Summary: The gains in equities were small but steady through this week. On Friday, the market rallied into close and headed into the weekend with a confidence boost.
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, June 11, 2021
Facts: +0.35%, Volume lower, Closing range: 100%, Body: 61%
Good: 100% closing range with good advance/decline ratio
Bad: Lower volume
Highs/Lows: Higher high, lower low
Candle: Short lower wick under green body, no upper wick
Advanced/Decline: 1.2, More advancing stocks than declining stocks
Indexes: SPX (+0.19%), DJI (+0.04%), RUT (+1.06%), VIX (-2.79%)
Sectors: Financials (XLF +0.64%) and Technology (XLK +0.60%) were top. Real Estate (XLRE -0.63%) and Health (XLV -0.71%) were bottom.
Expectation: Higher
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Market Overview
The gains in equities were small but steady through this week. On Friday, the market rallied into close and headed into the weekend with a confidence boost.
The Nasdaq closed with a +0.35%, capping a week of gains that saw every day reach higher than the previous day. Volume was lower and faded in the last three days. Today's candle ended with a 100% closing range, thanks to a rally in the final 30 minutes of the session. The small lower wick is under a 61% green body. There were more advancing stocks than declining stocks.
The S&P 500 (SPX) gained +0.19%, closing the week near a new all-time high set yesterday. The Russell 2000 (RUT) advanced +1.06%. The Dow Jones Industrial Average (DJI) gained +0.06%.
The VIX volatility index dropped another -2.79%., its lowest close in over a year.
Financials (XLF +0.64%) and Technology (XLK +0.60%) were top, with growth stocks helping drive gains. Real Estate (XLRE -0.63%) and Health (XLV -0.71%) were at the bottom of the list after topping the sector list yesterday.
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Economic Indicators
The US Dollar (DXY) climbed +0.50%.
The US 30y, 10y, and 2y Treasury yields climbed slightly after declining for several days.
High Yield Corporate Bond (HYG) and Investment Grade Corporate Bond (LQD) prices continued to advance.
Silver (SILVER) and Gold (GOLD) declined.
Crude Oil (CRUDEOIL1!) advanced.
Timber (Wood) advanced.
Copper (COPPER1!) advanced, Aluminum (ALI1!) declined.
Bitcoin (BTCUSD) rose +1.73%. Ethereum (ETHUSD) declined -4.82%.
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Investor Sentiment
The put/call ratio declined to 0.558. The put/call ratio (PCCE) is a contrarian indicator that shows overly bullish or overly bearish investor behavior. The 0.7 level is considered normal. Below that level is overly bullish.
The CNN Fear & Greed index moved to the greed side but still near neutral.
The NAAIM money manager exposure index declined slightly to 79.65.
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Market Leaders
Apple (AAPL) and Microsoft (MSFT) gained +0.98% and +0.25% today. While Microsoft is above its 21d EMA and 50d MA, Apple is still below the 50d MA. Amazon (AMZN) declined -0.08% after a big gain yesterday, bringing the stock above the key moving average lines. Alphabet (GOOGL) declined -0.20%.
Nvidia (NVDA), Adobe (ADBE), Apple, and Intel (INTC) topped the mega-cap list, helping to boost tech stocks. At the bottom of the list were Eli Lilly (LLY), Pfizer (PFE), and Johnson & Johnson (JNJ), suffering from a sell-off in the Health sector. Exxon Mobile (XOM) also showed up in the bottom four.
UP Fintech (TIGR) and NIO (NIO) topped the daily update growth stock list. Both are Chinese companies. Peloton (PTON) and DoorDash (DASH) were in the top four of the list, which is mostly gainers for the day. At the bottom of the list were DraftKings (DKNG), Snowflake (SNOW), RH (RH), and Chewy (CHWY).
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Looking ahead
There is not much economic news scheduled for Monday.
There are no relevant earnings reports for the daily update on Monday.
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Trends, Support, and Resistance
The index stayed above 14,000 today, helping build support at that level.
The five-day trend-line points to a +0.31% gain for Monday.
Following the trend-line from the 5/13 low would result in a +0.09% gain.
The one-day trend line points to a slight -0.07% regression on Monday.
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Wrap-up
It was a great way to end the week with a 100% closing range on the daily and weekly charts. We got used to big swings to the upside in 2020 and early 2021. The gains we see now are slow and steady. Nevertheless, those gains are welcome and show deliberate investments vs. overly bullish gains from fear of missing out.
Looking forward to next week, watch for the producer price index data on Tuesday and the Fed comments and meeting minutes on Wednesday as critical moments for the market.
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, June 11, 2021
Facts: +0.35%, Volume lower, Closing range: 100%, Body: 61%
Good: 100% closing range with good advance/decline ratio
Bad: Lower volume
Highs/Lows: Higher high, lower low
Candle: Short lower wick under green body, no upper wick
Advanced/Decline: 1.2, More advancing stocks than declining stocks
Indexes: SPX (+0.19%), DJI (+0.04%), RUT (+1.06%), VIX (-2.79%)
Sectors: Financials (XLF +0.64%) and Technology (XLK +0.60%) were top. Real Estate (XLRE -0.63%) and Health (XLV -0.71%) were bottom.
Expectation: Higher
-=x=-=x=-=x=-=x=-=x=-=x=-=x=-
Market Overview
The gains in equities were small but steady through this week. On Friday, the market rallied into close and headed into the weekend with a confidence boost.
The Nasdaq closed with a +0.35%, capping a week of gains that saw every day reach higher than the previous day. Volume was lower and faded in the last three days. Today's candle ended with a 100% closing range, thanks to a rally in the final 30 minutes of the session. The small lower wick is under a 61% green body. There were more advancing stocks than declining stocks.
The S&P 500 (SPX) gained +0.19%, closing the week near a new all-time high set yesterday. The Russell 2000 (RUT) advanced +1.06%. The Dow Jones Industrial Average (DJI) gained +0.06%.
The VIX volatility index dropped another -2.79%., its lowest close in over a year.
Financials (XLF +0.64%) and Technology (XLK +0.60%) were top, with growth stocks helping drive gains. Real Estate (XLRE -0.63%) and Health (XLV -0.71%) were at the bottom of the list after topping the sector list yesterday.
-=x=-=x=-=x=-=x=-=x=-=x=-=x=-
Economic Indicators
The US Dollar (DXY) climbed +0.50%.
The US 30y, 10y, and 2y Treasury yields climbed slightly after declining for several days.
High Yield Corporate Bond (HYG) and Investment Grade Corporate Bond (LQD) prices continued to advance.
Silver (SILVER) and Gold (GOLD) declined.
Crude Oil (CRUDEOIL1!) advanced.
Timber (Wood) advanced.
Copper (COPPER1!) advanced, Aluminum (ALI1!) declined.
Bitcoin (BTCUSD) rose +1.73%. Ethereum (ETHUSD) declined -4.82%.
-=x=-=x=-=x=-=x=-=x=-=x=-=x=-
Investor Sentiment
The put/call ratio declined to 0.558. The put/call ratio (PCCE) is a contrarian indicator that shows overly bullish or overly bearish investor behavior. The 0.7 level is considered normal. Below that level is overly bullish.
The CNN Fear & Greed index moved to the greed side but still near neutral.
The NAAIM money manager exposure index declined slightly to 79.65.
-=x=-=x=-=x=-=x=-=x=-=x=-=x=-
Market Leaders
Apple (AAPL) and Microsoft (MSFT) gained +0.98% and +0.25% today. While Microsoft is above its 21d EMA and 50d MA, Apple is still below the 50d MA. Amazon (AMZN) declined -0.08% after a big gain yesterday, bringing the stock above the key moving average lines. Alphabet (GOOGL) declined -0.20%.
Nvidia (NVDA), Adobe (ADBE), Apple, and Intel (INTC) topped the mega-cap list, helping to boost tech stocks. At the bottom of the list were Eli Lilly (LLY), Pfizer (PFE), and Johnson & Johnson (JNJ), suffering from a sell-off in the Health sector. Exxon Mobile (XOM) also showed up in the bottom four.
UP Fintech (TIGR) and NIO (NIO) topped the daily update growth stock list. Both are Chinese companies. Peloton (PTON) and DoorDash (DASH) were in the top four of the list, which is mostly gainers for the day. At the bottom of the list were DraftKings (DKNG), Snowflake (SNOW), RH (RH), and Chewy (CHWY).
-=x=-=x=-=x=-=x=-=x=-=x=-=x=-
Looking ahead
There is not much economic news scheduled for Monday.
There are no relevant earnings reports for the daily update on Monday.
-=x=-=x=-=x=-=x=-=x=-=x=-=x=-
Trends, Support, and Resistance
The index stayed above 14,000 today, helping build support at that level.
The five-day trend-line points to a +0.31% gain for Monday.
Following the trend-line from the 5/13 low would result in a +0.09% gain.
The one-day trend line points to a slight -0.07% regression on Monday.
-=x=-=x=-=x=-=x=-=x=-=x=-=x=-
Wrap-up
It was a great way to end the week with a 100% closing range on the daily and weekly charts. We got used to big swings to the upside in 2020 and early 2021. The gains we see now are slow and steady. Nevertheless, those gains are welcome and show deliberate investments vs. overly bullish gains from fear of missing out.
Looking forward to next week, watch for the producer price index data on Tuesday and the Fed comments and meeting minutes on Wednesday as critical moments for the market.
Stay healthy and trade safe!
