectors gained and while decliners led advancers on the
NYSE and NASDAQ, advancers increased
on both exchanges. More than 50 NDX
stocks were higher and more than half the SP500 moved higher on Friday.
Earning
winners and losers again dominated the largest gainers and losers on Friday. Winners included RCL, HBI, SRCL, HSY, EMN, VRSN, UBS, BIDU,
CRUS, EXPE, MO and CVX. Losers included AMZN, MCK, ABC, CAH, GT, ABBV, LM, COG, CA, AMGN, AET, LITE and XOM.
SPX Leaders: RCL, BHI, HBI, SRCL, HSY, EMN, VRSN, EW, LVLT, ORLY, SYK,
PBI, EXPE, CCL, KOR, TRIP and CVX
Institutional
activity continues to indicate that
last quarter’s trend on stock selectivity based
on quarterly results as opposed to industry or sector rotation is a primary driver of price action.
Institutional reaction to earnings
announcements continues
to be the
real determinate to market movement.
Earnings Announcements
Monday
– CHKP, DO, SCTY, TSO,
Tuesday – ADM, GILD, HRS, HLF, ILMN,
MOS, NFX, NBL, PAYC, DATA, CAVM
Wednesday – BABA, AIG, FB, FSLR, QCOM, HSIC, SHOP, FOXA, UVE,
YELP, RIG
Thursday – DDD, APA, CHTR, CS, FOSL,
LVS, LBTYA, MNST, PRAA, SWKS, SBUX, SLCA, UBNT
Friday – MCHP
EPS Positive Reactions
RCL, HBI,
SRCL, HSY, EMN, VRSN, UBS, BIDU, CRUS, EXPE, MO, CVX, FFIV, WDC, COP, DOW,
AKAM, JNPR, BA, NCR, OI, FLIR, ROL, TSS, LMT, KEY, FCX, VLO, BHI, SAVE, AKS,
TMUS, MCD, PYPL, MSFT, MXIM, AXP, SNA,
MAT, BK, STLD, WBA, ALK, URI, HAL, MS, USB, NFLX, HOG, UNH, GS, CE, DPZ, CMA,
UAL, HAS, DAL, CSX, COST, RHT, FDX, ADBE
EPS Negative Reactions
AMZN,
MCK, ABC, CAH, GT, ABBV, LM, COG, CA, AMGN, AET, LITE, XOM, CLF, ORLY, NEM,
POT, AAPL, EW, CMG, LUV, CMCSA, UA, P, WHR, PNRA, JBLU, GM, MMM, NLSN, WAT,
SHW, MAS, PNR, MCO, EBAY, TRV, LRCX, TSCO, INTC,
ISRG, ST, JNJ, IBM, AA, FAST, ILMN, MU, PAYX, CCL
EPS Neutral Reactions
GOOGL,
PSX, SKYW, BX, CA, TWTR, UPS, TSLA, MO, NXPI, STT, GD, KO, ESRX, VRTX, PCAR, AAL, NUE, XLNX, CTXS, LLTC, BAC, C, JPM, PNC
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.
______________________
Strong Stocks: Setups and Moves You Can Use
Bull Flag Setups include: MSFT, PYPL, MAT, CTXS, GOOGL, TMUS, DISH, TXN, MXIM,
NVDA, ULTA, SCHN, ALK, UAL, STI, ADBE, AKS, HAL
Bull Flag Bounces include: EXPE, ADSK, HAS, MLM,
Horizontal Breakout Setups include: WDC, VRSN, HAS, STLD, X, ZION,
C, JPM, DAL, AAL, BIDU, NCLH, TRIP, CAVM, CCL, QCOM, DO, RIG, SOXL, MDLZ, SRCL,
Horizontal Breakouts include: EXPE, DPZ, MDLZ, HSY
New Highs include: AKAM, EXPE, CE, NFLX, USB, BAC, GS, CMA, MS, NTES,
SAVE, NVDA, NFLX,
______________________
Short-term Movers for the week:
SPX gainers: LVLT, FFIV, JNPR, BHI, FLIR, OI, FCX, COP, KEY, CTL, EMN,
LMT, HSY, RCL, R, NOC, AA, PBI, BA, FLR, VLO, PFG, HBAN, TSS, SEE, CB, HBI, RSG,
+4, 35
SPX losers: GCI, MCK, UA, EW,
NLSN, ABC, CHK, SHW, NOV, LH, NRG, WAT, GT, CAH, SWN, CMG, WHR, DVA, NWSA, AVY,
AMP, DVN, TDC, LM, MUR, MAC, LUV, SLG, AGN, VAR, RRC, MAS, AYI, SPG, FOSL, CBG,
CXO, MRO, MHK, KIM, EFX, NWL, AN, RHI, ABBV, PNR, BXP, HOLX, O, HCA, GGP, ALLE,
A, LOW, OKE, CSRA, GLW, URI, HCP, LLY, ZTS, HES, CVS, HP, MJN, -4, 87
NDX gainers: AKAM, ALXN, WDC, MDLZ, SRCL, TMUS, CELG, NVDA, CHKP, +4, 9
NDX losers: AMGN, ESRX, CTRP, ENDP, PYPL, AMZN, TSCO, CA, ORLY, LMCA, EA,
-4, 11,
YTD: 209
SPX Leaders:
NEM, OKE, SE, FCX, URBN, ALB, XEC, SWN, HPE, PXD, (312, -9 > 10p 196, -4)
SPX Losers: GCI, PRGO, FSLR, MCK,
SIG, ABC, HRB, AGN, FOSL, RCL,
NDX Leaders:
NVDA, AMAT, NTES, LLTC, QCOM, CHTR, AKAM, ULTA, TXN, NTAP, (57, -2, >10p 36, -2)
NDX Losers: ENDP, VRTX, NCLH, REGN,
SRCL, QVCA, MYL, LMCA, ALXN, ILMN
DJI Leaders:
CAT, UNH, CVX, WMT, CSCO, JNJ, MRK, IBM, MMM, PG, (19, +0, >10p 9, -1)
DJI Losers: NKE, DIS, HD, GE, MCD, AXP, TRV, GS, KO, BA
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 down at
39, defensive.
53 of 100
NDX stocks closed higher and two were
unchanged on Friday.
38
NDX stocks are above their 30 DMA.
NDX Stocks to Watch on Monday:
Moving Above 30 DMA = 8
ADSK, CTSH, LVNTA, NCLH, PCLN, SRCL,
TRIP, WFM
Moving Below 30 DMA = 9
AVGO, COST, CSX, DISCA,
LRX, MU, SBUX, SWKS, TSLA
6-month Intermediate
Term Market Trend: Up
3-day Short Term Market
Trend: Down
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