Financials Lead Rally...QQQ Near All-time High...NFLX Up +7.91% After-hours on EPS Beat...

Sector Trend Strength:

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

Sideways: XLU

Down Trend:

Breadth strengthened as advancers led 1,616 to 1,379 on the NYSE and led 1,577 to 1,220 on the NASDAQ.

Wednesday – strengthened, advancers led, +6 sectors

Tuesday – weakened, decliners led, +5

Monday – MLK Jr Holiday

Friday – strengthened, advancers led, +6

Thursday – weakened, decliners led, +3

Oil futures were down .34 to close at 52.18 on Wednesday.  

SPY up .20 at 226.75 on 54.7 million shares, 32% below average volume,

VIX up .61 at 12.48

TLT down 1.57 at 121.01…on 9.0 million shares, 3% below average volume

Technical Commentary:

IWM +0.33%, SPY +0.22%, QQQ +0.20%, DIA -0.07%,

QQQ rallied 25 cents at 123.04 just missing Friday’s all-time closing high at 123.16.

SPY continues is a narrow short-term sideways trading range near resistance for a potential horizontal resistance breakout.

DIA and IWM are in a narrow short-term sideways trading range near support for a potential breakout of either support or resistance.  The intermediate-term trend on both charts is up.

Financial stocks led all sectors regaining about 40% of Tuesday’s loss.  BAC, CMA, LNC, KEY, PNC, PFG, SCHW, RF, HIG, ZION, ETFC, MS, AMP, PRU, HBAN, LUK and ICE were among the leaders.

Steel stocks X, AKS, STLD, VALE, NUE, TI, SCHN and CLF had big bounces on Wednesday on comments from Wilbur Ross Commerce Secretary nominee.

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Aluminum and metals company AA +6.65% leads SPX.  AA breaks to a new high since its split into two companies back on Nov 1 and is above 30 DMA.

SPX up 4 points at 2,271

SPX  gainers AA, FAST, MJN, NUE, URI, QRVO, AVGO, SWKS, VMC, CTXS, VIAB, MU, BAC, CMA, CFG, MLM, MCHP, LNC, KEY, WDC, PNC, PFG, KLAC, BS, LRCX, SCHW

QQQ closes up 25 cents at 123.04 its second highest close.

   

NDX point leaders: AVGO, QCOM, TMUS, NVDA, AST, AMGN, SBUX, MU, KHC, WDC and CTXS

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Earnings this week:

Tuesday – CMA, MS, UNH

Wednesday – C, CSX, FAST, GS, NFLX, NTRS, UAL, USB,

Thursday – ALK, AXP, CHKP, IBM, KEY, SWKS, UNP,

Friday – CFG, GE, RF, SLB,

Earnings Reports

NFLX +10.54, +7.91% after-hours on a positive earnings reaction .15 EPS vs .13 estimate, revenue beat, strong subscriber growth and raised guidance.

FAST +2.80, +5.81% on a positive earnings reaction .40 EPS vs .38 estimate.

NTRS -4.16, -4.72% on a negative earnings reaction.

CSX -1.21, -3.18% on a negative earnings reaction.

C -0.99, -1.70% on a negative earnings reaction.

GS -1.45, -0.62% on a negative earnings reaction.

2016 Q4 EPS

EPS Positive Reactions

NFLX, FAST, WFC, SNX, MSM, CUDA, GPN, MU, CAG, NKE, KMX, CCL, JBL

EPS Negative Reactions

NTRS, CSX, C, CMA, MS, UNH, AYI, CMC, STZ, SCHN, RHT, BBBY, FINL, AGN, FDX, GIS, ADBE

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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.

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

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: CCL, ETFC, CHKP, FB, ALK, TLT, FSLR, SCHW, NTES, AMZN, CSX, PCAR, ADSK, LNG, WBA, HAL, GM, CLF, SQ, MTL, F, AKAM, EBAY, XLV, DE, ADP, DAL, TXN, AAL, BA, FCAU,

One Day Pullback: QQQ,

Bull Flag Bounces include: SOXL, XLRE, SBUX, MT, RCL, NCLH, ADBE, TMUS,

At Support Setups include: IWM, DIA, HES, BHI, LUV, PAYX, WFC, XLNX, NVDA, MSFT, APA, MGM, PWR, FTI, HBAN, KEY,

Support Bounce: X, MU, FAS, MS, PNC, AKS, STLD, ZION, CFG, RF, BAC, UTX, STX, MMM, ICE, MAR, TRV, UPS,

Horizontal Breakout Setups include: X, NUE, MT, TMUS, ICE, EA, DISCA, ADI, ATI, SPY, COST, AAPL, ROST, GOOG, GD, AMAT, KLAC, INTC, ATVI, MCD, PCLN, TRV,

Horizontal Breakouts include: AVGO, CTXS, FAST, LRCX, WDC, HIG, BBY,

New Highs include: VALE, NFLX, TSLA, FISV, CMCSA, CHTR,

Break of Support: GS, CMA, JPM, C, USB, STI, 

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The SPY MFC green line is in the upper zone at 89 bullish. 

64 of 100 NDX stocks closed higher on Wednesday.

77 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Thursday:

Moving Above 30 DMA = 5

ADI, DISCA, NVDA, ORLY, TMUS

Moving Below 30 DMA = 2

CSX, ROST

6-month Intermediate Term Market Trend: Up

3-day Short Term Market Trend: Neutral