Daily Market Update for 6/14
Summary: The Nasdaq continued its march higher while the other major indices paused or pulled back. The gains focused on mid and large-cap growth stocks.
Notes
Ideas always welcome in the comments. Errors will be amended as comments on TradingView or corrected inline in my blog.
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Monday, June 14, 2021
Facts: +0.74%, Volume higher, Closing range: 99%, Body: 76%
Good: High closing range, higher volume, large green body
Bad: Advance/decline ratio below 1.0
Highs/Lows: Higher high, lower low
Candle: Short lower wick filled opening gap, thick green body, no upper wick
Advanced/Decline: 0.86, More declining stocks than advancing stocks
Indexes: SPX (+0.18%), DJI (-0.25%), RUT (-0.41%), VIX (+4.73%)
Sectors: Technology (XLK +1.01%) and, Communications (XLC +0.66%) were top. Financials (XLF -1.04%) and Materials (XLB -1.23%) were bottom.
Expectation: Sideways
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Market Overview
The Nasdaq continued its march higher while the other major indices paused or pulled back. The gains focused on mid and large-cap growth stocks.
The index closed with a +0.75% gain on higher volume than Friday. The closing range reached 99% in the last 30 minutes of trading, while the 76% green body represents a steady climb throughout the day. The higher high marks the seventh session in a row to reach a higher high. The close is only 0.25% below a new all-time high. However, there were more declining stocks than advancing stocks.
The S&P 500 (SPX) closed at another all-time high with a +0.18% advance today. The Dow Jones Industrial Average (DJI) declined -0.25%, while the Russell 2000 (RUT) lost -0.41%.
The VIX volatility index rose +4.73%.
Technology (XLK +1.01%) and Communications (XLC +0.66%) were top, helped by mid and large-cap growth stocks. Financials (XLF -1.04%) and Materials (XLB -1.23%) were the bottom sectors for the day.
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Economic Indicators
The US Dollar (DXY) was flat with only a -0.01% decline.
The US 30y, 10y, and 2y Treasury yields rose for a second day.
High Yield Corporate Bond (HYG) and Investment Grade Corporate Bond (LQD) prices declined slightly.
Silver (SILVER) and Gold (GOLD) declined.
Crude Oil (CRUDEOIL1!) declined.
Timber (Wood) declined.
Copper (COPPER1!) declined, Aluminum (ALI1!) advanced.
Bitcoin (BTCUSD) rose +3.89%. Ethereum (ETHUSD) advanced +2.89%.
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Investor Sentiment
The put/call ratio declined to 0.469. The put/call ratio (PCCE) is a contrarian indicator that shows overly bullish or overly bearish investor behavior. The 0.7 level is considered normal. Below that level is overly bullish.
The CNN Fear & Greed index is on the greed side but still near neutral.
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Market Leaders
Apple (AAPL) broke out today with a +2.46% gain taking the price above the 50d MA. All four largest mega-caps are now above their 50d MA and 21d EMA. Amazon (AMZN) added to recent gains with a +1.11% advance today. Microsoft (MSFT) gained +0.78%. Alphabet (GOOGL) gained +0.77%.
Adobe (ADBE), Salesforce.com (CRM), Apple, and Taiwan Semiconductor (TSM) topped the mega-cap list. At the bottom of the list were Cisco Systems (CSCO), Bank of America (BAC), Pfizer (PFE), and JP Morgan Chase (JPM).
Ehang Holdings (EH), FUTU Holdings (FUTU), Fastly (FSLY), and Square (SQ) were the top four growth stocks in the daily update list. At the bottom of the list were Sumo Digital (SUMO), Draft Kings (DKNG), Penn National Gaming (PENN), and Digital Turbine (APPS). The growth list is mostly advancing stocks.
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Looking ahead
Producer Price Index data is scheduled for release on Tuesday. We will also get an update on Retail sales data. Both sets of data come before the market open. API Weekly Crude Oil Stock data will be released after the market close.
Earnings reports for Tuesday include Oracle (ORCL), H&R Block (HRB), and La-Z-Boy (LZB).
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Trends, Support, and Resistance
The index came within 0.25% of a new all-time high today. Expect some resistance at the all-time high area before moving higher.
The one-day trend-line points to a +0.13% gain for Tuesday.
The five-day trend-line leads to a small loss of -0.04%.
The trend-line from the 5/12 low points to a -0.28% decline for tomorrow.
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Wrap-up
The momentum for the Nasdaq continues, albeit at lower volume today. The index is getting close to a new all-time high where we can expect some resistance before it moves higher. The expectation is for sideways tomorrow. Higher would be a positive surprise and indicate a very bullish market. Lower will need to be evaluated but would likely come from caution as we head into the Fed comments on Wednesday.
Stay healthy and trade safe!
Notes
Ideas always welcome in the comments. Errors will be amended as comments on TradingView or corrected inline in my blog.
-=x=-=x=-=x=-=x=-=x=-=x=-=x=-
Monday, June 14, 2021
Facts: +0.74%, Volume higher, Closing range: 99%, Body: 76%
Good: High closing range, higher volume, large green body
Bad: Advance/decline ratio below 1.0
Highs/Lows: Higher high, lower low
Candle: Short lower wick filled opening gap, thick green body, no upper wick
Advanced/Decline: 0.86, More declining stocks than advancing stocks
Indexes: SPX (+0.18%), DJI (-0.25%), RUT (-0.41%), VIX (+4.73%)
Sectors: Technology (XLK +1.01%) and, Communications (XLC +0.66%) were top. Financials (XLF -1.04%) and Materials (XLB -1.23%) were bottom.
Expectation: Sideways
-=x=-=x=-=x=-=x=-=x=-=x=-=x=-
Market Overview
The Nasdaq continued its march higher while the other major indices paused or pulled back. The gains focused on mid and large-cap growth stocks.
The index closed with a +0.75% gain on higher volume than Friday. The closing range reached 99% in the last 30 minutes of trading, while the 76% green body represents a steady climb throughout the day. The higher high marks the seventh session in a row to reach a higher high. The close is only 0.25% below a new all-time high. However, there were more declining stocks than advancing stocks.
The S&P 500 (SPX) closed at another all-time high with a +0.18% advance today. The Dow Jones Industrial Average (DJI) declined -0.25%, while the Russell 2000 (RUT) lost -0.41%.
The VIX volatility index rose +4.73%.
Technology (XLK +1.01%) and Communications (XLC +0.66%) were top, helped by mid and large-cap growth stocks. Financials (XLF -1.04%) and Materials (XLB -1.23%) were the bottom sectors for the day.
-=x=-=x=-=x=-=x=-=x=-=x=-=x=-
Economic Indicators
The US Dollar (DXY) was flat with only a -0.01% decline.
The US 30y, 10y, and 2y Treasury yields rose for a second day.
High Yield Corporate Bond (HYG) and Investment Grade Corporate Bond (LQD) prices declined slightly.
Silver (SILVER) and Gold (GOLD) declined.
Crude Oil (CRUDEOIL1!) declined.
Timber (Wood) declined.
Copper (COPPER1!) declined, Aluminum (ALI1!) advanced.
Bitcoin (BTCUSD) rose +3.89%. Ethereum (ETHUSD) advanced +2.89%.
-=x=-=x=-=x=-=x=-=x=-=x=-=x=-
Investor Sentiment
The put/call ratio declined to 0.469. The put/call ratio (PCCE) is a contrarian indicator that shows overly bullish or overly bearish investor behavior. The 0.7 level is considered normal. Below that level is overly bullish.
The CNN Fear & Greed index is on the greed side but still near neutral.
-=x=-=x=-=x=-=x=-=x=-=x=-=x=-
Market Leaders
Apple (AAPL) broke out today with a +2.46% gain taking the price above the 50d MA. All four largest mega-caps are now above their 50d MA and 21d EMA. Amazon (AMZN) added to recent gains with a +1.11% advance today. Microsoft (MSFT) gained +0.78%. Alphabet (GOOGL) gained +0.77%.
Adobe (ADBE), Salesforce.com (CRM), Apple, and Taiwan Semiconductor (TSM) topped the mega-cap list. At the bottom of the list were Cisco Systems (CSCO), Bank of America (BAC), Pfizer (PFE), and JP Morgan Chase (JPM).
Ehang Holdings (EH), FUTU Holdings (FUTU), Fastly (FSLY), and Square (SQ) were the top four growth stocks in the daily update list. At the bottom of the list were Sumo Digital (SUMO), Draft Kings (DKNG), Penn National Gaming (PENN), and Digital Turbine (APPS). The growth list is mostly advancing stocks.
-=x=-=x=-=x=-=x=-=x=-=x=-=x=-
Looking ahead
Producer Price Index data is scheduled for release on Tuesday. We will also get an update on Retail sales data. Both sets of data come before the market open. API Weekly Crude Oil Stock data will be released after the market close.
Earnings reports for Tuesday include Oracle (ORCL), H&R Block (HRB), and La-Z-Boy (LZB).
-=x=-=x=-=x=-=x=-=x=-=x=-=x=-
Trends, Support, and Resistance
The index came within 0.25% of a new all-time high today. Expect some resistance at the all-time high area before moving higher.
The one-day trend-line points to a +0.13% gain for Tuesday.
The five-day trend-line leads to a small loss of -0.04%.
The trend-line from the 5/12 low points to a -0.28% decline for tomorrow.
-=x=-=x=-=x=-=x=-=x=-=x=-=x=-
Wrap-up
The momentum for the Nasdaq continues, albeit at lower volume today. The index is getting close to a new all-time high where we can expect some resistance before it moves higher. The expectation is for sideways tomorrow. Higher would be a positive surprise and indicate a very bullish market. Lower will need to be evaluated but would likely come from caution as we head into the Fed comments on Wednesday.
Stay healthy and trade safe!
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