Keep ignoring sentiment driven volatility as the tape remains robust

December 27th 2020

Market Review

Although we saw a stronger washout-event on Monday morning, U.S. stocks finished the holiday-shortened week nearly unchanged. For the week, the Dow Jones Industrial Average eked out a small gain of 0.1% to close at 30,199.87. The S&P 500 declined 0.2% during the week to end at 3,703.06. The Nasdaq rose 0.4% for the week to end at 12,804.73. Among the key S&P sectors, the financial sector was the best weekly performer, while energy dragged the most. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, closed at 21.5.

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S&P 500 climbed to a new record high → expect more to come

December 20th 2020

Market Review

In line with our recent call, U.S. stocks closed out a quite volatile week with gains, with all three major benchmarks reaching new records during the week. For the week, the Dow Jones Industrial Average eked out a small gain of 0.4% to end at 30,179.05. The S&P 500 gained 1.3% in that period to close at 3,709.41. The Nasdaq outperformed with a 3.1% gain for the week to end at 12,755.64. Nearly all key S&P sectors finished in positive territory for the week, led by the technology sector. Energy was the only decliner. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, dropped to 21.8.

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Stay bullish, stay safe!

December 13th 2020

Market Review

U.S. stocks finished the week with small losses. The Dow Jones Industrial Average dropped 0.6% over the week to 30,046.37. The S&P 500 booked a weekly loss of 1% to finish at 3,683.46. Both the Dow and S&P 500 posted their first weekly declines in three weeks. The Nasdaq shed 0.7% for the week to end at 12,377.87. Of the S&P sectors, energy was the only gainer, while all other sectors declined. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded near 23.3.

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No game-changer visible as year-end rally looks broad based in its nature

December 6th 2020

Market Review

U.S. stocks continued to rally, pushing the major indexes to new record highs. The Dow Jones Industrial Average posted a weekly increase of 1% to finish at a record of 30,218.26. The S&P 500 gained 1.7% over the week to close at a record of 3,699.12. The Nasdaq advanced 2.2% during the week to 12,464.23, a record high as well. All averages booked their fourth weekly gain in five weeks. Most key S&P sectors ended in positive territory for the week, led by the energy sector. The utilities sector was the only decliner. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, ended below 20.8.

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Sentiment driven washouts possible but no reason to worry right now!

November 29th 2020

Market Review

U.S. equities finished the week by breaking another set of records. The Dow Jones Industrial Average rose 2.2% for the week to 29,910.37. Earlier in the week, the Dow jumped to an all-time high, breaking above 30,000 for the first time. The S&P 500 climbed 2.3% for week to a record of 3,638.35. The Nasdaq posted a weekly gain of nearly 3% to 12,205.85 and also closed at an all-time high. Nearly all key S&P sectors ended in positive territory. Energy was the best weekly performer, while real estate was the only decliner. The CBOE Volatility Index (VIX), Wall Street’s preferred fear gauge, traded near 20.8.

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Ingredients for year-end rally are accumulating!

November 22nd 2020

Market Review

U.S. stocks finished the week with a mixed performance. The Dow Jones Industrial Average shed 0.7% during the week to close at 29,263.48. The S&P 500 fell 0.8% from last week’s close to finish at 3,557.54. The Nasdaq in contrast gained 0.2 percent for the week to end at 11,854.97. Both Dow and the and S&P 500 recorded their first weekly declines in three weeks, while the Nasdaq booked its second positive week in three. Among the key S&P sectors, energy was by far the best weekly performer, while utilities dragged. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded near 23.7.

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Expect further gains ahead as further tape confirmation is visible

November 15th 2020

Market Review

U.S. stocks finished the week mostly with a strong performance, whereas one index even notched a record high this week. Closing at 29,479.81, the Dow Jones Industrial Average jumped 4.1% in five trading days for its second-straight positive week. The S&P 500 logged a 2.2% gain for the week to finish at a new record close of 3,585.15. While the Dow and S&P 500 recorded strong weekly gains, the Nasdaq Composite in contrast lost 0.6% during the week and finished at 11,829.29, notching its third weekly loss in four weeks. Still the Nasdaq is up 31.8% this year, while the Dow is up 3.3% and the S&P 500 11%. Nearly all key S&P sectors closed in positive territory, led by the energy sector. Technology was the only decliner. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded near 23.1.

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Back to normal, at least for now

November 8th 2020

Market Review

U.S. stocks strongly rebounded for the week with the major averages notching their best weekly performance since April. The Dow Jones Industrial Average gained 6.9% week to date to close at 28,323.40. The S&P 500 finished at 3,509.44 and rocketed 7.3% this week, posting its biggest election week gain since 1932. The Nasdaq jumped 9% for the week and finished at 11,895.23. All key S&P sectors succeeded to close in positive territory for the week, led by the technology sector. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, dropped to 24.9.

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Minor signs of stabilization visible but technicals remain damaged as well

November 1st 2020

Market Review

All three major U.S. averages finished the week with steep losses. The Dow Jones Industrial Average lost 6.5% over the week to close at 26,501.60. The S&P 500 lost 5.6% for the week to finish at 3,269.96. The Nasdaq fell 5.0 percent over that time period to end at 10,911.59. All key S&P sectors ended lower for the week, led by the discretionary sector. The Chicago Board Options Exchange Volatility Index, the gauge of S&P 500 options prices known as the VIX, jumped to 37.6.

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Sentiment driven consolidation period remains quite healthy in its nature

October 25th 2020

Market Review

U.S. stocks finished the week with small losses. The Dow Jones Industrial Average dropped 1% over the week to 28,335.57. The S&P 500 booked a small weekly loss of 0.5% to finish at 3,465.39. The Nasdaq shed 1.1% for the week to end at 11,548.28. Among the key S&P sectors, commercial services led advancers, while technology led decliners. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded near 27.6.

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