December 15, 2018

Market churns while XLU heads lower

Index & Sector performance 2/25/15 The Market: Another day of churn as the market continues to grind with an upward bias.  As we posted over at StockTwits we are starting to see a lot of negative divergence setting up on the MACD.  Divergence is not a trigger itself but is showing signs that each move higher comes with less momentum and excitement. Utilities (XLU) was the leader to the downside and a name we recently posted about in the Charts section.   After seeing a lot of people bullish on the name, we laid the road map we felt the Bulls…

Can EPS decouple market from Oil?

Index & Sector performance 1/12/15 The Market: We noted in the Thursday end-of-day write-up that the strong gains had to do with positive comments from Mario Draghi as well as Oil prices managing to stabilize for the second straight session.  Unfortunately after managing to hold in Friday,  Oil prices resumed their recent slide today finishing below $46/per barrel.  As we have noted in other write-ups and you can see elsewhere, Oil’s sharp decline brings in concern over global growth and particularly U.S. earnings.  Speaking of earnings, Aloca (AA) is scheduled to kick off the earnings season tonight and below you…

Yellen to the rescue

Index & Sector performance 12/17/14 The Market: Fueled by continued caution from the Fed in raising rates and a rebound in Oil prices, the broad indices roared higher with the Russell 2000 (IWM) leading the charge finishing up over 3%. We noted in Monday’s comments that a gap lower Tuesday could be a great trading opportunity.  For anyone that did not just day trade Tuesday’s gap down and are still holding, we would be using relatively tight stops to manage the position as there is still some concern lower levels could be seen before this decline is over.    …

Russell leads overall dull session

Index & Sector performance 11/24/14 The Market: An overall dull session with the S&P 500 (SPY) and Dow (DIA) barely moving while the NASDAQ (QQQ) and Russell 2000 (IWM) led.  As is expected for the remainder of this shortened holiday week, volume was very light. In individual sectors it was Retail (XRT) posting another great session up 1.32%.  Today the index was greatly helped by Outerwall (OUTR), operators of Coinstar and Redbox, which finished up 12.32%.  Also chipping in was Best Buy (BBY) up 2.29% and Foot Locker (FL) up 3.45%.  After spending much of the year down, the XRT…

Market continues higher on low volume

Index & Sector performance 8/13/14 The Market: Monday was a solid up day to follow-up on Friday’s move but one concerning aspect was how the indices finished noticeably off the intraday highs.  That trend continued taking the indices lower in Tuesday’s session but the losses were contained and today it was back up as all 4 indices on the WSC Scoreboard finished higher with the NASDAQ (QQQ) leading the charge. In individual sectors there were three standouts with HealthCare (XLV) the biggest winner finishing the day up 1.21% followed by a tie for second with both the Industrials (XLI) and…

GDP disappoints but market ignores

Index & Sector performance 4/30/14 The Market: As you can see in the table below, the U.S. Q1 GDP number came in well below expectations.  While Q1 was not expected to be a high growth quarter, clearly analysts did not expect a near negative number.  Certainly the colder than expected weather could have and likely did play a role but on our opinion you cannot completely blame a miss like this on the weather. So why might traders and investors be willing to look past this data besides the weather?  Possibly because a number like this allows the Fed to…

The Calm before Jobs data storm?

Index & Sector performance 1/9/14 The Market: A mixed consolidation day in S&P 500 saw the futures up in the pre-market only to sell off at the open.  That sell off persisted until 11am EST losing roughly 15 S&P points from the pre-market highs and then the S&P bottomed and staged a rally which didn’t make it back to the pre-market highs but did take back more than half of what was lost. In Economic data today, Unemployment claims came in better than expected posting a 330K number when 337K was expected but the previous week was revised about 6K…

ECB moved & so did the markets

Index & Sector performance 11/7/13 The Market: The S&P 500 spiked higher around 8am EST time after the ECB announced a rate cut.  This move was further helped by a strong Q3 GDP number.  While we opened off the pre-market highs, the real selling began after the bells.  After each move lower the market tried to stage a rally but all were sold.  The S&P 500 closed right at the 20 day SMA  From peak to trough using the S&P futures we saw a near 30 point swing to the downside. In economic news, GDP came in much stronger than…

China fears helped send market lower

Index & Sector performance 10/23/13 The Market: Today was a gap own and meander day where the majority f the losses were seen in very early trading and the rest of the day was mostly choppy. News attributed the drop to tightening fears out of China which sent international markets lower but as we have discussed here the market seemed ripe for a pullback.  More lower.. In economic data there was not too much today with import prices coming in roughly as expected while the Home Price Index was well below expectations (0.3% vs 0.8%) .  Yesterday we had the…