September 19, 2017

Charts to Watch

Charts-of-Interest

Let’s start tonight with the McClellan Oscillator and a look at the reading from yesterday’s close.  We see that a -100 reading is very uncommon but can lead to snap back rallies.  What has to be seen is whether that extreme level leads to a more sustained bottom or like we saw in June will there be multiple extreme readings before a more sustained bottom occurs. Arch Coal (ACI): After a strong rally this stock has held initial support  on the pullback.  I will be watching to see if the stock can continue to consolidate on low volume to set-up…

Daily Wrap

Daily-Wrap

DJIA +80.03 (+0.53%) to 15,040.62;S&P 500 +13.66 (+0.85%) to 1,622.56;NASDAQ +13.16 (+0.45%) to 2,950.30 The looked poised to resume its downward move into Friday’s jobs number but just after noon EST firmed up and started an impressive rally off the lows which also continued into the after market (so far).  From the lows to the close the market rallied nearly 24 points.  In economic news today we had Unemployment claims which came in roughly inline with a 346K number.  As alluded to earlier, tomorrow we get Non-farm Employment data and I have current forecasts at 167K and 7.5% rate. SodaStream (SODA) got an initial pop in…

Daily Wrap

Daily-Wrap

DJIA +138.46 (+0.92%) to 15,254.03;S&P 500 +9.68 (+0.59%) to 1,640.42;NASDAQ +9.03 (+0.30%) to 2,990.79 The S&P 500 started the morning higher but spent the majority of the midday in negative territory before turning positive around 2pm EST and rallying into the close.  The Nasdaq had roughly the same pattern but the Dow was able to remain positive the entire day due to the strong moves by Merck (MRK) and also Intel (INTC).  In economic news, ISM came in light with a 49 reading which was below estimates and also the lowest reading in roughly 4 years. The aforementioned MRK was up today on positive news regarding…

Daily Wrap

Daily-Wrap

DJIA +36.71 (+0.28%); to 13,021.82 S&P 500 +6.02 (+0.43%); to 1,415.95 NASDAQ +20.25 (+0.68%); to 3,012.03 Today the S&P stayed green the entire day but did face a drop to near even just before noon time from Statements that Congress was not making headway on fiscal cliff talks but the market quickly recovered finally closing near where it opened up 6 points.  I posted on Stock Twits today that the more congress speaks, the less I want to own and I truly meant that.  The problem becomes, fundamental and technical work go out the window when headlines rule the day….

Week in Review

Week-in-Review

DJIA +172.79 (+1.35%) to 13,009.68 S&P 500 +18.12 (+1.30%) to 1,409.15 NASDAQ +40.30 (+1.38%) to 2,966.85 This has been the standard holiday trading that we have been highlighting.  Lower volumes and a drift higher.  The recent lows have provided a nice trade and today was more than just an up day with the S&P gapping higher and continuing all, albeit a half, day.  It is very difficult to get bearish during a week like this and in the face of moves like this and rightfully so but today, as we were noting on Stock Twits (WSConsensus), is the kind of day you want to be…

Daily Wrap

Daily-Wrap

DJIA +207.65 (+1.65%) 12,795.96;  S&P 500 +27.01 (+1.99%) 1,386.89;  NASDAQ +62.94 (+2.21%) 2,916.07 Today was a classic “Gap and Go” day where the markets started higher and continued higher for the remainder.  The S&P 500 is just getting into the range we were looking for on a bounce.  While upside should now be tempered, this is also a holiday trading week and in low volume weeks the market can have a tendency to drift higher.  I still would expect the 20 day MA to be resistance and a potential shorting opportunity for quick traders. The stocks making moves today, ummm,…

Charts of Interest

Charts-of-Interest

Let’s recap a few charts we are watching. First is the McClellan.  We highlighted that the McClellan reached Stage 1( below -80) levels on a closing basis and also posted an intraday chart showing we almost reached Stage 2 (-100).  Friday’s rally has already taken us out of Oversold levels but often with strong moves like this we see divergence on the indicator before a more substantial bottom is set. TSLA – Could be taking out a long term down trend line.  TSLA is often noted as a electric car manufacturer but TSLA has also started providing their components to…

Daily Wrap

Daily-Wrap

DJIA -28.57 (-0.23%)  S&P 500 -2.17 (-0.16%) NASDAQ -9.87 (-0.35%) Sector’s lagging in the S&P today were:  Utilities -0.73%, Basic Materials -0.96%, Telecommunications -1.07% while the leaders were: Consumer Goods +0.20%, Financials +0.20% and Oil & Gas +0.14%. Another morning where the S&P started higher but faced early selling.  If you were to just check in at the end of the day you would think today was a lack luster day in the market but if you were around it felt like a much more volatile than the ending prices reflect.  We posted at StockTwits the 5 minute downtrend line on the…

McClellan Oscillator

The McClellan Oscillator is starting to reach the -80 level which has proved to be an oversold level in the past where the market (SPX) has reacted.  The -80 level does not necessarily represent extremely oversold levels though and that might more be marked by the -100.  While I may not use the McClellan as a direct trigger for entering or exiting a trade, I feel as though these key levels must be noted and I use them with confluence in other indicators.  Considering we have the potential to set-up positive divergence on many intraday SPY charts, a close below…