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The NightCap
The Market: An initial gap higher was immediately sold but an afternoon surge helped the Dow, S&P and NASDAQ finish higher while greatly paring losses in the Russell 2000. Downside momentum seems to be waning and today’s mixed session is likely pointing to a bottom. In all likelihood that bottom will only be short-term but we will have to see how the action takes place. Ideally, for the start of a move higher, we would like to see a gap down (or strong move lower in early trading) tomorrow which takes us near or below today’s lows which is again…
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The NightCap
The Market: Stocks had another tough session following a second day where the Chinese market was halted. Chinese officials have removed the circuit breaker restrictions for tomorrow’s session and traders appear to be preparing for a volatile session but it will be interesting to see if allowing the index to freely trade will ultimately help it bottom — even if only for the short-term. Another session where no Sector saw gains but the relative outperformers were Retail (XRT), which was helped by Wal-Mart (WMT) after gaining 2.3% on the session, and Monday’s leader Utilities (XLU). Along with what happens overnight…
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The NightCap
The Market: Not a great start to 2016 for the Bulls but could have been much worse if not for a late end-of-day rally. So far in after-hours trading the market has continued higher but we will need to see if these gains hold over-night as well as into early trading tomorrow. No Sector was spared in today’s trading but the XLU was the clear relative outperformer finishing down only 0.21% followed by the worst performer for 2015, XLE, finishing down 0.41%. Tomorrow is a light Economic Data session with only Vehicle Sales being reported but later in the week…
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The NightCap
The Market: No Comments with tonight’s write-up. Have a great evening! Reported EPS 12/21/15 After the Close: Cintas Corp (CTAS) est $1; Steelcase Inc (SCS) est $0.32 Reporting EPS 12/22/15 Pre-Market: ConAgra Foods Inc (CAG) est $0.60; Paychex Inc (PAYX) est $0.51 Analyst Comments:
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The NightCap
The Market: Global concerns sparked an initial move lower in early trading but the markets found support near the $2070 region in the SPX and then managed to finish the session slightly higher. Energy (XLE) was the clear leader on the WSC Scoreboard followed by Retail (XRT) and Materials (XLB). Transportation (IYT) lagged hurt by the State Department’s travel ban issued late Monday in response to the recent geopolitical events. After making a low in late August, the XLE rallied until early November and has since held in well consolidating below the November 6th high. XLE may be setting up…
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The NightCap
Jan 11, 2016
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The NightCap
Jan 7, 2016
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The NightCap
Jan 4, 2016
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The NightCap
Dec 21, 2015
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The NightCap
Nov 24, 2015
Charts
Occidental Petroleum (OXY)
Occidental Petroleum (OXY) looks to be crafting a long consolidation pattern which should be nearing completion. In the shorter term it is possible that OXY might drop into the noted gray circle area but as long as it remains above the 200 day SMA and the higher uptrend line I will remain positive on the name. OXY should look to target much higher on a break first looking to fill the upside gap and then possibly challenge the 2012 highs.
Arch Coal (ACI)
Trying to call a bottom in Arch Coal (ACI) has been a fools game but then again I may not be the sharpest knife in the drawer. For me it is about risk and reward and this one checks that box. I have a clear pop and flag and can take a long for a bounce against the recent 6/24/13 lows. Below there and I would be back on the sidelines. The first touch of the 50 day SMA might be a place to scale out some but if this ends up being a larger bottom then the rally could…
General Motors (GM)
General Motors (GM) was upgraded today to Conviction Buy at Goldman Sachs. Some poke fun of the CV designation as they mock it implies GS doesn’t have conviction on their other Buy ratings but I think what GS is trying to do with the designation is denote timeliness. Something on CV is likely far from its price target and also likely or able, in GS’ mind, to move in that direction relatively quickly. At least that is my take. In that same light GS quoted near term catalysts for the reason for the upgrade including the potential for a dividend…