November 21, 2018

Back-to-Back big declines

The Market: WOW!  As we noted in Wednesday’s Nightcap, we expected volatility to continue and that there “seems to be a great deal of risk in the market”.  That is why we noted a move below Wednesday’s low of 2070 in the S&P 500 could trigger a sharp decline targeting 2000 in the S&P to start.  That is certainly NOT to say we expected the S&P to get there by Friday! The S&P did not make the close easy going out right at the lows evoking the fear of a strong gap lower Monday.  While a gap down Monday could…

Oil trades below $50 & leads market lower

Index & Sector performance 1/5/15 The Market: The market was again led by Oil’s decline as we closed below $50 per barrel for the first time since 2009.  In the Analyst Comments below you will see a downgrade for Caterpillar (CAT) by JP Morgan.  In the note the analyst commented that up to 30% of CAT’s revenue could be under pressure due to lower oil prices.  Similarly, Evercore downgraded Terex (TEX) to Hold with an $26 target and United Rentals (URI) to Sell with a $87 target citing concerns that oil’s sharp decline will hurt energy investments and thus construction…

Volatility the new norm

Index & Sector performance 10/16/14 The Market: A session like today may look uneventful when scanning the WSC Scoreboard and looking at the end of day changes but it masks the large intraday swings.  An example is the S&P 500 (SPY) had a roughly 50 point range from high to low today (5 points in the SPY) which represents nearly 3% based on today’s opening price.  Traders and investors need to be prepared for an environment with increased volatility which could last for an extended period. The Russell 2000 (IWM) remains the clear leader of late finishing up over 1%. …

Daily Wrap

DJIA +38.16 (+0.27%) to 14,127.82; S&P 500 +7.00 (+0.46%) to 1,525.20; NASDAQ +12.29 (+0.39%) to 3,182.03 Today started on a down note but landed the S&P 500 right into its 20 day SMA which it promptly held and started to make its ascent for the remainder of the day.  We had no noteworthy economic news today and frankly not much is really on tap tomorrow.  The market will be left to its own devices and whether or not it can continue to press higher.  I will have more below but the futures chart is trying to build a case to argue for higher levels….