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Nasdaq Composite Index CFD

Daily Market Update for 9/7Summary: Markets closed the day with mixed results as investors worried about a slowing economy and uncertainty around when the Fed would start bond tapering. Big Tech was viewed as the safe bet, helping keep the growth sectors and the Nasdaq positive for the day. 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, September 07, 2021 Facts: +0.07%, Volume lower, Closing Range: 52%, Body: 3% Red Good: Higher high, higher low on increased volume Bad: Low A/D ratio, thin red body in middle of candle signals indecision Highs/Lows: Higher high, Higher low Candle: Indecisive doji style candle shows buyers and sellers in the market Advance/Decline: 0.45, two declining stocks for every advancing stock Indexes: SPX (-0.34%), DJI (-0.76%), RUT (-0.72%), VIX (+10.54%) Sector List: Consumer Discretionary (XLY +0.29%) and Communications (XLC +0.23%) at the top. Utilities (XLU -1.32%) and Industrials (XLI -1.73%) at the bottom. Expectation: Sideways or Lower -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Market Overview Markets closed the day with mixed results as investors worried about a slowing economy and uncertainty around when the Fed would start bond tapering. Big Tech was viewed as the safe bet, helping keep the growth sectors and the Nasdaq positive for the day. The Nasdaq ended the day with a +0.07% gain, setting a new all-time and another record close. The 3% red body rests in the middle of the candle, representing the indecision for buyers and sellers during the day. The closing range of 52% is ok. The fight between bulls and bears created a higher volume day than the previous day. There were over two declining stocks for every advancing stock. The S&P 500 (SPX) declined -0.34%. The Russell 2000 (RUT) lost -0.72%. The Dow Jones Industrial Average (DJI) was the worst of the major indexes, falling -0.76% and following the cyclical sectors underperforming for the day. The VIX Volatility Index (VIX) gained +10.54%. Only the growth sectors ended the day with gains. Consumer Discretionary (XLY +0.29%) and Communications (XLC +0.23%) are at the top of the sector list. Utilities (XLU -1.32%) and Industrials (XLI -1.73%) were at the bottom. Losses by 3M, Amgen, and Honeywell brought down the Industrials ETF and led the Dow Jones lower. The US Dollar strengthened today after sliding for the past few weeks. The USD Currency Index (DXY) climbed by +0.34%. US Treasury Yields for both long and short-term notes rose for the day. Despite the disappointing jobs report on Friday, bond investors still believe the Fed will continue plans to start tapering bond purchases this fall. The lower demand moves bond prices lower and yields higher. High Yield (HYG) and Investment Grade (LQD) Corporate Bond prices also fell sharply today. The price movement is tracking along with Treasury prices. The demand for high-yield corporate bonds has been at its highest point since the start of the pandemic as investors seek higher returns. If Treasury yields rise, expect investors to rebalance back toward less risky instruments. The Put/Call ratio declined to 0.609. The ratio signals that investors remain bullish. The CNN Fear & Greed index remained near neutral. Three of the four largest mega-caps gained for the day. Only Microsoft (MSFT) declined, testing its 21d EMA but getting support at the key line. Apple (AAPL) gained +1.55% for the day. The top mega-cap for the day was Alibaba (BABA). Chinese stocks got a boost from better than expected trade data for China and Hong Kong reopening their border. Chinese stocks FUTU Holding (FUTU) and JD.com (JD) topped the daily update growth list. In third and fourth place were DraftKings (DKNG) and Penn National Gaming (PENN), finishing their first weekend of College football and entering the first week of the NFL. DocuSign (DOCU) was at the bottom of the list, giving back all of its gains from Friday's earnings reaction. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Looking ahead The JOLTs Job Openings report is due on Wednesday. The information could contrast last week's employment data and show more openings than people willing to fill. With Federal Unemployment Benefits ending this week, supply in the labor market will pick up, helping to fill job openings. There is a 10-year note auction in the afternoon. Around the same time, the NY Fed's John Williams is scheduled to speak, and investors will be listening for any taper talk. Expect a reaction in Treasuries to spill over to the USD and Equities. Lululemon (LULU), Coupa Software (COUP), GameStop (GME), and RH (RH) will report earnings on Wednesday. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Trends, Support, and Resistance The Nasdaq set a new all-time high and record close. Still, there is resistance around 15,400. Watch that area for a breakout this week or for continued resistance to send the index lower. The trend line from the 8/19 low points to a +1.32% gain for Wednesday. The one-day and five-day trend lines end with a +0.32% gain. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Wrap-up Without much economic news to influence investors, nervous sentiment spilled over from Friday's jobs report. That all could quickly change with new economic data tomorrow and an update from the Fed just as the 10y Treasury Note auction completes. Based on the Nasdaq chart and the narrow gains focused on big tech today, the expectation is for Sideways or Lower tomorrow. Stay healthy and trade safe!
NASDAQ:IXIC
by drewby4321
Market Week in Review - 8/30/2021 - 9/3/2021Summary: Employment data kept investors guessing about the Fed's timeline for bond tapering. However, that did not keep the Nasdaq and S&P 500 from hitting new all-time highs. Defensive sectors led the week, but growth sectors also closed the week with gains. 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, August 30, 2021 Facts: +0.90%, Volume lower, Closing Range: 85% (w/gap), Body: 81% Green Good: Strong gain in morning, held near high in the afternoon Bad: Lower volume, low A/D ratio Highs/Lows: Higher high, Higher low Candle: Gap-up at open, with tick green body and tiny upper wick. No lower wick. Advance/Decline: 0.61, more than three declining stocks for every two advancing Indexes: SPX (+0.43%), DJIA (-0.16%), RUT (-0.49%), VIX (-1.22%) Sector List: Real Estate (XLRE +1.22%) and Technology (XLK +1.08%) at the top. Energy (XLE -1.18%) and Financials (XLF -1.41%) at the bottom. Expectation: Sideways or Higher Technology stocks rallied today after the Fed expressed a dovish stance toward tapering and interest rate hikes on Friday. Cyclical sectors faded while growth sectors dominated the top of the sector list. The Nasdaq gained +0.90% for another record close. The closing range of 85% is just under a small upper wick, formed from a dip in the last hour of trading. The 81% Green body developed in the morning rally, with the index leveling off at a new all-time high and holding that level in the afternoon. Volume was lower than the previous day, and there were three declining stocks for every two advancing stocks. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Tuesday, August 31, 2021 Facts: -0.04%, Volume higher, Closing Range: 74%, Body: 5% Red Good: Higher low continues uptrend, sideways move allows moving averages to catch up Bad: Lower high, higher volume on decline, A/D ratio Highs/Lows: Lower high, Higher low Candle: Inside day with thin body at top of the candle Advance/Decline: 0.81, more declining than advancing stocks Indexes: SPX (-0.13%), DJI (-0.11%), RUT (+0.34%), VIX (+1.79%) Sector List: Real Estate (XLRE +0.59%) and Communications (XLC +0.38%) at the top. Technology (XLK -0.53%) and Energy (XLE -0.68%) at the bottom. Expectation: Sideways Markets closed the month of August, moving sideways, but capped another bullish month of gains. The day started with investors swarming defensive sectors, but sentiment flipped, and the sector list scrambled. The Nasdaq closed with a -0.04% decline on higher volume than the previous day. The inside day started with a dip at open but climbed back to set an intraday high before another more minor dip before the close. That created a thin red body above a longer lower wick, all within the high and low of the previous day. There were more declining stocks than advancing stocks. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Wednesday, September 01, 2021 Facts: +0.33%, Volume higher, Closing Range: 30% (w/gap), Body: 1% Green Good: Gain on higher volume, higher high, higher low Bad: Fade from new all-time high Highs/Lows: Higher high, Higher low Candle: Gap-up to long upper wick, almost no body, no lower wick Advance/Decline: 0.99, one advancing for every declining stock Indexes: SPX (+0.03%), DJI (-0.14%), RUT (+0.58%), VIX (-2.25%) Sector List: Real Estate (XLRE +1.72%) and Utilities (XLU +1.31%) at the top. Financials (XLF -0.57%) and Energy (XLE -1.47%) at the bottom. Expectation: Sideways or Lower Markets rallied in the morning before investors turned defensive and the gains faded, weighed down by big tech stocks that all sold off in the later afternoon. Regardless, most of the market held onto some gain for the day. The Nasdaq closed with a +0.33% gain but was up 0.80% midday. Volume was higher than the previous day. A gap-up at open turned into a morning rally, creating a long upper wick with no lower wick. However, the index faded in the afternoon, leaving a green body covering only 1% of the candle. There was an equal number of advancing and declining stocks for the day. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Thursday, September 02, 2021 Facts: +0.14%, Volume lower, Closing Range: 48%, Body: 29% Red Good: Support forming at 15,300. Sideways move allowing moving averages to catch up. Bad: Resistance near the weekly high Highs/Lows: Higher high, Higher low Candle: Outside day, red body above longer lower wick Advance/Decline: 1.24, more advancing stocks than declining stocks Indexes: SPX (+0.28%), DJI (+0.37%), RUT (+0.74%), VIX (+1.86%) Sector List: Energy (XLE +2.54%) and Industrials (XLI +1.08%) at the top. Technology (XLK -0.11%) and Communications (XLC -0.67%) at the bottom. Expectation: Sideways or Lower Jobs data in the morning improved the economic outlook even while the pandemic remains relentless. Cyclical and defensive sectors outperformed while growth sectors declined for the day. The Nasdaq gained +0.14% for the day. Volume was lower than the previous day. The 29% red body sits above a longer lower wick and below a shorter upper wick. The closing range of 48% is in the middle of an outside day where the high is higher, and the low is lower than the previous day. That’s two days of sideways trading near the all-time high for the index. There were more advancing stocks than declining stocks today. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Friday, September 03, 2021 Facts: +0.21%, Volume lower, Closing Range: 87%, Body: 55% Green Good: Progress all day after a dip at open Bad: Lower volume gain with low A/D ratio Highs/Lows: Lower high, Lower low Candle: Mostly green body in the middle of candle, longer lower wick Advance/Decline: 0.47, two declining stocks for every advancing stock Indexes: SPX (-0.03%), DJI (-0.21%), RUT (-0.52%), VIX (+0.00%) Sector List: Technology (XLK +0.40%) and Health (XLV +0.11%) at the top. Materials (XLB -0.66%) and Utilities (XLU -0.83%) at the bottom. Expectation: Investors rushed to safety in big tech today after payroll growth data came in much lower than expected. The result was losses across most sectors and indexes, but enough gains in tech mega-caps for the Nasdaq to end the day higher. The Nasdaq closed the day with a +0.21% gain. Volume was lower than the previous day. The closing range of 87% came after a volatile morning which turned into a steady climb to close near the intraday high. The lower wick is longer than the upper wick, and the green body covers 55% of the candle. There were two declining stocks for every advancing stock. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- View on the Week Employment data kept investors guessing about the Fed's timeline for bond tapering. However, that did not keep the Nasdaq and S&P 500 from hitting new all-time highs. Defensive sectors led the week, but growth sectors also closed the week with gains. The week opened with momentum from the previous week's dovish speech by Jerome Powell at the Jackson Hole economic symposium. The speech indicated bond tapering could start this year, but the Fed would hold off on interest rate hikes until further progress in the economic recovery. That turned all eyes toward the labor market as the Fed's primary concern. So how is the labor market doing? The answer varies depending on the labor data indicator. ADP Nonfarm Employment change data was lower than expected on Wednesday. Continuing and Initial jobless claims data was better than expected on Thursday. Then Nonfarm payrolls data on Friday was surprisingly lower than expected. The data had investors guessing what impact that would have on Fed policy. The result of the swings in expectations had investors rotating between big tech and defensive stocks on poor labor market data and small-caps and cyclicals on good labor market data. That was on display on Wednesday as big tech soared in the morning after the Nonfarm Employment change data indicated a delay to tapering but then fell back after the Fed's Bostic said tapering could start as early as October. Many of the economic indicators are showing that supply issues are holding back growth. The payrolls data, for example, shows the number of jobs filled but does not show the number of job openings without employees. Other data show there are plenty of jobs, but not people to fill them. Walmart and Amazon both made announcements this week that they will be adding a total of 75,000 in the coming months. Manufacturers reported significant supply issues. A key component of PMI data shows order backlogs at their highest point in the past 70 years. Aluminum futures were up over 3% to new all-time highs. Aluminum is an essential material in the manufacturing of products and packaging. Pending Home Sales data released on Monday was much lower than expected. However, the shortage of contracts pending is not a sign of low demand but rather a sign of low supply. That has housing prices growing at their highest rate on record. Real Estate stocks are benefitting the most from the data. The sector is undoubtedly getting a boost from the housing data. However, investors are also rotating into Real Estate as a hedge against inflation and as a sector that benefits from continuing low-interest rates. Federal Unemployment Benefits that have been in place since March 2020 are scheduled to end this week. That may force the current dynamic in the economy to change quite a bit. The Nasdaq advanced +1.55% for the week. Volume was lower than the previous week. The closing range is 93%. Like the previous week, the weekly candle has no lower wick and only a tiny upper wick. The Russell 2000 (RUT) gained +0.65% this week. The S&P 500 (SPX) advanced +0.58%. The Dow Jones Industrial Average (DJI) fell -0.24% for the week. The VIX volatility index ended the week flat. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Sectors Defensive sectors led the sector list during a week where employment data kept investors guessing on the Fed's timeline for bond tapering. Real Estate ( XLRE ) led the list throughout the week. The sector is benefiting from low interest rates while it also remains a good hedge against inflation. The Fed continues to put full employment ahead of inflation as the priority for interest rate hikes, so the sector will continue to perform if labor recovery slows. Health Care ( XLV ) was the second-best sector, following by Consumer Staples ( XLP ) and Utilities ( XLU ). The cyclical sectors ended the week lower, with Financials ( XLF ) and Energy ( XLE ) sitting at the bottom of the sector list. The slowing labor market and missed PMI numbers this week showed some weakness in the economy. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Economic Indicators The US Dollar (DXY) declined -0.61% this week. The dollar continues to weaken as the Fed remains dovish toward interest rates and seems poised to continue economic support until the labor market recovers fully. US Treasuries 30y and 10y yields rose for a second week while the 2y yield declined, widening the gap between long-term and short-term yields for another week. Both High Yield (HYG) Corporate Bond prices rose this week while Investment Grade (LQD) Corporate Bond prices fell. Silver and Gold continue to rise as the US Dollar declines. Timber and Aluminum prices are rising as growth in demand continues to outpace supply. However, Copper declined for the week. Crude Oil Futures were up and down throughout the week but ended the week flat. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Investor Sentiment The put/call ratio (PCCE) ended the week at 0.626. It's in the bullish range but not overly bullish compared to earlier in the week when it hit 0.505. The CNN Fear & Greed Index moved back to Neutral after sliding into Greed mid-week. The NAAIM money manager exposure index rose to 93.95 from 92.83 in the previous week. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Stocks of the Week Amazon (AMZN) moved back above its 10w moving average line with a +3.83% gain. Apple (AAPL) had a similar advance of +3.84$. Microsoft gained +0.47% but faded from mid-week highs. Alphabet (GOOGL) declined -0.18% for the week but hit a new all-time high on Wednesday. All four are trading above the key moving average lines. MongoDB (MDB) was the big earnings winner for the week, smashing expectations and closing the week with a +28.26% gain. Digital Turbine (APPS) also had a massive gain of +21.46% after the S&P decided to add the company to its mid-cap 400 index. RobinHood (HOOD) declined -7.51% this week. The SEC discussed the possibility of blocking payment for order flow, a huge part of RobinHood's business model. Chewy (CHWY) and Zoom Video (ZM) disappointed investors with slowing growth. Chewy declined -12.89%, and Zoom Video declined -12.48% for the week. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Cryptocurrency After moving sideways for a few weeks, Ethereum (ETHUSD) took off with a +22.49% gain this week. Ethereum got a boost from a general increase in cryptocurrencies but also an increase in demand for non-fungible tokens (NFT) that trade using the Ethereum network. Bitcoin (BTCUSD) grew +6.12% this week. Litecoin (LTCUSD) gained +33.14%. Bitcoin Cash (BCHUSD) rose +16%. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- The Week Ahead Monday Markets will be closed on Monday for the US Labor Day holiday. Tuesday There are some short-term Treasury auctions on Tuesday. Otherwise, there is not much economic news planned. There are no notable earnings reports for the daily update on Tuesday. Wednesday The JOLTs Job Openings report is due on Wednesday. The information could contrast last week's employment data and show more openings than people willing to fill. With Federal Unemployment Benefits ending this week, supply in the labor market will pick up. There is a 10-year note auction in the afternoon. Around the same time, the NY Fed's John Williams is scheduled to speak, and investors will be listening for any taper talk. Lululemon (LULU), Coupa Software (COUP), GameStop (GME), and RH (RH) will report earnings on Wednesday. Thursday The weekly Initial and Continuing Jobless Claims report come on Thursday. Crude Oil Inventories will get an update after the market opens. The Fed's Mary Daly speaks in the morning, and John Williams speaks in the afternoon. Zscaler (ZS) will report earnings. Friday We will get a forward-looking update on inflation with the Produce Price Index data in the morning. Kroger (KR) and UP Fintech (TIGR) release earnings on Friday. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- The Bullish Side Despite pockets of the US still experiencing a high number of Delta variant cases, the economy continues to move forward. Many of the indicators that show otherwise are suffering from a shortage of supply to meet demand. US Households are ready to spend, still having one of the highest savings rates in recent history. Corporations benefit from low interest rates and cash reserves that they want to put to work for growth. As the job market recovery slows, the Fed is likely to continue stimulus longer and leave interest rates untouched through 2022. That means companies will continue to benefit from cheap money. The US Dollar will continue to weaken, helping large multi-national corporations. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- The Bearish Side The end to Federal Unemployment Benefits happens at the end of this week. The impact on the economy isn't certain, but there are a few things that could happen. One possible outcome is a surge in supply for the labor market, allowing employment to catch up with job openings. That may be a good thing for the economy but may also cause the Fed to taper sooner and send bond investors into a taper tantrum. There is considerable divergence in the typical market-timing indicators. While economic data show a slowing recovery, investor sentiment remains neutral to bullish. Indexes are setting new all-time highs each week, but the breadth of those gains is often limited to narrow segments such as big tech. The subcomponents of the CNN Fear & Greed index are at opposite ends of the spectrum. Junk bonds show Extreme Greed while stocks show Extreme Fear. September is historically a bearish month. It won't take much for investors to get skittish and send indexes lower in the next few weeks. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Key Nasdaq Levels to Watch The Nasdaq set another all-time high this week, closing the week at a record. On the positive side, the levels are: The new all-time high was set on Thursday and is 15,380.07. The index hit resistance at around 15,380 for the last three days. 15,500 may be the next area of resistance. On the downside, there are a few key levels: The 10d moving average is at 15,160.88. The 21d EMA is at 15,004.89. 15,000 is an area of support. The 50d MA is at 14,763.22. 14,423.16 is the low of the most recent pullback. 14,200 remains a critical level if the index moves downward. 14,000 has been an area of support/resistance. There is a pivot at 13,903.73. A further pullback would likely hit the 200d moving average at 13,703.78. The index hasn't approached this line since rising above it in April 2020. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Wrap-up Even as the Nasdaq and S&P 500 hit new all-time highs this week, there was uncertainty in the market. Defensive sectors outperformed the other sectors. Big tech and Junk Bonds advanced as some of the few options to find higher returns as the economy stumbles. Expect investors to continue responding to any clues on Fed tapering, including economic indicators and language in the several Fed speeches scheduled for next week. Good luck, stay healthy, and trade safe!
NASDAQ:IXIC
by drewby4321
Daily Market Update for 9/3Summary: Investors rushed to safety in big tech today after payroll growth data came in much lower than expected. The result was losses across most sectors and indexes, but enough gains in tech mega-caps for the Nasdaq to end the day higher. 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, September 03, 2021 Facts: +0.21%, Volume lower, Closing Range: 87%, Body: 55% Green Good: Progress all day after a dip at open Bad: Lower volume gain with low A/D ratio Highs/Lows: Lower high, Lower low Candle: Mostly green body in the middle of candle, longer lower wick Advance/Decline: 0.47, two declining stocks for every advancing stock Indexes: SPX (-0.03%), DJI (-0.21%), RUT (-0.52%), VIX (+0.00%) Sector List: Technology (XLK +0.40%) and Health (XLV +0.11%) at the top. Materials (XLB -0.66%) and Utilities (XLU -0.83%) at the bottom. Expectation: -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Market Overview Investors rushed to safety in big tech today after payroll growth data came in much lower than expected. The result was losses across most sectors and indexes, but enough gains in tech mega-caps for the Nasdaq to end the day higher. The Nasdaq closed the day with a +0.21% gain. Volume was lower than the previous day. The closing range of 87% came after a volatile morning which turned into a steady climb to close near the intraday high. The lower wick is longer than the upper wick, and the green body covers 55% of the candle. There were two declining stocks for every advancing stock. The other major indexes declined for the day, with the Russell 2000 (RUT) having the most significant loss, falling -0.52%. The Dow Jones Industrial Average (DJI) lost -0.21%. The S&P 500 (SPX) declined -0.03%. The VIX Volatility Index gained +1.86%. Technology (XLK +0.40%) led the sector list, helping the tech-heavy Nasdaq move higher. Health (XLV +0.11%) was the next best sector for the day. Materials (XLB -0.66%) and Utilities (XLU -0.83%) were the bottom two sectors. Notably, the defensive sector of Utilities underperformed today. The economic data from the morning is bad for parts of the economy but not necessarily for equities. Nonfarm Payrolls for August grew by 235,000, much lower than the expected 750,000. However, the Unemployment Rate met expectations at 5.2%, a 0.2% improvement over the previous month. Payroll data is impacted by both supply and demand in the labor market. The Participation Rate remained the same at 61.7%, indicating that a large portion of the labor force is still not returning to work. Manufacturing Payrolls grew faster than expected. Consider the announcements this week that Walmart will hire 20,000 workers for its supply-chain operations, and Amazon is planning to hire 55,000 technology workers across its various businesses. Those are just two companies and indicate that demand for workers will outpace supply for the near term. The Non-Manufacturing Purchasing Managers Index was higher than expected. The US Dollar (DXY) was down -0.11% for the day. US Treasury yields rose for the day. Bond investors expect bond tapering to be farther in the future than previously expected based on today's jobs data. The Fed has said that employment is the critical factor in their decision to begin tapering. High Yield Corporate Bond (HYG) prices rose for the day while Investment Grade Corporate Bond (LQD) prices dropped. Silver and Gold increased sharply. Investors may be expecting further drops in the US Dollar. Timber, Copper, and Aluminum all increased. Crude Oil fell back slightly. The put/call ratio rose to 0.626 for the day. The CNN Fear & Greed index is at Neutral, falling back from Greed. The NAAIM money manager exposure index rose to 93.95 from 92.83 in the previous week. The four largest mega-caps gained for the day, helping to carry the Technology sector and the Nasdaq higher. Microsoft (MSFT) faded at the end of the session, ending even for the day. Other tech mega-caps outperformed as well, with Taiwan Semiconductor (TSM) and Nvidia (NVDA) leading the mega-cap list with over 2% gain. MongoDB (MDB) was the big winner of the day on the daily update growth. The stock soared +26.33% after smashing earnings estimates yesterday. In second place was another earnings beat, DocuSign (DOCU), which climbed +5.26% for the day. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Looking ahead Markets will be closed on Monday for the US Labor Day holiday. There are some short-term Treasury auctions on Tuesday. Otherwise, there is not much economic news planned. There are no notable earnings reports for the daily update on Tuesday. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Trends, Support, and Resistance The Nasdaq is finding resistance near the all-time high around 15,380. The trend line from the 8/19 low points to a +1.23% gain for Tuesday. The one-day and five-day trend lines end with a +0.24% advance for the start of the week. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Wrap-up That time when bad news is good news. Although the slowing growth of payrolls is a negative for the economy, there are two things to look at as a silver lining. First, it appears that the issue in payroll growth is a supply issue and not a demand issue. That means companies are seeing growth and a need for employees but cannot attract them back into the labor force. Second, the Fed's primary concern for the economy is employment. The fact that payrolls growth is slowing will delay a decision to start bond tapering. The result is that we didn't see a massive sell-off of equities today. Instead, there was rotation into big tech, which is likely to benefit from continued Fed stimulus and a weaker US dollar. And Utilities, which is typically at the top of the sector list on bad news, was actually at the bottom of the sector list. The index continues to move sideways while volume shrinks and the advanced/decline ratio moved under 0.50. Although there are reasons to be bullish, the index still indicates a Sideways or Lower move for Tuesday. Stay healthy and trade safe!
NASDAQ:IXIC
by drewby4321
Daily Market Update for 9/2Summary: Jobs data in the morning improved the economic outlook even while the pandemic remains relentless. Cyclical and defensive sectors outperformed while growth sectors declined for the day. 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, September 02, 2021 Facts: +0.14%, Volume lower, Closing Range: 48%, Body: 29% Red Good: Support forming at 15,300. Sideways move allowing moving averages to catch up. Bad: Resistance near the weekly high Highs/Lows: Higher high, Higher low Candle: Outside day, red body above longer lower wick Advance/Decline: 1.24, more advancing stocks than declining stocks Indexes: SPX (+0.28%), DJI (+0.37%), RUT (+0.74%), VIX (+1.86%) Sector List: Energy (XLE +2.54%) and Industrials (XLI +1.08%) at the top. Technology (XLK -0.11%) and Communications (XLC -0.67%) at the bottom. Expectation: Sideways or Lower -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Market Overview Jobs data in the morning improved the economic outlook even while the pandemic remains relentless. Cyclical and defensive sectors outperformed while growth sectors declined for the day. The Nasdaq gained +0.14% for the day. Volume was lower than the previous day. The 29% red body sits above a longer lower wick and below a shorter upper wick. The closing range of 48% is in the middle of an outside day where the high is higher, and the low is lower than the previous day. That’s two days of sideways trading near the all-time high for the index. There were more advancing stocks than declining stocks today. Small-caps continue to outperform as the Russell 2000 (RUT) advanced +0.75% today. The S&P 500 (SPX) gained +0.28%, while the Dow Jones Industrial Average (DJI) gained +0.37%. The VIX Volatility Index (VIX) gained +1.86% for the day. The Nasdaq and S&P 500 finished the day with more record closes. Energy (XLE +2.54%) bounced back above its 21d EMA after declining to the 200d MA this week. Industrials (XLI +1.08%) was the second-best sector. The growth sectors were the only ones to fall today. Technology (XLK -0.11%) and Communications (XLC -0.67%) were at the bottom of the list. Continuing and Initial Jobless claims were lower than expected, showing significant progress for the economic recovery. Trade Balance was also better than expected with Exports growing and Imports declining. The US Dollar continues to weaken, declining -0.31% today. US Treasuries also dropped for the day. High Yield (HYG) and Investment Grade (LQD) Corporate Bond prices increased. Crude Oil Futures advanced as data shows demand is higher than expected. Timber advance, continuing an uptrend from the last part of August. The put/call ratio (PCCE) declined to 0.505, starting to get into the overly bullish area. The CNN Fear & Greed index is hovering just above Neutral in the Greed area. The NAAIM money manager exposure index rose to 93.95 from 92.83 in the previous week. Exxon Mobil (XOM) was the best mega-cap of the day, gaining +2.44% and helping Energy lead the sector list for the day. Amazon (AMZN) is getting support at its 50d moving average line but declined -0.46% today. Visa (V) and Mastercard (MA) were the bottom two mega-caps, losing over 2% each. Digital Turbine (APPS) is back on top of the daily update growth list after having a massive gain on Tuesday. Chewy (CHWY) was at the bottom of the list, declining -9.29%. Growth is slowing for the company, and analysts were disappointed with guidance during yesterday's earnings call. Both PagerDuty (PD) and MongoDB (MDB) were up over 13% in aftermarket trading. Both companies posted earnings results that smashed expectations and provided better guidance for the year. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Looking ahead Employment data on Friday morning will show the progress in the labor market recovery. It is data watched closely by the Fed to determine economic policy. We'll also get the Non-Manufacturing Purchasing Managers Index. DocuSign (DOCU) will release earnings on Friday. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Trends, Support, and Resistance The Nasdaq set a new all-time high on an outside day for the index. The index moved sideways the last two days. The trend line from the 8/19 low points to a +1.28% gain for Friday. The five-day trend line ends with a +0.91% gain. The one-day trend line would result in a decline of -0.53% for tomorrow. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Wrap-up All eyes are on the employment data to be available on Friday morning. The market is showing some indecision awaiting the data. The inside day on Tuesday, followed by a faded rally (long upper wick) on Wednesday, and now an outside day today puts that indecision on display. Small-caps continue to outperform, and that should continue if the Employment data is good on Friday. The Russell 2000 is approaching the upper boundary of a trading range it's been within since February. It will take some momentum to break through the upper bound. Stay healthy and trade safe!
NASDAQ:IXIC
by drewby4321
Daily Market Update for 9/1Summary: Markets rallied in the morning before investors turned defensive and the gains faded, weighed down by big tech stocks that all sold off in the later afternoon. Regardless, most of the market held onto some gain for the day. 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, September 01, 2021 Facts: +0.33%, Volume higher, Closing Range: 30% (w/gap), Body: 1% Green Good: Gain on higher volume, higher high, higher low Bad: Fade from new all-time high Highs/Lows: Higher high, Higher low Candle: Gap-up to long upper wick, almost no body, no lower wick Advance/Decline: 0.99, one advancing for every declining stock Indexes: SPX (+0.03%), DJI (-0.14%), RUT (+0.58%), VIX (-2.25%) Sector List: Real Estate (XLRE +1.72%) and Utilities (XLU +1.31%) at the top. Financials (XLF -0.57%) and Energy (XLE -1.47%) at the bottom. Expectation: Sideways or Lower -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Market Overview Markets rallied in the morning before investors turned defensive and the gains faded, weighed down by big tech stocks that all sold off in the later afternoon. Regardless, most of the market held onto some gain for the day. The Nasdaq closed with a +0.33% gain but was up 0.80% midday. Volume was higher than the previous day. A gap-up at open turned into a morning rally, creating a long upper wick with no lower wick. However, the index faded in the afternoon, leaving a green body covering only 1% of the candle. There was an equal number of advancing and declining stocks for the day. The Russell 2000 (RUT) outperformed again with a +0.58% gain. The S&P 500 (SPX) held onto a +0.03% gain. The Dow Jones Industrial Average (DJI) declined -0.14%. Real Estate (XLRE +1.72%) and Utilities (XLU +1.31%) led the sector list as investors were defensive on the first day of September, typically a bearish month in the markets. Cyclical sectors declined for the day, with Financials (XLF -0.57%) and Energy (XLE -1.47%) at the bottom of the sector list. It's not clear what caused the selling in the afternoon. Morning economic data had Investors already skittish with defensive sectors leading the whole day, but indexes still rose. The Fed's Raphael Bostic made comments around noon that may have spooked the market. He stated that a surge in evictions may weigh on the economic recovery and said it is reasonable that bond-buying taper could start in October. ADP Nonfarm Employment change data was less than forecast. Manufacturing PMI was higher than expected, and demand for Crude Oil beat the forecast. The US Dollar weakened further, declining -0.15% today. US 30y and 10y Treasury Yields fell while the US 2y Treasury yield remained about the same. High Yield Corporate Bond (HYG) prices declined sharply after making a new post-pandemic high. Investment Grade Corporate Bond (LQD) prices also fell slightly. Most of the commodity prices I track remained about the same, although Copper and Aluminum declined. All four of the largest mega-caps retreated from mid-day highs, bringing down the Nasdaq with them. Alibaba (BABA) was the top-performing mega-cap for the day as Chinese stocks all seemed to do well. FUTU Holdings (FUTU) and UP Fintech (TIGR) were the top stocks in the daily update growth list, helped by FUTU showing strong growth and beating street expectations. September is historically one of the most bearish months. Last September, the Nasdaq retreated 13%, and the S&P 500 fell 10%. The Russell 2000 (RUT) also retreated 10% last September but then finished the year with a 50% gain from its September low. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Looking ahead Thursday morning will bring an update to Exports/Imports for July and Initial Jobless Claims for the week. Broadcom (AVGO), MongoDB (MDB), Hewlett Packard (HPE), Cloudera (CLDR), and Pagerduty (PD) will report earnings. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Trends, Support, and Resistance The Nasdaq set another new all-time high and record close today. The trend line from the 8/19 low and the five-day trend line point to a +1.17% gain. The one-day trend line ends with a +0.12% gain for tomorrow. The long upper wick has a more bearish look and may result in a decline for Wednesday. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Wrap-up Investors entered the new month with optimism, sending indexes higher. Then it seemed they suddenly realized it was September. September is historically a bearish month, with the last three years seeing dips in the month. Is this a year that September will buck the trend? Based on the long upper wick and almost no candle body after a gap-up and rally, the expectation for tomorrow is Sideways or Lower. Stay healthy and trade safe!
NASDAQ:IXIC
by drewby4321
The bottom for SmallCaps might be inWe might be in the midst of a trend reversal for a rotation that has been going on since March: Megacaps and SuperLargeCaps have been going higher, while everything from SmallLargeCaps to NanoCaps has been on the decline. We've had many days recently where indexes seemed to go higher when the majority of stocks seemed to decline. That was, because we've seen huge increases in MegaCaps and SuperLargeCap companies recently, which have used so much money on the market that many, if not most SmallCaps have litterally have "their blood drained". Analyzing the 2,5Y Forward P/E and P/S rates of MSFT & AAPL and adding a little bit bonus for small debt/equity(MSFT) and a little malus for high debt/equity(AAPL) I have come to the conclusion that they're trading roughly 100% over market average valuation for this kind of analysis. Now, considering the fact, that both these FAANG giants are quite expensive at current valuations and seeing most SmallCaps trading significantly below market averages one starts to wonder when a trend change might be in. The answer is: probably now. Or soon. Subtracting Nasdaq100 Index( OANDA:NAS100USD ) (that tracks only the top100 companies of the NASDAQ exchange) from the Nasdaq Composite Index(that includes all Nasdaq listed companies) You're left with a quite unique picture: How Non-Index-Nasdaq-Companies are trading vs Nasdaq100 companies. This, in theory, can be mostly translated into how SmallCaps are faring vs MegaCaps and SuperLargeCaps. As you can see, we have been on a decline for months, with quite a consistent trend resistance (the yellow line). We're also trading near 03/2020 (Corona crash) & 09/2020 (Major Tech correction) lows. We seem to have broken the Trend resistance (but better wait for real confirmation on Monday/Tuesday) All of these facts lead me to believe the bottom for SmallCaps is in and MegaCaps and SuperLargeCaps are ahead of a major correction. Let me know your thoughts! :)
TVC:IXICLong
by The_Silen
2
NASDAQ MACRO LOG CHART (+ Info, Targets, Crash Points...) General Info: - On the linear scale, the NASDAQ has made a parabolic move (2009 - Now). - The 2009 crisis was never properly fixed. The government placed a bandaid on the debt problem by bailing out all of the banks/corps. - TECH is the future but speculation is the bubble fueler. - Margin debt is at ATH - Transportation Index is down - "Meme Stocks", Robinhood era - dumb money - COVID Massive Printing (1/3 of Economy $$ printed in 1 year) - Joe Biden's trillion-dollar infrastructure plan + corporate tax hikes - COVID DELTA, Afghanistan... (current events) - Bull/Bear markets come in cycles - Overvalued markets as a whole (real estate, crypto, NFT...) What to expect: Following the Log Scale, one would expect the biggest crash in history to occur when the NASDAQ reaches the red line (maybe 55K a couple of years down the road (around 2031)), however, this is not feasible. There simply isn't enough liquidity to keep the markets going in an upward direction for years. As we are over-valued, we can expect a correction/crash at the current GANN line we are approaching. There isn't an exact timeline as to when we will touch and react, but here is the scenario: 17K by end of December then crash. If we impulse then 19k. If we keep going up then 22K Q2 2022. It will either be a blowoff top or a stagnation for a couple of months around the PT before downwards movement. An impulse to 22k mid-2022 followed by stagnation can carry the crash over into 2023. In summary, 17K, 19K, or 22K. EOY or Q2 2022. Have patience and an exit plan. Good Luck!
NASDAQ:NDX
by ILuminosity
Daily Market Update for 8/31Summary: Markets closed the month of August moving sideways, but capped another bullish month of gains. The day started with investors swarming defensive sectors, but sentiment flipped, and the sector list scrambled. 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, August 31, 2021 Facts: -0.04%, Volume higher, Closing Range: 74%, Body: 5% Red Good: Higher low continues uptrend, sideways move allows moving averages to catch up Bad: Lower high, higher volume on decline, A/D ratio Highs/Lows: Lower high, Higher low Candle: Inside day with thin body at top of the candle Advance/Decline: 0.81, more declining than advancing stocks Indexes: SPX (-0.13%), DJI (-0.11%), RUT (+0.34%), VIX (+1.79%) Sector List: Real Estate (XLRE +0.59%) and Communications (XLC +0.38%) at the top. Technology (XLK -0.53%) and Energy (XLE -0.68%) at the bottom. Expectation: Sideways -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Market Overview Markets closed the month of August moving sideways, but capped another bullish month of gains. The day started with investors swarming defensive sectors, but sentiment flipped, and the sector list scrambled. The Nasdaq closed with a -0.04% decline on higher volume than the previous day. The inside day started with a dip at open but climbed back to set an intraday high before another more minor dip before the close. That created a thin red body above a longer lower wick, all within the high and low of the previous day. There were more declining stocks than advancing stocks. Today, the Russell 200 (RUT) was the only major index to book gains with a +0.34% advance. The S&P 500 declined -0.13%, while the Dow Jones Industrial Average (DJI) lost -0.11%. The VIX Volatility Index rose +1.79%. The sector list shuffled after the morning dips. Defensive sectors were the top four at 10:00 am. But then growth sectors started to regain initial losses. Real Estate (XLRE +0.59%) and Communications (XLC +0.38%) ended the day at the top. Technology (XLK -0.53%) and Energy (XLE -0.68%) were at the bottom. The Chicago PMI for August was lower than expected, indicating a dip in economic activity. However, a subcomponent of the index that tracks order backlogs hit its highest point since 1951. CB Consumer Confidence was also lower than forecast. The S&P CoreLogic Case-Shiller index covering 20 cities showed home prices gaining at a record rate in July. The US Dollar strengthened, and US Treasury Yields rose after the data became available mid-morning. High Yield Corporate Bond (HYG) prices rose for the day while Investment Grade Corporate Bond (LQD) prices dropped. Aluminum rose another +2.47% today, driven by demand for the metal in Manufacturing. That's consistent with the PMI subcomponent showing backlogs are high because of material shortages. The put/call ratio rose to 0.667. The CNN Fear & Greed index moved back to neutral after climbing into the Greed area on Monday. Amazon (AMZN) rose another +1.44% today, closing back above the 50d moving average. It had been trading below the key moving average line since the beginning of August, even dipping below the 200d moving average for several days. Alibaba (BABA) was the top mega-cap for the day. The mega-cap list is about half gainers and half losers. Novo Nordisk (NVO) was the biggest loser of the day. Digital Turbine (APPS) was the top gainer in the daily update growth list, advancing %14.07. The company will be added to the S&P MidCap 400 on September 7th. Zoom Video (ZM) declined 16.69%, putting it at the bottom of the list. Investors were not happy about slowing growth and the announcement that they will acquire Five9 (FIVN). -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Looking ahead Manufacturing Purchasing Managers Index data will be available on Wednesday. Crude Oil Inventories gets a weekly update after the market opens. Okta (OKTA), Chewy (CHWY), and Five Below (FIVE) will release earnings on Wednesday. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Trends, Support, and Resistance The Nasdaq hovered below yesterday's new all-time high, building support and giving moving average lines a chance to catch up. The trend line from the 8/19 low points to a +1.09% gain for Wednesday. The five-day trend line ends with a +0.69% gain. The one-day trend line shows a +0.35% gain for tomorrow. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Wrap-up I mentioned yesterday that a Sideways move or even a pullback would be constructive to build support and allow the moving average lines to catch up. Another day or two of the same would still be good, so the Nasdaq doesn't become overextended. The inside day candle with a thin red body shows some indecision. The expectation for tomorrow is set for Sideways, and we'll watch closely to see which direction the market decides to go heading into September. Stay healthy and trade safe!
NASDAQ:IXIC
by drewby4321
1
Daily Market Update for 8/30Summary: Technology stocks rallied today after the Fed expressed a dovish stance toward tapering and interest rate hikes on Friday. Cyclical sectors faded while growth sectors dominated the top of the sector list. 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, August 30, 2021 Facts: +0.90%, Volume lower, Closing Range: 85% (w/gap), Body: 81% Green Good: Strong gain in morning, held near high in the afternoon Bad: Lower volume, low A/D ratio Highs/Lows: Higher high, Higher low Candle: Gap-up at open, with tick green body and tiny upper wick. No lower wick. Advance/Decline: 0.61, more than three declining stocks for every two advancing Indexes: SPX (+0.43%), DJIA (-0.16%), RUT (-0.49%), VIX (-1.22%) Sector List: Real Estate (XLRE +1.22%) and Technology (XLK +1.08%) at the top. Energy (XLE -1.18%) and Financials (XLF -1.41%) at the bottom. Expectation: Sideways or Higher -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Market Overview Technology stocks rallied today after the Fed expressed a dovish stance toward tapering and interest rate hikes on Friday. Cyclical sectors faded while growth sectors dominated the top of the sector list. The Nasdaq gained +0.90% for another record close. The closing range of 85% is just under a small upper wick, formed from a dip in the last hour of trading. The 81% Green body developed in the morning rally, with the index leveling off at a new all-time high and holding that level in the afternoon. Volume was lower than the previous day, and there were three declining stocks for every two advancing stocks. The S&P 500 also had a record close, advancing +0.43% for the day. The Dow Jones Industrial Average (DJI) lost -0.16%. The Russell 2000 (RUT) declined -0.49%. The small-cap index had a healthy pullback after a significant gain on Friday. Real Estate (XLRE +1.22%) and Technology (XLK +1.08%) topped the sector list today. Energy (XLE -1.18%) and Financials (XLF -1.41%) were at the bottom. Real Estate and Financials are reacting in opposite directions to the Fed's dovish stance toward interest rates. Lower interest rates mean lower costs for the Real Estate sector, but they negatively impact income for the Financial sector. The lower interest rates and a weaker dollar are favorable for the Technology sector. Pending Home Sales slid -1.8% for July after declined -2.0% in June. It's unclear from the data whether the reduction in signed contracts is a supply or demand issue. However, with the Real Estate sector outperforming, it is likely a supply issue. The US Dollar remained about the same for the day. US Treasury yields declined. The Fed will likely taper bond buying more slowly than expected, even if they start within this year. High Yield Corporate Bond (HYG) prices advanced another day, hitting their highest level since the start of the pandemic. Investment Grade Corporate Bonds (LQD) also rose for the day. Commodities remained about the same, with Wood and Copper having the most gains for the day. The put/call ratio dropped to 0.597. The CNN Fear & Greed index moved into the Greed area but is still near Neutral. All four of the largest mega-caps gained for the day, with Apple (AAPL) advancing +3.04% to a new all-time high. The gain came after news that Alphabet will pay Apple almost $15 billion this year to retain its position as the default search option in iOS. PayPal (PYPL) was the top mega-cap for the day. The big banks were at the bottom of the mega-cap list. UP Fintech (TIGR) was the top growth stock in the daily update list. RobinHood (HOOD) was the worst-performing stock in the list, losing over -6%. The SEC said that banning payment for order flow is a possibility. Zoom Video (ZM) disappointed investors in its earnings call. The company showed slowing growth despite beating analyst expectations. They also announced an acquisition of Five9 (FIVN). Zoom was down more than 12% in after-hours trading. Five9 was down more than 10%. Hurricane Ida hit New Orleans this weekend and stayed around long enough to disrupt power and possibly impact fuel supply. That sent oil prices up, but the Energy sector was at the bottom of the sector list. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Looking ahead Inflation data for Europe will be available on Tuesday morning. CB Consumer Confidence data will be released after the market opens. API Weekly Crude Oil Stock is updated after the market closes. CrowdStrike (CRWD), NetEase (NTES), and FUTU Holdings (FUTU) release earnings. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Trends, Support, and Resistance It was another new all-time high for the Nasdaq today. The trend line from the 8/19 low and the one-day trend line both point to about a +0.68% gain for Tuesday. The five-day trend line ends with a lateral move of +0.04%. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Wrap-up Jerome Powell's speech at Jackson Hole last week is still being absorbed into the market. The impact is more bullish investor sentiment in both the equity and bond markets. There is quite a bit of space between today's close and the 21d exponential moving average. So although the candle is bullish today, a lateral move or even minor pullback would be constructive for tomorrow. The expectation is set for Sideways or Higher. Lower would not be a big surprise. Stay healthy and trade safe!
NASDAQ:IXIC
by drewby4321
1
Market Week in Review - 8/23/2021 - 8/27/2021Summary: Last week's fears melted away to optimism. The Nasdaq rallied to a new all-time high and record weekly close. The S&P 500 marked yet another record close, which has become a common occurrence this year. Yet, the bigger story was with small-caps and the Russell 2000, leading the market higher and building some structural support in the market to continue the rally in the final quarter of the year. 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, August 23, 2021 Facts: +1.55%, Volume higher, Closing Range: 91% (w/gap), Body: 89% Green Good: No lower wick and small upper wick, thick green body with big gain on higher volume Bad: Nothing Highs/Lows: Higher high, Higher low Candle: Gap up at open, thick green body under a small upper wick Advance/Decline: 2.18, more than two advancing stocks for every declining stock Indexes: SPX (+0.85%), DJI (+0.61%), RUT (+1.88%), VIX (-7.60%) Sector List: Energy (XLE +3.75%) and Technology (XLK +1.29%) at the top. Real Estate (XLRE -0.38%) and Utilities (XLU -1.29%) at the bottom. Expectation: Sideways or Higher On Monday, the market turned optimistic after the FDA fully approved Pfizer's vaccine, adding a third day of gains off of last week's pivot low and ending with a record for the Nasdaq. Gains were broadly shared across stocks, and the defensive sectors dropped to the bottom of the sector list. The Nasdaq gained +1.55% for the day and set a new all-time high and record close. Volume was higher than the previous day. The candle has no lower wick for the third straight day. The thick green body covers 89% of the candle and is under a tiny upper wick, resulting in a 91% closing range (including the gap up at open). There were more than two advancing stocks for every declining stock. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Tuesday, August 24, 2021 Facts: +0.52%, Volume lower, Closing Range: 79% (w/gap), Body: 60% Green Good: Higher high, higher low, fourth day of green candles Bad: Lower volume, otherwise nothing Highs/Lows: Higher high, Higher low Candle: Thinner candle with small upper and lower wicks, mostly green body Advance/Decline: 1.33, more advancing than declining stocks Indexes: SPX (+0.15%), DJI (+0.09%), RUT (+1.02%), VIX (+0.41%) Sector List: Energy (XLE +1.66%) and Consumer Discretionary (XLY +0.71%) at the top. Real Estate (XLRE -0.75%) and Consumer Staples (XLP -0.76%) at the bottom. Expectation: Sideways or Higher Small-caps led the markets higher for a another day, giving indexes their fourth day of gains after last week's dip. Even meme stocks were back in play with huge gains from GME and AMC. The Nasdaq closed +0.52% higher. Volume was lower than the previous day with a short candle that is still mostly body. The 60% body is in between a small upper and lower wick. The index ended the day with a 79% closing range, including the gap. There were more advancing stocks than declining stocks. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Wednesday, August 25, 2021 Facts: +0.15%, Volume lower, Closing Range: 63%, Body: 6% Green Good: Low volatility day, high A/D ratio, green candle. Bad: Indecision marked by thin body Highs/Lows: Higher high, Higher low Candle: Spinning top candle with thin body in the middle of similar length wicks. Advance/Decline: 1.14, more advancing than declining stocks Indexes: SPX (+0.22%), DJIA (+0.11%), RUT (+0.37%), VIX (-2.50%) Sector List: Financials (XLF +1.18%) and Energy (XLE +0.76%) at the top. Consumer Staples (XLP -0.17%) and Health (XLV -0.27%) at the bottom. Expectation: Sideways The Nasdaq and S&P 500 had another set of record closes while the small-cap Russell 2000 continues to outperform as the market heads higher. Economic news was slightly bullish, with core durable goods and crude oil inventories showing more demand than expected. The Nasdaq closed with a +0.15% gain, just slightly higher than where it opened. Volume was lower than the previous day and remained lower than the 20-day average. The spinning top candle, marked by a thin body in the middle of short upper and lower wicks, shows indecision in the market as the index hits new all-time highs. There were more advancing than declining stocks. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Thursday, August 26, 2021 Facts: -0.64%, Volume lower, Closing Range: 5%, Body: 66% Red Good: Lower volume Bad: Closing range, low A/D ratio, lower high/low Highs/Lows: Lower high, Lower low Candle: Thick red body at bottom of candle. Longer upper wick than lower wick. Advance/Decline: 0.42, two declining stocks for every advancing stock Indexes: SPX (-0.58%), DJI (-0.54%), RUT (-1.13%), VIX (+12.21%) Sector List: Real Estate (XLRE +0.06%) and Utilities (XLU -0.25%) at the top. Consumer Discretionary (XLY -0.92%) and Energy (XLE -1.52%) at the bottom. Expectation: Sideways or Lower Indexes moved lower for the first time in several days as investors became defensive after slightly higher than expected jobless claims data. The Nasdaq closed with a -0.64% decline on lower volume than the previous day. The red body covers 66% of the candle which has a longer upper wick than lower wick. The closing range of 5% shows the selling continued into close. There were two declining stocks for every advancing stock. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Friday, August 27, 2021 Facts: +1.23%, Volume higher, Closing Range: 92%, Body: 90% Green Good: All green body, gain on higher volume, higher high/low Bad: Nothing Highs/Lows: Higher high, Higher low Candle: Mostly green body with a short upper wick Advance/Decline: 2.53, five advancing stocks for every two declining stocks Indexes: SPX (+0.88%), DJIA (+0.69%), RUT (+2.85%), VIX (-13.00%) Sector List: Energy (XLE +2.67%) and Communications (XLC +1.58%) at the top. Utilities (XLU -0.03%) and Health (XLV -0.11%) at the bottom. Expectation: Higher A dovish stance from the Fed's Jerome Powell at the Jackson Hole Economic Symposium sent stocks higher today. Gains were broadly shared across the market, with small caps leading the way. The S&P 500 and Nasdaq closed at record highs. The Nasdaq advanced +1.23% for the day. Volume was significantly higher than the previous days. The candle is mostly green body as the index rose throughout the day and only dipped near the close, leaving a short upper wick. The 92% closing range on top of a 90% body is bullish for the index. Gains were broadly shared, with five stocks advancing for every two declining stocks. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- View on the Week Last week's fears melted away to optimism. The Nasdaq rallied to a new all-time high and record weekly close. The S&P 500 marked yet another record close, which has become a common occurrence this year. Yet, the bigger story was with small-caps and the Russell 2000, leading the market higher and building some structural support in the market to continue the rally in the final quarter of the year. In contrast to last week, when the bad news piled on top of bad news, this week the good news just kept coming. First it was the final FDA approval of the Pfizer vaccine on Monday. Then, it was the approval of the $3.5 trillion budget in the House and a promise of a vote for the Infrastructure bill by the end of September. Economic data was not overly positive, but it also wasn't overly negative. The best news came from the Jackson Hole economic symposium. At the symposium, the Fed's Jerome Powell gave a speech that perfectly balanced the reality of tapering with a cautiously optimistic outlook toward the economy. Powell acknowledged that there was progress with employment, but still work to do. He also expressed concern over the Delta variant of the Coronavirus. He also restated that inflation appears transitory, and they wouldn't overreact. That showed investors that the Fed would be dovish toward interest rate increases in the near term. The result of all the good news was a rally throughout the week for the major indexes. Gains were broadly shared across the market. The advance/decline ratio for the Nasdaq was above 1.0 four out of five days in the week. On Friday, the advance/decline ratio for the New York Stock Exchange was 6.58, or more than six advancing stocks for every declining stock. The Nasdaq advanced +2.82% for the week. Volume was higher than the previous week. The closing range is 96%. The weekly candle has no lower wick and only a tiny upper wick. The only dip during the week was on Thursday. The Russell 2000 (RUT) led the major indexes with a +5.05% gain for the week. The S&P 500 (SPX) gained +1.52%. The Dow Jones Industrial Average (DJI) rose +0.96%. The VIX volatility index fell -13.00%. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Sectors A mix of growth and cyclical sectors topped the list this week. Defensive s all sectors declined for the week after topping the sector list last week. Energy ( XLE ) held the lead among sectors for the entire week, despite a pullback on Thursday. The sector completely recovered from last week's decline and marked a higher high this week. All of the cyclical and growth sectors had solid gains, with Financials ( XLF ) ending the week in second place. Technology ( XLK ) trailed the other gaining sectors, underperforming the overall S&P 500 but still finished with a +1.45% gain. Utilities ( XLU ) was the worst-performing sector for the week as investors rotated out of defensive positions and back into bullish cyclical and growth positions. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Economic Indicators The US Dollar (DXY) declined -0.83%. The dollar will weaken when investors see a dovish Fed and strengthen when they see a hawkish Fed. A hawkish Fed would raise interest rates, making the US Dollar and Treasuries more attractive. Right now, Jerome Powell is not indicating any move toward raising interest rates as he believes inflation is transitory and raising interest rates would slow down the labor market recovery. US Treasuries 30y and 10y yields rose for the week while the 2y yield declined. The US 30y-5y spread widened slightly. All Treasury yields dipped on Friday after Jerome Powell's speech. But shorter-term yields dipped more as investors see a slower tapering from the Fed than previously thought. Both High Yield (HYG) and Investment Grade (LQD) Corporate Bond prices increased for the week. It was a bullish week for commodities. The highlight was Aluminum that soared back to record highs. The metal is required for in many product packaging other manufacturing processes. High demand for Aluminum means high demand for manufacturing. All of the commodities were likely impacted by the weakening US Dollar. The moves up for Gold and Silver were mostly from the US Dollar moving down. Copper and Timber also rose this week, both required for infrastructure. Crude Oil rebounded from several weeks of declines. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Investor Sentiment The put/call ratio (PCCE) ended the week at 0.607. It's in the bullish range, but not overly bullish compared to earlier in the week when it hit 0.512. The CNN Fear & Greed Index moved from Extreme Fear to Neutral. The NAAIM money manager exposure index moved up to 92.83 this week from 70.57 the previous week. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Stocks of the Week Amazon (AMZN) moved back above its 40w moving average line with a +4.68% gain. Alphabet (GOOGL) also outperformed, advancing +4.78%. Microsoft (MSFT) pulled back from new all-time highs, declining -1.52% for the week. Apple (AAPL) showed an indecisive week with a +0.28% gain and thin-bodied candle. Semiconductors (SMH) set a new record close on Friday, advancing +6.11%. The sector was helped higher by Taiwan Semiconductor Manufacturing (TSM) and Nvidia (NVDA) which gained +9.59% and +8.74%, respectively. The two outperformed other mega-caps, topping the list for the week. Health stocks did not do well this week. Pfizer (PFE) ended the week at the bottom of the mega-cap list with a -4.35% decline, despite getting final FDA approval for its COVID vaccine on Monday. Novo Nordisk (NVO), Eli Lilly (LLY), and Johnson & Johnson (JNJ) were other health-related stocks at the bottom of the mega-cap list. AMC (AMC) and GameStop (GME) were back in the spotlight this week with huge meme-stock gains on Tuesday. They both pulled back from intra-week highs, but AMC held onto an +18.69% gain for the week, while GameStop held onto a +28.66% advance. Penn National Gaming (PENN) and DraftKings (DKNG) advanced +23.52% and +15.38% as pro and college football seasons kickoff in the US. ESPN is also reportedly looking to get into the online sports gambling opportunity. Salesforce.com (CRM), Snowflake (SNOW), and Workday (WDAY) were a few of the earnings winners for the week. Peloton (PTON) had nothing but bad news during its earnings call, announcing a miss on expectations, price drops, and investigations by the DOJ, DHS, and SEC. The stock dropped -8.55% on Friday, ending the week with a -3.45% weekly decline. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Cryptocurrency Cryptocurrencies have been moving sideways for the past two weeks. Bitcoin (BTCUSD) declined -1.32% this week. Ethereum (ETHUSD) declined -0.69%. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- The Week Ahead Monday Pending Home Sales data will be available on Monday morning. China will release purchasing manager index data showing current economic activity in the late evening. Zoom Video (ZM and StoneCo (STNE) will be earnings reports to watch on Monday after the close. Tuesday Inflation data for Europe will be available on Tuesday morning. CB Consumer Confidence data will be released after the market opens. API Weekly Crude Oil Stock is updated after the market closes. Crowdstrike (CRWD), NetEase (NTES), and FUTU Holdings (FUTU) release earnings. Wednesday Manufacturing Purchasing Managers Index data will be available on Wednesday. Crude Oil Inventories gets a weekly update after the market opens. Okta (OKTA), Chewy (CHWY), and Five Below (FIVE) will release earnings on Wednesday. Thursday Thursday morning will bring an update to Exports/Imports for July and Initial Jobless Claims for the week. Broadcom (AVGO), MongoDB (MDB), Hewlett Packard (HPE), Cloudera (CLDR), and Pagerduty (PD) will report earnings. Friday Employment data on Friday morning will show the progress in the labor market recovery. It's data watched closely by the Fed to determine economic policy. We'll also get the Non-Manufacturing Purchasing Managers Index. DocuSign (DOCU) will release earnings on Friday. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- The Bullish Side Two big events this past week provide a bullish outlook for the near term. First, the vote to accept the $3.5 trillion budget proposal in the House and a set deadline for the end of September to vote on the Infrastructure Bill. Second, the clear message from the Fed's Jerome Powell in Jackson Hole reaffirmed that tapering would begin but interest rate changes are still far in the future after more progress is made in recovering the labor market. Inflation is a concern, but the Fed still believes its transitory. The result was a weaker US dollar and a drop in Treasury yields. Both are bullish for US corporations. To be sure, look at small-caps as the most sensitive segment to changes in economic indicators. The Russell 2000 (RUT) was up +2.85% on Friday and gained 5.05% for the week. Earning season is winding down and it was overall very positive. Many companies showed strong earnings growth and provided positive guidance for the remainder of the year. High Yield Corporate Bond prices are soaring again as investors are bullish on US businesses. The gap between corporate bond yields and treasury yields is tightening. Corporations have plenty of cash and debt waiting to be spent which they'll unleash to grow their businesses. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- The Bearish Side We may be trending back toward an overly bullish market. Meme stocks were back in play this week with AMC and GME having huge gains. Other new meme stocks started to pop on Friday and may continue into next week. That bullish exuberance can be good for some in the short term but it increases volatility in the market and could weaken sentiment overall. The Delta variant of COVID is continuing to grow. Daily new cases in the US are higher now than they were one year ago and are approaching levels not seen since before mass vaccination started. It seems the economy and market has grown confident against the possible impact of the continuing pandemic, but that confidence may break at any moment. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Key Nasdaq Levels to Watch The Nasdaq is back above the 21d EMA and 10d MA, cleared the 15,000 resistance area, and set new all-time highs this week with a record close on Friday. On the positive side, the levels are: The new all-time high was set on Friday and is 15,144.48. 15,500 may be the next area of resistance. On the downside, there are a few key levels: 15,000 should became an area of support now. The 10d moving average is at 14,831.19. The 21d EMA is at 14,818.04. The 50d MA is at 14,653.97. 14,423.16 is the low of the most recent pullback. 14,200 remains a critical level if the index moves downward. 14,000 has been an area of support/resistance. There is a pivot at 13,903.73. A further pullback would likely hit the 200d moving average at 13,616.87. The index hasn't approached this line since rising above it in April 2020. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Wrap-up Several good structural days this week with broadly shared gains looks good for the coming week. Still, with indexes at all-time highs, investors will be watching for any signs of weakness. For now, the bull rally continues and seems we still have momentum to grow from here. Good luck, stay healthy, and trade safe!
NASDAQ:IXIC
by drewby4321
1
Daily Market Update for 8/26Summary: Indexes moved lower for the first time in several days as investors became defensive after slightly higher than expected jobless claims data. Notes The update is late today due to travel. 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, August 27, 2021 Facts: -0.64%, Volume lower, Closing Range: 5%, Body: 66% Red Good: Lower volume Bad: Closing range, low A/D ratio, lower high/low Highs/Lows: Lower high, Lower low Candle: Thick red body at bottom of candle. Longer upper wick than lower wick. Advance/Decline: 0.42, two declining stocks for every advancing stock Indexes: SPX (-0.58%), DJI (-0.54%), RUT (-1.13%), VIX (+12.21%) Sector List: Real Estate (XLRE +0.06%) and Utilities (XLU -0.25%) at the top. Consumer Discretionary (XLY -0.92%) and Energy (XLE -1.52%) at the bottom. Expectation: Sideways or Lower -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Market Overview Indexes moved lower for the first time in several days as investors became defensive after slightly higher than expected jobless claims data. The Nasdaq closed with a -0.64% decline on lower volume than the previous day. The red body covers 66% of the candle which has a longer upper wick than lower wick. The closing range of 5% shows the selling continued into close. There were two declining stocks for every advancing stock. The Russell 2000 (RUT) pulled back the most, declining -1.13%. The S&P 500 (SPX) declined -0.58% and the Dow Jones Industrial Average (DJI) lost -0.54%. The VIX Volatility Index (VIX) gained +12.21%. Only one sector, Real Estate (XLRE +0.06%) gained for the day. The defensive sectors topped the list with Utilities (XLU -0.25) landing in the second spot. The worst performing sectors for the day were Consumer Discretionary (XLY -0.92%) and Energy (XLE -1.52%). The US Dollar (DXY) gained +0.24%. Treasury yields remained about the same. High Yield Corporate Bond (HYG) and Investment Grade Corporate Bond (LQD) prices declined just slightly. Commodities overall declined a bit, but remain near recent levels. The put/call ratio rose to 0.692 as investors became a bit more bearish. The CNN Fear & Greed index moved further toward neutral, but remains in the Fear range. The NAAIM money manager exposure index moved up to 92.83 this week. Salesforce.com (CRM) was the top mega-cap for the day after reporting great earnings. Alibaba (BABA) was the worst performer for the day. Snowflake (SNOW) topped the daily update growth list, also because of a great earnings report. Most of the list was decliners with Digital Turbine (APPS) losing the most. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Looking ahead There are two important sets of economic data to watch for on Friday. PCE Price Index data is a primary indicator of inflation. The data will be available before the market opens. After the market opens, attention will turn to the update for Michigan Consumer Sentiment numbers for August. The preliminary numbers two weeks ago were well below expectation. Probably the most important event for tomorrow is the Fed's Jerome Powell's comments at the Jackson Hole Economic Symposium. Investors will watch his comments closely for stance on the economic recovery and how the US and other governments should provide economic support moving forward. Big Lots (BIG) releases earnings on Friday morning. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Trends, Support, and Resistance The Nasdaq dropped back below 15,000, but remains within the support area. The trend line from the 8/19 low points to a +2.03% gain for Friday. The five-day trend line ends with a +1.60% gain for tomorrow. The one-day trend line points to a -0.31% decline. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Wrap-up After several days of gains and new all-time highs, there's no surprise the indexes took a pullback day. The question is will economic data and Jerome Powell's speech on Friday sour sentiment more or will indexes bounce back for a gain. Based on the red candle with a low closing range, the expectation for tomorrow is Sideways or Lower. Stay healthy and trade safe!
NASDAQ:IXIC
by drewby4321
Daily Market Update for 8/27Summary: A dovish stance from the Fed's Jerome Powell at the Jackson Hole Economic Symposium sent stocks higher today. Gains were broadly shared across the market, with small caps leading the way. The S&P 500 and Nasdaq closed at record highs. 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, August 27, 2021 Facts: +1.23%, Volume higher, Closing Range: 92%, Body: 90% Green Good: All green body, gain on higher volume, higher high/low Bad: Nothing Highs/Lows: Higher high, Higher low Candle: Mostly green body with a short upper wick Advance/Decline: 2.53, five advancing stocks for every two declining stocks Indexes: SPX (+0.88%), DJIA (+0.69%), RUT (+2.85%), VIX (-13.00%) Sector List: Energy (XLE +2.67%) and Communications (XLC +1.58%) at the top. Utilities (XLU -0.03%) and Health (XLV -0.11%) at the bottom. Expectation: Higher -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Market Overview A dovish stance from the Fed's Jerome Powell at the Jackson Hole Economic Symposium sent stocks higher today. Gains were broadly shared across the market, with small caps leading the way. The S&P 500 and Nasdaq closed at record highs. The Nasdaq advanced +1.23% for the day. Volume was significantly higher than the previous days. The candle is mostly green body as the index rose throughout the day and only dipped near the close, leaving a short upper wick. The 92% closing range on top of a 90% body is bullish for the index. Gains were broadly shared, with five stocks advancing for every two declining stocks. The Russell 2000 (RUT) led the way today with a massive +2.85% gain. The Fed's stance is bullish for small caps that will benefit from low interest rates running into the near term. The S&P 500 (SPX) had another record close with a +0.88% gain today. The Dow Jones Industrial Average (DJI) gained +0.88%. The VIX Volatility Index (VIX) declined -13.00%. Energy (XLE +2.67%) capped off a week as the leading sector with another top performance today. Communications (XLC +1.58%) was the second-best sector, followed by a mix of cyclical and growth sectors. Defensive sectors underperformed the S&P 500, with Utilities (XLU -0.03%) and Health (XLV -0.11%) at the bottom of the list. The US Dollar (DXY) sharply declined on the dovish position in Powell's speech. US Treasury yields also fell, with short-term Treasury yields having the most significant decline. Both High Yield (HYG) and Investment Grade (LQD) Corporate Bond prices increased. Commodities all tracked higher, with Aluminum (ALI1!) futures soaring to new highs. All of these show a bullish outlook for the economy and US corporations. Investors Sentiment grew more bullish as well. The put/call ratio dropped to 0.607, which is not the lowest for this week but is still in a very bullish range. The CNN Fear & Greed index moved from Fear to Neutral. The NAAIM money manager exposure index moved up to 92.83 this week from 70.57 the previous week. Alphabet (GOOGL) had a record-setting close with a +1.81% gain. Amazon (AMZN) advanced +1.01% to move back above its 21d EMA but remain below its 50d MA. ASML Holding (ASML) was the top mega-cap for the day, advancing +2.71% to a new record close. Broadcom (AVGO) broke out of a multi-month base to close +2.10% higher and set a new all-time high. Alibaba (BABA) was the worst mega-cap for the day as it struggles to stay above a 52-week low. Workday (WDAY) surprised investors with earnings and advanced +9.13% today with a nice gap-up at market open. Upwork (UPWK) was the second-best in the daily update growth list, with a +5.84% advance. It was all bad news for Peloton (PTON) investors with missed earnings, price drops in key products, and warnings about DOJ, DHS, and SEC investigations. The stock dropped +8.55% on a day where almost everything else went up. Ouch! Chinese stocks, including Alibaba (BABA), FUTU Holdings (FUTU), and UP Fintech (TIGR), were also at the bottom of the growth list. Consumer sentiment data came in a bit lower than the preliminary results earlier in the month. However, nothing could sour investor mood after the very clear message from the Fed. Jerome Powell was clear about the Fed's future actions while also addressing the uncertainty in the current environment. He stated without a doubt that the Fed would begin tapering in the near future. But he also discussed that there is still work to do to reach full employment and monitor the situation with the Delta variant. That gave investors the confidence they needed to stay in the market. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Looking ahead Pending Home Sales data will be available on Monday morning. China will release purchasing manager index data showing current economic activity in the late evening. Zoom Video (ZM and StoneCo (STNE) will be earnings reports to watch on Monday after the close. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Trends, Support, and Resistance The Nasdaq hit another all-time high and record close today on very bullish energy. The trend line from the 8/19 low and the one-day trend line point to a +1.04% gain for Monday. The five-day trend line ends with a +0.03% lateral move. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Wrap-up It was a great way to end a constructive week for the market. With a minimum of bad news to sour investor sentiment, the timing was perfect for Jerome Powell to boost confidence in the market and the Fed's ability to help the economy weather near-term challenges. The uptrend continues, and the expectation for Monday is higher. Stay healthy and trade safe!
NASDAQ:IXIC
by drewby4321
Daily Market Update for 8/25Summary: The Nasdaq and S&P 500 had another set of record closes while the small-cap Russell 2000 continues to outperform as the market heads higher. Economic news was slightly bullish, with core durable goods and crude oil inventories showing more demand than expected. 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, August 25, 2021 Facts: +0.15%, Volume lower, Closing Range: 63%, Body: 6% Green Good: Low volatility day, high A/D ratio, green candle. Bad: Indecision marked by thin body Highs/Lows: Higher high, Higher low Candle: Spinning top candle with thin body in the middle of similar length wicks. Advance/Decline: 1.14, more advancing than declining stocks Indexes: SPX (+0.22%), DJIA (+0.11%), RUT (+0.37%), VIX (-2.50%) Sector List: Financials (XLF +1.18%) and Energy (XLE +0.76%) at the top. Consumer Staples (XLP -0.17%) and Health (XLV -0.27%) at the bottom. Expectation: Sideways -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Market Overview The Nasdaq and S&P 500 had another set of record closes while the small-cap Russell 2000 continues to outperform as the market heads higher. Economic news was slightly bullish, with core durable goods and crude oil inventories showing more demand than expected. The Nasdaq closed with a +0.15% gain, just slightly higher than where it opened. Volume was lower than the previous day and remained lower than the 20-day average. The spinning top candle, marked by a thin body in the middle of short upper and lower wicks, shows indecision in the market as the index hits new all-time highs. There were more advancing than declining stocks. The Russell 2000 (RUT) led for another day with a +0.37% gain. The S&P 500 (SPX) had a record close, gaining +0.22%. The Dow Jones Industrial Average (DJI) gained +0.11%. The VIX Volatility Index declined -2.50%. Cyclicals led for the day after the House approved the $3.5 trillion budget proposal yesterday and promised to vote on the infrastructure bill before the end of September. Financials (XLF +1.18%) and Energy (XLE +0.76%) were the top sectors for the day. Consumer Staples (XLP -0.17%) and Health (XLV -0.27%) were at the bottom of the sector list. The US Dollar declined for another day after hitting its highest point in 2021 last week. US 30y, 10y, and 2y Treasury Yields rose while the gap between long-term and short-term yields expanded. Investors continue to buy up High Yield Corporate Bonds (HYG) in search of returns not available in other bonds, sending prices higher today. Investment Grade Corporate Bonds (IQD) declined for the day. Commodities continue to strengthen with Oil gaining for another day. Timber and Copper gained. Aluminum dropped a bit but remains near record highs. The put/call ratio rose to 0.560. The CNN Fear & Greed index moved closer to neutral but is still on the Fear side. Taiwan Semiconductor (TSM) and Nvidia (NVDA) led semiconductors higher for the day. Large banks, including JP Morgan Chase (JPM) and Wells Fargo (WFC), also outperformed other mega-caps. Penn National Gaming (PENN) and DraftKings (DKNG) topped the daily update growth list as pro and college football seasons kick-off in the US. UP Fintech (TIGR) and FUTU Holdings (FUTU) were at the bottom of the list as they continue to trade with high volatility along with other Chinese stocks. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Looking ahead The weekly Initial Jobless Claims numbers will be available before the market opens on Thursday. An update to the Q2 GDP numbers will also be released, which are expected to be slightly higher than the previous preliminary data. Thursday's earnings reports include Dell (DELL), VMWare (VMW), Workday (WDAY), Dollar General (DG), Woolworths (WOLZY), Peloton Interactive (PTON), Dollar Tree (DLTR), Gap (GPS), and UP Fintech (TIGR). -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Trends, Support, and Resistance The Nasdaq set another new all-time high and record close today, building some support above the 15,000 area. The five-day trend line, which starts at the 8/19 low, points to a +1.65% gain for Thursday. The one-day trend line continues with another small gain of +0.14% for tomorrow. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Wrap-up It wasn't a very exciting day, but that's a good thing. Economic news was positive but was only supportive of where prices are now. The news was not enough to boost the indexes for another leg-up. More importantly, the economic news was not negative, which seems to have more impact as indexes are at all-time highs. Given the indecision show in today's spinning top candle, the expectation for tomorrow is Sideways. Stay healthy and trade safe!
NASDAQ:IXIC
by drewby4321
Daily Market Update for 8/24Summary: Small-caps led the markets higher for another day, giving indexes their fourth day of gains after last week's dip. Even meme stocks were back in play with huge gains from GME and AMC. 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, August 24, 2021 Facts: +0.52%, Volume lower, Closing Range: 79% (w/gap), Body: 60% Green Good: Higher high, higher low, fourth day of green candles Bad: Lower volume, otherwise nothing Highs/Lows: Higher high, Higher low Candle: Thinner candle with small upper and lower wicks, mostly green body Advance/Decline: 1.33, more advancing than declining stocks Indexes: SPX (+0.15%), DJI (+0.09%), RUT (+1.02%), VIX (+0.41%) Sector List: Energy (XLE +1.66%) and Consumer Discretionary (XLY +0.71%) at the top. Real Estate (XLRE -0.75%) and Consumer Staples (XLP -0.76%) at the bottom. Expectation: Sideways or Higher -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Market Overview Small-caps led the markets higher for another day, giving indexes their fourth day of gains after last week's dip. Even meme stocks were back in play with huge gains from GME and AMC. The Nasdaq closed +0.52% higher. Volume was lower than the previous day with a short candle that is still mostly body. The 60% body is in between a small upper and lower wick. The index ended the day with a 79% closing range, including the gap. There were more advancing stocks than declining stocks. The Russell 2000 (RUT) led again today, gaining +1.02%. The index is bouncing back from the bottom of the trading range it's been in most of this year. The S&P 500 (SPX) gained +0.15%, setting another record close. The Dow Jones Industrial Average (DJI) advanced +0.09%. The VIX Volatility Index gained +0.29% for the day. The top of the sector list is a mix of cyclical and growth sectors. Energy (XLE +1.66%) led the day, with Consumer Discretionary (XLY +0.71%) coming in second. Technology (XLK -0.11%) pulled back a bit today after several days of gains. Defensive sectors at the bottom of the list include Real Estate (XLRE -0.75%) and Consumer Staples (XLP -0.76%). The US Dollar declined again with a -0.10% loss today. The US 30y and 10y Treasury yields both gained for the day while the US 2y Treasury yield dropped. High Yield Corporate Bond (HYG) prices advanced. Investment Grade Corporate Bond (LQD) prices declined. Commodities mostly gained, with Aluminum hitting record highs again. Crude Oil prices are recovering from recent selling. The put/call ratio dropped to 0.512 as investors become more bullish with the current moves in the indexes. The CNN Fear & Greed index remains in Fear but is moving closer to neutral. Alibaba (BABA) topped the mega-cap list with a +6.61% gain. Amazon (AMZN) moved back above its 200d moving average line with a +1.22% advance. Microsoft (MSFT) pulled back from all-time highs, declining -0.67% as it starts to form a base. JD.com (JD) pleased investors with earnings and soared +14.44% on a good day for Chinese stocks. Meme stocks GameStop (GME) and AMC (AMC) were back in play with +27.53% and +20.35% gains respectively. The House approved the $3.5 trillion budget proposal today and promised a vote promised by the end of September on the $1 trillion infrastructure bill. Investors are making moves ahead of the Fed's Jerome Powell's speech on Friday in Jackson Hole. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Looking ahead Durable Goods Orders on Wednesday give another look at the pace of economic growth. Crude Oil Inventories will also be available after the market open. Higher demand would be a positive for oil and the energy sector. Salesforce.com (CRM), Snowflake (SNOW), Autodesk (ADSK), and Ehang Holdings (EH) are some of the interesting earnings reports on Wednesday. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Trends, Support, and Resistance The Nasdaq set another all-time high and record close today, moving above the 15,000 area acting as resistance. The trend line from the 8/19 low is pointing to a +1.60% for Wednesday. The five-day trend line ends with a +0.76% gain. The one-day trend line results in a +0.19% for tomorrow. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Wrap-up The rally continues as investor outlook overcomes dismal economic data from last week. We've had three good structural days with the advance/decline ratio above 1.0 and decent volume. Those have resulted in higher highs, higher lows, and high closing ranges each day. After several days of gains, it would not be a surprise for a lateral move or even a pullback. Still, the chart and fundamentals in the market are showing a strong uptrend. The expectation for tomorrow is set to Sideways or Higher. Stay healthy and trade safe!
NASDAQ:IXIC
by drewby4321
Daily Market Update for 8/23Summary: On Monday, the market turned optimistic after the FDA fully approved Pfizer's vaccine, adding a third day of gains off of last week's pivot low and ending with a record for the Nasdaq. Gains were broadly shared across stocks, and the defensive sectors dropped to the bottom of the sector list. 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, August 23, 2021 Facts: +1.55%, Volume higher, Closing Range: 91% (w/gap), Body: 89% Green Good: No lower wick and small upper wick, thick green body with big gain on higher volume Bad: Nothing Highs/Lows: Higher high, Higher low Candle: Gap up at open, thick green body under a small upper wick Advance/Decline: 2.18, more than two advancing stocks for every declining stock Indexes: SPX (+0.85%), DJI (+0.61%), RUT (+1.88%), VIX (-7.60%) Sector List: Energy (XLE +3.75%) and Technology (XLK +1.29%) at the top. Real Estate (XLRE -0.38%) and Utilities (XLU -1.29%) at the bottom. Expectation: Sideways or Higher -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Market Overview On Monday, the market turned optimistic after the FDA fully approved Pfizer's vaccine, adding a third day of gains off of last week's pivot low and ending with a record for the Nasdaq. Gains were broadly shared across stocks, and the defensive sectors dropped to the bottom of the sector list. The Nasdaq gained +1.55% for the day and set a new all-time high and record close. Volume was higher than the previous day. The candle has no lower wick for the third straight day. The thick green body covers 89% of the candle and is under a tiny upper wick, resulting in a 91% closing range (including the gap up at open). There were more than two advancing stocks for every declining stock. The Russell 2000 (RUT) small-caps led the day, with the index gaining +1.88%. The S&P 500 (SPX) advanced +0.85%. The Dow Jones Industrial Average (DJI) gained +0.61%. Energy (XLE +3.75%) jumped to the top of the sector list after a huge weekly loss this past week. Technology (XLK +1.29%) was the second-best sector, with the other growth sectors following close behind. The defensive sectors were at the bottom of the list, with Real Estate (XLRE -0.38%) and Utilities (XLU -1.29%) having the most considerable losses. Both the mega-cap list and daily update growth list were dominated by gainers today. Nvidia was the top mega-cap with a +5.49% gain. Pfizer (PFE) gained +2.48% as its vaccine gained full FDA approval. Competitors in the health sector declined, with United Health (UNH), Johnson & Johnson (JNJ), and Eli Lilly (LLY) all having more than 1% losses. Manufacturing and Services Purchasing Managers Index data came in less than expected, but Existing Homes Sales was higher than expected. The Dollar (DXY) dropped -0.52%, while US Treasuries remained about the same. High Yield Corporate Bond (HYG) prices rose for a second day. Investment Grade Corporate Bond (LQD) prices also gained. Oil prices gained over 5% for the day. Commodities also gained for the day, with Aluminum heading back toward record highs. Investor sentiment is bullish, with the put/call ratio (PCCE) dropping to .593 and the CNN Fear & Greed index moving back toward Neutral (but is still in the Fear zone). -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Looking ahead New Home Sales will be available on Tuesday morning. API Weekly Crude Oil Stock comes after the market closes. Medtronic (MDT), Intuit (INTU), Pinduoduo (PDD), and Best Buy (BBY) are some of the earnings reports to watch for Tuesday. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Trends, Support, and Resistance The index set a new all-time high today but leveled off just below the 15,000 level, which is expected. Round numbers provide a resistance point as they trigger trading rules. The three-day rally created a trend line from the 8/19 bottom, ending with a +1.42% gain for Tuesday. The one-day trend line points to a +1.00% gain. The five-day trend line ends with a -0.34% decline for tomorrow. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Wrap-up It was another excellent structural day for the market as gains were shared broadly across the key segments that move indexes higher over time. All the components were there for a bullish run. High advanced/decline ratio and higher volume created a gap-up, higher high and higher low, and a very positive gain. We've also been tracking the Russell 2000, which bounced off a lower support area that's defined the bottom of a trading range since February. We'll continue to watch it as it approaches the upper boundary of that range. The expectation is for sideways or higher tomorrow. It will be no surprise if the Nasdaq hits more resistance at 15,000 before moving above that line. Stay healthy and trade safe!
NASDAQ:IXIC
by drewby4321
Comprehensive Analysis for Nasdaq CompositeWhat Is the Nasdaq Composite Index? The Nasdaq Composite Index is a large market-cap-weighted index of more than 2,500 stocks, American depositary receipts (ADRs), and real estate investment trusts (REITs), among others. The index is calculated constantly throughout the trading day with the final value reported at 4:16 p.m. daily once prices have fully settled after the 4:00 p.m. ET market close. The Index's composition is nearly 50% technology, with consumer services, health care, and financials the next most prominent industries.(1) Resistance level: 14836-14895 Support:14417 Trend: Broke below the bullish trend line after 66 days! Hourly Chart: Descending Broadening Wedge pattern: Where the wedge shows a stronger bearish tendency there’s a significantly higher probability that the market will continue to trend downwards for some time as the wedge grows. So before trading the pattern it’s a good idea to use some pointers to try to gauge the market sentiment and which way the trend is likely to unfold. (2) Weekly Chart: Tendenci to correct 3 weeks in a row: Conclusion: pullback to trend line is very likely, waiting for the reaction is the best choice in my opinion. Moshkelgosha Reference Article: 1- www.investopedia.com 2- forexop.com
TVC:IXIC
by Moshkelgosha
Market Week in Review - 8/16/2021 - 8/20/2021Summary: Fears of a slowing economic recovery among rising cases of the Delta variant drove investors through a volatile week in the stock market. To make things worse, the Fed meeting minutes indicated that tapering could begin within this year. Despite the bad news, investors stuck with equities but rotated 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, August 16, 2021 Facts: -0.20%, Volume lower, Closing range: 100%, Body: 12% Good: Volume lower on retreat, high closing range Bad: Long lower wick pierced through 21d EMA Highs/Lows: Lower high, lower low Candle: Hanging man, small body above long lower wick within uptrend Advanced/Decline: 0.31, more than three declining stocks for every advancing stock Indexes: SPX (+0.26%), DJI (+0.31%), RUT (-0.89%), VIX (+4.20%) Sectors: Health (XLV +1.14%) and Utilities (XLU +0.61%) at the top. Materials (XLB -0.50%) and Energy (XLE -1.84%) at the bottom. Expectation: Sideways or Lower Investors sold off equities in the morning and then seemingly decided there was nowhere else to put the money and bought back assets in the afternoon. Money moved back into the market, mostly into defensive sectors, sending the S&P 500 and Dow Jones Industrial (DJI) to another set of records. The Nasdaq closed with a decline of -0.20% after dipping more than 1.4% in the morning. Volume was lower than the previous day. The thin body above a long lower wick creates a hanging man candlestick within an uptrend. The closing range of 100% shows bulls kept up the buying into close. Still, there were more than three declining stocks for every advancing stock for the day. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Tuesday, August 17, 2021 Facts: -0.93%, Volume higher, Closing range: 63%, Body: 9% Good: Stayed above 50d MA Bad: Break down below 21d EMA on higher volume Highs/Lows: Lower high, lower low Candle: Thin red body in upper half of candle, longer lower wick Advanced/Decline: 0.32, more than three declining stocks for every advancing stock Indexes: SPX (-0.71%), DJI (-0.79%), RUT (-1.19%), VIX (+11.24%) Sectors: Health (XLV +1.18%) and Real Estate (XLRE +0.19%) at the top. Materials (XLB -1.15%) and Consumer Discretionary (XLY -2.37%) at the bottom. Expectation: Lower Disappointing retail sales data confirmed fears that the rising cases of the Delta variant are slowing down the economic recovery. That sent major indexes lower on Tuesday. Only the defensive sectors ended the day with gains. The Nasdaq closed with a -0.93% loss on higher volume than the previous day, marking a distribution day for the index. The candle has a thin red body in the upper half of the candle. The closing range is 63%, and the body only covers 9% of the candle. The lower wick is longer than the upper wick. There were more than three declining stocks for every advancing stock on the Nasdaq. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Wednesday, August 18, 2021 Facts: -0.89%, Volume lower, Closing range: 5%, Body: 61% Good: Lower volume Bad: Close below the 50d MA, sell-off before close of market Highs/Lows: Lower high, lower low Candle: Large red body below short upper wick Advanced/Decline: 0.38, nearly three declining stocks for every advancing stock Indexes: SPX (-1.07%), DJI (-1.08%), RUT (-0.84%), VIX (+20.32%) Sector List: Consumer Discretionary (XLY +0.36%) and Utilities (XLU -0.51%) at the top. Health (XLV -1.52%) and Energy (XLE -2.08%) at the bottom. Expectation: Lower Stocks slid after the Fed released meeting minutes from last month, raising fears that tapering support for the economy could come earlier than previously thought. Most sectors declined, with only Consumer Discretionary holding onto a gain for the day. The Nasdaq closed with a -0.89% loss, dipping just below the 50-day moving average line. Volume was lower than the previous day. The closing range of 5% is below a 61% red body. There is a short upper wick with a very tiny lower wick. There were almost three stocks declining for every advancing stock. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Thursday, August 19, 2021 Facts: +0.11%, Volume higher, Closing range: 63%, Body: 63% Good: Higher volume on gain, close near the 50d MA Bad: Lower high, lower low continues downtrend Highs/Lows: Lower high, lower low Candle: No lower wick, large green body underneath upper wick Advanced/Decline: 0.28, over three declining stocks for every advancing stock Indexes: SPX (+0.13%), DJI (-0.19%), RUT (-1.22%), VIX (+0.46%) Sector List: Technology (XLK +0.98%) and Real Estate (XLRE +0.84%) at the top. Materials (XLB -0.89%) and Energy (XLE -2.60%) at the bottom. Expectation: Lower Investors grappled today with reactions to the Fed meeting minutes released late on Wednesday. The minutes showed several officials in the Fed see the possibility that a key employment goal may be met before year-end and would allow tapering to begin. The result was a dip at open followed by a volatile day as the market priced in the impact. The Nasdaq cleared a small gain for the day, advancing +0.11% and closing at the 50-day moving average line. Volume was higher than the previous day. The candle has no lower wick, a 63% green body, and a 37% upper wick. The index could not hold onto the gains from the morning rally. Despite the slight increase, there were more than three declining stocks for every advancing stock. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Friday, August 20, 2021 Facts: +1.19%, Volume lower, Closing Range: 95%, Body: 95% Green Good: All green body, high advance/decline ratio Bad: Lower volume Highs/Lows: Higher high, Higher low Candle: Mostly green body with a tiny upper wick, low above yesterday's close Advance/Decline: 1.68, three advancing stocks for every two declining stocks Indexes: SPX (+0.81%), DJIA (+0.65%), RUT (+1.65%), VIX (-14.35%) Sector List: Technology (XLK +1.29%) and Utilities (XLU +1.25%) at the top. Energy (XLE +0.22%) and Consumer Staples (XLP +0.17%) at the bottom. Expectation: Higher The market shrugged off worries about the Fed tapering of economic support to rally higher today. While the indexes were still below recent highs, the day was an excellent structural day, with gains shared broadly across the market. The Nasdaq closed +1.19% higher. Volume was lower than the previous day. The candle is almost entirely green body, with a short upper wick. The closing range of 95% and 95% body creates the second candle in a row with no lower wick. The index closed back above its 21d EMA as three stocks advanced for every two that declined. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- View on the Week www.tradingview.com Fears of a slowing economic recovery among rising cases of the Delta variant drove investors through a volatile week in the stock market. To make things worse, the Fed meeting minutes indicated that tapering could begin within this year. Despite the bad news, investors stuck with equities but rotated into defensive sectors. It opened on Monday with news of China retail sales falling much lower than expected. That sent indexes lower on Monday before prices recovered from the shocking news. Despite the dip, the S&P 500 and Dow Jones Industrial Average had another record close for the day. The bounce was short-lived. Tuesday brought the US Retail Sales data, which also came in lower than expected. That turned many bulls into bears, and the indexes moved lower and with higher volume. The Nasdaq closed below its 21d exponential moving average line. It seemed all was clear on Wednesday as buyers came back into the market, but then the Fed released meeting minutes in the afternoon that reversed the dip-buying. The Fed's minutes showed several Fed officials believed that tapering could start this year as key economic recovery goals were being met. The index sold off to close below its 50d moving average line. The selling resulted in a gap down at open on Thursday, but the sudden drop below 14,500 seemed enough to get investors back into the game, and the opening price became the low of the day. The rally took the Nasdaq back above its 50d moving average but then faded to close below. Given the fade and the lower high and lower low for the day, the expectation was still for the Nasdaq to move lower on Friday. That did not happen. Instead, the index opened above the 50d moving average and rose the entire day to close above its 21d exponential moving average. There were more advancing stocks than declining stocks, and all sectors gained. That was an excellent structural day to end the week. The rally on Friday could be because the Fed's Robert Kaplan, who is influential among the group, changed his tone toward tapering, stating that the Delta variant was concerning and may have a prolonged impact on the economy. The rally may also have been because of the monthly options expiration. Or it may just be more speculative dip-buying. We won't know until next week when the market can decide where it goes next. The Nasdaq declined -0.73% for the week. Volume was lower than the previous week. The closing range is 78%. Three weeks of long lower wicks show the presence of sellers as the index is at all-time highs. The S&P 500 (SPX) declined -0.59%. The Dow Jones Industrial Average (DJI) lost -1.11%. The Russell 2000 (RUT) fell -2.50% for the week. The VIX volatility index rose 60% mid-week but closed the week at a +19.99% gain. Defensive sectors led throughout this week as the Market absorbed data that showed a slowing economic recovery and meeting minutes from the Fed that indicated tapering could begin this year. Utilities ( XLU ) and Health Care ( XLV ) exchanged the lead several times, and the finish was close. Utilities became a favorite place for investors to keep money in equities while taking a defensive stance toward the economy. Health Care also did well as the world watches another wave of the pandemic brought on by the Delta variant of COVID. Technology ( XLK ) also mixed in with the defensive sectors at the top of the list. Big tech seems to be another safe play for equity investors, with Microsoft ( MSFT ), Apple ( AAPL ), and Alphabet ( GOOGL ) all turning in strong financials and appear resilient to new waves of lockdowns. Suffering the most from fears of economic slowdown and the pandemic, Energy ( XLE ) came in the last place for the week with a huge loss of over 7%. Yields for the US 30y and 10y both declined this week while 2y Treasuries advanced. Both High Yield Corporate Bond (HYG) prices dipped, and Investment Grade Bond (LQD) prices rose for the week. Both moves were small. The US Dollar (DXY) advanced +1.01% for the week. The dollar is at its strongest in 2021. Silver (SILVER) declined -2.94%, while Gold (GOLD) advanced +0.08%. Crude Oil (CRUDEOIL1!) dropped -8.68%. Timber (WOOD) declined -3.83%. Copper (COPPER1!) declined -4.55%. Aluminum (ALI1!) declined -1.97%. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Big Four Mega-caps Microsoft (MSFT) beat the market this week with a +3.93% gain, helping send the Technology sector to new highs. The other four largest mega-caps took losses. Apple (AAPL) and Alphabet (GOOGL) declined -0.61% and -0.22%. The charts of these two companies look good, remaining above their 10-week moving average. Amazon (AMZN) continues to fall back after earnings a month ago. This week is declined -2.85% and closed below its 50w moving average. -=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). Bitcoin (BTCUSD) outperformed the other cryptocurrencies this week with a +4.16% gain (time of writing). Ethereum (ETHUSD) declined -2.02%. Litecoin (LTCUSD) lost -1.01%. Bitcoin Cash (BCHUSD) fell -3.23%. Keep in mind that the US Dollar advanced 1.00% when considering these crypto prices with the USD as the denominator. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Investor Sentiment The put/call ratio (PCCE) ended the week at 0.760, elevated from the previous week. The CNN Fear & Greed Index moved back into Extreme Fear. The NAAIM money manager exposure index dropped to 70.57 this week. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- The Week Ahead Monday Manufacturing and Services Purchasing Managers Index data will be available on Monday, just after the market opens. Existing Home Sales data will also be available. JD.com (JD) releases earnings on Monday. Tuesday New Home Sales will be available on Tuesday morning. API Weekly Crude Oil Stock comes after the market closes. Medtronic (MDT), Intuit (INTU), Pinduoduo (PDD), and Best Buy (BBY) are some of the earnings reports to watch for Tuesday. Wednesday Durable Goods Orders on Wednesday give another look at the pace of economic growth. Crude Oil Inventories will also be available after the market open. Higher demand would be a positive for oil and the energy sector. Salesforce.com (CRM), Snowflake (SNOW), Autodesk (ADSK), and Ehang Holdings (EH) are some of the interesting earnings reports on Wednesday. Thursday The weekly Initial Jobless Claims numbers will be available before the market opens on Thursday. An update to the Q2 GDP numbers will also be released, which are expected to be slightly higher than the previous preliminary data. Thursday's earnings reports include Dell (DELL), VMWare (VMW), Workday (WDAY), Dollar General (DG), Woolworths (WOLZY), Peloton Interactive (PTON), Dollar Tree (DLTR), Gap (GPS), and UP Fintech (TIGR). Friday There are two important sets of economic data to watch for on Friday. PCE Price Index data is a primary indicator of inflation. The data will be available before the market opens. After the market opens, attention will turn to the update for Michigan Consumer Sentiment numbers for August. The preliminary numbers two weeks ago were well below expectation. Big Lots (BIG) releases earnings on Friday morning. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- The Bullish Side The market certainly turned more bearish this week. However, there are still some bullish signals. First, negative reactions to disappointing economic data were short-lived, and even the revelation that the Fed might start tapering economic support only had a temporary impact. The reality is there are not so many great places for investors to put money other than in equities right now. That resulted in them finding the safest bets within equities, which sent defensive sectors higher and boosted high-performing tech companies. Although there will be some impact if the Fed begins to taper, the reason for tapering is a strong economy. If jobs data shows full employment on the horizon, we should see a pickup in consumer and corporate spending. Both groups still have cash and debt to burn. That all equals growth. Inflation has shown signs of cooling off, and we'll get another look at the numbers on Friday. Although consumers are still feeling inflation at the register, there is likely oversupply across the supply chain and even into consumer homes. That extra supply could mean inflation slowing or even has a period of deflation. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- The Bearish Side The pandemic is wearing on the consumers and the economy. With the Delta variant rising in numbers, the outlook continues to dim. Although new lockdowns in the US are likely not on the horizon, the mood for consumers is keeping people home, impacting the service sectors. Across the board, data is showing a slowing economy. Retail sales were lower than forecast. Commodities this week all moved lower. Consumer sentiment is lower than during the height of the pandemic. The Nasdaq rebound off the intra-week low to end the week with a gain on Friday. That could just be a retracement before another move downward next week. Investor sentiment is low, and any bad news may be the final straw before a more significant correction. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Key Nasdaq Levels to Watch The Nasdaq dipped below the 21d EMA and 50d MA but recovered and closed above both key moving average lines. On the positive side, the levels are: The 10d moving average is at 14,728.49. The all-time high of 14,896.47 is the level to pass and continue the bull run. The round number 15,000 is likely to be a new area of resistance. On the downside, there are a few key levels: The 21d EMA is at 14,714.66. The 50d MA is at 14,562.73. 14,423.16 is the low of the past week. 14,200 remains a critical level if the index moves downward. 14,000 has been an area of support/resistance. There is a pivot at 13,903.73, which A further pullback would likely hit the 200d moving average at 13,548.93. The index hasn't approached this line since rising above it in April 2020. -=x=-=x=-=x=-=x=-=x=-=x=-=x=- Wrap-up It was not an easy week for investors. Economic and geopolitical bad news piled up, and the Fed meeting minutes added to the worries of tapering. Still, it seems investors are sticking to equities. As investors do not have many places to put money, that means they'll be continuously rotating within market sectors to find the best places to get returns. Expect to feel dizzy as you watch your favorite stocks churn. Good luck, stay healthy, and trade safe!
NASDAQ:IXIC
by drewby4321