October 18, 2017

The NightCap

Daily-Wrap

The Market: A lower close for all 4 main indices on the WSC Scoreboard as the Russell 2000 (IWM) led to the downside while the NASDAQ (QQQ) was the relative outperformer. The Retail (XRT) sector was the biggest loser on the WSC Scoreboard followed closely by Energy (XLE).  Unlike some other sectors, the XRT is not heavily weighted in a few stocks and, as of 11/10/15, has no stock weighted more than 1.27% so when you see strong moves up or down, like today, it is due to a majority of the names trading in that direction.  Bucking the trend…

Yellen sends stocks screaming, dollar dropping

Daily-Wrap

Index & Sector performance 3/18/15 The Market: After the FOMC rate decision at 2pm ET, the S&P 500 cash index rallied nearly 40 points from the lows to the highs and did so, astonishingly, in less than 2 hours but the more impressive move may have been in the U.S. Dollar which moved strongly lower and continued its decline in the after hours tagging 1.10 in the EUR/USD exchange after trading below 1.05 Monday.  The U.S. Dollar has shown remarkable strength on late so it is not surprising to see a give back and considering how far how fast we…

S&P follows crude lower yet again

Daily-Wrap

Index & Sector performance 12/15/14 The Market: Crude oil started to rebound in Sunday’s overnight session and helped the major indices start the day with a gap higher but the optimism was short lived.  Oil quickly started to lose ground after the open and reached fresh 52 week lows by noon taking the S&P with it.  Both indices found a midday bottom but only the S&P was able to close above those lows. We are interested to see if there is follow-through on the downside tomorrow in the S&P and if so we suggest traders remaining open to the possibility…

Low vol drift higher

Daily-Wrap

Index & Sector performance 12/3/14 The Market: Another low volume drift higher today which saw the Russell 2000 (IWM) lead and the NASDAQ (QQQ) lag even spending some time down on the session. In individual sectors, Consumer Staples (XLP) and Utilities (XLU) were the only two from the WSC Scoreboard to finish lower which Materials (XLB), Industrials (XLI), and Energy (XLE) finished up over 1%.  One name helping materials have such a strong session was LyondellBasell (LYB) which has been down significantly since September but finished today up over 2% and was up more than 3% intraday.  LYB is a…

Low volume drift higher

Daily-Wrap

Index & Sector performance 11/10/14 The Market: Without any key news or economic data the market was happy to drift with the trend which is higher.  This drift higher in the markets has created some negative divergence on the intraday charts so we would not be surprised to see downside action early in the week.  However, at this time we would expect the losses to be contained and ultimately for that initial dip to be a buying opportunity for short term traders. Stand out sector to the upside was Transportation (IYT) which finished the day 1.34% higher followed by HealthCare…

ECB helps U.S. Dollar & market higher

Daily-Wrap

Index & Sector performance 11/6/14 The Market: Comments from ECB President Mario Draghi suggesting that the central bank is committed to stimulating the region’s economy helped send the S&P 500 (SPY) and the U.S. Dollar higher on the session.  As would be expected the Euro/Dollar cross was under pressure finishing the U.S. trading session at new 2 year lows. A strong dollar is not a bad thing and increases global purchasing power of U.S. companies and individuals.  However, as we saw recently with the Trade Balance, a strong dollar can hurt exports.  Coupled with concerns over crude oil’s recent decline…

S&P nearing last week’s low

Daily-Wrap

Index & Sector performance 10/7/14 The Market: After being rejected by the 50 day SMA yesterday, the S&P 500 (SPY), along with the other major indices on the WSC Scoreboard, followed up today with a strong down session.  So far the SPY has managed to stay above the 10/2/14 spike low but we are very close. Utilities (XLU) continue to outperform on this recent down turn and after spending some of today in positive territory managed to only finish 0.14% lower.  Next best was the Consumer Staples down 0.59%.  Leading to the downside today was yesterday’s top loser, Transportation (IYT), …

Financial earnings remain focus for week

Daily-Wrap

Index & Sector performance 7/14/14 The Market: All four major indices on the WSC Scoreboard finished equally higher in today’s action.  We continue to be most interested in the Russell 2000 (IWM) and the fact that the Small Caps are not enjoying as solid of a year as the other major indices.  We ultimately believe for further gains the small caps need to be involved. In individual sectors the WSC Scoreboard was led by Energy (XLE) which finished up 0.87%.  Also finishing higher on the WSC Scoreboard was the Financials (XLF) which saw Citigroup (C) beat earnings this morning and…

Utilities big loser ahead of Jobs data

Daily-Wrap

Index & Sector performance 7/2/14 The Market: The WSC Scoreboard was relatively flat to mixed with the Dow (DIA), S&P 500 (SPY), and NASDAQ (QQQ) closing slightly higher while the Russell 2000 (IWM) finished 0.35% lower. In individual sectors, the Utilities (XLU) stood out as the biggest loser finishing 1.99% lower on the day and appears vulnerable to even more downside action after being the leader so far in 2014.  Every stock in the XLU finished down on the day with some finishing down over 3% including Exelon (EXC), FirstEnergy (FE), and Entergy (ETR) down 3.11%, 3.50%, and 3.25% respectively. …

Early dip finds buyers

Daily-Wrap

Index & Sector performance 6/26/14 The Market: Just before the open the major indices started spiking lower and continued through the bells until roughly 10 am ET before finding a bottom.  Then as if nothing happened the market spend the rest of the day climbing back toward even on the day with the S&P 500 (SPY) finishing slightly higher while the other major indices on the WSC Scoreboard finished slightly lower. Just like the broad indices, the individual sectors from the WSC Scoreboard were mixed but all hovering near flat on the day.  The Financials (XLF) and Consumer Staples (XLP)…