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Options – 18 December 15 Monthly Income – Bull PUT on SPX

Update

14 December 2015

We closed this CALL credit spread and bought it back for $0.05. Overall, it was a small profit to be redeployed for the next trade.

8 December 2015

We sold a monthly CALL credit spread at 2135/2145 for $1.10. The total Return-on-Risk for this new trade is 1.10/8.90 = 12.36 % excluding transaction cost. The PUT credit spread was closed for $1.75.

27 November 2015

We sold a monthly PUT credit spread at 2015/2005 for $1.15. The total Return-on-Risk for this new trade is 1.15/8.85 = 13.00 % excluding transaction cost. Expiration is at 9:30 am, 18 December 2015 (EST)

Options – 21 August 15 Monthly Income – Bull PUT on SPX

Update

21 August 2015

This PUT credit spread expired worthless. The Settlement price was 2015.47.

13 July 2015

We sold a monthly PUT credit spread at 1980/1970 for $1.30. The total Return-on-Risk for this new trade is 1.30/8.70 = 14.94 % excluding transaction cost. Expiration is at 9:30 am, 21 August 2015 (EST)

Options – 17 July 15 Monthly Income – Bull PUT on SPX

Update

13 July 2015

We closed this trade by buying it back for $0.05. Option expiration is this coming Friday morning.

15 June 2015

We sold a monthly PUT credit spread at 1980/1970 for $1.30. The total Return-on-Risk for this new trade is 1.30/8.70 = 14.94 % excluding transaction cost. Expiration is at 9:30 am, 17 July 2015 (EST)

Options – 18 June 15 Monthly Income – Bear Call on SPX

Update

5 June 2015

We closed this trade by buying it back for $0.05. Option expiration is another 2 weeks away.

18 May 2015

We sold a monthly CALL credit spread at 2185/2195 for $1.05. The total Return-on-Risk for this new trade is 1.05/8.95 = 11.7 % excluding transaction cost. Expiration is at 9:30 am, 19 June 2015 (EST)

Options – 15 May 15 Monthly Income – Bear Call on SPX

Update

6 May 2015

We closed this trade by buying it back for $0.05. Option expiration is next week.

27 April 2015

We sold a monthly CALL credit spread at 2160/2170 for $1.20. The total Return-on-Risk for this new trade is 1.20/8.80 = 13.6 % excluding transaction cost. Expiration is at 9:30 am, 15 May 2015 (EST)

Options – 17 April 15 Monthly Income – Bull PUT on SPX

Update

17 April 2015

The PUT spread expired worthless and we now move on to the next trade.

19 March 2015

We sold a monthly PUT credit spread at 2020/2010 for $1.60. The total Return-on-Risk for this new trade is 1.60/8.40 = 19.05 % excluding transaction cost. Expiration is at 9:30 am, 17 April 2015 (EST)

Options – 20 March 15 Monthly Income – Bear Call on SPX

Update

18 March 2015

We bought this back for $0.05. This trade is now closed.

12 March 2015

We sold a PUT credit spread at 2020/2010 for $2.00. ROR is at 2.00/8.090 = 25.00 % excluding transaction cost.

9 March 2015

We closed off the monthly PUT credit spread at 2050/2040 for $2.45. ROR is now reduced to 0.85/9.15 = 9.28 % excluding transaction cost.

24 February 2015

We sold a monthly PUT credit spread at 2050/2040. We have now an Iron Condor with ROR at 3.30/6.70 = 49.25 % excluding transaction cost.

13 February 2015

We sold a monthly CALL credit spread at 2160/2170 for $1.65. The total Return-on-Risk for this new trade is 1.65/8.35 = 19.76 % excluding transaction cost. Expiration is at 9:30 am, 20 March 2015 (EST)

Options – 16 January 15 Monthly Income – Iron Condor on SPX

Update

10 January 2015

We bought back the PUT credit spread at 1990/1980 for $1.15. The total Return-on-Risk is 1.15/8.85 = 13%.

7 January 2015

We sold a PUT credit spread at 1990/1980 for $2.30. The total Return-on-Risk for this new trade is 2.35/7.65 = 30.7 % excluding transaction cost.

6 January 2015

We closed both legs of the Iron Condor for a total of $2.35. The total Return-on-Risk is (2.95 - 2.35)/9.40 = 6 % excluding transaction cost.

26 December 2014

We have sold an Iron Condor on the SPX for the January 2015 expiry. The CALL credit spread at 2135/2145 and the PUT credit spread is at 2040/2030. The Return-on-Risk is 2.95/7.05 = 41.7 % excluding transaction cost.

26 August 2016 – FED speaks and volatility!


The FED chairperson put her case for an increase in the federal fund rates in the coming months and the market went up. That was before another FED member, Stanley Fischer explained that Yellen’s comments were consistent with a September rate hike and the indices plunged! It managed to rally from its low at the close of the week. The Fed’s preferred inflation indicator, the PCE will be released this coming Monday.

Dow Transportation traded sideways in the first half hour before Janet Yellen’s speech. It shot up in the first half hour immediately. It then sold off till the last hour of the day and managed to pull back slightly till to close with a bearish rolling pin candle below its 21 EMA. Daily momentum remains upward. Daily volumetric buying pressure is at 45.3%.

On the weekly chart, the index is in a weekly Squeeze and it closed with bearish candle on its 8 EMA.

Dow Industrial traded sideways till the Janet Yellen’s speech at 10 am (EST). It shot up in the following half hour before the big selloff and plunged till late afternoon. The index pulled back and closed with a big bearish rolling pin candle below its 21 EMA. Momentum is downward. Short term volumetric buying pressure is at 55.5%. The index is in a monthly Squeeze.

On its weekly chart, the index closed with a bearish candle on its 8 EMA.

Russell 2000 rallied during Janet Yellen’s speech at 10 am but it was short-lived. It plunged by mid-morning and reached its low of the day by late afternoon before pulling back and closed with a long doji candle on its 21 EMA. Momentum remains upward. Volumetric buying pressure is at 86.3%.

On its weekly chart, the index closed with a spinning top doji candle above all its moving averages.

Nasdaq 100 rallied during the Janet Yellen’s speech and hovered for another hour before plunging to its low of the day by late morning. It managed to recover by the end of the day to close with a doji candle below its 8 EMA. Momentum remains upward. Volumetric buying pressure is at 87.4%. The index is in a monthly Squeeze.

On its weekly chart, the index closed with a spinning top doji candle on its 3 EMA.

S&P 500 rallied upward during Janet Yellen’s speech and hovered for another hour before plunging. It reached its low of the day by mid-afternoon and pulled back and closed with a spinning top doji candle below its 21 EMA. Momentum has reversed downward. Volumetric buying pressure is at 86.5%. The index is still in a daily and monthly Squeeze.

On its weekly chart, the index closed with a bearish candle above its 8 EMA.

Metals and Commodities
Gold futures closed at $1324.0 and formed a low closing doji candle below its 50 SMA. Momentum remains downward.

Silver futures closed at $18.720 and formed a inverted hammer candle below all its moving averages. Momentum remains downward.

Crude oil closed at $47.29 per barrel with a low closing doji candle above all its moving averages. Momentum remains upward.

Agriculture (DBA) ETF closed at 20.53 with a bearish rolling pin candle. It is in a Squeeze and momentum is downward.

Commodities (DBC) ETF closed at 14.87 with a big spinning top doji candle below its 8 EMA. Momentum remains upward.

Bonds
High Yield bond ETF (HYG) closed at 86.56 with a big doji candle on its 21 EMA. Momentum remains upward.

Bonds ETF (TLT) closed at 138.36 with a big bearish candle below its 50 SMA. It is in a daily Squeeze.

Currencies
The dollar index is at 95.495 with a big bullish candle below its 50 SMA and above its 8 EMA. Momentum is neutral.

EUR/USD closed at 1.11954 with a big bearish candle below its 21 EMA. Momentum is neutral.

USD/JPY closed at 101.809 with a big bullish candle above its 21 EMA. Momentum remains downward.

Relative Strength – Sectors
On a monthly lookback, the ETFs outperforming the S&P 500 are XLE, XLF, XLI, XLK, XLB and XLY respectively.

On a 3-month lookback, the relative strength order are XLK, XLF, XLI, XLB and XLY are outperforming the S&P 500.

Market Internals
Vix closed at 13.65. Vix futures is at 15.125. Skew is at 132.40. Market sentiment remains bullish. Market breadth continues to deteriorate. Volumetric accumulation/distribution is sloping downward.

The Week Ahead
Market internals continue to deteriorate and our prognosis is for the market to pull back going into September.

Stock of the Day
ADBE remains our pick of the day. It is a software company in digital media, marketing and print and publishing.

 

To YOUR wealth!

25 August 2016 – Market waiting for Yellen

The biotech sector continues to be a drag on the indices as politicians hone in on alleged price gouging in the sector. This is an election year and the market has taken notice of the politicians. Meanwhile, the FED members meet at Jackson Hole, Wyoming and the outcome will be known on Friday. There were no other catalysts to move the market. Volume remains thin as earnings season and summer wind down.

Dow Transportation grinded upward till mid-morning and then sold off. It traded downward for the rest of the day and closed with a bearish marubozu candle on its 21 EMA. Daily momentum remains upward. Daily volumetric buying pressure is at 60.6%. The index is in a weekly Squeeze.

Dow Industrial grinded upward in a scrappy trading for the first 2 hours after market open. Sellers came in and it traded downward for the rest of the day and closed with a small spinning top doji candle below its 21 EMA. Momentum has reversed downward. Short term volumetric buying pressure is at 80.8%. The index is in a monthly Squeeze.

Russell 2000 surged upward in the first 2 hours after market open. It pulled back slightly and range traded for the rest of the day and closed above its 8 EMA with a spinning top doji candle. Momentum remains upward. Volumetric buying pressure is at 90.8%.

Nasdaq 100 traded upward in the first 2 hours after market open in scrappy trading. It pulled back by the end of the day and closed with a small low closing doji candle on its 21 EMA. Momentum remains upward. Volumetric buying pressure is at 91.4%. The index is in a monthly Squeeze.

S&P 500 traded upward in the first 2 hours in scrappy trading. It suffered a slow pullback till the end of the day and closed with a low closing doji candle on its 21 EMA. Momentum remains upward. Volumetric buying pressure is at 99.8%. The index is still in a daily and monthly Squeeze.

Metals and Commodities
Gold futures traded at $1325.9 and formed a small doji candle below its 50 SMA. Momentum remains downward.

Silver futures traded sideways at $18.555 and formed a small doji candle below its 3 EMA. Momentum remains downward.

Crude oil gained for the day and is trading above its 8 EMA at $47.28 per barrel. Momentum remains upward.

Agriculture (DBA) ETF closed at 20.66 and momentum is downward. Commodities (DBC) ETF closed at 14.92 on its 8 EMA.

Bonds
High Yield bond ETF (HYG) made gain and closed above its 8 EMA at 86.66. The uptrend remains.

Bonds ETF (TLT) closed sideways at 139.17. It is in a daily Squeeze.

Currencies
The dollar index is at 94.640 below its 8 EMA. Momentum remains downward.

EUR/USD traded sideways at 1.12898 and remains above its 8 EMA. Momentum remains upward.

USD/JPY is at 100.472 at its 8 EMA in a downward momentum.

Relative Strength – Sectors
On a monthly lookback, the ETFs outperforming the S&P 500 are XLE, XLF, XLI, XLK, XLU, XLB and XLY respectively.

On a 3-month lookback, the relative strength order are XLK, XLF, XLI, XLB and XLY are outperforming the S&P 500.

Market Internals
Vix closed higher at 13.63. Vix futures is at 15.05. Skew is at 131.06. Market sentiment is bullish. Market breadth continues to deteriorate. Volumetric accumulation/distribution has flattened.

The Week Ahead
The market internals are telling us that there are downward selling pressure on this market as the market breadth continues to deteriorate. Many market participants remains bullish on the market. The prognosis is that the bulls and bears continue to tussle and the outcome of the FED meeting on rate increase will be the determinant on the short term market direction.

Stock of the Day
KTOS remains our pick of the day. It is in the technology sector focusing on defense.

 

To YOUR wealth!

24 August 2016 – Fear of rate hike by FED

The indices pulled back on fear of rate hike by the FED which could be imminent by Friday. Nasdaq 100 suffered one of the bigger pullbacks led by biotech/pharma as price gauging caught the attention of a few senators.

Gold plunged more than 1% today and is trading at 1327.3 per ounce below its 50 SMA.

Crude lost more than 2% and is trading at 46.67 per barrel on its 8 EMA.

Bonds were little changed and trading sideways at 139.7.

Dow Transportation formed a intraday rounded top as it traded upward till midday. It traded down in the afternoon session and broke support and closed with a doji candle on its 3 EMA. Daily momentum remains upward. Daily volumetric buying pressure is at 73.9%. The index is in a weekly Squeeze.

Dow Industrial traded down till mid-morning and bounced upward till midday. It sold off in the afternoon session and closed with a bearish marubozu candle on its 21 EMA. Momentum remains upward. Short term volumetric buying pressure is at 76.9%. The index is in a monthly Squeeze.

Russell 2000 range traded till midday and then had a big sell-off. It closed with a bearish marubozu candle on its 8 EMA. Momentum remains upward. Volumetric buying pressure is at 77.3%.

Nasdaq 100 had a slow sell-off till after midday when it plunged. It closed with a bearish rolling pin candle above its 21 EMA. Momentum remains upward. Volumetric buying pressure is at 88.9%. The index is in a monthly Squeeze.

S&P 500 traded down on market open and had a slight bounced till midday. It plunged on big sell-off and closed with a bearish rolling pin candle on its 21 EMA. Momentum remains upward. Volumetric buying pressure is at 92.5%. The index is still in a daily and monthly Squeeze.

Metals and Commodities
Gold plunged more than 1% today and is trading at $1327.3 per ounce and closed with a big bearish marubozu candle below its 50 SMA. Silver continues its downtrend and closed with a bearish marubozu candle. Momentum for gold and silver have now shifted downward.

Crude lost more than 2% and is trading at 46.67 per barrel on its 8 EMA.

Bonds were little changed and trading sideways at 139.7.

Agriculture (DBA) ETF closed at 20.74 and momentum is neutral. Commodities (DBC) ETF formed a trend reversal candle and closed at 14.86.

Bonds
High Yield bond ETF (HYG) pulled back to its 8 EMA and closed at 86.50.

Bonds ETF (TLT) closed sideways at 139.70. It is in a daily Squeeze.

Currencies
The dollar index continued its downward trend and is at 94.690 on its 8 EMA. EUR/USD pulled back to below its 8 EMA is trading at 1.1270. USD/JPY is in a downward trend and is trading at 100.46.

Relative Strength – Sectors
On a monthly lookback, the ETFs outperforming the S&P 500 are XLE, XLF, XLI, XLU, XLK, XLY, XLB and XLP respectively.

On a 3-month lookback, the relative strength order are XLK, XLF, XLI, XLB and XLY are outperforming the S&P 500.

Market Internals
Vix closed higher at 13.45. Vix futures surged to 15.20. Skew is at 130.43. Market sentiment has a bearish bias now. Market breadth has flattened. Volumetric accumulation/distribution has flattened.

The Week Ahead
The Vix futures is pricing in potential volatility. Market breadth continues to deteriorate. Market is now taking notice of the potential rate hike announcement on Friday by the FED. The prognosis is to remain cautious in this market.

Stock of the Day
KTOS is our pick of the day. We recommended this company before. It is in the technology sector focusing on defense.

 

To YOUR wealth!

23 August 2016 – Breakout to new highs

The Nasdaq and S&P 500 broke out to new all time high while the Russell 2000 made new 2016 high and the bears were selling into the new highs. The market was boosted by housing data showing New Home Sales came in at best levels in 8 years.

Oil was volatile but is still trading at about 47.66 per barrel. Gold is still sideways while Silver broke support.

Bond has been range trading for a the last 7 weeks.

The dollar index is sideways in a bearish trend.

Dow Transportation traded upward in the first half hour before selling off and closed with a low closing doji above all its moving averages. Daily momentum remains upward. Daily volumetric buying pressure is at 80.5%. The index is in a weekly Squeeze.

Dow Industrial had a small gap up on market open and traded downward for the rest of the day. It closed with a low closing doji candle on its 8 EMA. Momentum remains upward. Short term volumetric buying pressure is at 86%. The index is in a monthly Squeeze.

Russell 2000 had a small gap up on market open and traded upward in the first hour after market open. It then range traded for the rest of the day and made new 2016 high of 1251.33 before closing with a bullish marubozu candle. Momentum remains upward. Volumetric buying pressure is at 100%.

Nasdaq 100 gapped up on market open and traded upward and made new all time high of 4836.45 in the first half hour before selling off. It traded downward for the rest of the day and closed with a small bearish marubozu candle above all its moving averages. Momentum remains upward. Volumetric buying pressure is at 97.1%. The index is in a monthly Squeeze.

S&P 500 gapped up on market open and traded upward and made a new all-time high of 2193.42. It then traded down for the rest of the day and closed with a small low closing doji candle above all its moving averages. Momentum remains upward. Volumetric buying pressure is at 100%. The index is still in a daily and monthly Squeeze.

Metals and Commodities
Oil (/CL) futures swung wildly and ended up with a long doji candle and is trading at $47.63 per barrel. Gold (/GC) futures is trading sideways at about 1342.70 per ounce. Silver (/SI) futures broke support and is trading at 18.945 per ounce. It is now in a downtrend.

Agriculture (DBA) ETF closed at 20.99 and momentum has shifted upward. Commodities (DBC) ETF formed a bullish engulfing candle and closed at 15.04.

Bonds
High Yield bond ETF (HYG) pulled back and closed at 86.74.

Bonds ETF (TLT) closed higher at 140.03. It is in a daily Squeeze.

Currencies
The dollar index continued its downward trend and is at 94.585. EUR/USD pulled back is trading at 1.13022. USD/JPY is in a downward trend and is trading at 100.425.

Relative Strength – Sectors
On a monthly lookback, the ETFs outperforming the S&P 500 are XLE, XLK, XLI, XLF, XLB, XLU and XLY respectively.

On a 3-month lookback, the relative strength order are XLK, XLF, XLI, XLB and XLY are outperforming the S&P 500.

Market Internals
Vix closed higher at 12.38. Vix futures is at 14.70. Skew is at 131.79. Market sentiment is slightly bullish. Market breadth continues to deteriorate and is sloping downward. Volumetric accumulation/distribution is sloping upward.

The Week Ahead
The Vix remains low below 13. Market breadth continues to deteriorate but volumetric accumulation continues gain. The prognosis remains the same and caution is needed in the curent market.

Stock of the Day
TROX is our pick of the day. Trox is engaged in the production and marketing of titanium bering mineral sands and titanium dioxide pigment.

 

To YOUR wealth!

22 August 2016 – The Great Tussle

It was another day of tussle between bulls and bears with each taking turns to counter attack the other throughout the day. The indices closed with dojis signalling indecisions ahead of the FED at Jackson Hole symposium which seems to indicate a likelihood of a rate hike. Meanwhile, the trading ranges continue to narrow which will end with a big move in either direction.

Oil came down and is trading below $48 per barrel. Gold and Silver is trading sideways.

Bond is in sideways action as well and the uptrend is still intact.

The dollar index continue to trend down and the EUR/USD continue to trend upward while the USD/JPY continue to trend downward.

Dow Transportation range traded throughout the day in narrow ranges and closed with a small doji candle above all its moving averages. Daily momentum is upward. Daily volumetric buying pressure is at 100.0%. The index is in a weekly Squeeze.

Dow Industrial had a small gap down on market open and managed to rally upward. It range traded throughout the day and closed with a small doji candle above its 21 EMA. Momentum remains upward. Short term volumetric buying pressure is at 100%. The index is in a monthly Squeeze.

Russell 2000 had a slow open before surging upward in the first hour after market open. It encounted a sharp sell-off before recovering and grinding upward for the rest of the day to close with a small bullish candle above all its moving averages. Momentum remains upward. Volumetric buying pressure is at 100%.

Nasdaq 100 had a quiet open before surging upward that was quickly sold into. It range traded into a wedge pattern and closed with a small doji candle above all its moving averages. Momentum remains upward. Volumetric buying pressure is at 100%. The index is in a monthly Squeeze.

S&P 500 had a rising wedge trading pattern as every rally was sold into and every sell-off was bought. It closed with a doji candle on its 21 EMA. The sideways action is about 2 weeks long. Momentum remains upward. Volumetric buying pressure is at 100%. The index is still in a daily and monthly Squeeze.

Metals and Commodities
Oil (/CL) futures pulled back to below $48 per barrel. Gold (/GC) futures is trading sideways at about 1342.80 per ounce. Silver (/SI) futures is trading at 18.950 per ounce.

Agriculture (DBA) ETF closed at 20.97 and momentum has shifted upward. Commodities (DBC) ETF pulled back and closed at 14.98.

Bonds
High Yield bond ETF (HYG) pulled back and closed at 86.45.

Bonds ETF (TLT) closed higher at 139.88. It is in a daily Squeeze.

Currencies
The dollar index continued its downward trend and is at 94.480. EUR/USD pulled back is trading at 1.13250. USD/JPY is in a downward trend and is trading at 100.286.

Relative Strength – Sectors
On a monthly lookback, the ETFs outperforming the S&P 500 are XLE, XLK, XLI, XLF, XLU, XLB and XLP respectively.

On a 3-month lookback, the relative strength order are XLK, XLF, XLI, XLB and XLY are outperforming the S&P 500.

Market Internals
Vix closed higher at 12.27. Vix futures is at 14.80. Skew is at 135.20. Market sentiment remains bullish. Market breadth continues to deteriorate and is sloping downward. Volumetric accumulation/distribution is sloping upward.

The Week Ahead
The Vix had a slight gain and Vix futures remain below 15. There is still no fear in the market. Market breadth continues to deteriorate but volumetric accumulation continues. The prognosis is to take a more cautious approach to the market.

Stock of the Day
TROX is our pick of the day. Trox is engaged in the production and marketing of titanium bering mineral sands and titanium dioxide pigment.

 

To YOUR wealth!

19 August 2016 – Week ended in indecision

The market started the week making new all-time highs in the S&P 500 and Nasdaq 100 and new 2016 high in the Russell 2000. It ended the week undecided with the bears and bulls in a tussle.

Oil continued its uptrend and closed the week at $49.12 per barrel. Gold has been trading sideways and closed indecisively for the week at 1345.80 per ounce. Silver traded down for the week and closed at 19.305 per ounce.

Bond lost its upward momentum and is trading sideways.

The dollar index closed down for the week and is in a downward momentum.

Dow Transportation had a positive week and is playing catch-up to the other indices. On the weekly chart, it closed with a bullish marubozu candle above all its moving averages. Weekly momentum is upward. Weekly volumetric buying pressure is at 100.0%. The index is in a weekly Squeeze.

Dow Industrial started the week with a new all time high of 18668.44 and ended the week with a weekly doji candle. Weekly momentum remains upward. Weekly volumetric buying pressure is at 100%. The index is in a monthly Squeeze.

Russell 2000 started the week by making a 2016 high of 1243.83 and closed the week with a spinning top doji candle above all its moving averages. Weekly momentum remains upward. Weekly volumetric buying pressure is at 100%.

Nasdaq 100 started the week by making an all time high of 4837.67 and closed the week with a small doji candle. Weekly momentum remains upward. Weekly volumetric buying pressure is at 100%. The index is in a monthly Squeeze.

S&P 500 started the week by making an all time high of 2193.81. It closed with a small doji candle on its weekly chart above all its moving averages. Weekly momentum remains upward. Weekly volumetric buying pressure is at 100%. The index is still in a daily and monthly Squeeze.

Metals and Commodities
Oil (/CL) futures continue to soar higher and closed at 49.12 per barrel. It closed with a bullish marubozu candle on its weekly chart, above all its above all its moving averages.

Gold (/GC) futures has been trading sideways at 1345.80 per ounce. It closed with a low closing doji candle above all its moving averages.

Silver (/SI) futures closed at 19.305 per ounce. It is in a small downtrend on its weekly chart and also in a Squeeze.

Agriculture (DBA) ETF closed at 20.86 and in a sideway market. Commodities (DBC) ETF continues its upward momentum and closed higher at 15.12.

Bonds
High Yield bond ETF (HYG) closed with a doji candle on its weekly chart at 86.59. It continues it uptrend.

Bonds ETF (TLT) closed at 138.71 with a small spinning top doji candle in a sideway momentum. It is in a daily Squeeze.

Currencies
The dollar index closed at 94.495 with a bearish marubozu candle on its weekly chart. It is in a weekly Squeeze.
EUR/USD is in an uptrend and closed with a bullish marubozu candle above all its moving averages at 1.13244.

USD/JPY continued is downtrend and closed at 100.19 with a small bearish marubozu candle.

Relative Strength – Sectors
On a monthly lookback, the ETFs outperforming the S&P 500 are XLE, XLK, XLI, XLF, XLU, XLB and XLY respectively.

On a 3-month lookback, the relative strength order are XLK, XLF, XLI, XLB, XLY and XLE are outperforming the S&P 500.

Market Internals
Vix closed at 11.34. Vix futures closed at 14.675. Skew is at 136.58. Market sentiment remains bullish. Market breadth continues to slope downward. Volumetric accumulation/distribution is sloping upward.

The Week Ahead
The Vix and Vix futures is telling us that market participants are not fearful of any serious downtrend. Market breadth continues to deteriorate. The market still has a bullish bias but market breadth is showing deterioration and hence caution is required. The prognosis is that the market bias remains upward but caution is required if the market breadth continues to deteriorate.

Stock of the Day
AMBR is the stock pick for the day. It is a provider of Cloud-based global trade management solutions.

 

To YOUR wealth!

18 August 2016 – A sideway market?

The major indices were trading within a small range bound market with the exception of the Dow Transportation. Money rotated into the Transportation sector and it had a big positive day. The market does not know what to do since the FED news that there might be a rate rise in September.

Oil continues to soar and is above $48 per barrel. Gold and Silver continues to trade sideways. Bond is trading sideways as well and is in a Squeeze. The dollar index continues to trend downwards.

Dow Transportation traded upward on market open and continued till steadily upward till the end of the day. It closed with a bullish marubozu candle above all its moving averages. Daily momentum is upward. Daily volumetric buying pressure is at 100.0%. The index is in a weekly Squeeze.

Dow Industrial traded upward on market open till mid-morning and then sold off till midday. It recovered and traded upward till the end of the day and closed with a small bullish hammer candle above all its moving averages. Momentum remains upward. Short term volumetric buying pressure is at 98.3%. The index is in a monthly Squeeze.

Russell 2000 surged upward on market open and pulled back at mid-morning. It rallied upward till the end of the day and closed with a bullish marubozu candle above all its moving averages. Momentum remains upward. Volumetric buying pressure is at 99.3%.

Nasdaq 100 traded upward till mid-morning and pulled back to its open before rallying upward. It closed with a small bullish candle above all its moving averages. Momentum remains upward. Volumetric buying pressure is at 99.6%. The index is in a monthly Squeeze.

S&P 500 traded upward till mid-morning and then pulled back to its open. It found support and then rallied upward till the end of the day and closed with a bullish marubozu candle. Momentum remains upward. Volumetric buying pressure is at 99.4%. The index is still in a daily and monthly Squeeze.

Metals and Commodities
Oil (/CL) futures continue to soar higher and is now trading at $48.78 per barrel above its 50 SMA. Gold (/GC) futures has been trading sideways at 1350.3 per ounce. Silver (/SI) futures is trading at 19.455 per ounce. It is in a Squeeze.

Agriculture (DBA) ETF closed at 20.94 and momentum has shifted upward. Commodities (DBC) ETF continues its upward momentum and closed higher at 15.17.

Bonds
High Yield bond ETF (HYG) continued its uptrend and closed at 86.85.

Bonds ETF (TLT) closed at 139.44 and is trading sideways. It is in a daily Squeeze.

Currencies
The dollar index continued its downward momentum and is at 94.395. EUR/USD is in an upward momentum and is trading at 1.13250. USD/JPY is in a downward momentum and is trading at 100.199.

Relative Strength – Sectors
On a monthly lookback, the ETFs outperforming the S&P 500 are XLE, XLU, XLK, XLI, XLF, XLB and XLP respectively.

On a 3-month lookback, the relative strength order are XLK, XLF, XLI, XLE and XLB are outperforming the S&P 500.

Market Internals
Vix closed at 11.96. Vix futures is at 14.85. Skew is at 134.87. Market sentiment remains bullish. Market breadth is sloping downward. Volumetric accumulation/distribution has flattened.

The Week Ahead
The Vix and Vix futures are telling us that there is no fear in the market. Market internal is weakening slightly. The prognosis is that caution is required for now.

Stock of the Day
EXEL is our pick of the day. Exelixis is a pharceutical company and is engaged in developing small molecule therapies for the treatment of cancer. It has attracted steady buying.

 

To YOUR wealth!

17 August 2016 – FED uncertainties, market recovers

The major indices recovered from early sell-off after the FED minutes were released. Oil ended above $47 per barrel, the dollar index was lower and bond spiked upward. Gold and Silver are still in a sideway momentum and show no sign of breaking out of its trading ranges.

The FED is still undecided on rate hikes and that sent the market upward.

Dow Transportation was sold down till late morning before recovering. It rallied upward till the end of the day and closed with a bullish marubozu candle. Daily momentum is upward. Daily volumetric buying pressure is at 70.3%. The index is in a weekly Squeeze.

Dow Industrial traded down till late morning before surging upward till the end of the day. It closed with a bullish hammer candle above its 8 EMA. Momentum remains upward. Short term volumetric buying pressure is at 99.9%. The index is in a monthly Squeeze.

Russell 2000 traded downward on till late morning before reversing upward. It grinded upward with spurts of selling and closed with a hammer candle just below its 8 EMA. Momentum remains upward. Volumetric buying pressure is at 86.1%.

Nasdaq 100 traded downward till late morning before rallying upward. It surged upward and closed with a bullish hammer candle above its 8 EMA. Momentum remains upward. Volumetric buying pressure is at 100%. The index is in a monthly Squeeze.

S&P 500 traded downward till late morning before reversing and surging upward. It closed with a bullish hammer candle above its 8 EMA. Momentum remains upward. Volumetric buying pressure is at 99.9%. The index is still in a daily and monthly Squeeze.

Metals and Commodities
Oil (/CL) futures continue to soar higher and is now trading at $47.63 per barrel above its 50 SMA. Gold (/GC) futures has been trading sideways at 1353.9 per ounce. Silver (/SI) futures is trading at 19.690 per ounce. It is in a Squeeze.

Agriculture (DBA) ETF closed at 20.80 and momentum remains downward. Commodities (DBC) ETF continues its upward momentum and closed higher at 14.98 above its 50 SMA. Momentum is upward.

Bonds
High Yield bond ETF (HYG) closed higher at 86.51 and continue its uptrend.

Bonds ETF (TLT) closed higher at 139.22. It is in a daily Squeeze.

Currencies
The dollar index continues its downward momentum and is at 94.695. EUR/USD is in an upward momentum and is trading at 1.12865. USD/JPY is in a downward momentum and is trading at 100.262.

Relative Strength – Sectors
On a monthly lookback, the ETFs outperforming the S&P 500 are XLE, XLK, XLF, XLI, XLU and XLY respectively.

On a 3-month lookback, the relative strength order are XLK, XLF, XLI, XLB and XLY are outperforming the S&P 500.

Market Internals
Vix closed at 12.19. Vix futures is at 14.85. Skew is at 136.71. Market sentiment remains bullish. Market breadth has flattened. Volumetric accumulation/distribution is sloping upward.

The Week Ahead
The Vix and Vix futures are back down again and market internals remains strong. The prognosis is for the market to continue its uptrend.

Stock of the Day
BABA is our pick of the day. AliBaba is engaged in online and mobile commerce in China and has formed an inverted head and shoulder pattern.

 

To YOUR wealth!

16 August 2016 – Oil soars

Oil continues to soar and is trading above $46 per barrel and the dollar index is in a bearish momentum. The indices had a small pullback after a day of new highs. The change in sentiment has been attributed to a FED official which raised the possibility of a rate hike in September. Gold and Silver continue to trade sideways for the last 3 weeks and bond is in the same sideway momentum. Stock buybacks have slowed and that means one of the catalysts for the current bull is slowly disappearing.

Dow Transportation closed higher for the day and intraday’s trading was noisy with no observable trend. Daily momentum is upward. Daily volumetric buying pressure is at 45%. The index is in a weekly Squeeze.

Dow Industrial closed lower for the day and intraday’s trading activities were directionaless. Momentum remains upward. Short term volumetric buying pressure is at 89.2%. The index is in a monthly Squeeze.

Russell 2000 gapped down on market open and came under selling pressure throughout the day. It closed with a bearish candle above its 8 EMA. Momentum remains upward. Volumetric buying pressure is at 80.2%.

Nasdaq 100 gapped down on market open and traded without any direction throughout the day. It closed with a bearish marubozu candle on its 8 EMA. Momentum remains upward. Volumetric buying pressure is at 93.2%. The index is in a monthly Squeeze.

S&P 500 gapped down on market open and range traded for most of the day. It sold off in the last half hour to close with a small bearish marubozu candle below its 8 EMA. Momentum remains upward. Volumetric buying pressure is at 90.4%. The index is still in a daily and monthly Squeeze.

Metals and Commodities
Oil (/CL) futures continue to soar higher and is now trading at $46.31 per barrel above its 50 SMA. Gold (/GC) futures has been trading sideways for the last couple of weeks and is trading at 1351.6 per ounce. Silver (/SI) futures is trading at 19.860 per ounce. It is in a Squeeze.

Agriculture (DBA) ETF closed at 20.88. Momentum remains downward. Commodities (DBC) ETF continues its upward momentum and closed higher at 14.92 above its 50 SMA. Momentum is upward.

Bonds
High Yield bond ETF (HYG) pulled back and closed on its 3 EMA at 86.39.

Bonds ETF (TLT) traded lower and closed at 138.39. It is in a daily Squeeze.

Currencies
The dollar index continues its downward momentum and is at 94.735. EUR/USD is in an upward momentum and is trading at 1.12864. USD/JPY is in a downward momentum and is trading at 100.482.

Relative Strength – Sectors
On a monthly lookback, the ETFs outperforming the S&P 500 are XLE, XLK, XLF, XLI, XLY and XLB respectively.

On a 3-month lookback, the relative strength order are XLK, XLF, XLI, XLY and XLB are outperforming the S&P 500.

Market Internals
Vix closed at 12.64. Vix futures is at 15.20. Skew is at 132.27. Market sentiment is bullish. Market breadth is sloping downward. Volumetric accumulation/distribution has flattened.

The Week Ahead
The Vix futures is pricing in risk going forward. The possibility of a rate hike has reappeared and the market has reacted with caution. Market breadth is deteriorating but volume accumulation is still strong. Some caution is required and the prognosis is that the market remains strong.

Stock of the Day
NPTN is our pick of the day. It develops, manufactures and markets optoelectronic products that transmit, receive and switch digital optical signals for communications networks.

 

To YOUR wealth!

15 August 2016 – Breakout into new highs!

The Dow Jones Industrial, S&P 500 and Nasdaq 100 posted new all-time high while the Russell 2000 achieved new 2016 high. The Dow Jones Transportation continues to lag behind the other indices. Market momentum remains to the upside. Oil futures had a big day and is now trading above $45 per barrel. Gold and Silver managed to hold on to their recent gains. The dollar index traded slightly down and treasury bonds traded slightly down.

Portfolio managers are chasing this market ever higher as the market pullbacks are rather shallow. There are no other news or known events that can derail this rather bullish market.

Dow Transportation gapped up on market open and continued rallying upward till midday. Some slow selling began in the afternoon session and it closed with a bullish inverted hammer candle. Momentum is upward. Daily volumetric buying pressure is at 35%. The index is in a weekly Squeeze.

Dow Industrial gapped up on market open and traded upward till midday. It achieved an all-time high of 18668.44 before range trading for the rest of the day and closed with a bullish marubozu candle in a doji sandwich pattern above all its moving averages. Momentum remains upward. Short term volumetric buying pressure is at 98.5%. The index is in a monthly Squeeze.

Russell 2000 gapped up on market open and continued trading upward for the rest of the day. It achieved a 2016 high of 1243.83 and went on to closd with a bullish marubozu candle above all its moving averages. Momentum remains upward. Volumetric buying pressure is at 100%.

Nasdaq 100 gapped up on market open and continued trading upward till early afternoon. It achieved an all-time high of 4837.67 before pulling back to close with a bullish marubozu candle above all its moving averages. Momentum remains upward. Volumetric buying pressure is at 100%. The index is in a monthly Squeeze.

S&P 500 gapped up on market open and continued trading upward till late afternoon. It achieved an all-time high of 2193.81. It closed for the day with a bullish marubozu candle above all its moving averages. Momentum remains upward. Volumetric buying pressure is at 99.6%. The index is still in a daily and monthly Squeeze.

Metals and Commodities
Oil (/CL) futures had a big day and is trading at $45.60 per barrel. Gold (/GC) futures traded down slightly at 1347.5 per ounce. Silver (/SI) futures traded slightly down at 19.875 per ounce. It is in a Squeeze.

Agriculture (DBA) ETF closed at 20.88. Momentum remains downward.

Commodities (DBC) ETF gapped up and closed higher at 14.80. Momentum has shifted upward.

Bonds
High Yield bond ETF (HYG) gapped up and closed with a spinning top doji candle above all its moving averages at 86.62.

Bonds ETF (TLT) traded lower and closed at 138.76. It is in a daily Squeeze.

Currencies
The dollar index is in a downward momentum and is at 95.595. EUR/USD is in an upward momentum and is trading at 1.11795. USD/JPY is in a downward momentum and is trading at 101.149.

Relative Strength – Sectors
On a monthly lookback, the ETFs outperforming the S&P 500 are XLE, XLK, XLI, XLF and XLY respectively.

On a 3-month lookback, the relative strength order are XLK, XLF, XLI, XLY, XLB and XLV are outperforming the S&P 500.

Market Internals
Vix closed at 11.81. Vix futures is at 12.25. Skew is at 134.45. Market sentiment is rather bullish. Market breadth is sloping downward. Volumetric accumulation/distribution is sloping upward.

The Week Ahead
With the Vix below 12 and the Vix futures below 13, market participants are not pricing in any potential negative events. Market internals remain strong but market breadth is not participating in this bullish move and hence caution is required. The S&P 500 still has its daily and monthly Squeeze and we should be looking for more upside. The prognosis is this market has more legs to run upward.

Stock of the Day
AXAS is our pick of the day. It is an independent energy company engaged in the acquisition, exploration, development and production of oil and gas.

 

To YOUR wealth!