The NightCap
The Market: Global concerns sparked an initial move lower in early trading but the markets found support near the $2070 region in the SPX and then managed to finish the session slightly higher. Energy (XLE) was the clear leader on the WSC Scoreboard followed by Retail (XRT) and Materials (XLB). Transportation (IYT) lagged hurt by the State Department’s travel ban issued late Monday in response to the recent geopolitical events. After making a low in late August, the XLE rallied until early November and has since held in well consolidating below the November 6th high. XLE may be setting up…
$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…
Flat session with no catalysts
Index & Sector performance 3/23/15 The Market: A flat start to the week as the market appeared happy to meander without a strong catalyst to tip the balance one way or the other. In an otherwise boring tape, the Transportation Index (IYT) is worth noting as it closed down 1.83%. Most of the big names in the index were lower but Kansas City Southern (KSU) was the clear leader to the downside finishing 7.96% lower on the session after announcing reduced FY15 revenue guidance. Existing Home Sales came in weaker than expected and we will be watching to see if…
Tech & Small Cap lead, S&P new highs
Index & Sector performance 5/27/14 The Market: After a lull in Economic releases last week and a Holiday Monday, today started with a slew of Economic data which posted better than expected results for Durable Goods orders, Home Price Index, and Flash Services PMI. The S&P which was already trading slightly higher preceded to rally into the early morning before seeing a midday dip followed by an end of day rally that took the S&P500 futures back to and slightly above the earlier highs. Tomorrow we get a break from Economic news but Thursday will be another big day with…
Market digests yesterday’s move
Index & Sector performance 3/27/14 The Market: In Economic news, Unemployment Claims came in at 311K which is better than the 326K estimate. GDP came in a hair light at 2.6% vs 2.7% est. and Pending Home Sales missed big posting a -0.8% vs a 0.1% est. while the previous number was revised lower. Tomorrow’s data is not as critical as today’s but we do have multiple events including Consumer Confidence. In early trading the emini reached 1835ES and twice found support there before managing to rally roughly 9 points off the lows to the close. All in all it…
FOMC statement & new Chair tomorrow
Index & Sector performance 3/18/14 The Market: We would not be shocked to see the market meander overnight and into tomorrow until the FOMC statement and Fed Chair Janet Yellen’s first press conference. While we do not expect there to be a great difference in message or tone from the Fed, do not be surprised if the market uses this opportunity to send a message to Yellen if there is something that is not liked. In the meantime, traders should watch today’s high of 1867ES as a break could be signaling a move to 1880ES and the index should see…
Next target the 50 day SMA?
Index & Sector performance 3/13/14 The Market: A strong down day in the market but coming into the day people may have thought that would be a result of a poor Unemployment Claims number but we actually saw a better than expected 315K (334K est). After the report the index meandered higher into the open and then after peaking out above trend line resistance, turned and started what proved to be a day long decline. At 11:30 am we posted on StockTwits that the decline in the ES looked like it had lower to go especially due to the slope…
Early dip met with strong buying
Index & Sector performance 2/13/14 The Market: The markets began to dip overnight and into early morning trading. Weaker than expected economic data didn’t help but just as the market officially opened the bottom was put in and the S&P 500 spent the remainder of the day rallying only taking a short midday break before continuing on to made the highs of the day near the close. The following noteworthy companies are scheduled to report earnings before tomorrow’s open: ALE, BAM, COTY, CPB, DTE, H, IPG, IPGP, ITT, JMP, LECO, LPNT, MINI, POR, RRGB, SJM, SNI, TRW, VFC, VTR,…
S&P Futures play MA pinball
Index & Sector performance 12/16/13 The Market: The made strong gains today after what looked like a horrible start to the week. In overnight trading Sunday the S&P 500 dropped t0 $1754 (March 2014 emini contract) tagging the 50 day SMA and then built a rally off that support. Surprisingly by the morning the futures had not only regained everything that was lost from Sunday evening’s open but also but in some gains. Those who do not look at the futures may have never even known of the rough start. The futures then rallied pre-market to the 20 day SMA…
Small Caps lead move lower
Index & Sector performance 12/11/13 The Market: Strong down day in the market with the S&P 500, Nasdaq and Russell 2000 closing down over 1%. The Russell 2000 has been leading the charge for the year but has underperformed of late including today posting the largest loss at 1.64%. After remaining relatively unchanged in overnight and early morning trading, the market started to slip in the pre-market about an hour before the open. Losses built the remainder of the day with the S&P 500 closing near the lows of the day and through the 20 Day SMA. In economic news…