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Daily Market Update for 7/30Summary: A disappointing earnings report from Amazon weighed down major indexes, but inflation data came in less than expected, helping give the market a boost in the morning. 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=- Friday, July 30, 2021 Facts: -0.71%, Volume lower, Closing range: 50%, Body: 50% Good: Bounce off 21d EMA and did not revisit low Bad: Could not hold intraday high from morning rally Highs/Lows: Lower high, lower low Candle: Half green body at the bottom of the candle, no lower wick Advanced/Decline: 0.45, two declining stocks for every advancing stock Indexes: SPX (-0.54%), DJI (-0.42%), RUT (-0.62%), VIX (+2.94%) Sectors: Materials (XLB +0.41%) and Real Estate (XLRE +0.32%) at the top. Energy (XLE -1.59%( and Consumer Discretionary (XLY -2.06%) at the bottom. Expectation: Sideways -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Market Overview A disappointing earnings report from Amazon weighed down major indexes, but inflation data came in less than expected, helping give the market a boost in the morning. The Nasdaq closed the day with a -0.71% loss to end the week. Volume was lower and declining every day this week since Monday's all-time high in the index. The 50% green body sits at the bottom of the candle with no lower wick. The upper wick formed in the morning rally, but the index could not hold onto the intraday high. There were two declining stocks for every advancing stock. The S&P 500 (SPX) declined -0.54%, while the Dow Jones Industrial Average (DJI) fell -0.42%. The Russell 2000 (RUT), which outperformed this week, declined -0.62% in Friday's session. The VIX volatility index advanced +2.94%. Materials (XLB +0.41%) and Real Estate (XLRE +0.32%) were top sectors for the day. Energy (XLE -1.59%( and Consumer Discretionary (XLY -2.06%) were the worst-performing, with Amazon pulling down the latter. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Economic Indicators Core PCE Price Index data came in less than expected, while Personal Income and Personal Spending data were higher than expected. Michigan Consumer Sentiment was higher, and Inflation Expectations was lower. Those all should help ease some fears around inflation and an overheated economy. The result is that the US Dollar (DXY) rose +0.23%. The US 30y, 10y, and 2y Treasury yields all declined. High Yield Corporate Bond (HYG) declined while Investment Grade Corporate Bond (LQD) prices advanced. Silver (SILVER) and Gold (GOLD) declined. Crude Oil (CRUDEOIL1!) prices advanced. Timber (Wood) declined. Copper (COPPER1!) declined. Aluminum (ALI1!) continued to advance for another day. Bitcoin (BTCUSD) advanced +5.49%. Ethereum (ETHUSD) advanced +3.37%. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Investor Sentiment The put/call ratio rose to 0.668. 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 moved back into Extreme Fear. The NAAIM money manager exposure index moved up to 78.39. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Market Leaders Apple (AAPL) was the only of the largest four mega-caps to advance today, gaining +0.15%. Amazon (AMZN) gapped down and ended the day well below its 21d EMA and 50d MA lines, declining -7.56%. Microsoft (MSFT) declined -0.55%. Alphabet (GOOGL) lost -0.77%. Proctor & Gamble (PG), Tesla (TSLA), Comcast (CMCSA), and Thermo Fisher Scientific (TMO) were the top-performing mega-caps. AbbView (ABBV), Exxon Mobil (XOM), PayPal (PYPL), and Amazon were the worst-performing. Only a handful of the daily update growth stocks gained for the day. NIO (NIO), Enphase (ENPH), Ehang Holding (EH), and Tesla (TSLA) were the top performers in the list. Pinterest (PINS) lost over 18%, while Roku (ROKU), Etsy (ETSY), and Upwork (UPWK) fill out the rest of the bottom four. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Looking ahead The ISM will release manufacturing purchasing managers index data on Monday. HSBC (HSBC), Mitsubishi UFJ (MUFG), Heineken (HEINY), and Zoominfo (ZI) are a few of the earnings reports for Monday. There are many earnings reports next week. Keep an eye out for reports from companies in your portfolio. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Trends, Support, and Resistance The Nasdaq pulled back but remained above the 21d EMA today. The trend-line from the 7/19 low ends with a +1.51% gain for Monday. The five-day trend line points to a +0.18% gain. The one-day trend line leads to a -0.01% decline. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Wrap-up After several days of reasonably good earnings reports, the Amazon and Pinterest reports were a bit of a shocker. Thankfully inflation data and consumer sentiment data did not make things worse, and the indexes held support levels. Based on the long upper shadow two days in a row, the expectation is for Sideways or Lower on Monday. Stay healthy and trade safe!
NASDAQ:IXIC
by drewby4321
Daily Market Update for 7/29Summary: GDP growth was less than expected this morning while employment data confirmed the Fed's message that there is still more work to do in the economic recovery. That wasn't necessarily a bad thing for equities, as it means economic support will continue for some time. 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=- Thursday, July 29, 2021 Facts: +0.11%, Volume lower, Closing range: 23%, Body: 10% Good: Higher high and higher low, A/D ratio Bad: Long upper wick relative to body as early gains faded Highs/Lows: Higher high, higher low Candle: Thin body at the bottom of candle with long upper wick Advanced/Decline: 1.41, more advancing stocks than declining stocks Indexes: SPX (+0.42%), DJI (+0.44%), RUT (+0.68%), VIX (-3.22%) Sectors: Consumer Discretionary (XLY +1.13%) and Materials (XLB +1.10%) at the top. Real Estate (XLRE -0.30%) and Communications (XLC -1.08%) at the bottom. Expectation: Sideways -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Market Overview GDP growth was less than expected this morning while employment data confirmed the Fed's message that there is still more work to do in the economic recovery. That wasn't necessarily a bad thing for equities, as it means economic support will continue for some time. The Nasdaq closed the day with a +0.11% but gave back intra-day gains, creating a long upper wick over a thin green body. Volume was lower for the day. The closing range of 23% and 10% green body at the bottom of the candle represents a failed attempt to rally today, but the A/D ratio shows some broader gains under the surface. The Russell 2000 (RUT) outperformed again today with a +0.68% gain, closing above its 21d exponential moving average line for the first time in July. The S&P 500 (SPX) gained +0.42%, while the Dow Jones Industrial Average (DJI) rose +0.44%. The VIX volatility index declined -3.22%. Consumer Discretionary (XLY +1.13%), Materials (XLB +1.10%), and Financials (XLF +1.10%) topped the sector list. Only two sectors declined today, Real Estate (XLRE -0.30%) and Communications (XLC -1.08%). -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Economic Indicators Initial Jobless Claims and Continuing Jobless Claims came in higher than expected. GDP data came in lower than expected, while the GDP Price Index data was higher than expected. Pending Home Sales data was lower than expected. The result is that the US Dollar (DXY) rally is reversing, with another -0.42% decline today. The US 30y, 10y, and 2y Treasury yields all advanced. High Yield Corporate Bond (HYG) advanced while Investment Grade Corporate Bond (LQD) prices declined. The continued support for the economy bodes well for businesses borrowing money to enable growth and employ more people. Outside equities, High Yield (Junk) Bonds will give some of the best returns for investors. Silver (SILVER) and Gold (GOLD) advanced significantly. Crude Oil (CRUDEOIL1!) prices advanced. Timber (Wood) advanced. Copper (COPPER1!) advanced. Aluminum (ALI1!) advanced significantly. Bitcoin (BTCUSD) advanced +0.23%. Ethereum (ETHUSD) advanced +0.60%. (Time of writing) These are sideways to lower moves, given the drop in the USD. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Investor Sentiment The put/call ratio declined to 0.549. 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 moved toward Neutral but is still near Extreme Fear. The NAAIM money manager exposure index moved up to 78.39. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Market Leaders Apple (AAPL) and Microsoft (MSFT) advanced while Amazon (AMZN) and Alphabet (GOOGL) declined. Apple gained +1.80% while Microsoft rose +0.10%. Alphabet declined -0.23%, and Amazon declined -0.84%. Amazon beat expectations but disappointed investors on their outlook. The stock fell more than 7% in after-hours trading. Tesla (TSL), Danaher Corporation (DHR), Bank of America (BAC), and Mastercard (MA) topped the mega-cap list today. At the bottom of the list are PayPal (PYPL), Facebook (FB), Pfizer (PFE), and Netflix (NFLX). Tesla (TSLA), D.R. Horton (DHI), Zoom Video (ZM), and Solar Edge (SEDG) topped the daily update growth list, with the first three gaining more than 4%. PayPal (PYPL), Pinterest (PINS), FUTU Holdings (FUTU), and UP Fintech (TIGR) were at the bottom of the list, all losing more than 5%. Pinterest lost another 18% in after-hours trading after disappointing user growth in their earnings report. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Looking ahead New inflation data becomes available on Friday with the updated PCE Price index data for June. Additional Employment Data and Consumer Sentiment data becomes available as well. Berkshire Hathaway (BRK.A), Procter & Gamble (PG), Exxon Mobil (XOM), AbbVie (ABBV), Chevron (CVX), There are many earnings reports this week. Keep an eye out for reports from companies in your portfolio. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Trends, Support, and Resistance The Nasdaq attempted a rally today that reversed, but the index could hold onto a small gain. The trend-line from the 7/19 low ends with a +1.11% gain for tomorrow. The one-day trend line leads to a -0.09% decline. The five-day trend line points to a -0.26% loss. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Wrap-up The economic data today confirmed much of what the Fed said yesterday. That there is more work to do in the recovery before they begin to taper any economic support. The reaction was muted in the indexes and more stocks advanced than declined. The long upper wick and thin body at the bottom of the candle present a bearish outlook for tomorrow. The expectation is for sideways or lower. Stay healthy and trade safe!
NASDAQ:IXIC
by drewby4321
1
NASDAQ INDEX - IXICGood evening? Signals to sell NASDAQ in general and BigTech shares in particular: 1. Round price of $ 15,000 = resistance. 2. Strong bearish MACD divergence on the weekly chart. 3. Beginning of bearish MACD divergence on slower monthly chart. 4. Bull trap - upward breakout of the resistance of the double top (yellow line). Therefore, we can expect a Fibonacci correction from 30-50% to the $ 11.5k-10.5k range. Not a financial recommendation. GET RICH OR DIE TRYIN.
NASDAQ:IXICShort
by Dr_Chester
1
Daily Market Update for 7/28Summary: Investors survived another Fed meeting with stocks gaining after the Fed left monetary policy untouched but confirmed the economy is still on track and inflation appears transitory. Small caps and growth stocks soared while only a few of the SPDR sectors registered gains. 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, July 28, 2021 Facts: +0.70%, Volume lower, Closing range: 76%, Body: 31% Good: Rally in morning and afternoon to close with gain, A/D ratio above 1.0 Bad: Lower high, lower volume, dip at end of day Highs/Lows: Lower high, higher low Candle: Inside day, slightly longer lower wick Advanced/Decline: 2.0, two advancing stocks for every declining stock Indexes: SPX (-0.02%), DJI (-0.36%), RUT (+1.51%), VIX (-5.43%) Sectors: Energy (XLE +0.91%) and Communications (XLC +0.78%) at the top. Utilities (XLU -0.76%) and Consumer Staples (XLP -0.88%) at the bottom. Expectation: Sideways -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Market Overview Investors survived another Fed meeting with stocks gaining after the Fed left monetary policy untouched but confirmed the economy is still on track and inflation appears transitory. Small caps and growth stocks soared while only a few of the SPDR sectors registered gains. The Nasdaq dipped at open but recovered quickly and ended the day with a +0.70% gain. Volume was lower for the day, but the 76% closing range and 31% green body are positive outcomes on an Inside day (lower high, higher low). The lower wick is slightly longer than the upper wick. There were two advancing stocks for every declining stock. The Russell 2000 (RUT) led the major indexes with a +1.51% gain but still closing below its 21d exponential moving average line. The S&P 500 (SPX) declined -0.02% and registered a spinning top candle, signaling indecision. The Dow Jones Industrial Average (DJI) fell -0.36% with a bearish outside day. The VIX volatility index declined -5.43%. Only four sectors finished the day with gains. Energy (XLE +0.91%) and Communications (XLC +0.78%) were the top sectors. Alphabet (GOOGL) boosted the Communications sector after solid earnings results. Utilities (XLU -0.76%) and Consumer Staples (XLP -0.88%) were at the bottom of the list. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Economic Indicators Crude Oil Inventories showed much higher demand than expected. The two-day Fed meeting ended without much policy change from the group. The Fed emphasized that the economy is on track for recovery and that inflation still appears to be from transitory factors. The US Dollar (DXY) declined -0.20%. The index fell after the market open, recovered some losses, and declined sharply after the Fed statements. The US 30y, 10y, and 2y Treasury yields all declined. High Yield Corporate Bond (HYG) and Investment Grade Corporate Bond (LQD) prices both advanced. Silver (SILVER) and Gold (GOLD) advanced. Crude Oil (CRUDEOIL1!) prices advanced. Timber (Wood) declined. Copper (COPPER1!) declined, and Aluminum (ALI1!) advanced. Bitcoin (BTCUSD) advanced +1.61%. Ethereum (ETHUSD) remained flat after giving back some intraday gains. (Time of writing) -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Investor Sentiment The put/call ratio declined to 0.620. 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 nearly in the Extreme Fear area. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Market Leaders Three of the four largest mega-caps released earnings yesterday. The reports were all positive, but reactions mixed. Alphabet (GOOGL) registered a +3.18% gain for the day after gapping up at the open. Microsoft (MSFT) had an initial negative reaction in after-hours trading, then opened up with positive gains but turned in a -0.11% decline by the end of the day. Apple (AAPL) gapped down at the open. After a volatile session, the company closed the day with a -1.21% gain. Amazon (AMZN), which will report earnings on Thursday, had an +0.11% gain today. Alibaba (BABA) topped the mega-cap list as the Chinese stocks rebounded from recent losses. Also at the top of the list are Pfizer (PFE), Alphabet, and Novo Nordisk (NVO). MasterCard (MA), Visa (V), Procter & Gamble (PG), and United Health (UNH) were at the bottom of the list. Chinese stocks topped the gains in the daily update growth list. UP Fintech (TIGR) and FUTU Holdings (FUTU) gained over 10%, while Ehang Holdings (EH) and JD.com (JD) rose +9.7% and +8.5%. There was only one losing stock, D.R. Horton (DHI), on my list. The other stocks at the bottom of the list were Tesla (TSLA), ServiceNow (NOW), and RH (RH), but all had small gains. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Looking ahead GDP data for Q2 will publish on Thursday. Initial Jobless Claims and Pending Home Sales will also get an update. Amazon.com (AMZN), Mastercard (MA), AstraZeneca (AZN), Twilio (TWLO), Baidu (BIDU), Pinterest (PINS), Fortinet (FTNT), DexCom (DXCM), Yum! Brands (YUM), and Expedia (EXPE) are a few earnings reports that stand out among another huge list. There are many earnings reports this week. Keep an eye out for reports from companies in your portfolio. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Trends, Support, and Resistance The Nasdaq traded inside yesterday's range which could be a continuation pattern in a downtrend from Monday's high. The trend-line from the 7/19 low ends with a +1.10% gain for tomorrow. The one-day trend line leads to a +0.48% gain. The five-day trend line points to a +0.48% loss. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Wrap-up At market open, we did get a continuation from yesterday's afternoon bounce off the 14,500 area. The rally softened late in the morning as investors anticipated statements from the Fed. Once that was clear, we got another short rally before a dip at the close. Earnings reports continue to get mixed reactions from investors in today's after-hours trading. Most earnings reports are smashing the comparable year-over-year numbers. However, investors now have to consider what the next two quarters will look like since the opposite might occur after last year's tremendous growth in the second half. Given the inside day and lower volume, the expectation for tomorrow is Sideways. Stay healthy and trade safe!
NASDAQ:IXIC
by drewby4321
1
IXIC: Main catalysts and sector studies!Hello traders and investors! Let’s see how the IXIC is doing today, look at the main catalysts and study some sectors! The Nasdaq is still in a delicate situation, but it is recovering nicely. We have a gap to fill 14,823, and despite the crash seen yesterday, the situation is under control. However, if we lose the 21 ema along with today’s low, we might seek the support at 14,511 again. This wouldn’t be enough to reverse the bullish bias, but would weaken it for sure. Yesterday we just retested the 21 ema in the daily chart, and we are bouncing back up already. There is the possibility of a bearish structure around, but as long as we don’t see a clear reversal occurring, we can’t assume anything yet. The NDX has been doing many bear traps since April last year. Today is a curious day, as the FAANGs are underperforming the index. If the FAANGs correct more, probably we’ll see the Nasdaq suffering a little bit too, but keep in mind that the bias is still bullish on the Big Ones. The next chart sums all the FAANGs in only one: Maybe the 21 ema will be the next target in the next few days. But what amazes me is the EV sector, which is beating the IXIC. Aside from TSLA, they are all Chinese, so this makes the reading biased, but it is interesting that the sector seem to be ready for a bullish reversal, and we have a Descending Triangle there: The most famous Chinese stocks (aside the EV stocks) are beating the market a lot too, going up more than 7%, after yesterday’s crash: However, what’s interesting is that the gaming sector is also quite strong, going up more than 2% today. I wouldn’t say that the FAANGs are not strong anymore, because they are. It just seems that today’s volatility made other sectors appear more interesting against them. Yesterday the Chinese stocks underperformed the market, so it seems today’s movement is about right. There are many good stocks around, trading at appealing levels, even among the tech stocks. We just need to search for them. If you liked this analysis, remember to follow me to keep in touch with my daily updates, and support this idea if you liked it! Thank you very much!
TVC:IXIC
by Nathan_The_Finance_Hydra
2
Daily Market Update for 7/27Summary: Earnings reports releasing this week have been very positive, but investors are already looking beyond the reports to expectations for the second half of the year. With mounting fears around the new Delta variant of COVID and potential changes in monetary policy by the Fed, the major indexes retreated today. 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=- Tuesday, July 27, 2021 Facts: -1.21%, Volume lower, Closing range: 51%, Body: 48% Good: Lower volume on pullback, longer lower wick from bounce at 14,500 support. Bad: Lower high, lower low, dip below 21d EMA Highs/Lows: Lower high, lower low Candle: Half red body above half lower wick, no upper wick Advanced/Decline: 0.28, more than three declining stocks for every advancing stock Indexes: SPX (-0.47%), DJI (-0.24%), RUT (-1.13%), VIX (+10.01%) Sectors: Utilities (XLU +1.72%) and Real Estate (XLRE +0.80%) at the top. Consumer Discretionary (XLY -1.01%) and Communications (-1.19%) were bottom. Expectation: Sideways or Lower -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Market Overview Earnings reports releasing this week have been very positive, but investors are already looking beyond the reports to expectations for the second half of the year. With mounting fears around the new Delta variant of COVID and potential changes in monetary policy by the Fed, the major indexes retreated today. The Nasdaq closed with a -1.21% loss in a mostly selling session before a bounce at the 14,500 support level. Volume was lower than the previous day. The bounce brought the index back up to the middle of the candle for a 51% closing range. The 48% red body is in the upper half of the candle, over a long lower wick. There were more than three declining stocks for every advancing stock. The Russell 2000 (RUT) dropped -1.13%. The S&P 500 (SPX) declined -0.47%. The Dow Jones Industrial Average (DJI) retreated -0.24%. The VIX volatility index rose +10.01%. Utilities (XLU +1.72%) and Real Estate (XLRE +0.80%) were the top two sectors, with the other defensive sectors filling out the top four. Growth sectors were at the bottom of the sector list, with Consumer Discretionary (XLY -1.01%) and Communications (-1.19%) having the most considerable losses. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Economic Indicators Month over month Durable Goods Orders came in much lower than expected. The market didn't seem to react to the data immediately, but it may have played into the morning selling. Consumer Confidence numbers came in higher than expected. The US Dollar (DXY) declined -0.17%. The US 30y and 10y Treasury yields declined while the 2y Treasury Yield advanced. High Yield Corporate Bond (HYG) prices declined for a second day, while Investment Grade Corporate Bond (LQD) prices advanced. Silver (SILVER) declined while Gold (GOLD) advanced. Crude Oil (CRUDEOIL1!) prices declined. Timber (Wood) advanced. Copper (COPPER1!) and Aluminum (ALI1!) declined. Bitcoin (BTCUSD) advanced +2.77%. Ethereum (ETHUSD) advanced +1.44%. (Time of writing) -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Investor Sentiment The put/call ratio rose to 0.869. 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 in the Fear area, moved almost back to Extreme Fear. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Market Leaders All four largest mega-caps declined for the day. Amazon (AMZN) declined -1.98%, touching its 21d exponential moving average line before recovering some losses. Alphabet (GOOGL) lost -1.59%. Apple (AAPL) closed down -1.49%. Microsoft (MSFT) fell back -0.87%. Verizon (VZ), Berkshire Hathaway (BRK.A, BRK.B), Pfizer (PFE), and Pepsico (PEP) were the top mega-cap gainers for the day. Alibaba (BABA) bottomed the list again. Intel (INTC), PayPal (PYPL), and Alphabet (GOOG) made up the rest of the bottom four. Only three stocks in the daily update growth list gained today. Fiverr (FVRR), D.R. Horton (DHI), and MongoDB (MDB) were the gainers. The biggest losers were all Chinese stocks. NIO (NIO), Ehang Holdings (EH), UP Fintech (TIGR), and FUTU Holdings (FUTU) were at the bottom of the list. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Looking ahead Goods Trade Balance data, Retail Inventories, and Crude Oil Inventories will be available on Wednesday. Following two days of meetings, the Fed will make a statement in the afternoon and announce any Interest Rate change (expected to be none). The tone of the message and press conference will have an impact on investor sentiment. Earnings reports on Wednesday include Facebook (FB), PayPal (PYPL), Pfizer (PFE), Thermo Fisher Scientific (TMO), Shopify (SHOP), McDonald's (MCD), Qualcomm (QCOM), Boeing (BA), ADP (ADP), Ford (F), Spotify (SPOT), and ServiceNow (NOW). There are many earnings reports this week. Keep an eye out for reports from companies in your portfolio. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Trends, Support, and Resistance The Nasdaq dipped below the 21d exponential moving average line before getting support at 14,500 and bouncing back above the key moving average line. The trend-line from the 7/19 low ends with a +1.79% gain for tomorrow. The five-day trend line points to a +0.79% gain. The one-day trend line leads to a further -1.21% decline. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Wrap-up It's tough to see what was on investors' minds today. Perhaps they see all the great earnings reports as a top, and from here, the performance of these companies will pull back a bit. Maybe it's simply buying the rumor, selling the news. Or it could be that investors were getting defensive against any possible disappointment from the big tech earnings. For whatever reason, we got a negative expectation breaker for today. It's possible for the afternoon dip buying to continue into tomorrow for more gains. However, after several days of gains last week and the market at all-time highs yesterday, another day or two of pullback is possible. Expectation is for sideways or lower. Stay healthy and trade safe!
NASDAQ:IXIC
by drewby4321
1
Daily Market Update for 7/26Summary: Small caps had a volatile start to the week, gaining on Monday morning and losing those gains by mid-day. Still, the gains were enough for all the major indices to advance today as investors look forward to a massive earnings week. 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, July 26, 2021 Facts: +0.03%, Volume higher, Closing range: 69%, Body: 27% Good: Slight gain on higher volume, healthy pause Bad: A/D low but not surprising with sideways move Highs/Lows: Higher high, higher low Candle: Thin green body in the middle of a short candle Advanced/Decline: 0.57, almost two declining stocks for every advancing stock Indexes: SPX (+0.24%), DJI (+0.24%), RUT (+0.33%), VIX (+2.33%) Sectors: Energy (XLE +2.47%) and Materials (XLB +0.84%) at the top. Industrials (XLI -0.05%) and Health (XLV -0.65%) were bottom. Expectation: Sideways or Higher -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Market Overview Small caps had a volatile start to the week, gaining on Monday morning and losing those gains by mid-day. Still, the gains were enough for all the major indices to advance today as investors look forward to a massive earnings week. The Nasdaq closed the day with a small +0.03% gain. It traded up and down throughout the day but stayed within a tight range. Volume was higher for the day. A thin green body sits in the middle of the short candle, with equal upper and lower wicks. The closing range was 69%. There were almost two declining stocks for every advancing stock. The Russell 2000 (RUT) gained +0.33%. The small-cap index was up 1% in the morning before being rejected at its 21d exponential moving average. The S&P 500 (SPX) and Dow Jones Industrial Average (DJI) both rose +0.24%. The VIX volatility index advanced +2.33%. Energy (XLE +2.47%) and Materials (XLB +0.84%) led the sector list today. The Materials sector, along with metal commodities, are being boosted by higher demand in manufacturing. Industrials (XLI -0.05%) and Health (XLV -0.65%) were at the bottom. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Economic Indicators New Home Sales for June were lower than expected. That may be a welcome relief for investors worried about the overheated sector and the risk exposure it brings to the economy. The US Dollar (DXY) declined -0.30%. The US 30y and 10y Treasury yields advanced while the 2y Treasury Yield declined. High Yield Corporate Bond (HYG) and Investment Grade Corporate Bond (LQD) prices declined. Silver (SILVER) advanced while Gold (GOLD) declined. Crude Oil (CRUDEOIL1!) prices declined slightly. Timber (Wood) advanced. Copper (COPPER1!) continued its advance after a massive move up on Friday. Aluminum (ALI1!) also advanced. Bitcoin (BTCUSD) ended the day with a +6.14% advance but was up 15% intra-day after Amazon posted a crypto-related job opening. Ethereum (ETHUSD) advanced +2.51% for the day. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Investor Sentiment The put/call ratio declined to 0.640. 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 in the Fear area. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Market Leaders Amazon (AMZN) gained +1.18% for the day, leading the largest four mega-caps. Alphabet (GOOGL) advanced +0.77%. Apple (AAPL) rose +0.29%. Microsoft (MSFT) was the only of the four with a loss, declining -0.21%. Exxon Mobil (XOM) lead the mega-caps today, with Intel (INTC), Tesla (TSLA), and Walt Disney (DIS) filling out the top four. At the bottom of the list was Alibaba (BABA), with a -7.15% loss as Chinese stocks continue to get beaten down. Novo Nordisk (NVO), Nvidia (NVDA), and Abbot Labs (ABT) were also at the bottom of the list. At the top of the daily update growth list were Zoom (ZM), Penn National Gaming (PENN), Lemonade (LMND), and Tesla (TSLA). At the bottom of the list were Chinese stocks JD.com (JD), FUTU Holdings (FUTU), Alibaba (BABA), and Twitter (TWTR). -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Looking ahead Durable Goods Orders data made available before the market opens on Tuesday indicates the level of economic activity. Analysts expect June to be higher than May after the May number came in lower than expected. CB Consumer Confidence for July will also be available in the morning after the market opens. An update to API Weekly Crude Oil Stock arrives after the market closes. Three of the largest companies in the world report earnings on Tuesday. Apple (AAPL), Microsoft (MSFT), and Alphabet (GOOGL) are all expected to report strong year-over-year growth, but investors will be looking to guidance for future quarters. Visa (V), United Parcel Service (UPS), Starbucks (SBUX), Raytheon (RTX), 3m (MMM), AMD (AMD), General Electric (GE), Southern Copper (SCCO), Enphase (ENPH), Teladoc (TDOC), and Logitech (LOGI) are some of the other interesting companies also reporting on Tuesday. There are many earnings reports this week. Keep an eye out for reports from companies in your portfolio. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Trends, Support, and Resistance The Nasdaq moved sideways today, setting a new all-time high and record close. The five-day trend line points to a +1.45% gain for tomorrow. The trend-line from the 7/19 low ends with a +1.09% gain. The one-day trend line is nearly flat and points to a -0.03% decline. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Wrap-up It was a wild ride for small-caps in the morning. Investors bought up small-caps in the early morning, given the supportive economic conditions for the segment. But after the market opened, the US dollar dropped sharply, and that may have spooked investors. As the dollar stabilized and regained some of the initial loss, so did small-caps and the Russell 2000 ended the day outperforming the other indices. The news will be dominated by earnings reports and the Fed meeting this week. Three of the largest companies report tomorrow. The Fed will meet and release a statement on monetary policy on Wednesday. The expectation is for sideways or higher tomorrow. Stay healthy and trade safe!
NASDAQ:IXIC
by drewby4321
2
Market Week in Review - 7/19/2021 - 7/23/2021Summary: This week ended much better than it began. All indications at the market open on Monday were that we were going to have a bearish week. The CNN Fear & Greed indicator was in the Extreme Fear range, and the put/call ratio was nearing 0.9. Worries about the new delta strain putting new pressures on the economic recovery sent investors into defensive sectors. Notes The Market Week in Review is my weekend homework where I look over what happened in the previous week and what might come in the next week. I occasionally have some errors or typos and will correct them in my blog or the comments on TradingView. I do not have an editor and do this in my free time. If you find this helpful, please let me know in the comments. I am also more than happy to add new perspectives and data points if you have ideas. The structure is the following: A recap of the daily updates that I do here on TradingView. View on the past week What's coming in the next week The Bullish View, The Bearish View Key index levels to watch out for Wrap-up If you have been following my daily updates, you can skip down to "View on the Week." If not, then this first part is a great play-by-play recap for the week. Click the daily charts for more detail on sectors, indexes, and market leaders each day. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Monday, July 19, 2021 Facts: -1.06%, Volume higher, Closing range: 71%, Body: 29% Good: Support around 14,200, good closing range Bad: Lower on higher volume, lower high, lower low Highs/Lows: Lower high, lower low Candle: Green body in center of candle, even upper and lower wicks Advanced/Decline: 0.27, more than three declining stocks for every advancing stock Indexes: SPX (-1.59%), DJI (-2.09%), RUT (-1.51%), VIX (+21.96%) Sectors: Consumer Staples (XLP -0.30%) and Health (XLV -1.05%) at the top. Financials (XLF -2.80%) and Energy (XLE -3.53%) were bottom. Expectation: Sideways or Lower The new Delta variant of the Coronavirus was top of mind for investors as the trading week began. Share prices of COVID vaccine-related companies soared today as it appeared governments would need to double down on vaccination efforts. The Nasdaq finished with a -1.06% loss for the day on higher volume. The index found support at the 14,200 level, closing with a 71% closing range above a 29% body that is right in the middle of the candle. The lower high and lower low continues a downtrend as more than three stocks declined for every stock that advanced today. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Tuesday, July 20, 2021 Facts: +1.57%, Volume higher, Closing range: 80%, Body: 59% Good: Broad gains on higher volume to move back above 21d EMA Bad: Nothing Highs/Lows: Higher high, higher low Candle: Bullish green body with higher low and higher high, medium size upper and lower wicks Advanced/Decline: 2.69, more than five advancing stocks for every two declining stocks Indexes: SPX (+1.52%), DJI (+1.62%), RUT (+2.99%), VIX (-12.32%) Sectors: Industrials (XLI +2.80%) and Financials (XLF +2.48%) at the top. Utilities (XLU +0.43%) and Consumer Staples (XLP +0.03%) were bottom. Expectation: Sideways or Higher Small caps ended several days of losing to lead stocks higher today as investors snapped out of the pandemic fears that caused Monday's selling. Investors are warming back up to small caps as the US Dollar strengthens and yields in bonds are beginning to stabilize. The Nasdaq finished with a +1.57% gain on higher volume than the previous day. The 59% green body and 80% closing range represent a day of constant buying that ended with some profit-taking in the last few minutes before the market close. The index closed yesterday's gap down and regained the 21d exponential moving average, closing at the 14,500 support area. There were more than five advancing stocks for every declining stock. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Wednesday, July 21, 2021 Facts: +0.92%, Volume lower, Closing range: 99%, Body: 92% Good: Close at high of day, bullish green body, A/D ratio Bad: Nothing Highs/Lows: Higher high, higher low Candle: No upper wick, very tiny lower wick, mostly green body Advanced/Decline: 2.36, almost five advancing stocks for every two declining stocks Indexes: SPX (+0.82%), DJI (+0.83%), RUT (+1.81%), VIX (-9.23%) Sectors: Energy (XLE +3.49%) and Financials (XLF +1.72%) at the top. Real Estate (XLRE -0.30%) and Utilities (XLU -1.10%). were bottom. Expectation: Sideways or Higher Stocks continued to rebound from last week's dip, with small caps leading the march upward, keeping the advance/decline ratio above 2.0 for a second day. Investors are looking more optimistic about the economic recovery among solid earnings reports from market leaders. The Nasdaq closed the day a +0.92%. Volume was lower, but buyers dominated the entire, with almost five advancing stocks for every declining stock. The candle has no upper wick because of the 99% closing range, and the green body covers 92% of the candle. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Thursday, July 22, 2021 Facts: +0.36%, Volume lower, Closing range: 87%, Body: 42% Good: High closing range with higher high and higher low Bad: Low volume, low A/D ratio Highs/Lows: Higher high, higher low Candle: Longer lower wick, a medium size green body in upper half Advanced/Decline: 0.32, three declining stocks for every advancing stock Indexes: SPX (+0.20%), DJI (+0.07%), RUT (-1.55%), VIX (-1.23%) Sectors: Technology (XLK +0.74%) and Health (XLV +0.74%) at the top. Financials (XLF -1.09%) and Energy (XLE -1.12%) were bottom. Expectation: Sideways or Lower Rising jobless claims surprised the market this morning, sending cyclical sectors lower and causing a reversal in small caps after several days of gains. Investors rotated back into growth stocks and big tech, which are more resilient to the swings in the economy. The Nasdaq finished the day with a +0.36% on lower volume than the previous day. The day ended with an 87% closing range for the index. A 45% body sits in the upper half of the candle, above a long lower wick formed in the morning as investors absorbed the economic news. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Friday, July 23, 2021 Facts: +1.04%, Volume higher, Closing range: 94%, Body: 57% Good: High closing range on higher volume Bad: A/D still below 1.0 Highs/Lows: Higher high, higher low Candle: Gap up at open after several green days, mostly green body in upper half of candle Advanced/Decline: 0.69, About three declining stocks for every two advancing Indexes: SPX (+1.01%), DJI (+0.68%), RUT (+0.46%), VIX (-2.77%) Sectors: Communications (XLC +2.48%) and Utilities (XLU +1.28%) at the top. Financials (XLF +0.17%) and Energy (XLE -0.37%) were bottom. Expectation: Sideways or Higher A rally in Social media stocks helped send the major indexes to new all-time highs. The optimism spread to other big tech stocks, giving the Nasdaq a high volume advance but leaving the advance/decline ratio below 1.0. The Nasdaq finished with a +1.04% gain on higher volume to reach a new record close. The green candle caps a week of all green candles compared to the previous week's all red candles. Today's candle had a 57% green body in the upper half of the candle. The 94% closing range represents a day of bullish buying after a quick dip in the morning created the lower wick. There were almost three declining stocks for every two advancing stocks. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- View on the Week This week ended much better than it began. All indications at the market open on Monday were that we were going to have a bearish week. The CNN Fear & Greed indicator was in the Extreme Fear range, and the put/call ratio was nearing 0.9. Worries about the new delta strain putting new pressures on the economic recovery sent investors into defensive sectors. The Nasdaq gapped down at open on Monday and continued to drop until it reached the 14,200 level. The index found support at that level and reversed. The upside reversal didn't end until a new all-time high was reached on Friday. The 14,200 support area formed from the February and April highs. It became resistance in June before the index moved higher. On Monday, the index tested the level several times, and the support was held. This will be a critical area to watch if another pullback occurs in the coming weeks. After the index found support, it just took a few pieces of good news to get the rally back on track. That news came in a few forms. First, earnings reports were largely positive this week. IBM, Johnson & Johnson, Coca-Cola, and Intel all had great earnings reports. But the biggest surprise of the week was SNAP, which beat estimates and doubled revenue from a year earlier on robust advertising income. That was enough to send the entire Communications sector higher. Another boost to big tech came in analyst upgrades for Nvidia and Microsoft. Analysts improved their price targets for the two companies ahead of earnings. Finally, OPEC helped a bit by deciding to increase production to meet a forecast of higher demand. That's a great indicator of confidence in the continuing economic recovery. The news sent the Energy sector higher on Wednesday. Small caps in the Russell 2000 outperformed on Tuesday and Wednesday. The segment sold off the last three weeks, causing valuations to be lower than the larger cap segments. With the low valuations combined with a strengthening USD and continuing low Treasury yields, it was a perfect context for small caps to get an influx of investment. Chinese stocks such as Alibaba, JD.com, UP Fintech, and FUTU Holdings were beaten down this week on fears that the Chinese government will crack down on companies listed in foreign exchanges. The Nasdaq advanced +2.84% for the week, recovering all of the previous week's loss and closing at an all-time high. Volume was lower than the previous week. The lower low and higher high for the week create an outside bullish candle with a 99% closing range. Along with the Nasdaq, the S&P 500 (SPX) and Dow Jones Industrial Average (DJI) closed the week at all-time highs, advancing +1.96% and +1.08%. The Russell 2000 (RUT) had its first weekly gain in four weeks, rising +2.15%. The VIX volatility declined -6.78% for the week. Utilities ( XLU ) dropped to the bottom of the sector list after leading in the previous week. It was all about Growth stocks this week as investors put off fears of the economy and looked forward to record earnings reports from big tech. Communication Services ( XLC ) led the week thanks to huge earnings beat by SNAP and Twitter. Consumer Discretionary ( XLY ) and Technology ( XLK ) were second and third. Energy ( XLE ) briefly moved into the top spot on Wednesday afternoon before falling back and ending the week in second-to-last place. Only Utilities and Energy declined for the week. Yields for the US 30y, 10y, and 2y Treasuries all dropped for the week. The yields continue to slide, and the gap between long-term and short-term yields is tightening. Both High Yield Corporate Bond (HYG) and Investment Grade Bond (LQD) prices advanced. The US Dollar (DXY) advanced +0.21% for the week. Silver (SILVER) declined -1.93%, and Gold (GOLD) declined -0.52%. Crude Oil (CRUDEOIL1!) declined -0.13%. Timber (WOOD) advanced +1.89%. Copper (COPPER1!) advanced +4.07%. Aluminum (ALI1!) advanced +1.00%. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Big Four Mega-caps The four largest mega-caps had strong performances this week. Alphabet (GOOGL) gained +4.76% after the SNAP earnings call boosted the entire communications sector. Microsoft (MSFT) gained +3.18% thanks to a price target upgrade. Amazon (AMZN) advanced +2.32%. Apple (AAPL) gained +1.48%. All four are trading above their 10w and 40w moving average lines. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- The Four Recovery Stocks I picked four recovery stocks to track against the indexes and other indicators in this weekly report. All four have green candles this week, although Exxon Mobil (XOM) could not hold onto intra-week highs, ending the week with a -0.49% loss. Carnival Cruise Lines (CCL) climbed by +4.97%. Marriott (MAR) gained +3.06%. Delta Airlines (DAL) advanced +0.87%. Delta and Carnival are trading below both the 10w and 40w moving average lines. Exxon and Marriott are trading above the 40w line but remain below the 10w line. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Cryptocurrency I started tracking four major cryptocurrencies on the week in review. The four are Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. The latter two are not the largest by market cap but seem to be well-known and are part of the CIX capital.com index, tracking five cryptocurrencies, including these four (Ripple is the fifth). The cryptocurrencies got a boost this week with another mention from Elon Musk. Ethereum (ETHUSD) had the biggest gain, advancing +14.17%. Bitcoin (BTCUSD) rose +7.24%. Litecoin (LTCUSD) gained +4.94%. Bitcoin Cash (BCHUSD) gained +3.06%. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Investor Sentiment The put/call ratio (PCCE) rose above 0.9 on Monday but then recovered, ending the week at 0.702. The CNN Fear & Greed Index moved into the Extreme Fear level late last week. It moved back toward neutral but remained on the Fear side. The NAAIM Money Manager exposure index declined to 71.04 this week. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- The Week Ahead Big tech will dominate the earnings calendar this week. The earnings reports will be as important as the economic news calendar. There are a lot of earnings reports, and I won't try to list them all here. Check your portfolio for earnings events to prevent surprises. Monday New Home Sales data will be available on Monday morning after the market opens. Tesla (TSLA) on Monday will kick off a full week of big tech earnings. Tuesday Durable Goods Orders data made available before the market opens on Tuesday indicates the level of economic activity. Analysts expect June to be higher than May after the May number came in lower than expected. CB Consumer Confidence for July will also be available in the morning after the market opens. An update to API Weekly Crude Oil Stock arrives after the market closes. Three of the largest companies in the world report earnings on Tuesday. Apple (AAPL), Microsoft (MSFT), and Alphabet (GOOGL) are all expected to report strong year-over-year growth, but investors will be looking to guidance for future quarters. Visa (V), United Parcel Service (UPS), Starbucks (SBUX), Raytheon (RTX), 3m (MMM), AMD (AMD), General Electric (GE), Southern Copper (SCCO), Enphase (ENPH), Teladoc (TDOC), and Logitech (LOGI) are some of the other interesting companies also reporting on Tuesday. Wednesday Goods Trade Balance data, Retail Inventories, and Crude Oil Inventories will be available on Wednesday. The Fed will make a statement in the afternoon and announce any Interest Rate change (expected to be none). The tone of the message and press conference will have an impact on investor sentiment. Earnings reports on Wednesday include Facebook (FB), PayPal (PYPL), Pfizer (PFE), Thermo Fisher Scientific (TMO), Shopify (SHOP), McDonald's (MCD), Qualcomm (QCOM), Boeing (BA), ADP (ADP), Ford (F), Spotify (SPOT), and ServiceNow (NOW). Thursday GDP data for Q2 will publish on Thursday. Initial Jobless Claims and Pending Home Sales will also get an update. Amazon.com (AMZN), Mastercard (MA), AstraZeneca (AZN), Twilio (TWLO), Baidu (BIDU), Pinterest (PINS), Fortinet (FTNT), DexCom (DXCM), Yum! Brands (YUM), and Expedia (EXPE) are a few earnings reports that stand out among another huge list. Friday New inflation data becomes available on Friday with the updated PCE Price index data for June. Additional Employment Data and Consumer Sentiment data becomes available as well. Berkshire Hathaway (BRKa), Procter & Gamble (PG), Exxon Mobil (XOM), AbbVie (ABBV), Chevron (CVX), -=x=-=x=-=x=-=x=-=x=-=x=-=x=- The Bullish Side Earnings season is in full swing. Every earnings season is a bit different. Many of the first reports beat expectations, and investors reacted positively to the news. This week brings the big tech earnings reports, which should also be very positive. The reaction will provide a lift to the big tech stocks and the overall market. Treasury Yields stabilized this week after several days of volatility. With the US Dollar strengthening and yields remaining low, investors will continue to look at US equities to get returns that beat still high inflation. The economic recovery may be slowing, but it is still growing at a record pace. Debt is still cheap for companies to fund growth and profit from the global recovery. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- The Bearish Side Supply chain challenges continue to be a top worry as the recovery moves forward. Manufacturing PMI data on Friday shows an increase in activity for the sector, but challenges keep popping up with raw materials and shipping constraints. Extreme weather events in Germany and China made issues worse this week. As valuations among big tech and growth stocks continue to soar and the indexes are at all-time highs, expectations will also be at all-time highs. Investors will be watching closely to earnings reports, the results, the guidance, and the dialogue on earnings calls. Investors may see great reports this week and decide to take profits "at the top." -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Key Nasdaq Levels to Watch The Nasdaq set another all-time high this week after moving back above the 21d EMA. If the index pulls back, the most critical level is around 14,200. A break below that level would signal a bearish double-top pattern. On the positive side, the levels are: The high of this past week was a new all-time high at 14,846.06. The round number 15,000 is likely to be a new area of resistance. On the downside, there are a few key levels: The 10d MA is at 14,595.36. The 21d EMA is at 14,510.57. 14,500 has been a support area in the past. 14,178.66 is the low of the past week. A break below this level would signal a bearish double top. The 50d MA is at 14,118.58. 14,000 has been an area of support/resistance. There is a pivot at 13,548.93. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Wrap-up Two weeks with opposite characteristics. The previous week gave us give red candles while this week gave us five green candles. The volatility in bonds and equities was enough to raise some fears among investors but not enough to drive a correction. It looks like we could get some more gains this week with the big tech earnings reports among hundreds of other earnings reports. The reports so far have huge year-over-year comparisons in results, but investors are also getting positive guidance for the year. If we do not get gains and the index pulls back again, watch for the 14,200 level to hold. If we dip below that level, it would be a bearish signal. Good luck, stay healthy, and trade safe!
NASDAQ:IXIC
by drewby4321
4
Daily Market Update for 7/23Summary: A rally in Social media stocks helped send the major indexes to new all-time highs. The optimism spread to other big tech stocks, giving the Nasdaq a high volume advance but leaving the advance/decline ratio below 1.0. 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=- Friday, July 23, 2021 Facts: +1.04%, Volume higher, Closing range: 94%, Body: 57% Good: High closing range on higher volume Bad: A/D still below 1.0 Highs/Lows: Higher high, higher low Candle: Gap up at open after several green days, mostly green body in upper half of candle Advanced/Decline: 0.69, About three declining stocks for every two advancing Indexes: SPX (+1.01%), DJI (+0.68%), RUT (+0.46%), VIX (-2.77%) Sectors: Communications (XLC +2.48%) and Utilities (XLU +1.28%) at the top. Financials (XLF +0.17%) and Energy (XLE -0.37%) were bottom. Expectation: Sideways or Higher -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Market Overview A rally in Social media stocks helped send the major indexes to new all-time highs. The optimism spread to other big tech stocks, giving the Nasdaq a high volume advance but leaving the advance/decline ratio below 1.0. The Nasdaq finished with a +1.04% gain on higher volume to reach a new record close. The green candle caps a week of all green candles compared to the previous week's all red candles. Today's candle had a 57% green body in the upper half of the candle. The 94% closing range represents a day of bullish buying after a quick dip in the morning created the lower wick. There were almost three declining stocks for every two advancing stocks. Both the S&P 500 (SPX) and Dow Jones Industrial Average (DJI) finished with record closes, advancing +1.01% and +0.68%. The Russell 2000 (RUT) was a bit more volatile this week but ended Friday with a +0.46% gain for the day. The VIX volatility index declined -2.77%. Communications (XLC +2.48%) outperformed the other sectors thanks to a greater-than 20% advance by SNAP after surprising investors with robust advertising revenue. Utilities (XLU +1.28%) was the second sector, signaling investors nervousness as the indexes reach new tops. Financials (XLF +0.17%) and Energy (XLE -0.37%) were the bottom two sectors. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Economic Indicators Manufacturing purchasing managers index (PMI) data was stronger than expected, while Services PMI was weaker than expected. The US Dollar (DXY) advanced +0.08% for the day. The US 30y Treasury Bond yield moved up slightly while the 10y and 2y Treasury Yields declined somewhat. High Yield Corporate Bond (HYG) prices advanced. Investment Grade Corporate Bond (LQD) prices declined. Silver (SILVER) and Gold (GOLD) declined. Crude Oil (CRUDEOIL1!) prices advanced. Timber (Wood) advanced. Copper (COPPER1!) made a massive move with a +3.37% advance. That's very bullish for the global economy. Aluminum (ALI1!) also advanced. Bitcoin (BTCUSD) advanced +4.28%. Ethereum (ETHUSD) advanced +5.10%. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Investor Sentiment The put/call ratio declined to 0.702. 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 in the Fear area, heading toward Neutral. The NAAIM money manager exposure index declined to 71.04 this week. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Market Leaders Alphabet (GOOGL) led the mega-caps with a +3.58% gain influenced by positive earnings reports from SNAP and Twitter that showed solid growth in the advertising business. The company joined Microsoft in reaching new all-time highs this week. Microsoft (MSFT) gained +1.23%, adding to its record close yesterday. Apple (AAPL) advanced +1.20%. Amazon (AMZN) gained +0.51%. Facebook (FB) and Alphabet (GOOGL) led the mega-cap list. Shopify (SHOP) and Mastercard (MA) were third and fourth. Each had gains greater than 3%, while Facebook rose more than 5%. Intel (INTC) lost -5.29%, ending the day at the bottom of the list. The other biggest losers for the day were Alibaba (BABA), Oracle (ORCL), and Tesla (TSLA). Communications stocks SNAP (SNAP), Roku (ROKU), Pinterest (PINS), and Facebook (FB) dominated the top of the daily update growth list. There were still quite a few losers in the growth list, with the Chinese stocks suffering from negative news again. FUTU Holding (FUTU), Ehang Holdings (EH), and UP Fintech (TIGER) were the bottom three. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Looking ahead New Home Sales data will be available on Monday morning after the market opens. Tesla (TSLA) on Monday will kick off a full week of big tech earnings. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Trends, Support, and Resistance The Nasdaq is closed at all-time highs today. I removed the trend-line from the 7/13 high since we have a new high now. The five-day trend line will turn into a longer-term trend-line as I start tracking the latest rally. The five-day trend line points to a +1.06% gain for Friday. The one-day trend line ends with a +0.98% gain. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Wrap-up What a difference a week makes. It seemed last week that we were heading to correction territory and Monday appeared to confirm that direction. Then support was found at the 14,200 area, and a new rally begins. Five green candles in a row to complete a bullish outside week. Given the bullishness of today, the expectation is for sideways or higher on Monday. Investors will be looking for a pullback and may find any reason to get defensive. However, investors are rewarding positive earnings reports this quarter, and nothing indicates that we won't continue to get positive reports from big tech next week. Stay healthy and trade safe!
NASDAQ:IXIC
by drewby4321
Nasdaq Bull Market Over? Near perfect symmetry says soNo one will read this which is a shame as the Super Cycle wave relationships are as close to perfect as possible; meeting all of the Elliott Wave Theory standard fib relationship criteria. Everyone is calling a top soon, but I don't think they fully understand the length of correction we're likely entering. After today's price action, super cycle wave 5 is now 1.6178x the length of Wave 1 (if you don't know why this is important/significant, you should research to find out -- it'll blow your mind). Wave 3 still remains at 1.6883 of wave 1. Initial retrace target of wave 2 is to the 0.382 fib retracement at 9195.83. If this level breaks, then we are open to hit 5705.10 (this might be getting a little ahead of ourselves, but fib levels are well respected in this market). This full 5 wave super cycle was ~2440 weeks, so a compromise on fibonnaci time (0.382) proportionality means it may be 932 weeks until we see an end to wave 2. This almost seems ridiculous to talk about and project like this, but all cycles on all time frame are always a fractal part of a larger set and I contend we've completed a Grand Duper Cycle Wave 1, comprised of five Super Cycle waves. There is an extensive amount of fib confluence over head from today's highs and I'm betting we don't go any higher than 15,300 before a prolonged market collapse with INITIAL TARGETS of nearly 40% from the highs. Here are my super cycle begin/end points for each of the 5 waves. Wave Date Hi/Low Amount Beg 3---Oct-74. 54.87 Wave 1--- 10-Mar-00 5132.52 Wave 2 ---9-Mar-09 1265.62 Wave 3--- 19-Feb-20 9838.37 Wave 4 ---23-Mar-20 6631.42 Wave 5 ---23-Jul-21 14846.06 I'm not used to really sharing this with people as I usually fade into the back ground, but I'm happy to put this little bit together for you. I'd love to hear yours too.
NASDAQ:IXICShort
by DataMaestro
1
Nasdaq Completes Super Cycle Wave 5 -with Fib Confluences GaloreIf you zoom out on the Nasdaq using a 13D chart, you'll see a clear 5 wave sequence having recently completed. This argument is bolstered by both wave 3 and wave 5 which are 1.618 extensions of wave 1. Wave 3 and Wave 5 are both identical in length. Using this Wave count you'll also see a myriad of confluent fib levels, extensions, etc; but I'm trying to spare you a convoluted chart. To me this says we are at a super cycle top and have completed Grand Super Cycle wave 1. At the Nasdaq's recent all time high, we cleared the 2.618 of wave 1 by less than 2%. If you even remotely respect the Elliott Wave guidelines,, you know what this means. There really isn't a downside limit (well, the all time lows around 50 in 1974) and this likely means we are entering a years or decades long Wave 2 correction.
NASDAQ:IXICShort
by DataMaestro
2
Nasdaq Completes Super Cycle Wave 5 -with Fib Confluences GaloreIf you zoom out on the Nasdaq using a 13D chart, you'll see a clear 5 wave sequence having recently completed. This argument is bolstered by both wave 3 and wave 5 which are 1.618 extensions of wave 1. Wave 3 and Wave 5 are both identical in length. Using this Wave count you'll also see a myriad of confluent fib levels, extensions, etc; but I'm trying to spare you a convoluted chart. To me this says we are at a super cycle top and have completed Grand Super Cycle wave 1. At the Nasdaq's recent all time high, we cleared the 2.618 of wave 1 by less than 2%. If you even remotely respect the Elliott Wave guidelines,, you know what this means. There really isn't a downside limit (well, the all time lows around 50 in 1974) and this likely means we are entering a years or decades long Wave 2 correction.
NASDAQ:IXICShort
by DataMaestro
Daily Market Update for 7/22Summary: Rising jobless claims surprised the market this morning, sending cyclical sectors lower and causing a reversal in small caps after several days of gains. Investors rotated back into growth stocks and big tech, which are more resilient to the swings in the economy. 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=- Thursday, July 22, 2021 Facts: +0.36%, Volume lower, Closing range: 87%, Body: 42% Good: High closing range with higher high and higher low Bad: Low volume, low A/D ratio Highs/Lows: Higher high, higher low Candle: Longer lower wick, a medium size green body in upper half Advanced/Decline: 0.32, three declining stocks for every advancing stock Indexes: SPX (+0.20%), DJI (+0.07%), RUT (-1.55%), VIX (-1.23%) Sectors: Technology (XLK +0.74%) and Health (XLV +0.74%) at the top. Financials (XLF -1.09%) and Energy (XLE -1.12%) were bottom. Expectation: Sideways or Lower -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Market Overview Rising jobless claims surprised the market this morning, sending cyclical sectors lower and causing a reversal in small caps after several days of gains. Investors rotated back into growth stocks and big tech, which are more resilient to the swings in the economy. The Nasdaq finished the day with a +0.36% on lower volume than the previous day. The day ended with an 87% closing range for the index. A 45% body sits in the upper half of the candle, above a long lower wick formed in the morning as investors absorbed the economic news. The Russell 2000 (RUT) declined -1.55%, losing most of the gains from the previous day. The S&P 500 (SPX) gained +0.20%, while the Dow Jones Industrial Average (DJI) gained only +0.07%. The VIX volatility index declined -1.23%. Technology (XLK +0.74%) led the sector list, helped along by big tech. Health (XLV +0.74%) had a nearly equivalent gain to also land at the top. Financials (XLF -1.09%) and Energy (XLE -1.12%) were at the bottom of the list. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Economic Indicators Both Continuing Jobless Claims and Initial Jobless Claims came in higher than expected. The numbers are still higher than pre-pandemic levels, so an unexpected uptrend is alarming to analysts. Existing Home Sales data came in lower than expected. The US Dollar (DXY) advanced +0.06% for the day. The US 30y, 10y, and 2y Treasury Yields all declined slightly today. High Yield Corporate Bond (HYG) and Investment Grade Corporate Bond (LQD) prices both advanced today. Silver (SILVER) and Gold (GOLD) advanced. Crude Oil (CRUDEOIL1!) prices advanced. Timber (Wood) advanced. Copper (COPPER1!) advanced, and Aluminum (ALI1!) advanced. Bitcoin (BTCUSD) advanced +0,35%. Ethereum (ETHUSD) advanced +0.90%. (Time of writing) -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Investor Sentiment The put/call ratio rose to 0.714. 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 moved back into Fear (instead of Extreme Fear), heading toward Neutral. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Market Leaders The four largest mega-caps all gained for the day. Microsoft (MSFT) led the group with a +1.68% advance and a new all-time high, thanks to a price target upgrade from Citi. Amazon (AMZN) climbed by +1.47%. Apple (AAPL) gained +0.96%. Alphabet (GOOGL) rose +0.68%. All four are trading above key moving average lines. Danaher Corporation (DHR), Salesforce.com (CRM), Thermo Fisher Scientific (TMO), and Adobe (ADBE) were the top mega-cap gainers for the day. Bank of America (BAC), JP Morgan (JPM), Exxon Mobil (XOM), and Taiwan Semiconductor (TSM) were at the bottom of the list. Despite the focus on growth stocks today, the daily update list is about half gainers and half losers. The top of the list includes CloudFlare (NET), Crowdstrike (CRWD), Snowflake (SNOW), and Etsy (ETSY). At the bottom of the list are Chinese stocks FUTU Holding (FUTU), Ehang Holding (EH), and UP Fintech (TIGR), all with losses greater than 7%. SNAP (SNAP) is up over 16% in after-hours trading after an earnings beat and doubling revenue from a year earlier. Twitter (TWTR) was up nearly 5%, showing better than expected growth in its earnings release. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Looking ahead The Manufacturing and Services purchasing manager indexes released on Friday will be another indicator of economic activity and the speed of the recovery. Friday's earning reports include Honeywell (HON), American Express (AXP), and Schlumberger (SLB). -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Trends, Support, and Resistance The Nasdaq is making a slow but steady climb back to all-time highs. The five-day trend line points to a +0.29% gain for Friday. The one-day trend line ends with a +0.14% gain. The trend line from the 7/13 high points to a -1.39% decline. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Wrap-up The unexpected economic data that arrived this morning took some steam out of the broader rally while rotating investment back into big tech and a focused list of growth stocks. Give the lower volume and the low advance/decline ratio, the gains today were rather weak. Therefore, the expectation for tomorrow will be sideways or lower. One might also expect investors to be nervous heading into the weekend, considering the unknowns around the pandemic and economic recovery. Stay healthy and trade safe!
NASDAQ:IXIC
by drewby4321
Daily Market Update for 7/21Summary: Stocks continued to rebound from last week's dip, with small caps leading the march upward, keeping the advance/decline ratio above 2.0 for a second day. Investors are looking more optimistic about the economic recovery among solid earnings reports from market leaders. 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, July 21, 2021 Facts: +0.92%, Volume lower, Closing range: 99%, Body: 92% Good: Close at high of day, bullish green body, A/D ratio Bad: Nothing Highs/Lows: Higher high, higher low Candle: No upper wick, very tiny lower wick, mostly green body Advanced/Decline: 2.36, almost five advancing stocks for every two declining stocks Indexes: SPX (+0.82%), DJI (+0.83%), RUT (+1.81%), VIX (-9.23%) Sectors: Energy (XLE +3.49%) and Financials (XLF +1.72%) at the top. Real Estate (XLRE -0.30%) and Utilities (XLU -1.10%). were bottom. Expectation: Sideways or Higher -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Market Overview Stocks continued to rebound from last week's dip, with small caps leading the march upward, keeping the advance/decline ratio above 2.0 for a second day. Investors are looking more optimistic about the economic recovery among solid earnings reports from market leaders. The Nasdaq closed the day a +0.92%. Volume was lower, but buyers dominated the entire, with almost five advancing stocks for every declining stock. The candle has no upper wick because of the 99% closing range, and the green body covers 92% of the candle. The Russell 2000 (RUT) led for a second day, as the US Dollar remains in an uptrend and makes undervalued small caps more attractive. The RUT closed with a +1.81% gain today. The S&P 500 (SPX) gained +0.82%, while the Dow Jones Industrial Average (DJI) climbed +0.83%. The VIX volatility index declined -9.23%. Energy (XLE +3.49) jumped to the top of the sector list as investors became more optimistic about the recovery. Financials (XLF) was the second-best sector, thanks to rising Treasury yields. At the bottom of the sector list are Real Estate (XLRE -0.30%) and Utilities (XLU -1.10%). -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Economic Indicators Crude Oil Inventories came in higher than expected, but that did not dampen investors' outlook for oil. The 20y Treasury auction was weak, helping Treasury Yields to rise. The US Dollar (DXY) declined -0.20% for the day. The US 30y, 10y, and 2y Treasury Yields all rose today. The 20y auction was weak, helping long-term yields to increase further. High Yield Corporate Bond (HYG) prices continue to bounce back from Monday's dip. Investment Grade Corporate Bond (LQD) prices declined. Silver (SILVER) advanced, and Gold (GOLD) declined. Crude Oil (CRUDEOIL1!) prices advanced sharply. Timber (Wood) advanced. Copper (COPPER1!) advanced, and Aluminum (ALI1!) declined. Crypto is back in vogue after another mention from Elon Musk. Bitcoin (BTCUSD) advanced +7.70%. Ethereum (ETHUSD) advanced +10.82%. (Time of writing) -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Investor Sentiment The put/call ratio rose to 0.619. 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 moved back into Fear (instead of Extreme Fear), heading toward Neutral. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Market Leaders Apple (AAPL) declined -0.51% after topping the mega-cap list yesterday. Alphabet (GOOGL) gained +1.06%. Microsoft (MSFT) advanced +0.74%. Amazon (AMZN) rose +0.34%. All four closed above their 21d exponential moving average line. ASML Holding (ASML), Nvidia (NVDA), Exxon Mobile (XOM), and JP Morgan (JPM) were the top mega-caps for the day. Netflix (NFLX) was the worst-performing mega-cap today after subscriber growth stalled and the company missed earnings estimates. Thermo Fisher Scientific (TMO), Tesla (TSLA), and Apple were also at the bottom of the mega-cap list. Growth stocks had another great day. At the top of the daily update list were UP Fintech (TIGR), DraftKings (DKNG), Lemonade (LMND), and NIO (NIO). The only losers in the list were Zynga (ZNGA), Tesla (TSLA), and Zoom Video (ZM). -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Looking ahead The weekly Initial Jobless Claims become available on Thursday before the market opens. After the market opens, Investors will get Existing Home Sales data for June. Intel (INTC), Abbott Labs (ABT), AT&T (T), Snap (SNAP), ABB (ABB), Twitter (TWTR), DR Horton (DHI), Southwest Airlines (LUV), Dominos Pizza (DPZ), and American Airlines (AAL) release earnings on Thursday. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Trends, Support, and Resistance The Nasdaq moved back toward all-time highs as seems to be putting a quick correction behind. The one-day trend line points to a +0.39% gain for Thursday. The five-day trend line ends in a -1.02% decline, which would be just above the 21d EMA. The trend line from the 7/13 high points to a -1.92% decline for Wednesday. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Wrap-up While fears grow about the impact of the Delta variant around the world, there is still high optimism for the US economic recovery, supported by upbeat earnings reports in the past two weeks. The combination of fear in other economies and optimism in the US economy put the US Dollar in an uptrend relative to other world currencies. As investment flows into the US Dollar, global investors need a place to put that money to use. Since Treasury yields remain low, we see investors seek out returns in equities and high-yield corporate bonds. In addition to these favorable conditions, small-cap valuations are low compared to larger-cap stocks. That's helping the Russell 2000 lead the other major indexes in gains the past two days. The expectation is for sideways or higher tomorrow. Keep an eye on the Zweig Breadth Thrust Indicator. Stay healthy and trade safe!
NASDAQ:IXIC
by drewby4321
Daily Market Update for 7/20Summary: Small caps ended several days of losing to lead stocks higher today as investors snapped out of the pandemic fears that caused Monday's selling. Investors are warming back up to small caps as the US Dollar strengthens and yields in bonds are beginning to stabilize. 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=- Tuesday, July 20, 2021 Facts: +1.57%, Volume higher, Closing range: 80%, Body: 59% Good: Broad gains on higher volume to move back above 21d EMA Bad: Nothing Highs/Lows: Higher high, higher low Candle: Bullish green body with higher low and higher high, medium size upper and lower wicks Advanced/Decline: 2.69, more than five advancing stocks for every two declining stocks Indexes: SPX (+1.52%), DJI (+1.62%), RUT (+2.99%), VIX (-12.32%) Sectors: Industrials (XLI +2.80%) and Financials (XLF +2.48%) at the top. Utilities (XLU +0.43%) and Consumer Staples (XLP +0.03%) were bottom. Expectation: Sideways or Higher -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Market Overview Small caps ended several days of losing to lead stocks higher today as investors snapped out of the pandemic fears that caused Monday's selling. Investors are warming back up to small caps as the US Dollar strengthens and yields in bonds are beginning to stabilize. The Nasdaq finished with a +1.57% gain on higher volume than the previous day. The 59% green body and 80% closing range represent a day of constant buying that ended with some profit-taking in the last few minutes before the market close. The index closed yesterday's gap down and regained the 21d exponential moving average, closing at the 14,500 support area. There were more than five advancing stocks for every declining stock. The Russell 2000 (RUT) soared back into action with a +2.99% gain today. The Dow Jones Industrial Average (DJI) also gained a significant +1.62%, helped by industrials and recovery stocks. The S&P 500 (SPX) closed with a +1.52% gain for the day. The VIX volatility index declined -12.32%. In a reversal from yesterday, all sectors gained for the day. Industrials (XLI +2.80%) and Financials (XLF +2.48%) led the sector list. Utilities (XLU +0.43%) and Consumer Staples (XLP +0.03%) were at the bottom. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Economic Indicators Building Permits data released this morning was lower than expected, but Housing Starts was higher than expected. The US Dollar (DXY) advanced +0.15% for the day. The US 30y and 10y Treasury Yields rose while the 2y Treasury Yield dropped. High Yield Corporate Bond (HYG) prices bounced back from a sharp decline yesterday. Investment Grade Corporate Bond (LQD) prices declined. Silver (SILVER) and Gold (GOLD) declined. Crude Oil (CRUDEOIL1!) prices recovered some from the sharp decline on Monday. The drop on Monday was a result of OPEC's decision to increase output. Timber (Wood) advanced. Copper (COPPER1!) and Aluminum (ALI1!) advanced. Bitcoin (BTCUSD) declined -3.99%. Ethereum (ETHUSD) declined -2.21%. (Time of writing) -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Investor Sentiment The put/call ratio dropped to 0.592. 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 still in Extreme Fear but moving back toward Neutral. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Market Leaders All big four mega-caps bounced back from yesterday's losses. Apple (AAPL) gained +2.60%, closing the gap from yesterday. Alphabet (GOOGL) gained +1.31%. Microsoft (MSFT) advanced +0.83%. Amazon (AMZN) rose -+0.66% to close back above its 21d exponential moving average. Apple was the top-performing mega-cap for the day, followed by Mastercard (MA), Pfizer (PFE), and Tesla (TSLA). There were only a handful of mega-caps losing for the day, with Novo Nordisk (NVO), Nvidia (NVDA), Procter & Gamble (PG), and Verizon (VZ) at the bottom of the list. Growth stocks in the daily update list did very well today. Top performers included Upwork (UPWK), Peloton (PTON), Square (SQ), and SNAP (SNAP). The worst performers were Zoom (ZM), Pinterest (PINS), JD.com (JD), and Nvidia. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Looking ahead Crude Oil Inventories are the primary economic data for Wednesday, although some may be interested in Mortgage data released before the market opens. Johnson & Johnson (JNJ), ASML Holding (ASML), Coca-Cola (KO), Verizon (VZ), and Fidelity Financial (FNF) are some of the interesting reports for Wednesday. Analysts will listen closely to Coca-Cola statements around supply chain costs and whether they are transferring increased costs along to consumers. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Trends, Support, and Resistance The Nasdaq moved back above the 21d EMA and closed right at the 14,500 support area. If momentum carries through to tomorrow, the one-day trend line points to a +1.98% gain. The five-day trend line and trend line from the 7/13 high points to a ~1.90% decline for Wednesday. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Wrap-up Fears melted away today as investors pivoted back into growth stocks and small caps. The Russell 2000 rebounded sharply with investors moving out of bonds and betting on the lower valuations of small caps compared to the mega-caps. We had a positive expectation breaker today, which is always welcome. The expectation for tomorrow is sideways or higher for tomorrow, although watch for any indication that today was just a technical bounce before moving lower. If we do move higher, the Russell 2000 is likely to outperform for the next leg up. Let's see. Stay healthy and trade safe!
NASDAQ:IXIC
by drewby4321
1
Daily Market Update for 7/19Summary: The new Delta variant of the Coronavirus was top of mind for investors as the trading week began. Share prices of COVID vaccine-related companies soared today as it appeared governments would need to double down on vaccination efforts. 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, July 19, 2021 Facts: -1.06%, Volume higher, Closing range: 71%, Body: 29% Good: Support around 14,200, good closing range Bad: Lower on higher volume, lower high, lower low Highs/Lows: Lower high, lower low Candle: Green body in center of candle, even upper and lower wicks Advanced/Decline: 0.27, more than three declining stocks for every advancing stock Indexes: SPX (-1.59%), DJI (-2.09%), RUT (-1.51%), VIX (+21.96%) Sectors: Consumer Staples (XLP -0.30%) and Health (XLV -1.05%) at the top. Financials (XLF -2.80%) and Energy (XLE -3.53%) were bottom. Expectation: Sideways or Lower -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Market Overview The new Delta variant of the Coronavirus was top of mind for investors as the trading week began. Share prices of COVID vaccine-related companies soared today as it appeared governments would need to double down on vaccination efforts. The Nasdaq finished with a -1.06% loss for the day on higher volume. The index found support at the 14,200 level, closing with a 71% closing range above a 29% body that is right in the middle of the candle. The lower high and lower low continues a downtrend as more than three stocks declined for every stock that advanced today. The Dow Jones Industrial Average (DJI) took the biggest hit with a -2.09% loss. The S&P 500 (SPX) lost -1.59%. The Russell 2000 (RUT) lost -1.51% as it continues to slide well below recent highs. The VIX volatility index rose +21.96%. It was up over 35% intra-day. All sectors lost for the day. Consumer Staples (XLP -0.30%) and Health (XLV -1.05%) led the sector list. Financials (XLF -2.80%) and Energy (XLE -3.53%) were the worst-performing. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Economic Indicators President Biden gave a speech today that included remarks on inflation and the strength of the economy. The market receded from earlier gains after his speech. The US Dollar (DXY) rose +0.13% for the day. The US 30y, 10y, and 2y Treasury Yields dropped again. High Yield Corporate Bond (HYG) prices declined sharply, while Investment Grade Corporate Bond (LQD) prices advanced. The gap between High Yield bonds and Treasury bonds widened significantly. Silver (SILVER) declined, and Gold (GOLD) advanced. Crude Oil (CRUDEOIL1!) prices declined sharply. Timber (Wood) continued a steep decline. Copper (COPPER1!) and Aluminum (ALI1!) declined. Bitcoin (BTCUSD) declined -2.98%. Ethereum (ETHUSD) declined -3.90%. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Investor Sentiment The put/call ratio rose to 0.898, showing investors getting more bearish. 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 moved further into extreme fear. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Market Leaders All big four mega-caps had huge declines today. Apple (AAPL) gapped down and closed with a -2.69% loss. Microsoft (MSFT) declined -1.33%. Alphabet (GOOGL) lost -1.88%, closing right at its 21d exponential moving average. Amazon (AMZN) declined -0.67% and closed below its 21d exponential moving average. Nvidia (NVDA) topped the mega-cap list with a +3.41% gain after Morningstar improved its outlook for the company. Abbot Laboratories (ABT), Eli Lilly (LLY), and Netflix (NFLX) were the next three on the list. Most of the mega-caps declined for the day. The biggest losers were Mastercard (MA), Walt Disney (DIS), Exxon Mobil (XOM), and JP Morgan (JPM). The majority of the daily update growth stocks had gains today. Peloton (PTON) topped the list with a 7.14% gain, leading other stay-at-home stocks upward as fears of the Delta variant grow. Peloton also announced it would get into the video game business, turning its exercise equipment in the controller. Chewy (CHWY), Fiverr (FVRR), and DoorDash (DASH) also had significant gains today. Interestingly, stay-at-home stock Zoom Video (ZM) did not rise today, ending up at the bottom of the list with a -2.15% decline. Also at the bottom were JD.com (JD), Square (SQ), and Alibaba (BABA). -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Looking ahead Building Permits and Housing Starts data will be available on Tuesday morning before the market opens. API Weekly Crude Oil Stock gets released after the market closes. Netflix (NFLX), Philip Morris (PM), Chipotle (CMG), KeyCorp (KEY), Haliburton (HAL), and United Airlines (UAL) will report earnings on Tuesday. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Trends, Support, and Resistance The Nasdaq found support at 14,200 today. The five-day trend line and trend line from the 7/13 high points to a -1.02% to -1.17% decline for Tuesday. The one-day trend line points to a -0.32% loss. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Wrap-up Investors are spooked over the rise in the new Delta variant of the Coronavirus. Expect more volatility until the pros can better understand how dangerous the new variant is and how they can control it. Based on the downtrend and daily decline on higher volume, the expectation is for Sideways or Lower tomorrow. Stay healthy and trade safe!
NASDAQ:IXIC
by drewby4321
2
Nasdaq Setting up for Rounded top Been posting bearish charts for awhile and scaling out of the market. Very hard to fully bet against the Fed but it's to risky to not be hedged right now. Bounced off support today but I think we will visit the bottom of the rising channel - could revisit the February 2020 highs. Market is setup for a perfect top: -Debt ceiling + Delta variant concerns -Parabolic for the past year -Covid got new traders to enter the market (provide liquidity for Wallstreet to sell) -Insiders selling -Advance decline (markets being held up by big companies while majority bleed) -High price to earnings valuations. Top it off, there is a rounding top pattern in the works. I am no expect in distribution, but I am concerned at the number of people who started investing in the past year with no knowledge.
NASDAQ:IXIC
by richardthick
Market Week in Review - 7/12/2021 - 7/16/2021Summary: Worries over the health and speed of the recovering economy remained this week, and the big mega-caps weren't enough to keep the indexes moving higher. Investors weren't sure what to do with a mixed bag of economic data, causing volatility in bonds and equities. Notes The Market Week in Review is my weekend homework where I look over what happened in the previous week and what might come in the next week. I occasionally have some errors or typos and will correct them in my blog or the comments on TradingView. I do not have an editor and do this in my free time. If you find this helpful, please let me know in the comments. I am also more than happy to add new perspectives and data points if you have ideas. The structure is the following: A recap of the daily updates that I do here on TradingView. View on the past week What's coming in the next week The Bullish View, The Bearish View Key index levels to watch out for Wrap-up If you have been following my daily updates, you can skip down to "View on the Week." If not, then this first part is a great play-by-play recap for the week. Click the daily charts for more detail on sectors, indexes, and market leaders each day. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Monday, July 12, 2021 Facts: +0.21%, Volume higher, Closing range: 69%, Body: 12% Good: Higher high, higher low, body and closing range in upper half of candle Bad: Red body, low advance/decline ratio Highs/Lows: Higher high, higher low Candle: Thin red body in upper half of the candle, long lower wick from morning dip Advanced/Decline: 0.8, more declining stocks than advancing stocks Indexes: SPX (+0.35%), DJI (+0.36%), RUT (+0.08%), VIX (-0.06%) Sectors: Financials (XLF +0.98%) and Real Estate (XLRE +0.87%) at the top. Energy (XLE -0.15%) and Consumer Staples (XPL -0.16%) were the bottom. Expectation: Sideways or Higher New all-time highs across three of the major indexes is not a bad way to start the week. The 10-year Treasury note auction passed without many surprises, giving the indexes a boost in the afternoon. The Nasdaq closed with a +0.21% advance on slightly higher volume. The candle shows a bit of indecision as markets dipped in the morning but then recovered and made gains in the afternoon after the auction. The 12% Red body in the upper half of the candle is above a long lower wick. The closing range is 69%. There were more declining stocks than advancing stocks. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Tuesday, July 13, 2021 Facts: -0.38%, Volume higher, Closing range: 12%, Body: 26% Good: Higher high, outside day that keeps index in uptrend, support at ~14,675 Bad: Long upper wick from afternoon selling, red body at bottom of candle Highs/Lows: Higher high, lower low Candle: Outside day, long upper wick signals a bearish reversal day Advanced/Decline: 0.21, five decline stocks for every advancing stock Indexes: SPX (-0.35%), DJI (-0.31%), RUT (-1.88%), VIX (+5.88%) Sectors: Technology (XLK +0.41%) and Consumer Staples (XLP -0.03%) at the top. Consumer Discretionary (XLY -1.20%) and Real Estate (XLRE -1.30%) were the bottom. Expectation: Lower Higher than expected inflation data wasn't enough to keep the indexes from making new highs, but the rally couldn't last, and markets closed lower on Tuesday. A weaker than expected 30y bond auction sent yields higher and spooked investors in the afternoon. Big tech held onto gains, helping the Technology sector end the day in the positive. The Nasdaq closed the day with a -0.38% loss on higher volume. The candle has a long upper wick that represents the morning rally which turned into an afternoon sell-off. The 26% red body sits at the bottom of the candle, creating a 12% closing range above a short lower wick. The outside day with a bearish reversal confirms the underlying weakness where five stocks declined for every advancing stock. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Wednesday, July 14, 2021 Facts: -0.22%, Volume lower, Closing range: 8%, Body: 86% Good: Nothing Bad: Thick red body, closing range, lower high Highs/Lows: Lower high, lower low Candle: Mostly red body surrounded by tiny wicks Advanced/Decline: 0.28, more than three decline stocks for every advancing stock Indexes: SPX (+0.12%), DJI (+0.13%), RUT (-1.63%), VIX (-4.62%) Sectors: Consumer Staples (XLP +0.89%) and Real Estate (XLRE +0.88%) at the top. Financials (XLF -0.46%) and Energy (XLE -2.98%) were the bottom. Expectation: Lower Apple gets an upgrade, and big tech rises again as the rest of the market fades around it. Producer Price Index data was higher than expected. Still, Jerome Powell continued to focus on inflation being transitory and the need for further economic support until the jobs market fully recovers. Despite the advances in big tech, the Nasdaq closed -0.22% lower. Showing the lopsided gains in the market, the QQQ ETF (weighted by cap size) was up +0.18%, while the QQQE ETF (equal-weighted) was down -0.12%. The Nasdaq candle is almost all red body (86%), with tiny upper and lower wicks. The closing range is 8%. There were more than three declining stocks for every advancing stock. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Thursday, July 15, 2021 Facts: -0.70%, Volume higher, Closing range: 46%, Body: 47% Good: Bounce off support at 21d EMA Bad: Another LH/LL on slightly higher volume Highs/Lows: Lower high, lower low Candle: Thick red body in upper half of candle, long lower wick Advanced/Decline: 0.5, two declining stocks for every advancing stock Indexes: SPX (-0.33%), DJI (+0.15%), RUT (-0.55%), VIX (+4.17%) Sectors: Utilities (XLU +1.13%) and Consumer Staples (XLP +0.41%) at the top. Technology (XLK -0.82%) and Energy (XLE -1.40%) were bottom Expectation: Sideways or Lower Is the big tech trade finished? Or is this just a pause before another leg up? Economic data in the morning caused volatility at the market open, which eventually went to the bears. The selling continued until the afternoon when the buyers came back into the market. The Nasdaq closed the day with a -0.70% loss on slightly higher volume. The candle has a thick red body in the upper half and a long lower wick in the lower half. The closing range is 46%, and the body covers 47% of the candle. There were two declining stocks for every advancing stock. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Friday, July 16, 2021 Facts: -0.80%, Volume lower, Closing range: 7%, Body: 81% Good: Nothing Bad: Close below 21d EMA, mostly red body, low closing range Highs/Lows: Lower high, lower low Candle: Almost entirely red body, upper wick longer than lower wick Advanced/Decline: 0.32, three declining stocks for every advancing stock Indexes: SPX (-0.75%), DJI (-0.86%), RUT (-1.24%), VIX (+8.47%) Sectors: Utilities (XLU +1.01%) and Health (XLV +0.27%) at the top. Materials (XLB -1.51%) and Energy (XLE -2.83%) were bottom. Expectation: Lower The market gave us a painful Friday to end a painful week. Utilities were again the top sector as investors took defensive positions brought on by worries over the pandemic and a slowing economic recovery. The Nasdaq closed with a -0.8% loss. Volume was lower, but the candle was distinctly bearish with a large 81% red body and a dismal 7% closing range. The upper wick, created by an early morning rally, is slightly longer than the lower wick. The index got some support at 14,500 but quickly reversed, moving below the 21-day exponential moving average. There were three declining stocks for every advancing stock. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- View on the Week Worries over the health and speed of the recovering economy remained this week, and the big mega-caps weren't enough to keep the indexes moving higher. Investors weren't sure what to do with a mixed bag of economic data, causing volatility in bonds and equities. All seemed ok after an uneventful 10-year Treasury note auction on Monday. That was the only news of the day. After the auction, the Nasdaq rallied into close and continued the rally into the following day. That's when the trouble started. Tuesday kicked off with higher than expected Consumer Price Index data. Equities continued to rally, but the inflation worries hit the 30-year bond auction. The low demand for the bond sent yields higher. Only big tech companies held onto gains by the end of the day. The big tech rally got another boost on Wednesday when JP Morgan analysts upgraded the price target for Apple after news that the company is boosting iPhone production by as much as 20%. The rally extended to other tech mega-caps and set up a situation where a pullback for the big tech stocks was due. On Thursday, Federal Reserve Banks in New York and Philadelphia released their Manufacturing Data. The New York numbers were at all-time highs while the Philadelphia numbers were lower than expected. Although the Philadelphia numbers were below expectations, they are still high on a historical basis. The numbers supported the narrative that the economic recovery is slowing, sending Treasury Yields back down to where they started the week. And yet, the US Dollar strengthened. The economic worries, volatility in bonds, and extended prices in big tech all combined to sink the indexes lower on Friday, closing a painful week for growth investors. The Nasdaq declined -1.87% for the week. Volume was higher than the previous week. Despite the decline, the index did manage a higher high and a higher low for the week. The closing range of 4% is the lowest in over a year, representing the selling into the close that occurred on Friday. Small Caps suffered the most this week, with the Russell 2000 (RUT) dropping -5.12%. The S&P 500 (SPX) declined -0.97% for the week. The Dow Jones Industrial Average (DJI) lost -0.52%. The VIX volatility advanced +14.04% for the week. The sectors ended the week in a very character than they started the week. None of the leading sectors early in the week were leading by the end of the week. Financials ( XLF ) started the week in first as investors anticipated earnings reports from big banks that began on Tuesday. By Friday, the sector slipped to the middle of the list, ending the week with a -1.61% decline. Technology ( XLK ) and Communication Services ( XLC ) took over the top spots for Tuesday and most of Wednesday. They also reversed downward and ended the week with losses. The only sectors to end the week with gains were Utilities ( XLU ), Consumer Staples ( XLP ), and Real Estate ( XLRE ). The defensive sectors gained ground at the end of the week as worries over the economy grew among investors. Energy ( XLE ) was at the bottom of the list, dropping -7.89% this week. OPEC+ continues to have disagreements, destabilizing the sector along with the price of oil. Add the fears of a slowing recovery, and investors are exiting positions in the sector that performed well in the first half of 2021. Treasury yields on the 30y bond and 10y note slid further this week. Although the 10y note auction passed without surprises, the 30y bond auction was weaker than expected, causing yields to rise midweek. However, the levels returned to where they started the week, and the slide continues. The 2y yields rose slightly for the week as the yield curve continues to flatten. The signal to read here is that investors see more risk in shorter-term debt, requiring more reward (yield). The outlook for the short term is growing more negative. High Yield Corporate Bond (HYG) prices declined but remained near pre-pandemic highs. Investment Grade Bond (LQD) prices advanced. The US Dollar (DXY) advanced +0.66% for the week. Silver (SILVER) declined -1.70%, and Gold (GOLD) advanced +0.16%. Crude Oil (CRUDEOIL1!) declined -3.20%. Timber (WOOD) advanced -4.30%. Copper (COPPER1!) declined +-0.12%. Aluminum (ALI1!) declined -0.61%. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Big Four Mega-caps Three of the four largest mega-caps advanced for the week. Alphabet (GOOGL) had the biggest gain with a +1.16% advance. Microsoft (MSFT) gained +1.01%. Apple (AAPL) rose +0.88%. All three pulled back from intra-week highs on Thursday and Friday. Amazon (AMZN) dropped -3.92% for the week. All four are trading above key moving averages. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- The Four Recovery Stocks I picked four recovery stocks to track against the indexes and other indicators in this weekly report. The situation was not good for the four recovery stocks. Carnival Cruise Lines (CCL) took the biggest hit with a -13.77% decline, dropping below the 40w moving average. Delta Airlines (DAL) declined -6.66%, despite beating all analyst expectations on the top line, bottom line, and key metrics. Marriott (MAR) fell -5.21%. Exxon Mobil (XOM) dropped -6.39%, pulling the Energy sector lower. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Cryptocurrency I started tracking four major cryptocurrencies on the week in review. The four are Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. The latter two are not the largest by market cap but seem to be well-known and are part of the CIX capital.com index, tracking five cryptocurrencies, including these four (Ripple is the fifth). The declines continue in the four cryptocurrencies. Bitcoin (BTCUSD) lose another -7.44%. Ethereum (ETHUSD) dropped -10.98%. Litecoin (LTCUSD) declined -10.70%. Bitcoin Cash (BCHUSD) fell -11.76%. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Investor Sentiment The put/call ratio (PCCE) ended the week at 0.859. A contrarian indicator, when the put/call ratio is below 0.7, it signals overly bullish sentiment and could mean an overbought market. The CNN Fear & Greed Index moved into the Extreme Fear level. The indicator is at 23, which is the lowest since the 2020 pandemic crash. The NAAIM Money Manager exposure index rose to 93.27 this week. The survey occurs on Wednesdays, so the number does not include any selling on Thursday and Friday. However, it's still interesting that the index rose after the previous week where the market was already weakening. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- The Week Ahead The week will start slow, but earnings reports will pick up as Financials kick off the earnings season. Monday There is not much economic news scheduled for Monday. IBM will release earnings on Monday, which may be an early indicator of what's to come from other tech giants this earnings season. Tuesday Building Permits and Housing Starts data will be available on Tuesday morning before the market opens. API Weekly Crude Oil Stock gets released after the market closes. Netflix (NFLX), Philip Morris (PM), Chipotle (CMG), KeyCorp (KEY), Haliburton (HAL), and United Airlines (UAL) will report earnings on Tuesday. Wednesday Crude Oil Inventories are the primary economic data for Wednesday, although some may be interested in Mortgage data released before the market opens. Johnson & Johnson (JNJ), ASML Holding (ASML), Coca-Cola (KO), Verizon (VZ), and Fidelity Financial (FNF) are some of the interesting reports for Wednesday. Analysts will listen closely to Coca-Cola statements around supply chain costs and whether they are transferring increased costs along to consumers. Thursday The weekly Initial Jobless Claims become available on Thursday before the market opens. After the market opens, Investors will get Existing Home Sales data for June. Intel (INTC), Abbott Labs (ABT), AT&T (T), Snap (SNAP), ABB (ABB), Twitter (TWTR), DR Horton (DHI), Southwest Airlines (LUV), Dominos Pizza (DPZ), and American Airlines (AAL) release earnings on Thursday. Friday The Manufacturing and Services purchasing manager indexes released on Friday will be another indicator of economic activity and the speed of the recovery. Friday's earning reports include Honeywell (HON), American Express (AXP), and Schlumberger (SLB). -=x=-=x=-=x=-=x=-=x=-=x=-=x=- The Bullish Side There may be a slowdown in the speed of growth compared to the first half of the year, but the economy is still expanding at a historically high rate. The US Dollar is strengthening. Investors continue to support high prices (low yields) in both investment grade and junk corporate bonds, showing confidence in US businesses to be successful in the near term. That confidence is coming from the ability for businesses to secure low interest rates for debt to fund growth, while consumers are continuing to drive demand via increased activity (Retail Sales is higher than expected). Inflation remains high, but consumers are still purchasing, using a record amount of savings to fund new purchases. The Fed's Jerome Powell reaffirmed again this week that they believe inflation is transitory, but they are more than willing to step in to control inflation. Although an interest rate hike would cause some pause, the bigger evil for growth stocks is out-of-control inflation. The slightly more hawkish Fed can help growth investors remain confident in the market. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- The Bearish Side At all-time highs, the market was due for a pullback. Despite gains among big tech, the last two weeks have shown a broader weakness in equities. Much of that is from fears of a slowing economic recovery, driving volatility in the bond market, and spilling over into equities. Although Retail sales were higher than expected, Consumer sentiment and expectations data were low. Analysts expected the consumer numbers to be higher since we are emerging from the long pandemic. However, it seems consumers are worried about new variants and also stressed by higher prices for goods. The question is, will there be a further correction, or is the minor pullback this week enough to get support and move higher. The CNN Fear & Greed index moved into the Extreme Fear range, based primarily on the weakness in stock prices and high demand for long-term bonds. That means big investors see a worsening situation on the horizon and possibly a move lower for the indexes. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Key Nasdaq Levels to Watch The Nasdaq set another all-time high this week before pulling back again and closing below the 21d exponential moving average. The index closed with a higher low but with a dismal closing range, sliding into the end of the week. On the positive side, the levels are: The 21d EMA is at 14449.77. 14,500 has been a support area in the past, get back above this area to move higher. The 10d MA is at 14,625.59. The high of this past week was a new all-time high at 14,803.68. The mid-point of the regression trend from the 5/12 low points to 14,989 by the end of the week. The round number 15,000 is likely to be a new area of resistance. On the downside, there are a few key levels: The low of this past week is 14,413.32. The low of the previous week is 14,371.59. Keep making higher lows to keep the uptrend intact. The 50d MA is at 14,004.19. 14,000 has been a key area of support/resistance. There is a pivot at 13,548.93. There is a support area at 13,000. 13,002.54 is a pivot from May. 13,119.60 is the 200d MA. 12,397.05 is a low pivot point from the early March dip. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Wrap-up It was a tough week, especially for growth investors. Economic signals are all over the place, causing reactions among investors. Ultimately, volatility will have investors exiting riskier positions and moving to safe-havens. We saw that through the increased demand for long-term bonds and the rise of defensive sectors to the top of the sector list the past two weeks. As it stands, the Nasdaq is still in an uptrend. It looks worrisome, but we have to wait and see what happens in the coming week. A further decline could mean a 5-6% correction before the uptrend resumes. Or the index could turn back toward new all-time highs sooner if new data indicate a more robust economic recovery. Good luck, stay healthy, and trade safe!
NASDAQ:IXIC
by drewby4321
3
Daily Market Update for 7/16Summary: The market gave us a painful Friday to end a painful week. Utilities were again the top sector as investors took defensive positions brought on by worries over the pandemic and a slowing economic recovery. 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=- Friday, July 16, 2021 Facts: -0.80%, Volume lower, Closing range: 7%, Body: 81% Good: Nothing Bad: Close below 21d EMA, mostly red body, low closing range Highs/Lows: Lower high, lower low Candle: Almost entirely red body, upper wick longer than lower wick Advanced/Decline: 0.32, three declining stocks for every advancing stock Indexes: SPX (-0.75%), DJI (-0.86%), RUT (-1.24%), VIX (+8.47%) Sectors: Utilities (XLU +1.01%) and Health (XLV +0.27%) at the top. Materials (XLB -1.51%) and Energy (XLE -2.83%) were bottom. Expectation: Lower -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Market Overview The market gave us a painful Friday to end a painful week. Utilities were again the top sector as investors took defensive positions brought on by worries over the pandemic and a slowing economic recovery. The Nasdaq closed with a -0.8% loss. Volume was lower, but the candle was distinctly bearish with a large 81% red body and a dismal 7% closing range. The upper wick, created by an early morning rally, is slightly longer than the lower wick. The index got some support at 14,500 but quickly reversed, moving below the 21-day exponential moving average. There were three declining stocks for every advancing stock. The Russell 2000 (RUT) was again the worst major index for the day, declining -1.24%. Investors have been exiting small-cap stocks and rotating back into big tech and growth stocks. The Dow Jones Industrial Average (DJI) fell -0.86%. The S&P 500 (SPX) dropped -0.75%. The defensive sectors were at the top of the sector list for another day and topped the weekly list. Utilities (XLU +1.01%) and Health (XLV +0.27%) were the best performing sectors. Materials (XLB -1.51%) and Energy (XLE -2.83%) were the worst-performing. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Economic Indicators Retail Sales data came in higher than expected. However, Consumer Expectations and Sentiment surprised analysts with lower numbers than expected. Analysts expected higher sentiment because the US is emerging from the pandemic and getting back to a somewhat normal life. The lower number adds some worry that the recovery is slowing among concerns over inflation and new virus variants. The US Dollar (DXY) rose +0.16% for the day. The US 30y Treasury Yield rose slightly, while the 10y and 2y Yields declined. High Yield Corporate Bond (HYG) and Investment Grade Corporate Bond (LQD) prices declined. Silver (SILVER) and Gold (GOLD) declined sharply. Crude Oil (CRUDEOIL1!) declined. Timber (Wood) also declined sharply. Copper (COPPER1!) advanced, and Aluminum (ALI1!) declined. Bitcoin (BTCUSD) declined -1.45%. Ethereum (ETHUSD) declined -2.05%. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Investor Sentiment The put/call ratio rose to 0.859, showing investors getting more bearish. 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 moved into extreme fear. The extreme fear indicator is driven by demand for bonds (lower yields), higher put/call ratio, and weakening stock prices. Interestingly, the Junk Bond component still shows Greed. The NAAIM Money Manager exposure index rose to 93.27 this week. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Market Leaders All big four mega-caps declined again today. Amazon (AMZN) declined the most this week, adding a -1.59% drop this week and closing just above its 21d EMA. Apple (AAPL) fell -1.41%. Microsoft (MSFT) and Alphabet (GOOGL) had smaller losses, declining -0.10% and -0.03%, respectively. The top mega-caps for today are Oracle (ORCL), Danaher (DHR), Novo Nordisk (NVO), and Thermo Fischer (TMO). Danaher and Novo Nordisk are new to the list, topping the $200 billion market cap with gains this week as the Health sector picks up momentum. At the bottom of the list are Nvidia (NVDA), Exxon Mobil (XOM), Walt Disney (DIS), and ASML Holding (ASML). The daily update growth stock list continued a tough week with more losers than gainers. Sumo Digital (SUMO), DocuSign (DOCU), Fastly (FSLY), and Zoom (ZM) were at the top of the list. The -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Looking ahead There is not much economic news scheduled for Monday. IBM will release earnings on Monday, which may be an early indicator of what's to come from other tech giants this earnings season. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Trends, Support, and Resistance The Nasdaq closed below the 21d exponential moving average line today. I removed the trend line from the 5/12 low and added a new trend line from the 7/13 high. The five-day trend line points to a -0.07% decline for Monday. The trend-line from the 7/13 high ends with a -0.58% loss. The one-day trend line points to a -0.76% loss. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Wrap-up Gains over the past week have been focused mainly on big tech, while the rest of the market showed weakness. Investors are worried that the economic recovery is slowing, and that will hurt smaller companies the most. Big tech could only carry the indexes to a certain point and was due for a pullback. We'll have to wait for next week to see if there is a further correction or if the outlook will improve and support comes back into equities. Stay healthy and trade safe!
NASDAQ:IXIC
by drewby4321
2