Bursa KLCI

25 November 2016 – Thanksgiving market


We had a short week due to the Thanksgiving holidays and Friday was a shortened week. The indices had been making all time highs. The Dow Jones Industrial, Russell 2000, Nasdaq 100 and S&P 500 continued on their journey of all-time highs.

WTI sold down on Friday and closed just below $46 per barrel. High yield bond had a slightly positive day and is now back in the uptrend. The dollar index closed slightly lower in a steep uptrend.

Indices (Weekly chart)
Dow Transportation It closed with a bullish marubozu candle above its moving averages in a steep uptrend. The index is in a monthly Squeeze.

Dow Industrial closed with a bullish marubozu candle in a steep uptrend. It formed a doji sandwich candle pattern and closed at an all time high of 19152.14. Momentum is upward. Short term volumetric buying pressure is at 100%. The index is in a monthly Squeeze.

Russell 2000 continued its sharp uptrend and closed with a bullish marubozu candle at 1347.2025 which is a historic all time high. Momentum is sharply upward. Volumetric buying pressure is at 100%.

Nasdaq 100 closed with a bullish candle at 4870.017. Momentum is upward. Volumetric buying pressure is at 100%. The index is in a weekly and monthly Squeeze.

S&P 500 closed with a bullish marubozu candle above all its moving averages. Momentum is sharply upward. Volumetric buying pressure is at 100%. It is in a weekly and monthly Squeeze.

Metals and Commodities (Weekly charts)
WTI Crude oil futures closed a bearish inverted hammer candle on its 21 EMA at 45.96.

Gold futures continued on its downtrend and closed with a bearish ‘rolling pin’ candle at 1186.10 below its moving averages.

Silver futures closed with a doji candle below its 50 SMA at 16.585.

Agriculture (DBA) ETF closed at 20.30 below its moving averages. It remains in a sideway trend and has entered a squeeze.

Commodities (DBC) ETF closed at 15.01 above 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 doji candle at 151’20. Momentum is downward.

High Yield bond ETF (HYG) closed at $85.73 with a small bullish marubozu candle as it bounced off on its 21 EMA.

Bonds ETF (TLT) closed at 120.82 with a bearish spinning top doji candle on its 200 SMA. Momentum is sharply downward.

Currencies (Weekly charts)
The dollar index closed at 101.490 with a doji candle above its moving averages.

EUR/USD closed at 1.05894 with a doji candle below its moving averages. Momentum is sharply downward.

USD/JPY closed at 113.163 with a bullish ‘rolling pin’ 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 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 and XLY respectively.

Market Internals
Vix closed at 12.34. Vix futures is at 14.325. Skew is at 126.27. Market sentiment is rather bullish. Market breadth is sloping upward. Volumetric accumulation/distribution is sloping upward.

The Week Ahead
Market internals tell us that this is a strong market where the indices are trending upward with positive volume. Market breadth is sloping upward and 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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