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18 November 2016 – Weekly Review: Bulls on the run post election


The indices continued its upward trend as the S&P 500 and Nasdaq 100 catches up to Dow Jones Industrial and Transportation and also the Russell 2000. WTI crude oil had a positive week as it found support on its 50 week moving average. Gold continued its sell-off. Dollar index continued its big move upward and has stayed above 100. This is a big breakout for the dollar index. US Treasury bond continued its big sell-off. Post election has created a new dynamics in the financial market.

Dow Transportation surged on market open and traded upward throughout the day. It closed with a bullish marubozu candle above its moving averages. Momentum remains upward. Volumetric buying pressure is at 100%.

On its weekly chart, it closed with a bullish candle above its moving averages. The index is in a monthly Squeeze.

Dow Industrial was volatile and probed for its high of the day before selling down by late morning. It range traded and closed with a small bearish candle on its 3 EMA. Momentum is upward. Short term volumetric buying pressure is at 100%. The index is in a monthly Squeeze.

On its weekly chart, it closed with a small doji candle above its moving averages.

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

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

Nasdaq 100 traded downward on market open till mid-morning and range traded for the rest of the day. It closed with a bearish candle below its 50 SMA but above the 8 EMA and 21 EMA. Momentum is upward. Volumetric buying pressure is at 81.7%. The index is in a monthly Squeeze.

On its weekly chart, it closed with a bullish candle above its moving averages. The moving averages are converging. Momentum remains upward.

S&P 500 was muted on market open for the first hour before trading downward till mid-morning. It range traded for the rest of the day and closed with a small bearish candle. Momentum is upward. Volumetric buying pressure is at 100%. It is in a weekly and monthly Squeeze.

On its weekly chart, it closed with a small bullish candle above its 21 EMA.

Metals and Commodities (Weekly charts)
WTI Crude oil futures closed a bullish candle on its 21 EMA at 46.32.

Gold futures continued its downtrend and closed with a bearish candle below its 50 SMA at $1207.30 per ounce.

Silver futures continued its downtrend and closed with a bearish candle below its 50 SMA at $16.540 per ounce.

Agriculture (DBA) ETF closed at 20.16 below its moving averages. It remains in a downtrend.

Commodities (DBC) ETF closed at 14.67 below its 21 EMA but above its 50 SMA. Momentum is sideways.

Bonds (Weekly charts)
Bond futures (/ZB) is in a sharp downtrend and closed with a bearish candle below its moving averages at 155’27. Momentum is downward.

High Yield bond ETF (HYG) closed at $84.63 with a bullish marubozu candle as it bounced off its 50 SMA.

Bonds ETF (TLT) closed at 120.85 with a bearish spinning top doji candle. Momentum is sharply downward.

Currencies (Weekly charts)
The dollar index closed at 101.425 with a big bullish marubozu candle above its moving averages.

EUR/USD closed at 1.05910 with a big bearish candle below its moving averages. Momentum is sharply downward.

USD/JPY closed at 110.941 with a huge bullish marubozu candle above its moving averages. Momentum is sharply upward.

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

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

Market Internals
Vix closed at 12.85. Vix futures is at 14.975. Skew is at 126.38. Market sentiment is about bullish. Market breadth is sloping upward. Volumetric accumulation/distribution has flattened.

The Week Ahead
It has been a rather bullish week for the indices and the Nasdaq 100 and the S&P 500 have played catch-up to the Russell 2000, Dow Industrial and Dow Transportation indices. Market internals continue to show strength. The prognosis is for consolidation in the indices.

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!

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