US Market Update
Heatmap NASDAQ for last week
The heatmap for the Nasdaq for the last 5 trading days looks great. Many names could improve by more than 10% with only very few exceptions, TSLA being a big outlier last week.
Overall a very promising week which could actually indicate that we are getting very close to the bottom of the current bear market.
General Market Update
The US stock market ended a powerful week in an optimistic mood, rallying into the close as the strong dollar fell. Investors look to be rotating into a more aggressive stance.
The Nasdaq, which has been suffering severe losses in 2022 so far, performed best. It rose 1.9% for the day and ended with a weekly gain of over a giant 8%. Crucially, it is now back above the 50-day moving average. It remains down more than 28% for the year.
The S&P 500 managed to squeeze out a gain of 0.9% Friday, raising the weekly total to nearly 6%. The 200-day moving average now looks in reach after it climbed away from its 50-day line.
Blue chip stocks lagged the other major indexes following recent outperformance. Nevertheless, the Dow Jones Industrial Average still closed up 0.1% for the day and more than 4% for the week. Nike (NKE) and Walt Disney (DIS) were among the top performers.
Volume was down on both the Nasdaq and the NYSE, no surprise given Thursday's massive volume. Breadth was solid in both exchanges, with advancers outnumbering decliners about 2-1.
With many near-term hurdles cleared, the stock market looks to be in a good position to make the turn. However, swing-traders still have to expect increased volatility.
Weakening Dollar
The strong dollar has been a big headwind for the stock market, but signs of peak inflation have seen the currency fall in recent days.
Friday's weakness in the U.S. Dollar index extended a move that began Thursday following lower-than-expected U.S. consumer inflation data.
Many companies have seen their bottom lines hit due to expensive foreign exchange rates. If the dollar continues to weaken, it will conversely boost earnings for firms with foreign operations, bolstering their stock price.
The heatmap for the Nasdaq for the last 5 trading days looks great. Many names could improve by more than 10% with only very few exceptions, TSLA being a big outlier last week.
Overall a very promising week which could actually indicate that we are getting very close to the bottom of the current bear market.
General Market Update
The US stock market ended a powerful week in an optimistic mood, rallying into the close as the strong dollar fell. Investors look to be rotating into a more aggressive stance.
The Nasdaq, which has been suffering severe losses in 2022 so far, performed best. It rose 1.9% for the day and ended with a weekly gain of over a giant 8%. Crucially, it is now back above the 50-day moving average. It remains down more than 28% for the year.
The S&P 500 managed to squeeze out a gain of 0.9% Friday, raising the weekly total to nearly 6%. The 200-day moving average now looks in reach after it climbed away from its 50-day line.
Blue chip stocks lagged the other major indexes following recent outperformance. Nevertheless, the Dow Jones Industrial Average still closed up 0.1% for the day and more than 4% for the week. Nike (NKE) and Walt Disney (DIS) were among the top performers.
Volume was down on both the Nasdaq and the NYSE, no surprise given Thursday's massive volume. Breadth was solid in both exchanges, with advancers outnumbering decliners about 2-1.
With many near-term hurdles cleared, the stock market looks to be in a good position to make the turn. However, swing-traders still have to expect increased volatility.
Weakening Dollar
The strong dollar has been a big headwind for the stock market, but signs of peak inflation have seen the currency fall in recent days.
Friday's weakness in the U.S. Dollar index extended a move that began Thursday following lower-than-expected U.S. consumer inflation data.
Many companies have seen their bottom lines hit due to expensive foreign exchange rates. If the dollar continues to weaken, it will conversely boost earnings for firms with foreign operations, bolstering their stock price.
Combing the BEST of two WORLD's: Cathie Wood & Mark Minervini
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