Monday, November 7, 2016

SPX Posts Largest One-day Rally in 2016...Positive Earnings Reactions SYY, FDC, RACE, CTSH, PCLN...

All ten sectors moved higher on MondayXLV, XLF and XLI were the strongest sectors while XLU was the weakest sector.  Oil futures rose .82 to close at 44.95.


Breadth strengthened as advancers led 2,491 to 551 on the NYSE and led 2,223 to 543 on the NASDAQ.

Monday – strengthened, advancers led, +10
Friday – strengthened, advancers led, +4
Thursday – strengthened, decliners led, +4
Wednesday – weakened, decliners led, +0
Tuesday – weakened, decliners led, +1


SPY up 4.60 at 213.15 on 109.7 million shares, 23% above average volume
VIX down 3.80 at 18.71
TLT down 1.12 at 130.62…on 5.3 million shares, 31% below average volume

Technical Commentary:
IWM +2.45%, QQQ +2.38%, SPY +2.21%, DIA +2.04%,

SPX rose 46 points to 2,131, back in its Sep 9 to Oct 31 trading range
Neutral on the SPX above 2,115
VIX falls below Friday’s low
IWM leads
SPY largest daily gain for 2016, as uncertainty over email investigation is removed
IWM, QQQ, SPY, DIA reversal to strong upward momentum
NDX point leaders AMZN, MSFT, AAPL, GOOG, INTC, BIIB, CSCO, FBL CELG, PCLN, AMGN, MDLZ, QCOM and SBUX
FB rallies +1.16% following Thursday’s earnings reaction bearish gap
SPX 486 of 500 stocks rise

Airline stocks JBLU, AAL, VA, ALK, HA, DAL, LUV, SKYW, UAL and SAVE fly high on Monday.

Steel stocks X, AKS, STLD, NUE, SCHN and ATI, continue to shine on Monday.


SPX Leaders: SYY, REGN, BIIB, SWN, CNC, HCA, ROK, GCI, NVDA, URI, NTAP, VRTX, FOSL, CTSH, ABBV, STX, RRC, HPE, CMI, WDC, GPS, ENDP, SPLS, SCHW, MYL, HUM, AAL, TIF, TXT, PH, LUK, RF, MU, MNK, DVN, DLPH, KSU, STZ, AMZN and FSLR


Monday’s earning winners included SYY, FDC, RACE, CTSH and PCLN. 


EPS Positive Reactions
SYY, FDC, RACE, CTSH, PCLN, 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, RCL, NCLH, PYPL, SAVE, NEM,

Bull Flag Bounces include: NVDA, WDC, CE, NFLX, MDLZ, QCOM, MXIM, CMA, GS, USB, JPM, BAC, C, MS, ZION, VRSN, STI, HAS, EXPE, TMUS, MSFT, HSY, CCL, NTES, DPZ,

Horizontal Breakout Setups include: X, SCHN, MS, JPM, BAC, USB, CE, AAL, LUV, PCAR, CMA, ALK, C, AMZN, ZION, STI, MXIM, TMUS, CCL, DPZ,

Horizontal Breakouts include: GS, STLD, MLM, AKS, NUE, AAL,

New Highs include: DAL, UAL, CC, SQ,

Horizontal Break of Support Setups include: CAVM, CMCSA, DLTR, ULTA, JD, TSLA, CTRP,


Break of Support: DO, ATVI, COST, AMZN, BBBY, BIDU, CERN, 

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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 turned up at 16, bullish

94 of 100 NDX stocks closed higher on Monday.

45 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Tuesday:
Moving Above 30 DMA = 25
ADBE, ADSK, AMAT, CSCO, CTXS, ESRX, FAST, FISV, HSIC, INCY, LRCX, MDLZ, MU, MXIM, NVDA, PCLN, QCOM, SBUX, SIRI, SWKS, VIAB, VRTX, WBA, WDC, XLNX, 

Moving Below 30 DMA = 1
ALXN,  

6-month Intermediate Term Market Trend: Up
3-day Short Term Market Trend: Up

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