QQQ, FB, MSFT New All-time Closing High...

Eight of ten sectors moved higher on Monday …XLK, XLY and XLP were the strongest sectors while XLE was the weakest sector. XLK moved from neutral to up trending sector today.  Oil futures fell .51 to close at 50.49.

Breadth strengthened as advancers led 1,803 to 1,218 on the NYSE and led 1,649 to 1,089 on the NASDAQ.

Monday – strengthened, advancers led +8

Friday – strengthened, advancers led on the NYSE, +3

Thursday – weakened, decliners led, +1

Wednesday – weakened slightly, advancers led, +7

Tuesday – strengthened, advancers led, +10

SPY up .91 at 214.89 on 60.1 million shares, 35% below average volume

VIX down .32 at 13.02

TLT down .58 at 132.73…on 6.5 million shares, 20% below average volume

Technical Commentary:

QQQ +1.20%, IWM +0.64%, SPY +0.43%, DIA +0.41%,

SPX futures moved higher overnight and SPY opened higher and moved in a trading range finishing up 91 cents.   VIX closed lower and did confirm Monday’s higher close.   QQQ +1.42, +1.20% today made a new all-time closing high.  

The SPX/SPY three-month sideways trend improved with Monday’s close at the 61% level of its current range.

SPX Leaders: QRVO, NVDA, SYMC, ADS, GM, DMX, FOSL, AMAT, RAI, TXN, KMI, AMZN, JNPR, MSFT, IPG, COST, AVGO, ATVI, RL, AKAM, FBHS, SYF, MO, WHR, BWA, MNST, MCHP, DFS, XRX, WBA, CHTR, ADI, R, MTD, GOOG and WU

FB +1.21, +0.92% hits a new all-time closing high.

MSFT +1.34, +2.25% hits a new all-time closing high.

After the close:

SONC -2.99, -10.91% falls on weak guidance.

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.

Thus far the real determinate to market movement over the past two weeks has been the institutional reaction to earnings announcements.  NFLX on the upside and JNJ on the downside are just two examples.

Earnings Announcements

Monday – PCAR, SONC, TMUS, V, ZION

Tuesday – MMM, AKS, AKAM, AAPL, T, BHI, CMG, EW, ESRX, FCX, GM, JBLU, JNPR, KEY, LMT, P, PNRA, SKYW, SAVE, UA, VLO, VRTX, WHR,  

Wednesday – BA, KO, CMCSA, FFIV, GD, NEM, NXPI, ORLY, LUV, STT, TSLA, WDC,

Thursday – AET, GOOGL, MO, AMZN, AMGN, BIDU, BX, CA, CRUS, CLF, COP, DOW, EXPE, LNKD, POT, TWTR, UPS, VRSN,

Friday – XOM, PSX, RCL, UBS

EPS Positive Reactions

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

MCO, EBAY, TRV, LRCX, TSCO, INTC, ISRG, ST, JNJ, IBM, AA, FAST, ILMN, MU, PAYX, CCL

EPS Neutral Reactions

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.

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Strong Stocks: Setups and Moves You Can Use

Bull Flag Setups include: DISH, UAL, HAL, ULTA, WDC, CSX, LVS, STI, NXPI, DVN, RCL, APA, NFX, SE,

Bull Flag Bounces include: NTES, WB, AAPL, SWKS, FL, LITE,  

Horizontal Breakout Setups include: AMZN, CCL, MAT, ETFC, QCOM, SLCA, X, AKS, ZION, C, JPM, USB, CHK, DAL, DO, RIG, CTRP, NCLH, SCHW, ADSK, JBLU, SOXL, CAVM, WRK

Horizontal Breakouts include: ADBE, NVDA, HAS, JBLU, SOXL, MLM, WHR, STLD,

New Highs include: FB, AKAM, CE, GOOG, CMA, DPZ, SCHN, BAC, GS, EXPE, NFLX, LUV, SAVE, FSLR, ALK, AAL, MS,

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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 44, bullish. 

81 of 100 NDX stocks closed higher and one was unchanged on Monday.

55 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Tuesday:

Moving Above 30 DMA = 9

ADP, CA, COST, EA, FISV, INTU, KHC, ORLY, SYMC

Moving Below 30 DMA = 2

JD, LMCA

6-month Intermediate Term Market Trend: Up

3-day Short Term Market Trend: Up