Wednesday, October 17, 2018

Pause Day Following Tuesday's Broad Rally...Earning Reactions Lead the Way...



© 2018


Earnings season is underway with reports after the close Tuesday and before the open Wednesday. Positive reactions today included UAL, NFLX, GS, MS, JNJ, MTB, UNH and USBNegative reactions: IBM, CSX, NTRS.

The DJIA, closed down 91 points at 25,706led by weakness in IBM, HD, UNH, BA and UTX.  This is the sixty-eighth consecutive close above 25,000 since June 15.

Four of eleven sectors were higher, led by financial XLF +1.01% and healthcare XLV +0.53%.

SPY up .05 at 280.45, on 110.6 million shares, 35% above average volume. Flat on slightly lower volume.
VIX down .22 at 17.40 
Oil down 2.12 at 70.05
TLT down .68 at 114.00 on 5.8 million shares. 

GS +2.97%, JNJ +2.12%, led the DJIA, 18 advancers, -12.
UAL +5.95%, USB +3.79% and MS +2.72%, led the SPX.
NFLX +5.28%, WDAY +2.28%, SBUX +2.23%, and INTU +1.82%, led the NDX.

Intermediate and long term up trend intact.  3-day short term trend is up.

Up: QQQ, SPY,
Down: DIA, IWM,

Breadth weakened on Wednesday, as decliners led 1,815 to 1,076 on the NYSE and led 1,713 to 1,261 on the NASDAQ

The SPY MFC green line is pointed up at 27 and is now bullish.

Uptrend sectors:   XLU, XLV,
Neutral sectors:  XLE, XLP, XLK, XLY, XLI, XLF,
Down trend sectors: XLRE, XLC, XLB,


The 6-month intermediate and long-term trends are still up.  The three-month trend is sideways.  The ten-day trend is down.

3-month Intermediate Term Market Trend: Sideways
3-day Short Term Market TrendUp

47 of 100 NDX stocks closed higher on Wednesday.


26 NDX stocks are above their 30 DMA.  ESRX, NTES, BMRN, FOXA, SBUX, WBA, HSIC, QRTEA, ULTA, ALXN, CERN, CHTR, CMCSA, DLTR, GILD, HOLX, REGN, ROST, SHPG, SYMC, TMUS, TTWO, VRTX, ASML, CA, NFLX,

NDX Stocks to Watch on Thursday:
Moving Above 30 DMA = 3
ASML, CA, NFLX,

Moving Below 30 DMA = 2
ORLY, XLNX,


Intermediate-term trending stocks
ADBE, COST, DG, AAPL, AMZN, MA, V, AET, ISRG, PAYX, VRSN, COP, CRM, NTAP, RNG, SQ, UNH, NVDA, ALGN, CHGG, GRUB, TWLO, W, CDNS, PAYC, FISV, NDAQ, LPSN, PSTG, ZUMZ, WIX, SHAK, ETFC, EL, CME, KORS, A, WUBA,

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