30 September 2016 – Market shakes off Deutsche Bank

It was doom and gloom yesterday amidst the fear of a contagion in the financial sector with Deutsche Bank problems. DB shares jumped nearly 15% today after the facts were better known. The market realised that it was a $5.4B problem and not a $20B problem that DB had on its hand. The market chewed up the news, dismissed it and stocks rallied.

Dow Transportation rallied on market open and throughout the day. It closed with bullish marubozu candle above its moving averages. Momentum remains upward. Volumetric buying pressure is at 85.8%.

On the weekly chart, it closed with a bullish marubozu candle above its 8 EMA, 21 EMA and 50 SMA. The weekly candles are on the verge of a breakout to the upside.

The index is in its weekly and monthly Squeeze.

Dow Industrial traded upward throughout the day and closed with a bullish harami candle pattern above its 21 EMA but below its 50 SMA. Momentum remains downward. Short term volumetric buying pressure is at 89.6%. The index is in a monthly Squeeze.

On its weekly chart, it closed with a spinning top doji candle on its 8 EMA and above its 21 EMA. Weekly momentum remains upward.

Russell 2000 traded upward on market open and throughout the day and closed with a bullish rolling pin candle above its moving averages. Momentum is upward. Volumetric buying pressure is at 100%.

On the weekly chart, it closed with a high closing doji candle above its moving averages. Momentum is upward.

Nasdaq 100 pulled back in the first hour after market open before surging upward. It traded upward till the end of the day and closed with a small bullish candle above its moving averages. Momentum is upward. Volumetric buying pressure is at 100%. The index is in a monthly Squeeze.

On its weekly chart, it closed with a bullish candle above all its moving averages.

S&P 500 range traded in the first hour after market open before surging upward. It continued trading upward for the rest of the day and closed with a bullish marubozu candle on its 50 SMA. Momentum is neutral but with a bullish bias. Volumetric buying pressure is at 99.9%.

On its weekly chart, it closed with a high closing spinning top doji candle above its moving averages.

The index is still in a monthly Squeeze.

Metals and Commodities
On the weekly chart, WTI Crude oil futures closed at $48.05 with a bullish candle above its 21 EMA and 50 SMA. Momentum is upward.

On the weekly chart, Gold futures closed at $1318.8 per ounce with a bearish candle below its 8 EMA but above its 21 EMA. Momentum remains upward.

On the weekly chart, Silver futures closed at $19.245 per ounce with a bearish candle on its 8 EMA and 200 SMA. Momentum remains upward.

On the weekly chart, agriculture (DBA) ETF closed at 19.98 with a bearish marubozu candle below its 8 EMA and 21 EMA. Momentum remains downward.

On the weekly chart, commodities (DBC) ETF closed at 15.01 with a small bullish candle above its 21 EMA and 50 SMA. Momentum is bullish.

Bonds
On the weekly chart, High Yield bond ETF (HYG) closed at $87.26 with a bullish candle above its 21 EMA. Momentum is upward.

On the weekly chart, Bonds ETF (TLT) closed at 137.51 with an inverted hammer candle on its 8 EMA and above its 21 EMA. Momentum remains upward.

Currencies
On the weekly chart, the dollar index closed at 95.390 with a small doji candle. The 8 EMA and 21 EMA have converged and a Squeeze has formed. Momentum is sideways.

On the weekly chart, EUR/USD closed at 1.12446 with a doji candle. The 8 EMA and 21 EMA have converged. It is in a Squeeze. Momentum is sideways.

On the weekly chart, USD/JPY closed at 101.291 with a doji candle below its 8 EMA and 21 EMA. Momentum remains downward.

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

On a 3-monthly lookback, the relative strength order of the ETFs that are outperforming the S&P 500 are XLK, XLE, XLF, XLB and XLI respectively.

Market Internals
Vix closed at 13.29. Vix futures is at 15.44. Skew is at 124.58. Market sentiment is bullish. Market breadth is sloping upward. Volumetric accumulation/distribution is sloping upward showing nett accumulation.

The Week Ahead
The market has been rather volatile and will continue to be so as we are within six weeks of the presidential election. This is now a news-driven market. The prognosis is for more volatility and whipsaw action in stocks.

Stock of the Day
The Stock of the Day is TROX. Tronox is engaged in the production and marketing of titanium bearing mineral sands and titanium dioxide pigment.

To YOUR wealth!