Thursday, December 15, 2016

Financials Lead Broad Market Rebound Following FOMC Pullback on Wednesday...Bull Flags Bounce...


Sector Trend Strength:
Up Trend: XLF, XLI, XLB, XLY, XLE, XLK
Sideways: XLV, XLRE, XLP
Down Trend: XLU

Breadth strengthened as advancers  led 1,712 to 1,333 on the NYSE and led 1,693 to 1,109 on the NASDAQ.

Thursday – strengthened, advancers led, +8
Wednesday – weakened, decliners led, +0
Tuesday – strengthened, advancers led, +8
Monday – weakened, decliners led, +5
Friday – weakened, advancers led on NASDAQ, +9


SPY up .93 at 226.81 on 121.7 million shares, 27% above average volume
VIX down .40 at 12.79
TLT up .59 at 117.41…on 12.3 million shares, 5% above average volume

Technical Commentary:
IWM +0.75%, SPY +0.41%, DIA +0.26%, QQQ +0.16%,

After Wednesday’s post FOMC announcement pull back, the financial sector and airline stocks were among Thursday’s leaders in the broad market bounce.  Look for entry opportunities in the direction of the trend according to your rules. 


As we wrote in Wednesday’s post…”Wednesday’s pullback which is price fluctuation and is more likely a buying opportunity than a reversal. As always follow your rules.”

SPX up 8 points at 2,262

SPX Leaders UHS, XLNX, LLY, ILMN, MDLZ, ALK, QRVO, KR, GCI, PRU, ZTS, AMAT, ALXN, SWKS, SYF, SRCL, ADSK, LUV, NAVI, UAL, CERN, NVDA, RIG, KMX, CFG, NTAP, BAC, UNM, CLX, PH, KLAC, ZION, URI, CNC

QQQ is tested its horizontal resistance breakout on Tuesday and closed above resistance.   

NDX point gainers: AAPL, MDLZ, KHC, AMGN, NVDA, INTC, AMAT and CELG



Follow your rules and look for potential re-entry if you were stopped out of any profitable trades.

Continue to move up stops on short term bullish trades that could pull back.  All according to your profit protection rules.  If you moved stops you may have been stopped out today.


Remember breakouts typically test about 70% of the time.

Technical analysis based trades should be closed before earnings.

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: X, STLD, NUE, SCHN, ATI, MGM, CC, CE, CFG, CMA, ETFC, HBAN, HIG, ICE, KEY, MS, RF, ZION, PWR, BA, GD, APA, BHI, CHK, HAL, BBY, FTI, AAP, AAL, ADI, ADSK, BBBY, CHKP, CSX, DISCA, EBAY, FAST, MU, PCAR, PCLN, IWM, FDX, HES, TRV, SPY, ADBE, COST, MSFT, QCOM, SBUX, STX, WBA, UTX, MMM, UPS, LNG,

One Day Pullback: MCD,

Bull Flag Bounces include: BAC, C, GS, SCHW, USB, ALK, DAL, LUV, SAVE, SKYW, UAL, CCL, BURL, AMAT, AVGO, LRCX, NCLH, NFLX, TMUS, WDC,
DISH, AKS, STI,

Horizontal Breakout Setups include: QQQ, DIA, ADP, INTC, EA, TSLA, FB, FISV, GILD,

Horizontal Breakouts include: NVDA, CTXS, NTAP,


New Highs include: XLNX, AAPL, CHTR, MAR, SQ, JPM, PAYX, RCL 

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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 at 94, bullish

62 of 100 NDX stocks closed higher on Thursday.

73 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Friday:
Moving Above 30 DMA = 5
CELG, HSIC, MNST, MXIM, SWKS,

Moving Below 30 DMA = 5
AMZN, BIDU, JD, PCLN, YHOO


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

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