Time to reduce risk as market internals got a quite corrective tilt

September 20th 2020

Market Review

The major averages posted modest losses for the week. The Dow Jones Industrial Average lost less than 0.1% to finish at 27,657.42. The S&P 500 dipped 0.7% in five trading days to end at 3,319.47. The Nasdaq finished at 10,793.28 and lost 0.6% this week. The Dow is down 2.7% for the month-to-date and the S&P 500 down 5.2%. Among the key S&P sectors, energy was the best weekly performer, while comm. services dragged. The CBOE Volatility Index (VIX) – seen by many investors as the best “fear gauge” on Wall Street – traded near 25.8 on Friday. Read More

Time to get cautious as market is heading into a make or break setup!

September 13th 2020

Market Review

All three major U.S. averages finished the holiday-shortened week with losses. The Dow Jones Industrial Average lost 1.7% over the week to close at 27,665.64. The S&P 500 lost 2.5% for the week to finish at 3,340.9. The Nasdaq fell 4.1% for the week to end at 10,853.55, its biggest weekly decline since March. Nearly all key S&P sectors ended lower for the week, led by energy. The materials sector was the only gainer. The Chicago Board Options Exchange Volatility Index, the gauge of S&P 500 options prices known as the VIX, closed near 27. Read More

Too early to panic about the latest sentiment driven sell-off!

September 6th 2020

Market Review

U.S. stocks wrapped a turbulent week. After closing at new record levels during the week, all three major U.S. averages finally finished the week with losses. For the week, the Dow Jones Industrial Average lost 1.8% to end at 28,133.31. The S&P 500 fell 2.3% during the week and finished at 3,426.96. The Nasdaq saw a 3.3% weekly decline, its largest since March and finished at 11,313.13. Nearly all key S&P sectors ended in negative territory for the week, led by energy. Materials and utilities were to only gainers. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded advanced to 30.8. Read More

Tape confirmation is neglecting an imminent bear-case scenario

August 30th 2020

Market Review

In U.S. stocks ended another week with solid gains. The Dow Jones Industrial Average rose 2.6% over the week to close at 28,653.87. The S&P 500 jumped 3.3 percent for the week to finish at 3,508.01. The broad index closed its fifth straight week of gains for the first time this year. The benchmark is also on pace for its best August since 1984 when the index gained 10.63%. The Nasdaq closed at 11,695.63 and advanced 3.4% over the past five days, its fifth straight positive week for the first time since January. Apart from utilities, all key S&P sectors ended in positive territory for the week. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, closed near 23. Read More

New record high in place but the grizzlies might spoil the party soon

August 23rd 2020

Market Review

In line with our strategic call, U.S. stocks finished the week in positive territory with two benchmarks hitting record highs. The Dow Jones Industrial Average closed at 27,930.33 and finished the week nearly flat. The S&P 500, in contrast, rose 0.7% over the week to finish at 3,397.16, a new record closing high. The broad index posted its longest winning streak since the week ending December 27, 2019 when the market rose for five straight weeks. The Nasdaq Composite jumped 2.7% during the week and closed also at a fresh record closing high of 11,311.80. It was the tech-heavy benchmark's 36th record close in 2020. Among the key S&P sectors, the technology sector was the best weekly performer, while energy dragged. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded near 22.5. Read More

Expect further gains into deeper summer as tape condition remains strong

August 16th 2020

Market Review

In line with our recent call, U.S. averages finished another week in positive territory (despite Friday’s muted trading action). The Dow Jones Industrial Average recorded an 1.8% weekly gain to end at 27,931.02. The S&P 500 booked a weekly climb of 0.6%, closing at 3,372.85. The Nasdaq climbed less than 0.1% since last Friday’s close and finished at 11,019.3. Among the key S&P sectors, the industrials sector was the best weekly performer, while utilities dragged. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, ended at 22.05. Read More

Expect a new all-time high soon as there are hardly any deal-breakers visible

August 9th 2020

Market Review

After a short consolidation period at the beginning of the week, all three U.S. major indexes continued to push significantly higher for the week. The Dow Jones Industrial Average added 3.8% in five trading days to close at 27,433.48. The S&P 500 jumped 2.5% for the week, to finish at 3,351.28. The Nasdaq also rallied 2.5% to end at 11,010.98. All key S&P sectors ended in positive territory, led by industrials. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, dropped to 22.2. Read More

Volatile consolidation period possible but set-up remains supportive!

August 2nd 2020

Market Review

Apart from the Dow Jones Industrial Average, major U.S. averages finished the week with strong gains. The Dow Jones Industrial Average dropped 0.2% from the week-ago close to 26,428.32, whereas the S&P 500, in contrast, recorded a 0.8% gain over the week and finished at 3,271.12. The Nasdaq Composite jumped 3.7% for the week to end at 10,745.27. The major equity averages also wrapped up the month of July with solid gains and posted their fourth straight positive month. The Dow Jones Industrial Average gained 2.3% in July, while the S&P 500 and the Nasdaq Composite rose 5.5% and 6.8%, respectively. Among the key S&P sectors, technology was the best weekly performer, while energy dragged. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded near 24.5. Read More

No reason to get concerned as market internals continued to strengthen

July 26th 2020

Market Review

U.S. stocks finished a volatile week slightly in negative territory. For the week, the Dow Jones Industrial Average slipped 0.7% to finish at 26,469.89, snapping a three-week winning streak. The S&P 500 dipped 0.2% in five trading days to end at 3,215.63. The broad-index posted its first weekly decline in four. The Nasdaq finished at 10,363.18 and lost 1.3% this week for its first back-to-back weekly losses since May. Among the key S&P sectors, energy was the best weekly performer, while technology dragged. Most key S&P sectors finished in red, led by financials. The CBOE Volatility Index (VIX) – seen by many investors as the best “fear gauge” on Wall Street – traded above 25 on Friday. Read More

Further confirmation for our summer rally base case scenario!

July 19th 2020

Market Review

U.S. stocks finished the week mostly with hefty gains. The Dow Jones Industrial Average gained 1.3% for the week to close at 26,671.95, whereas the S&P 500 advanced 2.3% in the same time period to finish at 3,224.73. Both averages posted their third straight weekly gain. However, the tech’s struggle this week led to a pronounced divergence between the Nasdaq and two other major indexes. Hence, the tech-heavy index fell 1.1% for its first weekly loss in three to close at 10,503.19. Most key S&P sectors finished higher, led by industrials, while the technology sector ended in the red. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded lower, near 25.7. Read More

Ingredients for a summer rally are accumulating, but volatility will remain high

July 12th 2020

Market Review

U.S. stocks continued to push higher in a quite volatile week. The Dow Jones Industrial Average booked a 0.9% weekly gain to end at 26,075.30. The S&P 500 recorded a 1.7% gain over the week and closed at 3,185.04. The Nasdaq rocketed 4.0% for the week to close at 10,617.44. For the year, the Dow Jones Industrial Average and the S&P 500 are down 8.6% and 1.4%, respectively, while the Nasdaq is up more than 18%. Among the key S&P sectors, the comm. services sector was the best weekly performer, while energy dragged. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded near 27.3. Read More

The S&P 500 jumped 4% for the week

July 5th 2020

Market Review

In line with our latest expectations, all three major U.S. averages finished the holiday-shortened week with solid gains. The Dow Jones Industrial Average added 3.3% during the week to end at 25,827.36. The S&P 500 jumped 4.0% in the same time period to finish at 3,130.01. The Nasdaq rocketed 4.6% from the week ago close to finish at a record of 10,207.63. It was the S&P 500 and the Dow's and biggest weekly gains since June 5. The Nasdaq posited its best weekly performance since May 8. Nearly all key S&P sectors ended in positive territory for the week, led by the materials sector. Financials and energy were the only decliners. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded near 27.7. Read More

No need to panic as consolidation period still looks constructive in its nature

June 28th 2020

Market Review

Due to a sell-off on Friday, U.S. stocks finished the week in negative territory. The Dow Jones Industrial Average dropped 3.3% over the week to 25,015.55. The S&P 500 also booked a weekly loss of 3.3% to finish at 3,009.05. The Nasdaq shed 2.6 percent for the week to end at 9,757.22. All key S&P sectors ended in negative territory for the week, led by energy. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded near 34.7. Read More

Healthy consolidation period possible but still no major deal-breaker visible

June 21st 2020

Market Review

In line with our latest call, U.S. stocks recovered significantly last the week. The Dow Jones Industrial Average gained 1.0% for the week to finish at 25,871.46. The S&P 500 added 1.8% on the week to close at 3,097.92. The broad index recorded its fourth positive week in five. The Nasdaq jumped 3.7% for the week to end at 9,946.12. Among the key S&P sectors, health care was the best weekly performer, while utilities dragged. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded near 35.1. Read More

Too early to get concerned about the recent sentiment driven washout-day

June 14th 2020

Market Review

U.S. stocks wrapped a volatile week and due to single strong down-day, all three major U.S. averages finished the week finally in negative territory. On Thursday, all major indices recorded their biggest one-day losses since mid-March, posting declines of at least 5%. In the end, the Dow Jones Industrial Average declined 5.5% over the week to 25,605.54. The S&P 500 recorded a weekly loss of 4.7% to finish at 3,041.31. The Nasdaq shed 2.3% for the week to end at 9,588.81. All key S&P sectors ended in negative territory for the week, led by energy. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded near 36.1. Read More

Melt up in place, as the S&P 500 rocketed 4.9% for the week!

June 7th 2020

Market Review

U.S. stocks rallied for the week, with one major average scoring a record close. The Dow Jones Industrial Average jumped 6.8% over the week to close at 27,110.98. The blue-chip index is only down 5.0% year to date after dropping as much as 34.6% in 2020. The S&P 500 rocketed 4.9% for the week to finish at 3,193.93. Friday’s rally put the S&P 500 down just 1.1% for 2020. At one point this year, the broader market index was down 30.3%. The Nasdaq ended at 9,814.08 and climbed 3.4% over the past week. The heavy-tech index became the first of the three major averages to climb back to an all-time high, advancing to 9,814.08 on Friday and touching an intraday record of 9,845.69. After tumbling as much as 25% earlier this year, the tech-heavy index is now 9.3% higher for 2020. All key S&P sectors ended in positive territory for the week, led by the energy sector. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, closed near 24.5. Read More

Absolutely no reason to be bearish (as tape condition looks extremely healthy)

May 31st 2020

Market Review

U.S. stocks were on track for solid weekly gains. The Dow Jones Industrial Average jumped 3.8% from the prior Friday's close to end at 25,383.11. The S&P 500 advanced 3.0% for the week to close at 3,044.31. Nasdaq was looking at a 1.8% weekly gain and finished at 9,489.87. For the month, the Dow is on track for a 4.2% gain, the S&P 500 is set for a 4.5% climb while the Nasdaq is looking at a 6.7% advance in May. All S&P sectors ended higher, led by financials. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded near 27.5. Read More

Further range-bound trading ahead?

May 24th 2020

Market Review

U.S. stocks ended the week with solid gains. The Dow Jones Industrial Average gained 3.3% over the week to close at 24,465.16. The S&P 500 advanced 3.2% for the week to finish at 2,955.45. The Nasdaq advanced 3.4% over the past five days to end at 9,324.59. Nearly all key S&P sectors ended in positive territory for the week, led by the industrials sector. Health care was the only decliner. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, closed around 28.2. Read More

Is the recovery rally running out of fuel soon?

May 17th 2020

Market Review

U.S. stocks finished Friday with slight gains but the major indexes capped the week with losses. For the week, the Dow Jones Industrial Average slid 2.7% to 23,685.42. The S&P 500 finished at 2,863.70 and posted a weekly drop of 2.2%, notching its worst week since March. The Nasdaq dropped to 9,014.56 and finished the week 1.1% lower. Most key S&P sectors ended in negative territory for the week, led by energy. The health care sector was the only gainer. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded near 32.6. Read More

The S&P 500 jumped 3.5% for the week – Expect more gains ahead!

May 10th 2020

Market Review

U.S. stocks finished the week with solid gains and all three averages posted their first weekly advance in three. For the week, the Dow Jones Industrial Average rose 2.5% to 24,331.32. The S&P 500 jumped 3.5% during the week to end at 2,929.8. The broad index has bounced more than 30% from its virus low and is just 13.6% away from its record high. The Nasdaq jumped 6.0% from the week ago close to finish at 9,121.32. The heavy-tech index is more than 35% off its lows and is now up 1.6% for 2020. All key S&P sectors ended in positive territory for the week, led by the energy sector. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, dropped to 28. Read More

Sell in May and go away? Still a way too early to pull the trigger!

May 3rd 2020

Market Review

After a strong rally until Wednesday (that helped major indexes to post their best April in years), losing sessions on Thursday and Friday left major benchmarks with minor losses on the week. In the end, the Dow Jones Industrial Average dipped 0.2 % over the week to end at 23,723.69. The S&P 500 recorded also a weekly 0.2 % decline to close at 2,830.71. The Nasdaq lost 0.3% from last Friday’s close to finish at 8,604.95. Among the key S&P sectors, the energy sector was the greatest gainer for the week, while utilities led decliners. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded near 37.2. Read More

Another rally attempt likely, but clouds for further troubles are gathering

April 26th 2020

Market Review

U.S. stocks finished the week in negative territory with the main benchmarks posting their first weekly decline in three. The Dow Jones Industrial Average declined 1.9% over the week to 23,775.27. The S&P 500 recorded a weekly loss of 1.3% to finish at 2,836.74. The Nasdaq retreated 0.2% for the week to finish at 8,634.52. Most key S&P sectors ended in the red for the week, led by utilities. Energy and comm. services were the only gainers. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded near 35.9. Read More

Market is following our expected path!

April 19th 2020

Market Review

In line with our recent outlook, U.S. stocks closed out the week with solid gains. For the week, the Dow Jones Industrial Average soared 2.2% to end at 24,242.49. The S&P 500 gained 3.0% to close at 2,874.56. The Nasdaq jumped 6.1% to end at 8,650.14. The major averages were all up more than 25% from their late-March lows. Nearly all key S&P sectors finished in positive territory for the week, led by the health care sector. Financials were the biggest decliner. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, dropped to 38.2. Read More

S&P 500 capped its best week since 1974!

April 12th 2020

Market Review

U.S. stocks finished the holiday-shortened week sharply higher Thursday, with the main indexes recovering about half of their losses that were racked up in late March. For the week, the Dow Jones Industrial Average rocketed 12.7% to close at 23,719.37. The S&P 500 finished at 2,789.82 and gained 12.1% this week for its best weekly performance since 1974! The Nasdaq booked a weekly gain of 10.6% and closed at 8,153.58, its best week since 2009. From its recent March 23 low, the Dow is up 25.0%, the S&P 500 is up 22.3% from that point and the Nasdaq is up 18.2%. All key S&P sectors succeeded to close in positive territory for the week, led by the materials sector. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, dropped to 41.7. Read More

Bottom building process remains well in force!

April 5th 2020

Market Review

Mainly due a weak Friday, U.S. stocks ended the week with relatively moderate declines (considering the “new normal” of high volatility on most days). For the week, the Dow Jones Industrial Average declined 2.7%, to finish at 21,052.53. The blue-chip index is down 28.8% from its closing high on Feb. 12 and down 26.2% so far in 2020. The S&P 500 recorded a weekly loss of 2.1 percent and closed at 2,488.65. The benchmark index has now fallen 26.5% from its closing high on Feb. 19 and is down 23% so far in 2020. The Nasdaq fell 1.7 percent for the week to close at 7,373.08. The tech-heavy index is down 24.9% from its record close on Feb. 19 and down 17.8% so far in 2020. Three key S&P sectors succeeded to close in positive territory for the week, led by the energy sector. Utilities was the biggest decliner. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded near 47. Read More

Further bottom confirmation! Time to raise exposure again!

March 29th 2020

Market Review

Despite Friday’s declines, U.S. major averages posted strong gains for the week, with the Dow Jones Industrial Average and the S&P 500 booking double-digit weekly gains. The Dow Jones Industrial Average rocketed 12.8% week to date to close at 21,636.78. The blue-chip benchmark recorded its biggest one-week gain since 1938. The S&P 500 finished at 2,541.47 and gained 10.3% this week for its best weekly performance since March 2009. The Nasdaq also had its biggest weekly gain in 11 years, rising 9.1% and closing at 7,502.38. Since their peaks, the Dow still stands 26.8% below its record high, the S&P 500 is down 25% from its Feb. 19 peak and the Nasdaq is off 23.6% from its all-time high. All key S&P sectors succeeded to close in positive territory for the week, led by the utilities sector. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded near 65.5. Read More

Bounce successfully corrective! Time to raise exposure soon?

March 22nd 2020

Market Review

U.S. stocks attempted to rally on Friday, but failed, finishing another volatile and bruising week with sharp losses. After rallying more than 400 points earlier on Friday, the Dow Jones Industrial Average finished the week at 19,173.98. The blue-chip gauge dropped 17.3% for the week, its biggest one-week fall since October 2008, when it slid 18.2%. The S&P 500 closed the week at 2,304.92 and lost 15% week to date. The Nasdaq fell 12.6% from last Friday's close to end at 6,879.52 (after jumping more than 2% on Friday). Both the S&P 500 and Nasdaq also had their worst weekly performances since the financial crisis in 2008. The 30-stock Dow Jones Industrial Average is now 35.2% below its all-time high level from February, while the S&P 500 is 32.1% below its high. All key S&P sectors ended once again in deep negative territory for the week, led by energy. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded near 66. Read More

Bear market fully in force …

March 15th 2020

Market Review

Last week, one of the longest bull market in U.S. history came to a sudden end. That event was accompanied with a level of volatility that has not been seen in decades. For the first time since 1997, circuit breakers at the New York Stock Exchange were tripped not once but twice (on Monday and Thursday) since the S&P 500 fell by 7% in both days. Thursday was the worst day in more than three decades as the S&P 500 plummeted 9.5%, whereas the Dow Jones Industrial Average also suffered its biggest percentage decline since 1987. By jumping more than 9% on Friday, U.S. stocks recovered some of their losses, but in the end the Dow Jones Industrial Average slumped 10.4% to 23,185.62 for the week. The S&P 500 closed at 2,711.02 and lost 8.8% for the week. Closing at 7,874.88, the Nasdaq saw an 8.2% weekly plunge. All key S&P sectors ended in deep negative territory for the week, led by energy. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, closed near 58 after spiking to 77 earlier in the day. Read More

Expected bounce in place, but …

March 8th 2020

Market Review

The market was in bounce mode last week. All three major U.S. averages eked out weekly gains after a wild roller-coaster week that saw the Dow swing 1,000 points or higher twice. For the week, the Dow Jones Industrial Average succeeded to gain 1.7% to close at 25,864.78. The S&P 500 managed to eke out a weekly gain of 0.6% to close at 2,972.37. The Nasdaq advanced 0.1% for the week to end at 8,575.62. Among the key S&P sectors, utilities was the best weekly performer, while energy dragged. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded near 41.9. Read More

Buying opportunity or last chance to get out? Upcoming bounce will tell us!

March 1st 2020

Market Review

It was a tough week on Wall Street  as the main benchmarks posted the steepest weekly losses since the financial crisis 2008. For the week, the Dow Jones Industrial Average fell more than 12% to end at 25,409.36 – its biggest weekly percentage loss since 2008. The S&P 500 closed at 2,954.22 and lost 11.5% week to date in its worst weekly performance since the crisis. Closing at 8,567.37, the Nasdaq lost 10.5% this week and was nearly 13% below a record high. All key S&P sectors ended in deep negative territory for the week, led by energy. Moreover, it was one of the fastest decline from an all-time high into correction territory on record. The CBOE Volatility Index hit a high of 49.48, its highest level since February 2018. Read More

Washout day caused a lot of fear among dumb money!

February 23rd 2020

Market Review

Due to Friday's losses, U.S. stocks closed out the week in negative territory. The Dow Jones Industrial Average slumped 1.4% over the week to 28,992.4. The S&P 500 booked a weekly loss of 1.6% to finish at 3,337.75. The Nasdaq shed 1.3% for the week to end at 9,576.59. All key S&P sectors ended in negative territory for the week, led by technology. The utilities sector led gainers. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, jumped to 17.1. Read More

Sentiment driven clouds gathering but still too early to get concerned!

February 16th 2020

Market Review

Despite Friday’s muted trading moves, U.S. stocks posted back-to-back weekly gains with two benchmarks reaching new records. The Dow Jones Industrial Average rose 1.0% from the week-ago close to 29,398.08. The S&P 500 climbed 1.6% for the week to 3,380.16 and hit a record closing. The Nasdaq gained 2.2% over the week to 9,731.18 and also hit an all-time closing high. All key S&P sectors ended in positive territory for the week, led by the utilities sector. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, dropped to 15. Read More

The S&P 500 jumped 3.2% – its best weekly performance since early June!

February 9th 2020

Market Review

Despite Friday's losses, U.S. stocks closed out the week with strong gains and with the three benchmarks reaching new records during the week. For the week, the Dow Jones Industrial Average soared 3.0% to end at 29,102.51. The S&P 500 jumped 3.2% to close at 3,327.71. The Nasdaq jumped 4.0% to end at 9,520.51. Nearly all key S&P sectors finished in positive territory for the week, led by the technology sector. Utilities were the only decliner. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, dropped to 15.5. Read More

Stay calm! Expected consolidation still remains constructive in its nature!

February 2nd 2020

Market Review

U.S. stocks finished another week with losses. The Dow Jones Industrial Average lost 2.5% over the week to 28,256.03. The S&P 500 booked a weekly loss of 2.1% to close at 3,225.52. On Friday, both the Dow and S&P 500 recorded their biggest one day falls since August. The Nasdaq shed 1.8 percent for the week to end at 9,150.94. After all three benchmark indexes saw record highs earlier in January, for the year to date the Dow is now down 1% and the S&P 500 is down 0.2%, while the technology heavy Nasdaq index is still up 2%. Most key S&P sectors ended in negative territory for the week, led by energy. The utilities sector was the only gainer. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, jumped to 18.8. Read More

No need to panic since the option market already did!

January 26th 2020

Market Review

Due to a negative Friday, U.S. stocks finished the four-day week in negative territory. The Dow Jones Industrial Average slumped 1.2% over the week to 28,989.73. The S&P 500 booked a weekly loss of 1.0% to finish at 3,295.47. The Nasdaq shed 0.8% for the week to end at 9,314.91. Nearly all key S&P sectors ended in negative territory for the week, led by energy. The utilities sector led gainers. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, jumped to 14.6. Read More

Still not too late to join the party as tape condition remains robust!

January 19th 2020

Market Review

U.S. stocks rallied for the week, lifting the benchmark indexes again to new record highs. The Dow Jones Industrial Average advanced 1.8% for the week to end at 29,348.10. The S&P 500 gained nearly 2% over the week to 3,329.62. The Nasdaq soared 2.3% from last Friday's close to 9,388.94. The major averages all hit record highs on Friday. For the week all three benchmark indexes also posted their largest percentage gains since August last year. The Dow has been up for five of the past six weeks, with a year-to-date return of 2.8%. The S&P 500 has been up for two consecutive weeks, with a year-to-date return of 3.1% and the Nasdaq has risen for six straight weeks, with a year-to-date return of 4.6%. Most key S&P sectors ended in positive territory for the week, led by utilities. The energy sector was the only decliner. The CBOE Volatility Index (VIX), a gauge of options prices known as VIX, ended at 12.10. Read More

Market will face a consolidation period soon but no reason to get nervous!

January 12th 2020

Market Review

All three major benchmarks indexes set new intraday highs Friday and posted solid gains for the week despite Friday’s weak close. The Dow Jones Industrial Average rose 0.7% from the week-ago close to 28,823.77. Earlier in the session, the 30-stock average broke above 29,000 for the first time ever. The S&P 500 advanced 0.9% for the week to 3,265.35. The Nasdaq gained 1.8% over the week to 9,178.86. Among the key S&P sectors, the communication services sector was the best weekly performer and energy the worst. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, edged lower to near 12.6. Read More

Sentiment driven washout has started to have its expected impact

January 5th 2020

Market Review

Although U.S. stocks dropped sharply on Friday, they closed the holiday-shortened week nearly unchanged. Still the major benchmarks reached new record highs during the week. The Dow Jones Industrial Average dipped 0.04% over the week to end at 28,634.88. The S&P 500 recorded a weekly 0.2% decline to close at 3,234.85. The Nasdaq advanced 0.2% from last Friday’s close to finish at 9,020.77. Among the key S&P sectors, the industrials sector was the greatest gainer for the week, while materials led decliners. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded near 14. Read More

Sentiment driven washouts possible but no major deal-breaker visible

December 29h 2019

Market Review

In line with our latest outlook, U.S. stocks rallied for the holiday-shortened week, pushing the main indexes again to fresh records. The Dow Jones Industrial Average booked a weekly gain of 0.7 percent to close at a record of 28,645.26. The S&P 500 climbed 0.6 percent for week to a record high of 3,240.02. The Nasdaq increased 0.9 percent from last Friday to 9,006.62, hitting a new intraday high earlier in the session. The main U.S. indexes are close to their best annual performance since 2013 and may yet put in a return not seen since 1997 depending on trading on the final two days of the year next week. The Dow Jones Industrial Average is up 22.8 percent year-to-date basis, the S&P 500 is up 29.3 percent and the Nasdaq 35.7 percent. Most key S&P sectors ended in positive territory for the week, led by the discretionary sector. Utilities were the only decliners. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, ended near 13.4. Read More

S&P 500 jumped to another record high!

December 22nd 2019

Market Review

U.S. stocks rallied for the week, lifting the benchmark indexes to new record highs. The Dow Jones Industrial Average rose 1.2 percent for the week to end at 28,455.09. The S&P 500 gained 1.5 percent over the week to 3,221.23. The benchmark index for American equities posted its fourth consecutive weekly gain and had its best weekly performance since August. The Nasdaq soared 2.1 percent in five trading days to 8,924.96. The tech-heavy also recorded its best weekly performance since August. Most key S&P sectors ended in positive territory for the week. Industrials and financials were the only decliners. The Chicago Board Options Exchange Volatility Index, a gauge of options prices known as VIX, ended at 12.5. Read More

New all-time high is backed by a broad basis!

December 15th 2019

Market Review

U.S. stocks finished the week in positive territory with the main benchmarks posting record highs on Friday. The Dow Jones Industrial Average gained 0.4 percent over the week to 28,135.38. The S&P 500 recorded a weekly rise of 0.7 percent to finish at 3,168.80. The Nasdaq advanced 0.9 percent for the week to close at 8,734.88. Most key S&P sectors finished higher, led by technology. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded near 12.6. Read More

All good, as the S&P 500 just closed 0.3 percent below its all-time high!?

December 8th 2019

Market Review

Last week, all three major U.S. averages finished a volatile week nearly unchanged. The Dow Jones Industrial Average lost 0.1 percent during the week to close at 28,015.06. Friday’s performance was the Dow’s best since Oct. 4, when it rallied 1.4 percent. The S&P 500 managed to eke out a weekly gain of 0.2 percent to close at 3,145.91. On Friday the broad index booked its biggest one-day gain since Oct. 15. The Nasdaq lost 0.1 percent for the week to end at 8,656.53. The benchmarks also closed just below their record highs reached Nov. 27. The S&P 500 was just 0.3 percent away from hitting an all-time high. The Dow and Nasdaq are both 0.6 percent off their records. Of the 10 sectors in the index, the energy sector led decliners, while industrials led advancers. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded near 13.6. Read More

Correction risk has diminished significantly as tape condition strengthened!

December 1st 2019

Market Review

U.S. stocks finished the holiday-shortened week in positive territory, with all three benchmarks reaching further minor all-time highs during the week. The Dow Jones Industrial Average added 0.6 percent for the week to end at 28,051.41. The S&P 500 advanced 1.0 percent from last Friday’s close to finish at 3,140.98. The Nasdaq climbed 1.7 percent over the week to 8,665.47. Most key S&P sectors ended in positive territory for the week. The energy sector was the only decliner. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded near 12.6. Read More

Correction risk is increasing on a fast pace! Time to place a stop-loss immediately!

November 24th 2019

Market Review

U.S. stocks finished the week slightly in negative territory with the main benchmarks posting their first weekly decline in over a month. The Dow Jones Industrial Average lost 0.5 percent over the week to 27,875.62, snapping a four-week winning streak. The S&P 500 recorded a weekly loss of 0.3 percent to finish at 3,110.29, halting six weeks of gains. The Nasdaq retreated 0.3 percent for the week to finish at 8,519.88, ending its seven-week advance. Among the key S&P sectors, health care was the best weekly performer, while materials dragged the most. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded near 12.3. Read More

The bandwagon is getting crowed but further confirmation needed!

November 17th 2019

Market Review

U.S. stocks gained for another week, with the main benchmark indexes scoring further all-time closing highs. Notching its fourth week of consecutive gains and rising 1.2 percent in that time, the Dow Jones Industrial Average closed at 28,004.89. The blue-chip rallied to record levels on Friday, reaching 28,000 for the first time ever. It took the Dow just over four months to go from 27,000 for the first time to 28,000. The S&P 500 rose 0.9 percent for the five days to a record of 3,120.46. It is the S&P's sixth straight weekly gain. That’s the longest streak for the S&P 500 since 2017, when it climbed for eight straight weeks. The Nasdaq rose for a seventh consecutive week, advancing 0.8 percent to a record high of 8,540.83. For the full year so far, the Dow is up about 20 percent, the S&P 500 has gained 24.5 percent, while the Nasdaq has climbed nearly 29 percent in the year to date. Nearly all key S&P sectors ended in positive territory for the week, led by health care. Financials and energy were the only decliners. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded around 12.1. Read More

The S&P 500 reached a new high, but the air is getting thinner!

November 10th 2019

Market Review

U.S. stocks continued to rally, pushing the major indexes to new record highs. The Dow Jones Industrial Average posted a three-week winning streak and rose 1.2 percent to 27,681.20 last week. The S&P 500 rose for a fifth straight week, gaining 0.9 percent to 3,093.08. The Nasdaq rose 1.1 percent during the week to 8,475.31, extending its weekly winning streak to six. Most key S&P sectors ended in positive territory for the week, led by financials. Utilities led decliners. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, ended below 12.1. Read More

Stocks rallied for the week, pushing the S&P 500 to a new record high!

November 3rd 2019

Market Review

In line with our latest call, U.S. stocks rallied for the week, pushing the S&P 500 and the Nasdaq to new record highs. For the week, the Dow Jones Industrial Average rose 1.4 percent to 27,347.36. The S&P 500 climbed 1.5 percent for week to a record high of 3,066.91. The Nasdaq increased 1.7 percent from last Friday close to an all-time high of 8,386.4. Most key S&P sectors ended in positive territory for the week, led by the health care sector. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, ended near 12.3. Read More

Expect to see a new all-time high soon!

October 27th 2019

Market Review

U.S. stocks finished the week with solid gains. The S&P 500 rose 1.3 percent to 3,022.55, just closing 3 points below its latest closing high in July. The Dow Jones Industrial Average ended the week with a gain of 0.8 percent, at 26,958.06. The Nasdaq advanced 1.8 percent from last Friday's close to finish at 8,243.12. Most key S&P sectors ended in positive territory for the week, led by the energy sector. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, closed at 12.65. Read More

Ingredients for a new high scenario are accumulating!

October 20th 2019

Market Review

All three major U.S. averages finished the week with a mixed performance. The Dow Jones Industrial Average fell sharply on Friday (more than 255 points) to 26,770.20 and declined, therefore, 0.2 percent for the week. The S&P 500 increased 0.5 percent for the week to finish at 2,986.20. The Nasdaq Composite closed at 8,089.54 and scored a 0.4 percent gain for the week. Both indexes were able to post modest gains for the week despite Friday’s decline. Among the key S&P sectors, health care was the best weekly performer, while energy dragged. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded below 14.5. Read More

The S&P 500 closed just 2 percent below its all-time high, but …

October 13th 2019

Market Review

U.S. stocks finished the week with gains, whereas the Dow Jones Industrial Average and the S&P 500 managed to snap a three-week losing streak. The Dow Jones Industrial Average booked a 0.9 percent weekly gain to end at 26,816.59. The S&P 500 recorded a weekly climb of 0.6 percent and closed at 2,970.27. The Nasdaq ended the week up 0.9 percent and closed at 8,057.0. Most key S&P sectors ended in positive territory for the week led by materials. Utilities led the decliners. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, dropped to 15.6. Read More