Good for now but sentiment flashes mid-term warnings!

December 29. 2013

Market Review

All three major U.S. averages finished the holiday-shortened week with solid gains. The Dow Jones Industrial Average added 1.6 percent to close the week at 16,478.41. The blue-chip benchmark advanced for a second week and is up more than 25% in the year-to-date. The Dow is on track for its biggest annual gain since 1996. The S&P 500 increased 1.3 percent to 1,770.61 for the week, its second weekly gain as well. The benchmark equity gauge has advanced 29 percent in 2013, putting it on course for its biggest annual rally since 1997. The Nasdaq climbed 1.3 percent to 4,156.59 and has soared 38 percent in 2013. Most key S&P sectors finished higher, led by materials, while utilities ended in the red. The Chicago Board Options Exchange Volatility Index, the gauge of S&P 500 options known as the VIX, closed at 12.46. The gauge has dropped 31 percent this year, the largest annual decline since 2009. Read more

Divergences are forming but still too early to sell!

December 22. 2013

Market Review

U.S. stocks rallied for the week, with the Dow and S&P 500 scoring record closes. After losing ground in the prior two weeks, the Dow Jones Industrial Average gained 3 percent this week to finish at 16,221.14. That was its best week since mid-September and in terms of point gain, it was the best since early January. The S&P 500 soared 2.4 percent, to close at 1,818.31 and also snapped a two-week losing streak. The Nasdaq gained 2.6 percent from the week ago close to finish at 4,104.74. All key S&P sectors ended in positive territory for the week, led by industrials. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, slid below 14. Read more

Correction risk is increasing but confirmation needed!

December 15. 2013

Market Review

Last week all three major U.S. averages ended in negative territory. For the week the Dow Jones Industrial Average dropped 1.7 percent to 15,755.36. The S&P 500 also dropped 1.7 percent to 1,775.32 during the week, its biggest decline since August. Both the Dow and the S&P 500 were down for the second week, the first series of such losses since early October. The Nasdaq Composite declined 1.5 percent from the week-ago close, ending at 4,000.98, its first week of losses in five. All key S&P sectors finished in the red for the week, dragged by health care. The Chicago Board Options Exchange Volatility Index (VIX), the gauge of S&P 500 options known as the VIX, climbed 1.4 percent to 15.76. Read more

Cyclical tailwinds but more mid-term warnings visible!

December 08. 2013

Market Review

Last week, all three major U.S. averages finished the week with a mixed performance. The Dow Jones Industrial Average declined 0.4 percent, to close the week at 16,020.20. The 30-stock gauge recorded its first weekly loss in nine. The S&P 500 lost less than 0.1 percent over the five days to finish at 1,805.09. The Nasdaq rose less than 0.1 percent from the week-ago close to finish at 4,062.52. The tech-heavy index posted its fourth-straight weekly gain and is trading at levels last seen in September 2000. Three out of the ten main industries in the S&P 500 advanced for the week, led by utilities. The CBOE Volatility Index (VIX), a gauge of investor uncertainty, fell below 14. Read more

Expect further gains but early warning signs visible!

December 01. 2013

Market Review

U.S. stocks closed out the holiday-shortened week in positive territory again. The Dow Jones Industrial Average gained 0.1 percent for the week to finish at 16,086.41. The blue-chip index advanced 2.6 percent for the month. The S&P 500 gained 0.1 percent for the week as well to close at 1,805.81. The broad index rose 1.9 percent in November. The Nasdaq advanced 1.9 percent for the week to end at 4,059.89 and climbed 2.8 percent for the month. All three indices were up for a third month, and the Dow and S&P were both up for an eighth week, the longest such streak for the S&P 500 since January 2004, and since January 2011 for the Dow. The Nasdaq was up for a third week. 2 out of the 10 main industries in the S&P 500 advanced for the week, led by technology. The gauge of S&P 500 options, known as the VIX, closed at 13.7 and declined 0.4 percent for November. Read more