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28 November 2016 – Quiet day on Black Monday

It was a quiet day of trading on Black Monday after the Thanksgiving weekend. Stocks pulled back on profit taking after the indices had been achieving all-time highs. This has been achieved since the Presidential election three weeks ago. The sectors that have been leading the market up are the financials and the industrials. The under-performing sectors such as utilities made gains. Bonds and gold prices made gains as well.

Dow Transportation sold off on market open and reached its bottom of the day by late morning. It pulled back slightly till the end of the day and closed with a small bearish candle above all its moving averages at 8962.46. Momentum remains sharply upwards. Volumetric buying pressure is at 96.1%. The index is in a monthly Squeeze.

Dow Industrial was volatile throughout the day and closed with a small doji candle above all its moving averages at 19097.90. Momentum remains upward. Short term volumetric buying pressure is at 99.9%. The index is still in a monthly Squeeze.

Russell 2000 sold off on market open and continued trading downward throughout the day. It closed with a bearish marubozu candle above its 8 EMA at 1329.827. Momentum is upward and in a sharp uptrend. Volumetric buying pressure is at 94.2%.

Nasdaq 100 had a volatile day and traded within a range. It closed with a doji candle above its moving averages at 4857.0209. Momentum is upward. Volumetric buying pressure is at 98.1%. The index is in a weekly and monthly Squeeze.

S&P 500 range traded throughout the day and sold down in the last hour. It closed with a bearish candle above its 8 EMA at 2201.72. Momentum is upward. Volumetric buying pressure is at 91.7%. The index is in a monthly Squeeze.

Metals and Commodities
WTI Crude oil futures traded upward and closed with a bullish candle on its 21 EMA. It is trading at $46.96 per barrel.

Gold futures had a positive day and is trading below its 8EMA at $1194.80 per ounce.

Silver futures traded slightly upward and closed below its 8 EMA. It is trading at $16.710 per ounce.

Agriculture (DBA) ETF surged upward in the first hour of trading but was sold down immediately. It closed with an inverted hammer candle below its 50 SMA and 21 EMA.

Commodities (DBC) ETF surged upward in the first hour but was sold down. It closed with an inverted hammer candle above its moving averages at 15.06.

Bonds
Bond futures (ZB) had a positive day and closed at 152’12.

High Yield bond ETF (HYG) closed with a spinning top doji candle above its 21 EMA at 85.72.

Bonds ETF (TLT) was volatile throughout the day and closed with a small bullish candle. It closed on its 8 EMA at 121.71. Momentum is downward.

Currencies
The dollar index traded down and found support on its 8 EMA at about 100.815.

EUR/USD was volatile and painted a big doji candle below its 8 EMA at 1.05938.

USD/JPY pulled back from its sharp ascent and painted a bearish candle. It is trading above its 8 EMA at 112.112.

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

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

Market Internals
Vix closed at 13.15. Vix futures is at 14.45. Skew is at 125.75. Market sentiment remains bullish. Market breadth is sloping upward. Volumetric accumulation/distribution is sloping upward.

The Week Ahead
The market internals continue to show strength coming out of the Thanksgiving weekend. The prognosis is for continuing strength in the market.

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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