Bursa KLCI

29 November 2016 – Oil volatility continues

Stocks made small gains as Nasdaq Composite traded to new all-time intraday high. WTI oil futures lost nearly 4% and is trading below $46 per barrel amid skepticism of OPEC ability to curb or freeze production increase. GDP rose at its fastest pace in over two years in Q3 and confidence improved drastically from the prior period. The major indices remained at or near their all time highs heading into this Friday;s NFP report on Friday and the FOMC meeting in 2 weeks time. Financials continue to post gains and healthcare stocks were mixed.

Dow Transportation was volatile on market open and probed for the bottom of the day. It rallied upward in the first half hour till after midday before selling off to close with a small inverted hammer candle above its 8 EMA. Momentum remains upward. Volumetric buying pressure is at 89.1%. The index is in a monthly Squeeze.

Dow Industrial was volatile in the first half hour after market open before rallying upward. It pulled back slightly to close with a small bullish marubozu candle above all its moving averages. Momentum remains upward. Short term volumetric buying pressure is at 100%. The index is still in a monthly Squeeze.

Russell 2000 was volatile throughout the day and closed with a small doji candle above its 8 EMA. Momentum is upward. Volumetric buying pressure is at 88.8%.

Nasdaq 100 probed for the bottom in the first half hour after market open. It the surged upward and pulled back slightly near the end of the day to close with a spinning top doji candle above all its moving averages. Momentum is upward. Volumetric buying pressure is at 99.2%. The index is in a weekly and monthly Squeeze.

S&P 500 probed for its bottom before rallying upward till the latter part of the day. It pulled back at the end of the day to close with a spinning top doji candle above its 8 EMA. Momentum is upward. Volumetric buying pressure is at 92.8%. The index is in a monthly Squeeze.

Metals and Commodities
WTI Crude oil futures sold off and painted a big bearish candle. It is trading at $45.44 per barrel.

Gold futures is still trading sideways at $1194.30 per ounce.

Silver futures traded sideways and on its 8 EMA at $16.720 per ounce.

Agriculture (DBA) ETF closed with a big bearish marubozu candle below its 50 SMA and 21 EMA at 20.00.

Commodities (DBC) ETF gapped down and closed with a bearish candle below its 50 SMA and 21 EMA at 14.76.

Bonds
Bond futures (ZB) traded sideways and closed at 152’24.

High Yield bond ETF (HYG) traded sideways and closed above its 21 EMA at 85.61.

Bonds ETF (TLT) closed above its 8 EMA at 122.22. Momentum is downward.

Currencies
The dollar index pulled back and is sitting on its 8 EMA at about 101.105.

EUR/USD made gains and closed above its 8 EMA at 1.06355.

USD/JPY made gains and is still in an uptrend. It is trading above its 8 EMA at 112.50.

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 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, XLB, XLY, XLE and XLU respectively.

Market Internals
Vix closed at 12.90. Vix futures is at 14.35. Skew is at 128.31. Market sentiment remains bullish. Market breadth is flattening. Volumetric accumulation/distribution is sloping downward.

The Week Ahead
The market internals are weakening and for that reason, we could see a weakening of the market. The prognosis is for a sideway to a market pulling back.

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!

 

Would you like to learn to trade? Drop us an email at jefftohch@gmail.com or call +6010 4343 948.

 

Would you like to learn to trade? Drop us an email at jefftohch@gmail.com or call +6010 4343 948.

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