September 23, 2018

Volatility & Chop continues

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:  …

Huge intraday swings

The Market: As expected, volatility continues and while we would not expect 100 point S&P days to become a common occurrence we do expect to see sharp swings both up and down. Our current expectation is that the market will ultimately revisit this morning’s lows is not make new lows but in the short-term the market is very oversold and should stage some sort of rally — not just intraday like today but on a closing basis over a few days.  That rally will be very telling and if weak we could be setting up for much much lower and…

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…

Market continues to rebound

The Market: Stocks continue to chug along after last week’s impressive reversal on Wednesday.  Today was another turn around session which saw the S&P 500 gap down roughly 12 points before firming up in very early trading and then rallying the rest of the session to finish up over 9 points.  Above 2080 in the S&P 500 and it looks like the good times can continue. HealthCare (XLV) was the leader in individual sectors finishing up 1.01% followed closely by Consumer Discretionary (XLY) which closed up 0.96%.  Today’s underperformer was Consumer Staples (XLP) which finished flat on the session hurt…

Market Shrugs off initial gap down

Index & Sector performance 5/28/15 The Market: Today started with a gap down but the major indices on the WSC Scoreboard were able to rally back to near flat on the session with the NASDAQ (QQQ) leading to the downside.  After two very volatile session, it appeared the market used today to take a breather.  FYI, tomorrow is the last trading day of the month. Transportation (IYT) was the clear loser on the WSC Scoreboard as it finished nearly 1% lower on the session.  We generally do not look to catch falling knifes and YTD the IYT has not been…

Market finishes near lows

Index & Sector performance 5/26/15 The Market: A strong down day for the market which saw all the major market indices on the WSC Scoreboard finish down over 1% on the session near the lows for the day.  The futures are up in the after hours session but they will have to prove that this is not just a relief bounce. Utilities (XLU), Consumer Discretionary (XLY), and Consumer Staples (XLP) were the relative out-performers finishing down 0.63%, 0.75%, and 0.79% respectively.  After reaching a high of $62.58 on 5/6/15, Crude Oil is back below $60/barrel after losing 3% in today’s…

Market closes highe but no conviction

Index & Sector performance 3/9/15 The Market: Overall it was a quiet session with not much news or Economic data.  The market was able to bounce back today after Friday’s strong sell-off led by the Dow (DIA) but volume was on the light side showing that market participants are not necessarily convinced the decline is over. In individual sectors Industrials (XLI) was the clear leader as names like Boeing (BA), 3M (MMM), and Caterpillar (CAT) put in strong sessions finishing up 1.06%, 1.22% and 0.94% respectively.  Energy (XLE) was the lone loser on the session finishing -0.72%.  One bright spot,…

Russell leads overall dull session

Index & Sector performance 11/24/14 The Market: An overall dull session with the S&P 500 (SPY) and Dow (DIA) barely moving while the NASDAQ (QQQ) and Russell 2000 (IWM) led.  As is expected for the remainder of this shortened holiday week, volume was very light. In individual sectors it was Retail (XRT) posting another great session up 1.32%.  Today the index was greatly helped by Outerwall (OUTR), operators of Coinstar and Redbox, which finished up 12.32%.  Also chipping in was Best Buy (BBY) up 2.29% and Foot Locker (FL) up 3.45%.  After spending much of the year down, the XRT…

Global unrest helps fuel market decline

Index & Sector performance 7/17/14 The Market: Broad based sell off today saw all 5 (S&P 500 equal weight index (RSP) added today) major indices from the WSC Scoreboard finish over 1% lower except the Dow (DIA) which managed to only lose 0.85%.  No surprise leading the way to the downside was again the Russell 2000 (IWM) which is now solidly down for the year and underperforming the S&P 500 (SPY) by 8.5% and the NASDAQ (QQQ) by 10%. The double top in the IWM which we started discussing over a week ago is now more pronounced and as a…

This down day came with volume

Index & Sector performance 7/8/14 The Market: *** Administrative Note: Due to traveling, this will be the last update for the week. *** A second straight day lower for all 4 broad market indices on the WSC Scoreboard but setting today apart from other recent down days was a noticeable pick-up in volume.  Leading the charge to the downside was the NASDAQ (QQQ) and Russell 2000 (IWM) both finishing 1.2% lower. We remain cautious on the overall broad market and as noted in last night’s report are watching the IWM closely.  Its failure to lead and make new highs with…