No signs for a stabilization visible! Further strong selling pressure ahead!

September 27th 2020

Market Review

Despite the quite strong bounce on Friday, U.S. stocks finished the week mostly with losses. The Dow Jones Industrial Average dropped 1.8% in five trading days to end at 27,173.96. The S&P 500 closed 0.6% lower week to date at 3,298.46. Both the Dow and S&P 500 posted four-week losing streaks, their longest slides since August 2019, despite the gains on Friday. The Nasdaq in contrast had its first weekly gain in four weeks, rising 1.1% over that time period to finish at 10,913.56. Most key S&P sectors ended in negative territory for the week, led by the energy sector. Techs, discretionary and utilities were the only decliners. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, closed near 26.4.

Read more

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