Summary: Markets bounced back from the Omicron fear-driven declines this week. The gains were broad across the market, sending all S&P 500 sectors higher. Yet, there is still progress to be made before investors can feel comfortable.
Notes
Ideas always welcome in the comments. Errors will be amended as comments on TradingView or corrected inline in my blog.
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Thursday, December 2, 2021
Facts: +0.83%, Volume lower, Closing Range: 79%, Body: 68% Green
Good: Gain on good volume, good closing range, advance/decline ratio
Bad: Lower high, lower low
Highs/Lows: Lower high, Lower low
Candle: Longer upper wick over green body, no lower wick
Advance/Decline: 1.44, more advancing stocks than decline stocks
Indexes: SPX (+1.42%), DJI (+1.82%), RUT (+2.74%), VIX (-10.19%)
Sector List: Financials (XLF +2.98%) and Industrials (XLI +2.97%) at the top. Technology (XLK +0.92%) and Health (XLV +0.49%) at the bottom.
Expectation: Sideways
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Market Overview
Markets bounced back from the Omicron fear-driven declines this week. The gains were broad across the market, sending all S&P 500 sectors higher. Yet, there is still progress to be made before investors can feel comfortable.
The Nasdaq closed +0.83% higher, performing not as well as the other indexes as investors focused on value stocks and the small-cap segment. Volume was lower than the previous day but higher than the 50-day average volume. A 68% green body covers the candle, with a long upper wick and no lower wick. The closing range of 79% is excellent, and there were more advancing stocks than declining stocks.
Small-caps in the Russell 2000 (RUT) outperformed the larger stocks, and the index gained +2.74%. Broad gains across all sectors helped the S&P 500 (SPX) to a +1.42% gain. The Dow Jones Industrial Average (DJI) also had an outstanding performance, climbing +1.82%. The VIX Volatility Index is still high, despite receding -10.19% today.
All eleven S&P 500 sectors gained for the day. Financials (XLF +2.98%) and Industrials (XLI +2.97%) were at the top of the sector list. Technology (XLK +0.92%) and Health (XLV +0.49%) were at the bottom of the list.
The weekly Initial Jobless Claims came in at 222,000, better than the expected 240,000.
The US Dollar index (DXY) rose +0.10% today. US 30y, 10y, and 2y Treasury Yields gained. High Yield (HYG) Corporate Bond prices are higher today as they continue to bounce up and down over the past week. Investment Grade (LQD) Corporate Bond prices were also higher for the day.
Gold prices are back to where they were at the beginning of November, and silver is back to where it was in October. They rose during the first part of last month but sold off sharply in the past few weeks.
Of the four largest mega-caps, only Alphabet (GOOGL) gained today, rising +1.36% and closing above its 50d moving average line. Apple (AAPL) declined -0.61% to close just above its 21d EMA. The company signaled lower demand for the holiday season. Microsoft (MSFT) and Amazon (AMZN) declined -0.18%. Microsoft closed just below its 21d exponential moving average while Amazon tested support at its 50d moving average.
Comcast (CMCSA) was the top mega-cap for the day, rising +4.93%. Most mega-caps gained for the day. Pfizer gave back some recent gains, declining -3% today and ending at the bottom of the mega-cap list.
Snowflake (SNOW) soared to the top of the Daily Update Growth List with a +15.85% gain after smashing earnings and revenue estimates. Okta (OKTA) gained +11.66% after beating earnings guidance. Ehang (EH) holdings dropped to the bottom of the list with a -13.53% decline. The company's quarterly loss was wider than expected.
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Looking ahead
We will get additional labor data on Friday morning. Average Hourly Earnings, Nonfarm Payrolls, the Participation rate, and the Unemployment Rate are among the data points available before the market opens. The ISM Non-Manufacturing PMI will be available after the market opens.
Big Lots (BIG) will report earnings tomorrow.
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Trends, Support, and Resistance
The Nasdaq moved above the 50d moving average line and met resistance in the 15,400 area.
If the one-day trend line continues into Friday, expect another +1.05% gain.
The five-day trend line and the trend line from the 11/22 high point to a -0.40% decline.
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Wrap-up
Omicron fears subsided today, allowing markets to recover from the recent sell-off. However, we are not out of the woods. The Nasdaq has a lower high and lower low today, which continues a downtrend. Look for a new daily high and a push upward on higher volume to build confidence. Next week, we'll need to see a new weekly high.
As it is, the expectation for Friday is Sideways.
Stay healthy and trade safe!
Notes
Ideas always welcome in the comments. Errors will be amended as comments on TradingView or corrected inline in my blog.
-=x=-=x=-=x=-=x=-=x=-=x=-=x=-
Thursday, December 2, 2021
Facts: +0.83%, Volume lower, Closing Range: 79%, Body: 68% Green
Good: Gain on good volume, good closing range, advance/decline ratio
Bad: Lower high, lower low
Highs/Lows: Lower high, Lower low
Candle: Longer upper wick over green body, no lower wick
Advance/Decline: 1.44, more advancing stocks than decline stocks
Indexes: SPX (+1.42%), DJI (+1.82%), RUT (+2.74%), VIX (-10.19%)
Sector List: Financials (XLF +2.98%) and Industrials (XLI +2.97%) at the top. Technology (XLK +0.92%) and Health (XLV +0.49%) at the bottom.
Expectation: Sideways
-=x=-=x=-=x=-=x=-=x=-=x=-=x=-
Market Overview
Markets bounced back from the Omicron fear-driven declines this week. The gains were broad across the market, sending all S&P 500 sectors higher. Yet, there is still progress to be made before investors can feel comfortable.
The Nasdaq closed +0.83% higher, performing not as well as the other indexes as investors focused on value stocks and the small-cap segment. Volume was lower than the previous day but higher than the 50-day average volume. A 68% green body covers the candle, with a long upper wick and no lower wick. The closing range of 79% is excellent, and there were more advancing stocks than declining stocks.
Small-caps in the Russell 2000 (RUT) outperformed the larger stocks, and the index gained +2.74%. Broad gains across all sectors helped the S&P 500 (SPX) to a +1.42% gain. The Dow Jones Industrial Average (DJI) also had an outstanding performance, climbing +1.82%. The VIX Volatility Index is still high, despite receding -10.19% today.
All eleven S&P 500 sectors gained for the day. Financials (XLF +2.98%) and Industrials (XLI +2.97%) were at the top of the sector list. Technology (XLK +0.92%) and Health (XLV +0.49%) were at the bottom of the list.
The weekly Initial Jobless Claims came in at 222,000, better than the expected 240,000.
The US Dollar index (DXY) rose +0.10% today. US 30y, 10y, and 2y Treasury Yields gained. High Yield (HYG) Corporate Bond prices are higher today as they continue to bounce up and down over the past week. Investment Grade (LQD) Corporate Bond prices were also higher for the day.
Gold prices are back to where they were at the beginning of November, and silver is back to where it was in October. They rose during the first part of last month but sold off sharply in the past few weeks.
Of the four largest mega-caps, only Alphabet (GOOGL) gained today, rising +1.36% and closing above its 50d moving average line. Apple (AAPL) declined -0.61% to close just above its 21d EMA. The company signaled lower demand for the holiday season. Microsoft (MSFT) and Amazon (AMZN) declined -0.18%. Microsoft closed just below its 21d exponential moving average while Amazon tested support at its 50d moving average.
Comcast (CMCSA) was the top mega-cap for the day, rising +4.93%. Most mega-caps gained for the day. Pfizer gave back some recent gains, declining -3% today and ending at the bottom of the mega-cap list.
Snowflake (SNOW) soared to the top of the Daily Update Growth List with a +15.85% gain after smashing earnings and revenue estimates. Okta (OKTA) gained +11.66% after beating earnings guidance. Ehang (EH) holdings dropped to the bottom of the list with a -13.53% decline. The company's quarterly loss was wider than expected.
-=x=-=x=-=x=-=x=-=x=-=x=-=x=-
Looking ahead
We will get additional labor data on Friday morning. Average Hourly Earnings, Nonfarm Payrolls, the Participation rate, and the Unemployment Rate are among the data points available before the market opens. The ISM Non-Manufacturing PMI will be available after the market opens.
Big Lots (BIG) will report earnings tomorrow.
-=x=-=x=-=x=-=x=-=x=-=x=-=x=-
Trends, Support, and Resistance
The Nasdaq moved above the 50d moving average line and met resistance in the 15,400 area.
If the one-day trend line continues into Friday, expect another +1.05% gain.
The five-day trend line and the trend line from the 11/22 high point to a -0.40% decline.
-=x=-=x=-=x=-=x=-=x=-=x=-=x=-
Wrap-up
Omicron fears subsided today, allowing markets to recover from the recent sell-off. However, we are not out of the woods. The Nasdaq has a lower high and lower low today, which continues a downtrend. Look for a new daily high and a push upward on higher volume to build confidence. Next week, we'll need to see a new weekly high.
As it is, the expectation for Friday is Sideways.
Stay healthy and trade safe!
