October 20, 2017

The NightCap

Daily-Wrap

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…

The NightCap

Daily-Wrap

The Market: The market continues to grind higher with the Russell 2000 (IWM) trying to play catch-up of late. Energy (XLE) led all sectors in today’s trading, again, and has been one of the hottest sectors of late although still down nearly -10% YTD. A relatively big data week with ISM Monday, Fed speak & ADP tomorrow, Unemployment Claims Thursday, and official Jobs data on Friday.  Traders concerned about the Fed and if we will see a December rate hike should be paying attention to this week’s data.       Reported EPS 11/3/15 After the Close:   Reporting EPS…

The NightCap

Daily-Wrap

The Market: Overall it was another tight trading range session but the Russell 2000 (IWM) continued its underperformance and finished down over -1%.  It appears that traders may be on hold until the FOMC statement and rate decision tomorrow. Transportation (IYT) sector was the hardest hit on the WSC Scoreboard as the sector ETF finished down -2.65% followed by yesterday’s biggest loser, Energy (XLE), which closed down -1.2%.  The biggest gaining sector on the session was HealthCare (XLV) which finished up 1.84% and was helped by Allergan (AGN), Biogen Inc (BIIB), Vertex Pharmaceuticals Inc (VRTX), and Mylan NV (MYL) which all…

Volatility & Chop continues

Daily-Wrap

The Market: Volatility continues to be the name of the game which is why you can have a 40+ point day like today and still have the S&P 500 within a range/wedge.  While it is possible that we extend today’s rally by gaping higher tomorrow, it is not our expectation and if we do open higher tomorrow we would watch the downward sloping 20 day SMA as resistance. Overall, a light Economic Calendar this week Thursday and Friday having the most significant data points (Unemployment Claims, PPI, and Consumer Sentiment).       Reported EPS 9/8/15 After the Close:  …

Hospitals rocket as Supreme Court rules

Daily-Wrap

  The Market: After an early morning small pop, which helped work off some of the very short-term oversold levels, the market declined the rest of the day finishing near the session’s lows. Energy (XLE) was the largest losing sector on the WSC Scoreboard followed closely by Transportation (IYT) which was the biggest loser yesterday.  However, we would be watching the IYT as it appears to be coming into a support region and could soon provide a trade set-up to the long side. Health Care (XLV) was the lone green sector on the Scoreboard as the Supreme Court ruled that…

Early gap up fades, XLE leads lower

Daily-Wrap

Index & Sector performance 4/21/15 The Market: The Nasdaq (QQQ) was the only sector that managed to finish the session higher while the Blue Chip Dow (DIA) was the leader to the downside. After spending the majority of the year down, Energy (XLE) has recently rallied to up YTD but there was no optimism today as the sector finished over 1% lower.  Also finishing lower was Utilities (XLU) down 0.89%, Materials (XLB) down 0.74%, and Financials (XLF) down 0.50%.  Today’s clear leader was HeathCare (XLV) which managed to close up 0.68% on the session. No tracked Economic data yesterday or today…

Off the 200 Day and up

Daily-Wrap

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…

Back test of the 20 & down

Daily-Wrap

Index & Sector performance 12/11/14 The Market: Strong optimism in early trading was attributed to better than expected Retail Sales numbers and Unemployment Claims along with the stabilization of oil but in midday trading, after the S&P 500 (SPY) had rallied back to re-test its 20 day SMA, oil started to slide and took the SPY with it.  While the table above shows the SPY up on the session, as it currently stands those gains have been entirely erased in the aftermarket. We will be watching the overnight session to see if the S&P can stabilize, reverse, or if it…

Low vol narrow holiday trading range

Daily-Wrap

Index & Sector performance 11/25/14 The Market: Another uneventful holiday trading session across all 4 major indices on the WSC Scoreboard.  Action was also muted across the individual sectors with the exception of Energy (XLE) which lost 1.63%.  For XLE traders our take is that the lows may hold but we would either be looking for an opportunity to buy lower or on a break above $89.25. In Economic data, estimated 3rd quarter GDP growth came in better than previously reported while Consumer Confidence and the Richmond Manufacturing Index both missed expectations.  Tomorrow there is a slew of data including…

Very quiet start to the week

Daily-Wrap

Index & Sector performance 7/7/14 The Market: Today was a very quiet trading session which saw the market give back some of last week’s holiday gains.  Looking over the Economic Calendar, this is a light data week and while Alcoa (AA) will kick off earnings season tomorrow after the close it will still be a while before we are in the thick of earnings season. We are watching the Russell 2000 (IWM) closely.  In good times you expect to see the Tech Stocks and Small caps lead.  While the NASDAQ (QQQ) has come back to do its part this year,…