Daily Market Update for 2/23
Summary: Tensions in Ukraine continue to escalate while the market continues to fall.
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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Wednesday, February 23, 2022
Facts: -2.57%, Volume lower, Closing Range: 1%, Body: 95% Red
Good: Nothing
Bad: Closing range, huge red body
Highs/Lows: Lower high, Lower low
Candle: Tiny upper wick above large red body. No lower wick.
Advance/Decline: 0.35, almost three declining stocks for every advancing stock
Indexes: SPX (-1.84%), DJI (-1.38%), RUT (-1.82%), VIX (+7.67%)
Sector List: Energy (XLE +1.03%) and Health (XLV -0.50%) at the top. Technology (XLK -2.50%) and Consumer Discretionary (XLY -3.34%) at the bottom.
Expectation: Lower
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Market Overview
Tensions in Ukraine continue to escalate while the market continues to fall.
The Nasdaq declined by another -2.57% today. Volume was lower than the previous day. The candle is 95% red body with a tiny upper wick and no lower wick. The closing range of 1% comes after a day of unending distribution. There were nearly three declining stocks for every advancing stock.
The S&P 500 (SPX) declined by -1.84% while the Dow Jones Industrial Average (DJI) fell by -1.38%. The Russell 2000 (RUT) lost -1.82%. The VIX Volatility Index continued higher, climbing by 7.67% today.
Of the eleven S&P 500 sectors, only the Energy (XLE +1.03%) gained for the day. Growth sectors of Technology (XLK -2.50%) and Consumer Discretionary (XLY -3.34%) had the most significant losses.
Consumer Price Index data in Europe for January met expectations. API Weekly Crude Oil Stock was much higher than forecast, possibly showing a softening in demand.
The US Dollar index (DXY) rose by +0.13%. All Treasury yields were higher with the curve about the same. High Yield (HYG) and Investment Grade (LQD) Corporate Bond prices were lower. Gold and Silver are on the rise again as safe havens. Timber (WOOD) is sharply lower over the past two days.
The big six mega-caps had another day of large losses. Tesla (TSLA) dropped the most, declining by -7.00%. Nvidia declined by -4.29%, moving below Taiwan Semiconductor (TSM) in market cap.
Chevron (CVX) topped the mega-cap list with a +2.38%, helping the Energy sector end the day with gains. Exxon Mobil (XOM) also helped with a +0.41% gain. Only four mega-caps were positive at the end of the day. Tesla had the most significant decline, ending up at the bottom of the list.
Also only four stocks in the Daily Update Growth list gained for the day. Draft Kings (DKNG) and Penn National Gaming (PEEN) topped the list with +5.59% and +2.38% after rival Caesars Entertainment (CZR) said they would pull back on marketing sports betting. Chewy (CHWY) was at the bottom of the growth list with a -7.55% decline.
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Looking ahead
Revised Q4 GDP and GDP Price Index data will be made available in the morning. The weekly Initial Jobless Claims will also be released before the market opens. After the market opens, we will have New Home Sales for January and Crude Oil Inventories.
Fed officials Bostic and Mester are scheduled to speak in the morning. Both are historically more on the Dovish side.
Berkshire Hathaway (BRKa) releases earnings tomorrow. Intuit (INTU), Moderna (MRNA), Block (SQ), VMWare (VMW), Autodesk (ADSK), Dell Tech (DELL), American Electric Power (AEP), Coinbase (COIN), Zscaler (ZS), and Rocket (RKT) are also among a fairly long list of earnings reports for Thursday.
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Trends, Support, and Resistance
13,000 is a significant support/resistance area. The Nasdaq closed just above that point today.
If the index returns to the trend line from the 2/10 high, that would mean a +1.19% advance for Thursday.
The five-day trend line points to a -0.79% decline. The one-day trend line leads to a -2.73% decline.
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Wrap-up
All eyes remain on Ukraine. It's been interesting to watch futures instead of the news. Any change in the conflict immediately shows up in futures prices and then one needs to wait a few minutes before it pops in the headlines.
The expectation is for Lower tomorrow.
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=-
Wednesday, February 23, 2022
Facts: -2.57%, Volume lower, Closing Range: 1%, Body: 95% Red
Good: Nothing
Bad: Closing range, huge red body
Highs/Lows: Lower high, Lower low
Candle: Tiny upper wick above large red body. No lower wick.
Advance/Decline: 0.35, almost three declining stocks for every advancing stock
Indexes: SPX (-1.84%), DJI (-1.38%), RUT (-1.82%), VIX (+7.67%)
Sector List: Energy (XLE +1.03%) and Health (XLV -0.50%) at the top. Technology (XLK -2.50%) and Consumer Discretionary (XLY -3.34%) at the bottom.
Expectation: Lower
-=x=-=x=-=x=-=x=-=x=-=x=-=x=-
Market Overview
Tensions in Ukraine continue to escalate while the market continues to fall.
The Nasdaq declined by another -2.57% today. Volume was lower than the previous day. The candle is 95% red body with a tiny upper wick and no lower wick. The closing range of 1% comes after a day of unending distribution. There were nearly three declining stocks for every advancing stock.
The S&P 500 (SPX) declined by -1.84% while the Dow Jones Industrial Average (DJI) fell by -1.38%. The Russell 2000 (RUT) lost -1.82%. The VIX Volatility Index continued higher, climbing by 7.67% today.
Of the eleven S&P 500 sectors, only the Energy (XLE +1.03%) gained for the day. Growth sectors of Technology (XLK -2.50%) and Consumer Discretionary (XLY -3.34%) had the most significant losses.
Consumer Price Index data in Europe for January met expectations. API Weekly Crude Oil Stock was much higher than forecast, possibly showing a softening in demand.
The US Dollar index (DXY) rose by +0.13%. All Treasury yields were higher with the curve about the same. High Yield (HYG) and Investment Grade (LQD) Corporate Bond prices were lower. Gold and Silver are on the rise again as safe havens. Timber (WOOD) is sharply lower over the past two days.
The big six mega-caps had another day of large losses. Tesla (TSLA) dropped the most, declining by -7.00%. Nvidia declined by -4.29%, moving below Taiwan Semiconductor (TSM) in market cap.
Chevron (CVX) topped the mega-cap list with a +2.38%, helping the Energy sector end the day with gains. Exxon Mobil (XOM) also helped with a +0.41% gain. Only four mega-caps were positive at the end of the day. Tesla had the most significant decline, ending up at the bottom of the list.
Also only four stocks in the Daily Update Growth list gained for the day. Draft Kings (DKNG) and Penn National Gaming (PEEN) topped the list with +5.59% and +2.38% after rival Caesars Entertainment (CZR) said they would pull back on marketing sports betting. Chewy (CHWY) was at the bottom of the growth list with a -7.55% decline.
-=x=-=x=-=x=-=x=-=x=-=x=-=x=-
Looking ahead
Revised Q4 GDP and GDP Price Index data will be made available in the morning. The weekly Initial Jobless Claims will also be released before the market opens. After the market opens, we will have New Home Sales for January and Crude Oil Inventories.
Fed officials Bostic and Mester are scheduled to speak in the morning. Both are historically more on the Dovish side.
Berkshire Hathaway (BRKa) releases earnings tomorrow. Intuit (INTU), Moderna (MRNA), Block (SQ), VMWare (VMW), Autodesk (ADSK), Dell Tech (DELL), American Electric Power (AEP), Coinbase (COIN), Zscaler (ZS), and Rocket (RKT) are also among a fairly long list of earnings reports for Thursday.
-=x=-=x=-=x=-=x=-=x=-=x=-=x=-
Trends, Support, and Resistance
13,000 is a significant support/resistance area. The Nasdaq closed just above that point today.
If the index returns to the trend line from the 2/10 high, that would mean a +1.19% advance for Thursday.
The five-day trend line points to a -0.79% decline. The one-day trend line leads to a -2.73% decline.
-=x=-=x=-=x=-=x=-=x=-=x=-=x=-
Wrap-up
All eyes remain on Ukraine. It's been interesting to watch futures instead of the news. Any change in the conflict immediately shows up in futures prices and then one needs to wait a few minutes before it pops in the headlines.
The expectation is for Lower tomorrow.
Stay healthy and trade safe!
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