Summary: Positive employment data sent stocks higher in the morning. The rally faded mid-day, but indexes held on to new record closes. The employment report is especially favorable for small-caps that outperformed today.
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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Friday, November 5, 2021
Facts: +0.20%, Volume higher, Closing Range: 46%, Body: 21% Red
Good: Uptrend intact, higher advance/decline line
Bad: Couldn't hold above 16,000, thin red body in middle of candle
Highs/Lows: Higher high, Higher low
Candle: Thin red body in center of candle, indecision
Advance/Decline: 0.85, more declining than advancing stocks
Indexes: SPX (+0.37%), DJI (+0.56%), RUT (+1.44%), VIX (+6.74%)
Sector List: Energy (XLE +1.30%) and Industrials (XLI +1.02%) at the top. Financials (XLF +0.05%) and Health (XLV -1.12%) at the bottom.
Expectation: Sideways or Lower
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Market Overview
Positive employment data sent stocks higher in the morning. The rally faded mid-day, but indexes held on to new record closes. The employment report is especially favorable for small-caps that outperformed today.
The Nasdaq ended the day with a +0.20% gain. The index soared past the 16,000 resistance level but dropped below it in the afternoon. A thin red body covering 21% of the candle sits between long upper and lower wicks, signaling some indecision in the market. Volume was higher than the previous day. There were more declining stocks than advancing stocks.
The Russell 2000 (RUT) gained +1.44% for the day. The Dow Jones Industrial Average (DJI) advanced +0.56%. The S&P 500 (SPX) climbed by +0.37%. All four indexes had record-high closes. The VIX Volatility Index rose +6.74%, driven by volatility later in the morning to afternoon.
Energy (XLE +1.30%) and Industrials (XLI +1.02%) were at the top of the sector list. Energy and travel stocks (in Industrials) both benefited from news from Pfizer that their pill effectively keeps COVID patients out of the hospital. Financials (XLF +0.05%) and Health (XLV -1.12%) were at the bottom of the sector list. Health was the only declining sector for the day. Although Pfizer soared more than 10%, its competitors suffered from the news. Merck and Moderna dropped -9.86% and -16.46%.
Nonfarm Payrolls came in at 521,000 additional payrolls for October, blasting past the forecast of 450,000. The Unemployment Rate ticked down to 6.7% compared to 6.9% in September, and a forecast of 6.8%.
The US Dollar Index (DXY) dropped -0.12%. US 30y, 10y, and 2y yields fell as investors had an improved outlook for the US economy. High Yield (HYG) and Investment Grade (LQD) Corporate Bond prices rose sharply. Silver and Gold also rose sharply.
The put/call ratio (PCCE) rose to 0.580 after dipping extremely low yesterday. The CNN Fear & Greed Index remains in the same spot in the Extreme Greed area. The NAAIM money manager exposure index rose to 107.99 this week.
Three of the four largest mega-caps gained for the day. Amazon (AMZN) climbed for the third day in a row, rising +1.21% today. Apple (AAPL) and Alphabet (GOOGL) also rose today, gaining +0.21% and +0.39%. Microsoft (MSFT) set another new all-time high but faded to end the day with a -0.11% decline.
Pfizer (PFE) was the top mega-cap for the day, soaring +10.86% on their news. Mastercard (MA) and Visa (V) were the second and third best mega-caps. Merck (MRK) was the worst-performing mega-cap with a -9.86% decline, finding itself opposite Pfizer news.
DataDog (DDOG) was the big winner in the Daily Update Growth List, rising +11.12% on solid earnings growth. There were more declining stocks than advancing stocks in the list. The biggest loser was Peloton (PTON) which fell -35.35% on a dismal report to investors and lower guidance of almost 20% less revenue for next year.
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Looking ahead
There is no significant economic news scheduled for Monday.
PayPal (PYPL), Roblox (RBLX), Trade Desk (TDD), AMC (AMC), Tencent (TME), Trex (TREX), Five9 (FIVN), Zynga (ZNGA), Lemonade (LMND), and Vuzix (VUZI) are some of the earnings reports for Monday.
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Trends, Support, and Resistance
The Nasdaq moved above 16,000 but then fell back below the resistance area.
If the index returns to the five-day trend line, it would mean a +1.18% gain for Monday.
The trend line from the 10/4 low leads to a -0.23% decline.
If the one-day trend line continues, it would mean a -0.79% decline.
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Wrap-up
A great jobs report and a new COVID pill was enough to push the indexes higher for another day. That's a full two weeks without a decline for the Nasdaq. Impressive, but it also can't last forever. That could be why investors got skittish after reaching the 16,000 milestone, bringing prices back down a bit.
The expectation for Monday is Sideways or 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=-
Friday, November 5, 2021
Facts: +0.20%, Volume higher, Closing Range: 46%, Body: 21% Red
Good: Uptrend intact, higher advance/decline line
Bad: Couldn't hold above 16,000, thin red body in middle of candle
Highs/Lows: Higher high, Higher low
Candle: Thin red body in center of candle, indecision
Advance/Decline: 0.85, more declining than advancing stocks
Indexes: SPX (+0.37%), DJI (+0.56%), RUT (+1.44%), VIX (+6.74%)
Sector List: Energy (XLE +1.30%) and Industrials (XLI +1.02%) at the top. Financials (XLF +0.05%) and Health (XLV -1.12%) at the bottom.
Expectation: Sideways or Lower
-=x=-=x=-=x=-=x=-=x=-=x=-=x=-
Market Overview
Positive employment data sent stocks higher in the morning. The rally faded mid-day, but indexes held on to new record closes. The employment report is especially favorable for small-caps that outperformed today.
The Nasdaq ended the day with a +0.20% gain. The index soared past the 16,000 resistance level but dropped below it in the afternoon. A thin red body covering 21% of the candle sits between long upper and lower wicks, signaling some indecision in the market. Volume was higher than the previous day. There were more declining stocks than advancing stocks.
The Russell 2000 (RUT) gained +1.44% for the day. The Dow Jones Industrial Average (DJI) advanced +0.56%. The S&P 500 (SPX) climbed by +0.37%. All four indexes had record-high closes. The VIX Volatility Index rose +6.74%, driven by volatility later in the morning to afternoon.
Energy (XLE +1.30%) and Industrials (XLI +1.02%) were at the top of the sector list. Energy and travel stocks (in Industrials) both benefited from news from Pfizer that their pill effectively keeps COVID patients out of the hospital. Financials (XLF +0.05%) and Health (XLV -1.12%) were at the bottom of the sector list. Health was the only declining sector for the day. Although Pfizer soared more than 10%, its competitors suffered from the news. Merck and Moderna dropped -9.86% and -16.46%.
Nonfarm Payrolls came in at 521,000 additional payrolls for October, blasting past the forecast of 450,000. The Unemployment Rate ticked down to 6.7% compared to 6.9% in September, and a forecast of 6.8%.
The US Dollar Index (DXY) dropped -0.12%. US 30y, 10y, and 2y yields fell as investors had an improved outlook for the US economy. High Yield (HYG) and Investment Grade (LQD) Corporate Bond prices rose sharply. Silver and Gold also rose sharply.
The put/call ratio (PCCE) rose to 0.580 after dipping extremely low yesterday. The CNN Fear & Greed Index remains in the same spot in the Extreme Greed area. The NAAIM money manager exposure index rose to 107.99 this week.
Three of the four largest mega-caps gained for the day. Amazon (AMZN) climbed for the third day in a row, rising +1.21% today. Apple (AAPL) and Alphabet (GOOGL) also rose today, gaining +0.21% and +0.39%. Microsoft (MSFT) set another new all-time high but faded to end the day with a -0.11% decline.
Pfizer (PFE) was the top mega-cap for the day, soaring +10.86% on their news. Mastercard (MA) and Visa (V) were the second and third best mega-caps. Merck (MRK) was the worst-performing mega-cap with a -9.86% decline, finding itself opposite Pfizer news.
DataDog (DDOG) was the big winner in the Daily Update Growth List, rising +11.12% on solid earnings growth. There were more declining stocks than advancing stocks in the list. The biggest loser was Peloton (PTON) which fell -35.35% on a dismal report to investors and lower guidance of almost 20% less revenue for next year.
-=x=-=x=-=x=-=x=-=x=-=x=-=x=-
Looking ahead
There is no significant economic news scheduled for Monday.
PayPal (PYPL), Roblox (RBLX), Trade Desk (TDD), AMC (AMC), Tencent (TME), Trex (TREX), Five9 (FIVN), Zynga (ZNGA), Lemonade (LMND), and Vuzix (VUZI) are some of the earnings reports for Monday.
-=x=-=x=-=x=-=x=-=x=-=x=-=x=-
Trends, Support, and Resistance
The Nasdaq moved above 16,000 but then fell back below the resistance area.
If the index returns to the five-day trend line, it would mean a +1.18% gain for Monday.
The trend line from the 10/4 low leads to a -0.23% decline.
If the one-day trend line continues, it would mean a -0.79% decline.
-=x=-=x=-=x=-=x=-=x=-=x=-=x=-
Wrap-up
A great jobs report and a new COVID pill was enough to push the indexes higher for another day. That's a full two weeks without a decline for the Nasdaq. Impressive, but it also can't last forever. That could be why investors got skittish after reaching the 16,000 milestone, bringing prices back down a bit.
The expectation for Monday is Sideways or Lower.
Stay healthy and trade safe!
