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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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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