July 22, 2018

$50 is the new $5….

The Market: As expected, volatility continues and $50 point swings are becoming as common as $5 point swings use to be.  We expect volatility to remain high but would not be surprised to see the magnitude of the swing start to temper. Today was important because after two straight days of gap ups that sold off into the close, today managed to hold and extend on the gap after an intraday pullback.  As we noted in Monday’s write-up,  the market is very short-term oversold and we would expect a bounce so today’s action is not surprising but we will be…

Market finishes near lows

Index & Sector performance 5/26/15 The Market: A strong down day for the market which saw all the major market indices on the WSC Scoreboard finish down over 1% on the session near the lows for the day.  The futures are up in the after hours session but they will have to prove that this is not just a relief bounce. Utilities (XLU), Consumer Discretionary (XLY), and Consumer Staples (XLP) were the relative out-performers finishing down 0.63%, 0.75%, and 0.79% respectively.  After reaching a high of $62.58 on 5/6/15, Crude Oil is back below $60/barrel after losing 3% in today’s…

QQQ & IWM reach new highs

Index & Sector performance 2/26/15 The Market: More churn today in the markets but again the NASDAQ (QQQ) and Russell 2000 (IWM) showed more strength than the S&P 500 (SPY) with the QQQ and IWM reaching new 52-week closing highs on the session. Crude oil lost over 5% today which helped send the Energy (XLE) sector 1.88% lower.  We noted in our 2/18/15 nightly recap when the XLE was trading above $81 that we would look for a pullback toward $78 as a buying opportunity.  Closing today at $79.35, we would ideally like to see lower levels before dipping into…

Low Volume Slow grind Higher

Index & Sector performance 2/17/15 The Market: Monday the markets were closed in observance of President’s Day.  As trading started back Monday evening, the futures traded lower but by the open Tuesday all the loses were recouped and after an early session consolidation the index pressed toward new closing highs.  Volume was light but this could be due to the winter storms around the nation.  All broad indices on the WSC Scoreboard are noticeably higher YTD with the Dow (DIA) lagging and the NASDAQ (QQQ) leading. In individual sectors it a little more mixed.  HealthCare (XLV) was the clear leading…

Eurozone fears trigger late day sell-off

Index & Sector performance 2/4/15 The Market: Monday’s reversal in the S&P 500 (SPY) of the 200 day SMA continued Tuesday and was extending in today’s session, even with Oil trading lower, until later in the trading day when the index dropped sharply.  Traders pointed to news our of Europe that the ECB will not allow Banks to use Greek government debt as collateral for loans as the catalyst.  The Dow (DIA) was the only index on the WSC Scoreboard which managed to finish higher but that was greatly due to Disney (DIS) beating EPS and finishing up 7.63% on…

Off the 200 Day and up

Index & Sector performance 2/2/15 The Market: The S&P 500 (SPY) started the session lower but found support just slightly above the 200 day SMA which has not been visited since October 2014.  After an initial pop and then pullback the index rallied the remainder of the session to finish over 30 points off the lows.  So far in the after hours the index is holding the gains and consolidating.  Today’s action should be very promising for long traders and you know your stops — below today’s lows. The leading sector on the WSC Scoreboard was Energy (XLE) finishing up…

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…

BIIB helps XLV finish up over 26% YTD

Index & Sector performance 12/2/14 The Market: It was a solid session following Monday’s drop with the Russell 2000 (IWM) clearly leading and with advancers leading decliners by roughly 2:1. In Individual sectors it was Transportation (IYT) leading up 1.18% followed closely by Energy (XLE), which is still trying to recover from Friday’s big gap down, up 1.16%, and lastly HealthCare (XLV) which finished 1.12% higher and is now up over 26% year-to-date.  Helping the XLV today was Biogen Idec (BIIB) which gained 6.43% on positive results from an early-stage Alzheimer’s drug trial.  BIIB is a name to watch.  Above…

China growth concerns weigh on market

Index & Sector performance 9/22/14 The Market: The markets started the week off lower with many pointing to weak economic data out of China as well as comments from the Chinese finance minister stating there will be no major policy adjustments as the cause.  Leading the way lower was the Russell 2000 (IWM) which remains the clear underperfomer for the year with the Dow (DIA) not too far behind but at least positive YTD. Multiple sectors closed the day down over 1% with Retail (XRT) leading the way finishing the session 1.59% lower.  The XRT is now again over 1%…

EoD gains mask intraday swing

Index & Sector performance 9/17/14 The Market: Early in the session the markets were quiet as traders awaited the FOMC statement and speculated if the wording of the statement would be changed.  The answer was that not much changed and specifically the Fed continues to state that they will keep key interest rates near zero for a “considerable time”.  The initial reaction to the release was a sharp decline but buyers quickly stepped in and the S&P 500 recovered and then rallied to fresh highs on the day before finishing the session back where it started. The leading sector on…