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30 November 2016 – Oil surged on production cuts

The S&P 500 and Dow Jones Industrials traded to new all time high and the energy and financial sectors gained as news of a 1.2M barrel per day production cut by OPEC. On the economic front, we have the non-farm payroll data on Friday. Stronger economic data as the private payroll ADP came in well ahead of consensus and personal income data increased. The Nasdaq 100 underperformed as funds are rotated out of technology into financial and energy sectors.

Dow Transportation shot upward on market open and reached its high of the day. It range traded near its high till the end of the day and closed with a bullish marubozu candle at 8981.65 above its moving averages. Momentum remains upward. Volumetric buying pressure is at 90.6%. The index is in a monthly Squeeze.

Dow Industrial shot upward on market open and gradually sold down throughout the day. It closed with an inverted hammer candle at 19123.58 above all its moving averages. Momentum remains upward. Short term volumetric buying pressure is at 96.8%. The index is still in a monthly Squeeze.

Russell 2000 was volatile in the first hour of trading before selling off throughout the day. It closed with an inverted hammer candle on its 8 EMA. Momentum is upward. Volumetric buying pressure is at 85%.

Nasdaq 100 was volatile in the first hour after market open and then sold down throughout the day. It closed with an inverted hammer candle on its 8 EMA. Momentum is upward. Volumetric buying pressure is at 85.2%. The index is in a weekly and monthly Squeeze.

S&P 500 shot upward on market open and then sold down throughout the day. It closed with a bearish inverted hammer candle on its 8 EMA. Momentum is upward. Volumetric buying pressure is at 78.8%. The index is in a monthly Squeeze.

Metals and Commodities
WTI Crude oil futures painted a big bullish marubozu candle as it made huge gains due to the news of oil production cuts by OPEC. It is trading at $49.39 per barrel.

Gold futures continued its downtrend and is trading at $1168.7 per ounce.

Silver futures continued its downtrend and is trading at $16.405 per ounce.

Agriculture (DBA) ETF traded down and closed with a bearish inverted hammer candle below its moving averages.

Commodities (DBC) ETF gapped up and closed with a bullish marubozu candle at 15.21.

Bonds
Bond futures (ZB) continued its downtrend and is trading at 150’28.

High Yield bond ETF (HYG) continued its sideways trading and closed with a small doji candle at 85.65.

Bonds ETF (TLT) gapped down and traded indecisively and closed with a doji candle at 120.24 below its moving averages. Momentum is downward.

Currencies
The dollar index made gains and is at 101.605. It has been sideways in the last two weeks.

EUR/USD traded down in its continuing downtrend and is at 1.05910.

USD/JPY painted a big daily marubozu candle above all its moving averages in its continuing uptrend. It is trading at 114.502.

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

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

Market Internals
Vix closed at 13.33. Vix futures is at 14.45. Skew is at 126.39. Market sentiment remains bullish. Market breadth is sloping upward. Volumetric accumulation/distribution is sloping downward.

The Week Ahead
The market internals are not showing as much strength. The prognosis is for more selling pressure and we could see more sideways 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.
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