QQQ, SPY New All-time Closing Highs as Advancers, Breadth Expand...ATI, GLW, DD, KMB, BABA Positive EPS Reactions...

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

Sideways: XLU, XLF, XLI,

Down Trend: XLE

Breadth strengthened as advancers led 2,234 to 793 on the NYSE and led 2,023 to 772 on the NASDAQ.

Tuesday – strengthened, advancers led, +8 sectors

Monday – weakened, advancers led on the NYSE, +4

Friday – strengthened, advancers led, +9

Thursday – weakened, decliners led, +1

Wednesday – strengthened, advancers led, +6

Oil futures were up .13 to close at 52.96 on Tuesday.  

SPY up 1.45 at 227.62 on 95.2 million shares, 16% above average volume,

VIX down .70 at 11.07

TLT down .59 at 120.31…on 8.3 million shares, 11% below average volume

Technical Commentary

IWM +1.53%, QQQ +0.67%, SPY +0.64%, DIA +0.54%,

QQQ and SPY achieved new all-time closing highs on Tuesday.

The MACD bullish divergence on XLE confirmed today with a bullish bounce. 

Check individual oil stocks for potential MACD bullish divergences.

Review the setups and entries below for attractive potential…

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SPX up 15 points at 2,280, a new all-time closing high.

SPX  gainers FCX, PWR, DHI, MOS, LEN, PHM, GLW, JEC, FOSL, WDC, DD, MU, DOW, LYB, FLR, KMB, HP, NTAP, COH, COG, YHOO, AVGO, CHK, HPQ, SWN, AA, HAL, FDX, URI, MAT, MLM, NFX, STX, IP, IBM, MPC, MAS, SE, NSC, DOV

QQQ makes a new closing high up 83 cents at 124.18.

   

NDX point leaders: MSFT, INTC, AVGO, AMZN, GOOG, GOOGL, CSCO, YHOO, TXN, ADBE NVDA NFLX, MU, SBUX, FB, CMCSA and CSX

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Earnings

This week:

Monday – HAL, MCD, ZION

Tuesday – AA, AKS, ATI, BABA, CA, DD, GLW, ISRG, JNJ, KMB, LMT, MMM, STLD, STX, TRV, TXN, VZ,

Wednesday – BA, CTXS, EBAY, FCX, FFIV, HBAN, HES, LRCX, LVS, MUR, NSC, QCOM, STT, T, URI, UTX, VRTX, WDC, XLNX

Thursday –

Friday –

Earnings Reports

Positive earnings reactions

ATI +5.29, +31.14%

GLW +1.41, +5.69%

DD +3.27, +4.49%

KMB +4.81, +4.11%

BABA +3.02, +3.07%

CA +0.50, +1.54%

Negative earnings reactions

AKS -0.61, -6.57% on a

VZ -2.29, -4.37%

JNJ -2.15, -1.89%

LMT -4.57, -1.77%

MMM -2.54, -1.42%

TRV -1.20, -1.02%

After-hours reports

STX +1.58, +4.22%

ISRG +8.95, +1.34%

AA +1.45, +3.87%

STLD +0.45, +1.24%

TXN

2016 Q4 EPS

EPS Positive Reactions

ATI, GLW, DD, MB, BABA, CA, SWKS, KSU, PG, CFG, COL, IBM, CHKP, NFLX, UNP, FAST, WFC, SNX, MSM, CUDA, GPN, MU, CAG, NKE, KMX, CCL, JBL

EPS Negative Reactions

AKS, VZ, JNJ, LMT, MMM, TRV, HAL, MCD, GE, 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: ATVI, SQ, SHOP, GM, COST, MAR, FISV, AAPL, MCD,

One Day Pullback: TMUS,

Bull Flag Bounces include: LNG, SOXL, CLF, HAL, INTC, NFLX, PCAR, SBUX, ETFC, BA, RCL,

At Support Setups include: MS, TLT, MMM, TRV, ADP, DAL, ROST, AAL, HIG, GS,

ZION, HBAN, KEY, HES, STLD, X, NUE, LUV, EBAY

Support Bounce: MU, STI, IWM, DIA, UPS, FAS, PNC, BAC, CMA, JPM, RF, USB, WFC, FTI, C, BHI, MGM, XLNX, UTX

Horizontal Breakout Setups include: SPY, SOXL, HAL, IYR, STI, STX, FB, ADSK, MSFT, PAYX, WB, NTES, KLAC, PCLN, DISCA, ADI, NVDA, EA, FAST, CFG, MT, SCHW, ALK, WFC, ICE, GD, FCAU

Horizontal Breakouts include: ATI, PWR, LNG, INTC, WDC, TXN, AMZN, AMAT, BA, SOXL, ADSK, MSFT, PAYX, WB,

New Highs include: ATI, PWR, CF, WDC, QQQ, AVGO, YHOO, ADBE, NFLX, CTXS, SYMC, SWKS, TXN, TSLA, CSX, LRCX, NCLH, VIAB, CHKP, JD, AMAT, MXIM, GOOGL, CMCSA, CHTR, BABA, VALE, NRG, DE,

Break of Support: AKS, APA,

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The SPY MFC green line is in the upper zone at 85 bullish. 

81 of 100 NDX stocks closed higher on Tuesday.

77 NDX stocks are above their 30 DMA.

NDX Stocks to Watch on Wednesday:

Moving Above 30 DMA = 7

ADI, CA, CTSH, ESRX, PCAR, VRSK, XLNX

Moving Below 30 DMA = 1

EBAY

6-month Intermediate Term Market Trend: Up

3-day Short Term Market Trend: Up