Small Cap IWM Rises as Downward Momentum Slows in SPY, QQQ Following Jobs Report...FB Bounces...Airlines Take Off...Steel Stocks Rise...

Four of ten sectors moved higher on Friday …XLV, XLRE and XLB were the strongest sectors while XLP was the weakest sector.  Oil futures dropped .54 to close at 44.13, its lowest close since Sep. 19.

For the week ended November 4, all ten sectors moved lower.

XLB -0.71%, XLU -1.05 %, XLI -1.10%, XLF -1.42%, XLY -1.68%,

SPY -1.88%,

Lagging sectors XLV -1.92%, XLRE -1.93%, XLP -2.01%, XLE -2.31%, XLK -2.66%,

YTD 214

Leading Sectors: XLE +12.35%, XLU +10.79%, XLK +7.82%, XLB +6.86%, XLI +6.53%,

SPY +2.30%,

Lagging Sectors: XLP +2.22%, XLF +0.72%, XLY -1.83%, XLRE -4.77%, XLV -7.71%

Breadth strengthened as advancers led 1,539 to 1,455 on the NYSE and led 1,411 to 1,303 on the NASDAQ.

Friday – strengthened, advancers led, +4

Thursday – strengthened, decliners led, +4

Wednesday – weakened, decliners led, +0

Tuesday – weakened, decliners led, +1

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

SPY down .23 at 208.55 on 109.1 million shares, 23% above average volume

VIX up .43 at 22.51

TLT up 1.17 at 131.74…on 7.6 million shares, 3% below average volume

Technical Commentary:

IWM +0.64%, SPY -0.11%, DIA -0.22%, QQQ -0.35%,

Jobs report 161K new jobs vs. 178K forecast

SPX continued below 2,120, closes at 2,088

Bearish on the SPX below 2,115

VIX rises for ninth straight day

IWM positive

SPY and QQQ slowing downward momentum on Friday vs. Thursday

QQQ weakness in AMZN, AAPL and MSFT

FB rallies +0.63% following Thursday’s earnings reaction bearish gap

Airline stocks HA, UAL, DAL, SKYW, LUV, AAL, JBLU and SAVE take off on Friday.

Steel stocks ATI, AKS, X, NUE, SCHN and STLD were golden on Friday.

SPX Leaders: NRG, MHK, MSI, MTD, GCI, BHI, AA, CI, FOSL, AGN, AYI, AES, PRGO, FMC, FCX, HCP, CBS, ADSK, IR, HCA, BTR, MYL, DLR, NUE, HOLX, ENDP, UAL, VMC, DAL, HST, FAST, CMI, MNK and MLM

Earnings Announcements

Monday – CHKP, DO, SCTY, TSO,

Tuesday – ADM, COH, GILD, HRS, HLF, ILMN, MOS, NFX, NBL, PAYC, DATA, CAVM, VRSK, SQ, X

Wednesday – BABA, AIG, FB, FSLR, QCOM, HSIC, SHOP, FOXA, UVE, YELP, RIG, CAR

Thursday – DDD, APA, ATVI, CHTR, CI, CS, FOSL, LVS, LBTYA, MNST, SWKS, SBUX, SLCA, UBNT

Friday – MCHP,

EPS Positive Reactions

LVS, UBNT, SLCA, SBUX, MCHP, FOSL, CAR, RIG, DDD, YELP, SHOP, ABC, SQ, HSIC, ZTS, DVN, NBL, ANTM, ADP, EA, VRSK, ADM, HRS, MOS, CHKP, COH, TSO, 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

MNST, ATVI, FSLR, WYNN, CS, APA, FB, UVE, AIG, CHTR, PAYC, DATA, CAVM, BABA, X, GILD, HLF, ILMN, NFX, DO, SCTY, 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

SWKS, LBTYA, CI, QCOM, FOXA, 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.

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Strong Stocks: Setups and Moves You Can Use

Bull Flag Setups include: AKAM, CE, NFLX, CMA, GS, USB, JPM, BAC, C, MS, EXPE, RCL, HSY, NCLH, CCL, MSFT, PYPL, TMUS, WDC, NVDA, QCOM, MXIM, SAVE, VRSN, STI, HAS, ZION, DPZ, MDLZ,

Bull Flag Bounces include: STLD, MLM, SCHN,

Horizontal Breakout Setups include: AKS, NUE, X, STLD, SCHN, NEM, AAL, 

Horizontal Breakouts include: DAL, UAL, LUV, SQ,

New Highs include: DAL,

Horizontal Break of Support Setups include: CAVM, CMCSA, DLTR, PCAR, NTES,

Break of Support: DO, ATVI, ULTA, ALK, COST, AMZN, BBBY, BIDU, CERN, CTRP, JD, TSLA, 

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Short-term Movers for the week:

SPX gainers:  FMC, ADM, NRG, PDCO, NEM, DVA, XRAY, MLM, HOLX, HRS, MCK, ESS, MTD, NUE, HAR, NBL, HPQ, DBX, MSI, +4, 21

SPX losers:  CTL, FTR, PBI, FSLR, ZBH, FLR, HCP, LB, AA, MNK, OXY, CHD, SWN, AGN, CHK, NFX, EL, XEC, HBI, HES, APA, AN, RRC, XRX, EW, JCI, WYNN, AIG, DNB, PFE, PXD, VRSN, QRVO, PRGO, RIG, GPS, URBN, SE, VTR, JNPR, COP, CLX, HCN, LMT, LVLT, HRL, KIM, OI, APC, MJN, WY, COTY, JWN, IFF, BWA, MAC, TSO, LUK, URI, EQIX, EQT, AMG, -4, 87

NDX gainers:  TSCO, ESRX, HSIC, MAR, +4, 2

NDX losers:  ENDP, CERN, NTAP, SRCL, NTES, FB, WDC, SBAC, AMGN, BIDU, MNST, MYL, AKAM, ULTA, MDLZ, SYMC, CTRP, COST, EXPE, ALXN, JD, TSLA, GOOGL, HKC, TXN, AAPL, DISH, NVDA, BBBY, GOOG, REGN, MAT, -4, 32,

YTD: 214

SPX Leaders:  NEM, OKE, SE, FCX, ALB, HPE, PVH, URBN, CMI, MLM, (299, -13, > 10p 178, -18)

SPX Losers:  GCI, FSLR, PRGO, AGN, SIG, HRB, MCK, FTR, LB, ABC

NDX Leaders:  NVDA, AMAT, LLTC, CHTR, NTES, QCOM, TMUS, AKAM, ULTA, TXN, (55, -2, >10p 33, -3)

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

DJI Leaders:  CAT, UNH, CVX, WMT, JNJ, MRK, CSCO, IBM, MMM, XOM (18, -1, >10p 9, -0)

DJI Losers:  NKE, DIS, GE, HD, TRV, PFE, MCD, AXP, BA, 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 10, bearish. 

37 of 100 NDX stocks closed higher on Friday.

21 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Monday:

Moving Above 30 DMA = 2

CELG, TRIP

Moving Below 30 DMA = 6

MDLZ, NVDA, NXPI, QCOM, SYMC, WBA

6-month Intermediate Term Market Trend: Up

3-day Short Term Market Trend: Down