Summary: Investors found reasons to be optimistic despite soaring inflation and a hawkish Fed. Oil prices soared again, but that was not enough the dampen the mood.
Notes
Ideas always welcome in the comments. Errors will be amended as comments on TradingView or corrected inline in my blog.
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Wednesday, April 13, 2022
Facts: +2.03%, Volume lower, Closing Range: 89%, Body: 83% Green
Good: Closing range, steady climb through day, advance/decline ratio
Bad: Lower high, volume lower on gains
Highs/Lows: Lower high, Higher low
Candle: Inside day, thick green body, slightly longer upper wick
Advance/Decline: 2.07, more than two advancing for every declining stock
Indexes: SPX (+1.12%), DJI (+1.01%), RUT (+1.92%), VIX (-10.06%)
Sector List: Consumer Discretionary (XLY +2.49%) and Technology (XLK +1.61%) at the top. Financials (XLF +0.00%) and Utilities (XLU -0.20%) at the bottom.
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Market Overview
Investors found reasons to be optimistic despite soaring inflation and a hawkish Fed. Oil prices soared again, but that was not enough the dampen the mood.
The Nasdaq advanced +2.03% on lower volume than the previous day. The candle has an 83% green body and an 89% closing range. The small upper wick formed in a dip just before closing as some investors likely took profits from a day of good gains. There were more than two advancing stocks for every declining stock.
The Russell 2000 (RUT) climbed +1.92%. The S&P 500 (SPX) rose by +1.12%. The Dow Jones Industrial Average (DJI) ended the day +1.01% higher. The VIX Volatility Index fell by -10.06%.
Ten of the eleven S&P 500 sectors gained today. Growth sectors led the list with Consumer Discretionary (XLY +2.49%) and Technology (XLK +1.61%) at the top. Financials (XLF +0.00%) and Utilities (XLU -0.20%) were at the bottom of the sector list.
The Produce Price Index rose higher than expected. The index rose 1.4% in March compared to a forecast of 1.1%. Crude Oil Inventories were higher than expected but Gasoline inventories were lower than expected.
The US Dollar index (DXY) finally declined after a few weeks of steady climbing. It fell by -0.46% today. The 30y Treasury Yield remained flat while the 10y and 2y yields declined. High Yield (HYG) and Investment Grade (LQD) Corporate Bond prices tracked short-term treasuries higher. Silver and Gold prices continued higher. Brent Oil is back over $105, ending the day at $108 a barrel.
The put/call ratio (PCCE) increased to 0.716. The CNN Fear & Greed index moved back toward Neutral.
All big six mega-caps advanced. Tesla (TSLA) led the group higher with a +3.59% gain. Nvidia (NVDA) and Amazon (AMZN) also gained over +3%.
Taiwan Semiconductor (TSM) was the top mega-cap for the day, gaining +4.17% as the whole semiconductor sector rallied. AbbVie (ABBV) was the biggest mega-cap loser, declining by -5.00%.
Only two stocks in the Daily Update Growth List declined. Zscaler (ZS) topped the list, climbing by +8.17% today. PayPal (PYPL) declined by -2.85%, ending up at the bottom of the list. Chewy (CHWY) was the other declining stock in the list, falling by -0.46%.
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Looking ahead
Friday is a holiday for markets in the US. That means Thursday will be the monthly options expiration and it's a big one. Nearly $500 billion in single-stock options contracts will expire.
Tomorrow will kick off with Retail Sales data for March and the weekly Initial Jobless Claims. Later in the morning, we'll get a look at Michigan Consumer Expectations and Consumer Sentiment.
Tomorrow's earning reports include Taiwan Semiconductor (TSM), UnitedHealth (UNH), Wells Fargo (WFC), Morgan Stanley (MS), Goldman Sachs (GS), Citigroup (C ), and U.S. Bancorp (USB).
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Trends, Support, and Resistance
The Nasdaq heading back toward the 50d moving average but was unable to clear yesterday's high.
If the one-day trend line continues, it would mean a +1.74% gain for Thursday.
The trend line from the 3/29 high and the five-day trend line point to a -2.42% decline.
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Wrap-up
Recent monthly expiration days have meant declines for indexes. Will investor optimism hold up tomorrow and take indexes higher? Or will options pressures be too much and we dip lower?
Stay healthy and trade safe!
Notes
Ideas always welcome in the comments. Errors will be amended as comments on TradingView or corrected inline in my blog.
-=x=-=x=-=x=-=x=-=x=-=x=-=x=-
Wednesday, April 13, 2022
Facts: +2.03%, Volume lower, Closing Range: 89%, Body: 83% Green
Good: Closing range, steady climb through day, advance/decline ratio
Bad: Lower high, volume lower on gains
Highs/Lows: Lower high, Higher low
Candle: Inside day, thick green body, slightly longer upper wick
Advance/Decline: 2.07, more than two advancing for every declining stock
Indexes: SPX (+1.12%), DJI (+1.01%), RUT (+1.92%), VIX (-10.06%)
Sector List: Consumer Discretionary (XLY +2.49%) and Technology (XLK +1.61%) at the top. Financials (XLF +0.00%) and Utilities (XLU -0.20%) at the bottom.
-=x=-=x=-=x=-=x=-=x=-=x=-=x=-
Market Overview
Investors found reasons to be optimistic despite soaring inflation and a hawkish Fed. Oil prices soared again, but that was not enough the dampen the mood.
The Nasdaq advanced +2.03% on lower volume than the previous day. The candle has an 83% green body and an 89% closing range. The small upper wick formed in a dip just before closing as some investors likely took profits from a day of good gains. There were more than two advancing stocks for every declining stock.
The Russell 2000 (RUT) climbed +1.92%. The S&P 500 (SPX) rose by +1.12%. The Dow Jones Industrial Average (DJI) ended the day +1.01% higher. The VIX Volatility Index fell by -10.06%.
Ten of the eleven S&P 500 sectors gained today. Growth sectors led the list with Consumer Discretionary (XLY +2.49%) and Technology (XLK +1.61%) at the top. Financials (XLF +0.00%) and Utilities (XLU -0.20%) were at the bottom of the sector list.
The Produce Price Index rose higher than expected. The index rose 1.4% in March compared to a forecast of 1.1%. Crude Oil Inventories were higher than expected but Gasoline inventories were lower than expected.
The US Dollar index (DXY) finally declined after a few weeks of steady climbing. It fell by -0.46% today. The 30y Treasury Yield remained flat while the 10y and 2y yields declined. High Yield (HYG) and Investment Grade (LQD) Corporate Bond prices tracked short-term treasuries higher. Silver and Gold prices continued higher. Brent Oil is back over $105, ending the day at $108 a barrel.
The put/call ratio (PCCE) increased to 0.716. The CNN Fear & Greed index moved back toward Neutral.
All big six mega-caps advanced. Tesla (TSLA) led the group higher with a +3.59% gain. Nvidia (NVDA) and Amazon (AMZN) also gained over +3%.
Taiwan Semiconductor (TSM) was the top mega-cap for the day, gaining +4.17% as the whole semiconductor sector rallied. AbbVie (ABBV) was the biggest mega-cap loser, declining by -5.00%.
Only two stocks in the Daily Update Growth List declined. Zscaler (ZS) topped the list, climbing by +8.17% today. PayPal (PYPL) declined by -2.85%, ending up at the bottom of the list. Chewy (CHWY) was the other declining stock in the list, falling by -0.46%.
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Looking ahead
Friday is a holiday for markets in the US. That means Thursday will be the monthly options expiration and it's a big one. Nearly $500 billion in single-stock options contracts will expire.
Tomorrow will kick off with Retail Sales data for March and the weekly Initial Jobless Claims. Later in the morning, we'll get a look at Michigan Consumer Expectations and Consumer Sentiment.
Tomorrow's earning reports include Taiwan Semiconductor (TSM), UnitedHealth (UNH), Wells Fargo (WFC), Morgan Stanley (MS), Goldman Sachs (GS), Citigroup (C ), and U.S. Bancorp (USB).
-=x=-=x=-=x=-=x=-=x=-=x=-=x=-
Trends, Support, and Resistance
The Nasdaq heading back toward the 50d moving average but was unable to clear yesterday's high.
If the one-day trend line continues, it would mean a +1.74% gain for Thursday.
The trend line from the 3/29 high and the five-day trend line point to a -2.42% decline.
-=x=-=x=-=x=-=x=-=x=-=x=-=x=-
Wrap-up
Recent monthly expiration days have meant declines for indexes. Will investor optimism hold up tomorrow and take indexes higher? Or will options pressures be too much and we dip lower?
Stay healthy and trade safe!
