SPX Continues Consolidation as CHKP, NFLX, CSX, NSC, UNP Gap Higher...

Sector Trend Strength:

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

Sideways: XLU

Down Trend:

Breadth weakened as decliners led 2,225 to 771 on the NYSE and led 2,017 to 774 on the NASDAQ.

Thursday – weakened, decliners led, +1 sector

Wednesday – strengthened, advancers led, +6

Tuesday – weakened, decliners led, +5

Monday – MLK Jr Holiday

Friday – strengthened, advancers led, +6

Oil futures were down .01 to close at 52.17 on Thursday.  

SPY down 0.84 at 225.91 on 66.6 million shares, 17% below average volume,

VIX up .30 at 12.78

TLT down 0.83 at 120.18…on 11.7 million shares, 28% above average volume

Technical Commentary:

QQQ -0.05%, DIA -0.34%, SPY -0.37%, IWM -0.82%,

QQQ continues to outperform SPY, DIA and IWM.

Friday is Inauguration Day for President-elect Trump and represents a long held tradition since 1800 of the peaceful transfer of power. 

Friday is also expiration day for January monthly options.

Railroad stocks CSX, NSC and UNP gapped higher.  NFLX and CHKP gapped higher on positive earnings reactions.

Steel stocks X, AKS, STLD, VALE, NUE, TI, SCHN and CLF moved lower after C analyst downgraded the industry.

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Aluminum and metals company AA +1.75% makes another new high since its split into two companies back on Nov 1 and is above 30 DMA.

SPX down 8 points at 2,263

SPX  gainers CSX, NSC, NFLX, COG, MNK, UNP, LLL, NVDA, EMR, NRG, HPQ, MAR, AA, CI, IR, ALK, FMC, AET, NOV, XYL, NBL, KMX, EQIX, LMT, IDXX, VFC, MUR, EBAY, GD, FGHS, RAI, GN, FLS, NOC, ADBE, MHK, PPG, WYN

QQQ makes a new intra-day high before closing down 6 cents at 123.04.

   

NDX point leaders: CSX, NFLX, NVDA, TMUS, CHKP, TSLA, CMCSA, CHTR, AMZN, MAR and JD

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Earnings this week:

Tuesday – CMA, MS, UNH

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

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

Friday – CFG, GE, RF, SLB,

Earnings Reports

NFLX +5.15, +3.86% on a positive earnings reaction .15 EPS vs .13 estimate, revenue beat, strong subscriber growth and raised guidance.

CHKP +6.73, +7.51% on a positive earnings reaction.

UNP +2.47, +2.38% on a positive earnings reaction.

2016 Q4 EPS

EPS Positive Reactions

CHKP, NFLX, UNP, 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: FISV, RCL, XLRE, SBUX, MT, RCL, CCL, ETFC, FB, TLT, FSLR, SCHW, NTES, AMZN, PCAR, ADSK, LNG, WBA, GM, CLF, SQ, F, AKAM, XLV, DE, ADP, DAL, TXN, AAL, BA, ROST,

One Day Pullback: VALE, CTXS, FAST, WDC, HIG,

Bull Flag Bounces include: ALK, HAL, MTL, EBAY, FCAU,

At Support Setups include: CMA, JPM, USB, STI, IWM, DIA, HES, BHI, LUV, PAYX, WFC, XLNX, MSFT, APA, MGM, PWR, HBAN, KEY, X, MU, FAS, MS, PNC, AKS, STLD, ZION, CFG, RF, UPS, X, NUE,

Support Bounce: NVDA, BAC, UTX,

Horizontal Breakout Setups include: NCLH, SOXL, MMM, ICE, MT, EA, DISCA, ADI, ATI, SPY, COST, AAPL, GOOG, GD, AMAT, KLAC, INTC, ATVI, MCD, PCLN, TRV,

Horizontal Breakouts include: ADBE, TMUS, MAR,

New Highs include: CSX, CHKP, NFLX, TSLA, AVGO, CMCSA, TMUS, QQQ, CHTR, LRCX,

Break of Support: FTI, GS, C, ST,

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The SPY MFC green line is in the upper zone at 86 bullish. 

29 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 = 3

CSX, MAR, NXPI

Moving Below 30 DMA = 7

ADI, HOLX, MSFT, ORLY, PAYX, PCAR, TSCO

6-month Intermediate Term Market Trend: Up

3-day Short Term Market Trend: Neutral