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6 December 2016 – All time high in Russell 2000

The Russell 2000 touched new all-time high at 1353.57 as it takes over leading the market higher. Dow Transportation made a new year high at 9144.62 and Dow Industrial and S&P 500 are within striking distance of new all time highs.

Dollar index made slight gain for the day and remain above 100. WTI crude oil futures pulled back but remain trading above $50 per barrel. Bond futures is still in its downtrend.

The FOMC meets next week and the market is expecting an interest rate hike. Economic data coming out today showed improved Durable Goods and Factory Orders and that should support the rate hike. The financials, transport and defensive sectors made gains for the day. Tech hasb been the laggard and semiconductors have been lagging the market managed to make slight gains.

US trade deficit jumped almost 18% in October 2016 as imports rose to the highest in 14 months. Factory Goods Orders rise 2.7% in October. IBD/TIPP Economic Optimism Index for December rose to 54.8 from 51.8 above estimate of 52.0. Economic outlook rose to 56.3 vs 52.2 last month while Personal finance rose to 59.8 vs 58.9 last month.

Dow Transportation probed for the bottom in the first two hours of trading. It rallied upward till the end of the day and made a yearly high at 9144.62 above all its moving averages. Momentum remains upward. Volumetric buying pressure is at 100%. The index is in a monthly Squeeze.

Dow Industrial probed for the bottom in the first hour of trading before rallying upward. It closed at 19251.78 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 probed for the bottom in the first hour of trading before rallying upward to reach new all time high of 1353.57. It closed with a bullish candle above all its moving averages. Momentum is upward. Volumetric buying pressure is at 95.2%.

Nasdaq 100 range traded throughout the day and closed at 4788.6714 with a small doji candle below its 8 EMA. Momentum is neutral. Volumetric buying pressure is at 82.4%. The index is in a weekly and monthly Squeeze.

S&P 500 probed for the bottom in the first hour of trading before rallying upward for the rest of the day. It closed with a bullish hammer candle at 2212.23 above all its moving averages. Momentum is upward. Volumetric buying pressure is at 94%. The index is in a monthly Squeeze.

Metals and Commodities
WTI Crude oil futures traded indecisively and closed with a doji candle. It is trading at $50.58 per barrel. It is trading above all its moving averages.

Gold futures continued its downtrend and is trading at $1171.5 per ounce.

Silver futures traded sideways and is trading at $16.775 per ounce.

Agriculture (DBA) ETF made slight gain and is trading at 19.91.

Commodities (DBC) ETF pulled back and is trading above its moving averages and closed at 15.61.

Bonds
Bond futures (ZB) traded downward and is trading at 150’10.

High Yield bond ETF (HYG) traded upward and closed at 86.03 above its 21 EMA and just below its 50 SMA.

Bonds ETF (TLT) traded sideways and closed at 119.38 below its moving averages. Momentum is downward.

Currencies
The dollar index made slight gain for the day and is at 100.540.

EUR/USD pulled back from yesterdays big gain and is trading at 1.07177.

USD/JPY made slight gain and is trading at 114.108 above its moving averages.

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 11.79. Vix futures is at 13.20. Skew is at 130.92. 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. The US economy continue to show strength and we are in a seasonally strong time of the year. The prognosis is for the market to trend higher.

Stock of the Day
The Stock of the Day is MITK. Mitek Systems, Inc. develops, markets and sells mobile capture and identity verification software solutions for enterprise customers.

 

To YOUR wealth!

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


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