JPM, C, SPX Give Back Opening Gains...SPX Closes Slightly Higher...

Five of ten sectors moved higher on Friday …XLF, XLK and XLB were the strongest sectors while XLV was the weakest sector.  Oil futures fell 0.23 to close at 50.32.

For the week ended October 14 three of ten sectors moved higher,

XLU +1.34%, XLRE +1.22%, XLP +0.08%, XLK -0.52%, XLI -0.57%,

SPY -0.89%,

Lagging sectors XLF -1.02%, XLY -1.07%, XLB -1.15%, XLE -1.15%, XLRE -3.13%,

YTD 199

Leading Sectors: XLE +15.72%, XLK +10.60.08%, XLU +10.33%, XLI +7.9%, XLB +6.68%,

SPY +4.54%,

Lagging Sectors: XLP +3.72%, XLY +0.93%, XLF +0.36%, XLRE -0.06%, XLV -3.35%

Breadth strengthened as advancers led 1,516 to 1,494 on the NYSE and decliners led 1,441 to 1,350 on the NASDAQ.

Friday – strengthened, advancers led on the NYSE, +5

Thursday – weakened, decliners led, +4

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

Tuesday – weakened, decliners led, +0

Monday – strengthened, advancers led, +9

SPY up .11 at 213.01 on 93.3 million shares, 7% below average volume

VIX down .57 at 16.12

TLT down 1.87 at 131.59…on 11.4 million shares, 32% above average volume

Technical Commentary:

DIA +0.25%, QQQ +0.12%, SPY +0.05%, IWM -0.41%,

SPX opened higher following a positive earnings reaction in JPM, C and PNC.  Profit taking ensued after the open and SPX, JPM, C and PNC each closed near unchanged giving back the early morning gains.

CRM +3.64, +5.15% gained after indicated it won’t pursue a bid on TWTR -0.91, -5.12%.

SPX Leaders: CRM, WRK, LVLT, ADI, FSLR, CHK, IP, NLSN, GS, EXPE, ICE, ALLE, SCHW, DOV, FOSL, KEY, KHC, MU, ZION, BLK, XRAY

EPS Positive Reactions

DAL, CSX, COST, RHT, FDX, ADBE

EPS Negative Reactions

AA, FAST, ILMN, MU, 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: NVDA, LVS, WB, AAPL, ADBE, ADSK, AMZN, GOOG, LRCX, NCLH, NXPI, QCOM, SWKS, WDC, JPM, BAC, C, STI, ZION, MS, UAL, APA, RCL, CCL, CAVM, URBN, LITE, HA,

Bull Flag Bounces include: AKAM, CTRP, NFLX, GS, ETFC, SCHW, SOXL,

Horizontal Breakout Setups include: AAL, CSX, DISH, ISRG, DAL, SAVE, JBLU, FL, SCHN, SE, CHK,

Horizontal Breakout include: EXPE,

New Highs include: NTES, ULTA, LUV, ALK,

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Short-term Movers for the week:

SPX gainers:  HCA, KR, LUV, ALK, TSN, FSLR, CRM, AMT, CCI, PGR, +4, 11

SPX losers:  AA, BMY, COG, JNPR, FLS, GCI, HPQ, AMG, CF, FTR, URI, EQT, SWN, M, PKI, QRCO, MRO, DOV, KMI, CMG, FFIV, IFF, DLPH, SPLS, MOS, COP, MNK, R, EMR, RL, KSS, NWSA, BEN, ABT, RCL, PRGO, CI, MCHP, A, GT, AGN, FCX, GWW, STT, NAVI, LM, TEL, ABV, FITB, RIG, HAR, EMN, TMO, WMB, AMP, -4, 74

NDX gainers:  ULTA, NTES, AAPL, +4, 1

NDX losers:  ILMN, INCY, FAST, BMRN, VRTX, STX, BBBY, DISCA, WDC, AMAT, XLNX, ALXN, CELG, HSIC, MXIM, BIIB, REGN, SYMC, TRIP, YHOO, CSCO, -4, 21,

YTD: 199

SPX Leaders:  OKE, NEM, SWN, SE, URBN, RRC, XEC, PVH, PXD, CXO, (318, +5 > 10p 200, -18)

SPX Losers:  CF, PRGO, FSLR, SIG, GCI, RCL, HRB, BMY, AGN, KR,

NDX Leaders:  NVDA, AMAT, NTES, ULTA, CHTR, LLTC, QCOM, ISRG, NTAP, TXN (56, -7, >10p 38, -1)

NDX Losers:  ENDP, ALXN, SRCL, VRTX, NCLH, MYL, REGN, QVCA, LMCA, GILD

DJI Leaders:  CAT, MRK, JNJ, UNH, MMM, CVX, IBM, AAPL, WMT, PG, (21, +0, >10p 12, +1)

DJI Losers:  NKE, AXP, DIS, BA, GE, GS, HD, MCD, KO

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 38, defensive. 

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

31 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Monday:

Moving Above 30 DMA = 6

AVGO, INTC, KHC, LLTC, MSFT, SBAC

Moving Below 30 DMA = 2

INCY, WDC

6-month Intermediate Term Market Trend: Up

3-day Short Term Market Trend: Neutral