Oil Breaks Above 50...Energy Leads as SPY Continues Sideways Day 22...AA to Report Before the Open...

Nine of ten sectors moved higher and one was unchanged on Monday …XLE, XLU and XLK were the strongest sectors while XLP was the weakest sector.  Oil futures reversed Friday’s pullback and rose +1.61 to close at 51.16.

Breadth strengthened as advancers led 2,158 to 845 on the NYSE and led 1,959 to 832 on the NASDAQ.

Monday – strengthened, advancers led, +9

Friday – weakened, decliners led, +0

Thursday – weakened, decliners led, +7

Wednesday – strengthened, advancers led, +7

Tuesday – weakened, decliners led, +1

SPY up 1.12 at 216.16 on 51.6 million shares, 47% below average volume

VIX down .10 at 13.38

TLT down .79 at 133.13…on 6.0 million shares, 28% below average volume

Technical Commentary:

IWM +1.20%, QQQ +0.63%, SPY +0.52%, DIA +0.49%,

QQQ closes at a new high, while IWM leads with a bull flag bounce.  SPY continues to grind sideways with day 22 of its symmetrical triangle.

QQQ horizontal breakout setup close at Sep 22 high 119.22

IWM bull flag bounce

SPY, DIA symmetrical triangle setup

AA kicks of the Q3 earnings season on Tuesday, October 11 before the market opens.  This is the last earnings report before the company spinoff it raw aluminum operation under the name Alcoa and change the parent company name to Arconic on Nov. 1   AA completed a 1 for 3 reverse stock split on Thursday.

EPS Positive Reactions

COST, RHT, FDX, ADBE

EPS Negative Reactions

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: TRIP, EA, JD, APA, NVDA, WDC, STX, AKAM, HA, RCL, PCAR, SYMC, NUE, X, STLD, SCHN, GPRO, BIDU, CHTR, AMBA, PYPL, ATVI, HA, NFLX, PCLN, QCOM,

Bull Flag Bounces include: WB, IWM, SINA, UAL, AKS, ISRG, ADBE, LVS

Horizontal Breakout Setups include: QQQ, NCLH, EXPE, BAC, AAL, FB, AAPL, BABA, INTC, FL, SCHN, NTAP, TXN, ATI, GT, CAVM, WMB, SE, LMCA, URBN, FOSL, ADSK, RL, ULTA, CHK, MU,

Horizontal Breakout include: NTES

New Highs include: LRCX, WB, NTES, JPM, C, SWKS, NTES, LITE, AMZN, ILMN, ADSK, SCHW, ZION, BAC, MA, CSX, NXPI, STT, ETFC, INTC, 

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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 60, bullish. 

68 of 100 NDX stocks closed higher on Monday.

52 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Tuesday:

Moving Above 30 DMA = 4

CMCSA, ENDP, HSIC, YHOO

Moving Below 30 DMA = 3

BBBY, MXIM, SIRI,

6-month Intermediate Term Market Trend: Up

3-day Short Term Market Trend: Neutral