QQQ Hits New All-time Closing High Again...AAPL, FB NVDA Lead on Heavy Volume...Earnings Start...

Sector Trend Strength:

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

Sideways: XLU

Down Trend:

Breadth weakened as decliners led 1,941 to 1,081 on the NYSE and led 1,647 to 1,130 on the NASDAQ.

Monday – weakened, decliners led, +1

Friday – strengthened, decliners led, +9

Thursday – weakened, decliners led, +5

Wednesday – strengthened, advancers led, +8 sectors

Tuesday – strengthened, advancers led, +9

Oil futures were down 1.91 to close at 51.79 on Monday.  

SPY down .75 at 226.46 on 46.9 million shares, 43% below average volume,

VIX up .24 at 11.56

TLT up .97 at 121.83…on 8.8 million shares, 10% below average volume

Technical Commentary:

QQQ +0.33%, SPY -0.33%, DIA -0.38%, IWM -0.66%,

DIA and SPY are horizontal resistance breakout setups.  IWM is in a sideways trend or horizontal bull flag near support.

SPX down 8 at 2,269

SPX  gainers GPN, VRTX, NVDA HCA, UHS, AMAT, GPS, WDC, ZBH, AAL, SBUX, CNC, MNK, ORCL, VIAB, BAX, MRK, BIIB, MU, APD, BBY, AMGN, MDT, FB, VRSN

QQQ made a new all-time closing high at 122.33.

  

NDX point leaders: AAPL, FB, NVDA, INCY, SBUX, AMGN, CMCSA, BIIB, AMAT, VRTX and BMRN

Q4 earning’s season starts today.

Earnings this week:

Monday – AYI, GPN, CMC

Tuesday –

Wednesday – KBH

Thursday – DAL

Friday – BAC, BLK, JPM, PNC, WFC

Earnings Reports

GPN +5.34, +7.17% on a positive earnings reaction.

AYI -34.85, -14.68% on a negative earnings reaction.

CMC -1.79, -7.92% on a negative earnings reaction on missed EPS.

2016 Q4 EPS

EPS Positive Reactions

GPN, MU, CAG, NKE, KMX, CCL, JBL

EPS Negative Reactions

AYI, CMC, STZ, RHT, BBBY, FINL, AGN, FDX, GIS, ADBE

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: NFLX, ETFC, FTI, ADP, MU, XLNX, AVGO, MAR, INTC, PAYX, ALK, CFG, JPM, C, GM, F,

One Day Pullback: SPY, DE, XLRE, HAL, MS, EBAY, UTX, FISV, CHTR, CHKP, LNG, GD,

Bull Flag Bounces include: NVDA, SOXL, LRCX, KLAC, CTXS,

At Support Setups include: IWM, STLD, MSFT, ZION, USB, DAL, LUV, TSCO, BHI, FAST, ADI, TRV, CC, UPS, ROST, WBA, APA, STX, TMUS, ATI, EA, X, PWR, AKS, NUE,

Support Bounce: AMAT, AAL, BBY,

Horizontal Breakout Setups include: TLT, TXN, MCD, DIA, FAS, ATVI, CCL, CSX, GS, BA, PCAR, NCLH, CMCSA, COST, CE, MGM, STI, MMM, CMA, RCL, HBAN, KEY, RF, HIG, ICE, AKAM,

Horizontal Breakouts include: NTES, SBUX, AAPL, FB, WDC, ADSK, FB, ADBE, AMZN, GOOG, SQ, PCLN, HAL,

New Highs include: QQQ, TSLA, XLV, SCHW, SQ, AKAM,

Break of Support: CAR, HES, DISCA,

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The SPY MFC green line is in the upper zone at 90 bullish. 

59 of 100 NDX stocks closed higher on Monday.

75 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Tuesday:

Moving Above 30 DMA = 3

AMAT, ISRG, SBUX

Moving Below 30 DMA = 4

HAS, MNST, NXPI, ORLY

6-month Intermediate Term Market Trend: Up

3-day Short Term Market Trend: Neutral