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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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