2017 Starts with a Broad Rally as Nine of Ten Sectors Rally and Advancers Lead Decliners and VIX Confirms...

Sector Trend Strength:

Up Trend: XLF, XLI, XLB, XLY, XLE, XLK, XLP

Sideways: XLV, XLU, XLRE

Down Trend:

Breadth strengthened as advancers led 2,308 to 742 on the NYSE and led 1,812 to 995 on the NASDAQ.

Tuesday – strengthened, advancers led, +9 sectors

Monday – New Year’s Holiday Observance

Friday – weakened, decliners led, +2

Thursday – strengthened, advancers led on the NYSE, +5

Wednesday – weakened, decliners led, +0

Oil futures were down 1.42 to close at 52.47 on Tuesday.  

SPY up 1.71 at 225.24 on 91.3 million shares, 10% above average volume,

VIX down 1.19 at 12.85

TLT up .51 at 119.64…on 13.2 million shares, 31% above average volume

Technical Commentary:

QQQ +0.89%, SPY +0.76%, IWM +0.50%, DIA +0.46%,

A big bounce on Tuesday saw QQQ form a bullish harami, a potential bounce setup, SPY gave a bounce entry, IWM and DIA are bounce setups.  VIX did confirm the SPX bounce as did financials.

SPX up 19 at 2,257

SPX  gainers XRX, CTL, ENDP, FTR, ABC, MPC, MCK, TSS, GPS, LVLT, FSLR, FCX, PBI, KMI, CERN, NFX, RIG, PRGO, MNK, STX, F, PDCO, PXD, GILD, URI, CAH, REGN, MAT, PNR, CNC, OI, AMGN, DVN, ROK, VLO, CXO, CRM, JCI, NFLX

QQQ re-broke out of old resistance, closing above 119.31, after falling below on Friday.

  

NDX point leaders: GOOG, FB, MSFT, AMGN, GILD, CELG, AMZN, AAPL, BIIB, CSCO, INTC, NFLX, REGN, BIDU and PYPL

2016 Q4 EPS

EPS Positive Reactions

MU, CAG, NKE, KMX, CCL, JBL

EPS Negative Reactions

RHT, BBBY, FINL, AGN, FDX, GIS, ADBE

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: MU, CFG, WDC, IWM, SQ, TSLA, COST, NVDA, XLNX, AVGO, MAR, LRCX, CMCSA, CTXS, INTC, TXN, KLAC, PAYX, FISV, SOXL, ZION, USB, ALK, DAL, LUV, UAL, CHTR, AAPL, CHKP,

One Day Pullback:

Bull Flag Bounces include: ADP, NFLX, SCHW, STI, JPM, C, BAC, GS, DISCA, GOOG, TMUS,

At Support Setups include: AMAT, X, AKS, PWR, HBAN, KEY, RF, HIG, CCL, MSFT, TSCO, CE, BHI, STLD, AAL, CAR, ATVI, ATI, PCLN, FAST, ICE,

NCLH, BBY, EA, CSX, NUE, ADI, HES, TRV,

Support Bounce: STX, HAL, SPY, MGM, FAS, CMA, ETFC, MS, ADSK, RCL, GD, PCAR

Horizontal Breakout Setups include: MGM, XLRE, XLV, TLT, NFLX, FTI, SCHW, STI, JPM, C, BAC, GS, ADP, LNG, STX, EBAY, BA, UTX, MMM

Horizontal Breakouts include:

New Highs include: ADP,

Break of Support: MCD, CC, UPS, ROST, SBUX, WBA, APA,

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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 in the upper zone at 80 bullish.  Prepare to become defensive if SPY closes below support and MFC green line points down below 80. 

85 of 100 NDX stocks closed higher on Tuesday.

56 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Wednesday:

Moving Above 30 DMA = 20
ADSK, BIDU, BMRN, CA, CELG, CERN, EA, FOXA, GILD, GOOG, HSIC, ILMN, ISRG, KLAC, MNST, PYPL, SHPG, STX, TXN, VOD

Moving Below 30 DMA = 2

ADI, AMAT

6-month Intermediate Term Market Trend: Up

3-day Short Term Market Trend: Neutral