The major indices have been on a major climb upward since Trump won the US Presidential election. With the exception of the Nasdaq 100, the Dow Transportation, Dow Industrial, Russell 2000 and S&P 500 all made all time high. The weekly charts of the indices look like a vertical cliff climb.
It was a week where the ECB announced its version of tapering starting from next year.
Biggest sector gainers this week in the S&P were financials (over 4%), followed by defensive names Real Estate (over 3%), Consumer Staples and Utilities, showing the market momentum is broad based.
Indices (Weekly chart)
Dow Transportation closed with a big bullish candle above its moving averages. It hit a new historic high of 9490.29. This is the fifth week it closed with a bullish candle in a sharp uptrend. Weekly volumetric buying pressure is at 100%. It is very bought on its weekly chart. The index has exited its monthly Squeeze.
Dow Industrial closed with big bullish marubozu candle above its moving averages. It hit a new historic high of 19757.74. This is the fifth week of uptrend. Weekly volumetric buying pressure is at 100%. It is overbought on its weekly chart. The index has exited its monthly Squeeze.
Russell 2000 closed with a huge bullish marubozu candle above its moving averages. It hit a new historic high of 1392.71. Momentum is sharply upward. Volumetric buying pressure is at 100%.
Nasdaq 100 has been the underperformer since the election. It closed with a bullish candle and has not broken out out of its trading range. Volumetric buying pressure is at 88.3%. The index is in a weekly and monthly Squeeze.
S&P 500 closed with a big bullish marubozu candle and at an all-time high of 2259.8. Momentum is 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 small doji candle at 51.48. It started and ended the week at the same spot. This weekend OPEC and non-OPEC producers meeting in Vienna. There are high hopes for the industry to agree to a production decrease to boost oil prices.
Gold futures closed with a bearish candle in a continuing downtrend at 1161.4. As US dollar index continues to advance upward, gold is trading downward as it is inversely correlated.
Silver futures closed with a doji candle on its 3 EMA and below its 8 EMA at 16.915.
Agriculture (DBA) ETF closed with a small doji candle at 19.80 and remains in a downtrend. it is in a squeeze.
Commodities (DBC) ETF closed at 15.60 with a small doji candle above its 21 EMA.
Bonds (Weekly charts)
Bond futures (/ZB) continued its sharp downtrend and closed with a bearish candle at 148’15. It has found support on its 200 week SMA. Momentum is downward.
High Yield bond ETF (HYG) closed at $86.49 with a big bullish marubozu candle above its 21 EMA.
Bonds ETF (TLT) closed at 117.50 with a bearish candle below its 200 SMA. Momentum is downward.
Yields continue to improve ahead of next week’s FOMC meeting. The market is expecting interest rates to rise. The 10-yr yield highs jumped 8 bps above 2.46% while shorter term-2yr yields rose to around 1.13%. Bonds also rolled as investors continue to unwind and rotate into riskier assets, as stocks surged!
Currencies (Weekly charts)
The dollar index closed at 101.610 with a high closing doji candle above its moving averages.
EUR/USD closed at 1.05598 with a low closing spinning top doji candle below its moving averages. Momentum is downward.
USD/JPY closed at 115.320 with a bullish candle above its moving averages. Momentum is sharply upward.
Euro continues to decline on news of the ECB tapering its bond buying starting in 2017. The dollar index was stronger across board with the dollar index (DXY) up over 0.5%, getting back near its recent 52-week high of 102.05 2-weeks ago (14 year highs). The US dollar continue to gain against the yen which is good for the Nikkei 225.
Relative Strength – Sectors
On a monthly lookback, the relative strength order of the ETFs that are outperforming the S&P 500 are XLF, XLE, XLB, XLY, XLI, XLK and XLU respectively.
On a 3-monthly lookback, the relative strength order of the ETFs that are outperforming the S&P 500 are XLF, XLE, XLI, XLB and XLY respectively.
The under-performing sectors such as Healthcare and Consumer Staples jumped, while recent market outperformers such as Financials and Transports led the declines. The financials sector have led the rally since the US Presidential election.
Market Internals
Vix closed at 11.75. Vix futures is at 13.035. Skew is at 119.51. Market sentiment is extremely bullish. Market breadth is sloping upward. Volumetric accumulation/distribution is sloping sharply upward.
The Week Ahead
Market internals tell us that this market is extremely bullish. The market continues to make new all-time every week. There is no fear in the market. The prognosis is that the market is way overbought and could see some sideways action. Overall momentum is upward.
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 stocks, Options or Futures? Drop us an email at jefftohch@gmail.com or call +6010 4343 948. If you have been an unsuccessful trader and need personal tutorship, we can provide you with personal coaching to take you to be a profitable trader.
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9 December 2016 – A week of all time highs!
The major indices have been on a major climb upward since Trump won the US Presidential election. With the exception of the Nasdaq 100, the Dow Transportation, Dow Industrial, Russell 2000 and S&P 500 all made all time high. The weekly charts of the indices look like a vertical cliff climb.
It was a week where the ECB announced its version of tapering starting from next year.
Biggest sector gainers this week in the S&P were financials (over 4%), followed by defensive names Real Estate (over 3%), Consumer Staples and Utilities, showing the market momentum is broad based.
Indices (Weekly chart)
Dow Transportation closed with a big bullish candle above its moving averages. It hit a new historic high of 9490.29. This is the fifth week it closed with a bullish candle in a sharp uptrend. Weekly volumetric buying pressure is at 100%. It is very bought on its weekly chart. The index has exited its monthly Squeeze.
Dow Industrial closed with big bullish marubozu candle above its moving averages. It hit a new historic high of 19757.74. This is the fifth week of uptrend. Weekly volumetric buying pressure is at 100%. It is overbought on its weekly chart. The index has exited its monthly Squeeze.
Russell 2000 closed with a huge bullish marubozu candle above its moving averages. It hit a new historic high of 1392.71. Momentum is sharply upward. Volumetric buying pressure is at 100%.
Nasdaq 100 has been the underperformer since the election. It closed with a bullish candle and has not broken out out of its trading range. Volumetric buying pressure is at 88.3%. The index is in a weekly and monthly Squeeze.
S&P 500 closed with a big bullish marubozu candle and at an all-time high of 2259.8. Momentum is 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 small doji candle at 51.48. It started and ended the week at the same spot. This weekend OPEC and non-OPEC producers meeting in Vienna. There are high hopes for the industry to agree to a production decrease to boost oil prices.
Gold futures closed with a bearish candle in a continuing downtrend at 1161.4. As US dollar index continues to advance upward, gold is trading downward as it is inversely correlated.
Silver futures closed with a doji candle on its 3 EMA and below its 8 EMA at 16.915.
Agriculture (DBA) ETF closed with a small doji candle at 19.80 and remains in a downtrend. it is in a squeeze.
Commodities (DBC) ETF closed at 15.60 with a small doji candle above its 21 EMA.
Bonds (Weekly charts)
Bond futures (/ZB) continued its sharp downtrend and closed with a bearish candle at 148’15. It has found support on its 200 week SMA. Momentum is downward.
High Yield bond ETF (HYG) closed at $86.49 with a big bullish marubozu candle above its 21 EMA.
Bonds ETF (TLT) closed at 117.50 with a bearish candle below its 200 SMA. Momentum is downward.
Yields continue to improve ahead of next week’s FOMC meeting. The market is expecting interest rates to rise. The 10-yr yield highs jumped 8 bps above 2.46% while shorter term-2yr yields rose to around 1.13%. Bonds also rolled as investors continue to unwind and rotate into riskier assets, as stocks surged!
Currencies (Weekly charts)
The dollar index closed at 101.610 with a high closing doji candle above its moving averages.
EUR/USD closed at 1.05598 with a low closing spinning top doji candle below its moving averages. Momentum is downward.
USD/JPY closed at 115.320 with a bullish candle above its moving averages. Momentum is sharply upward.
Euro continues to decline on news of the ECB tapering its bond buying starting in 2017. The dollar index was stronger across board with the dollar index (DXY) up over 0.5%, getting back near its recent 52-week high of 102.05 2-weeks ago (14 year highs). The US dollar continue to gain against the yen which is good for the Nikkei 225.
Relative Strength – Sectors
On a monthly lookback, the relative strength order of the ETFs that are outperforming the S&P 500 are XLF, XLE, XLB, XLY, XLI, XLK and XLU respectively.
On a 3-monthly lookback, the relative strength order of the ETFs that are outperforming the S&P 500 are XLF, XLE, XLI, XLB and XLY respectively.
The under-performing sectors such as Healthcare and Consumer Staples jumped, while recent market outperformers such as Financials and Transports led the declines. The financials sector have led the rally since the US Presidential election.
Market Internals
Vix closed at 11.75. Vix futures is at 13.035. Skew is at 119.51. Market sentiment is extremely bullish. Market breadth is sloping upward. Volumetric accumulation/distribution is sloping sharply upward.
The Week Ahead
Market internals tell us that this market is extremely bullish. The market continues to make new all-time every week. There is no fear in the market. The prognosis is that the market is way overbought and could see some sideways action. Overall momentum is upward.
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 stocks, Options or Futures? Drop us an email at jefftohch@gmail.com or call +6010 4343 948. If you have been an unsuccessful trader and need personal tutorship, we can provide you with personal coaching to take you to be a profitable trader.
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