The indices took a “breather” and pulled back slightly on Friday. We had “quadruple witching” with Option expiration in individual stocks, indices, stock futures and index futures on the same Friday. The indices held on to their weekly gains for the 6th straight week. Energy stocks outperformed as oil bounced upwards. Banking stocks performed well but the technology stocks underperformed. Bonds continued to be sold off as 10-year yields posted 6 straight weeks of gains. As the US dollar index continued its upward trend, gold continued to drop.
On the economic front, housing starts for November posted a surprise drop of -18% month-on-month. Single family starts fell to 828k while multi-family starts fell to 262k in November.
Building permits for November fell to 1,201k from a revised 1,260k in October which was below the estimated 1,240K. Permits fell 4.7% in November after rising 2.9% the prior month.
Indices (Weekly chart)
Dow Transportation closed with a bearish harami candle and above its moving averages at 9167.49. It has been on a sharp uptrend for the last 6 weeks. Weekly volumetric buying pressure is at 43.1%. It has been over bought on its weekly chart.
Dow Industrial closed for the week with a small bullish candle above its moving averages at 19843,41. It is within touching distance of 20,000. Momentum is sharply upward. Weekly volumetric buying pressure is at 99%. It is overbought on its weekly chart.
Russell 2000 closed with a bearish harami candle above its moving averages at 1364.1894. Momentum is sharply upward. Volumetric buying pressure is at 76.7%.
Nasdaq 100 closed with a spinning top doji candle above its moving averages at 4914.864. It is within touching distance of the 5000 level. Volumetric buying pressure is at 91.1%. The index is in a weekly and monthly Squeeze.
S&P 500 closed with a doji candle above its moving averages at 2258.07. Momentum is still sharply upward. Volumetric buying pressure is at 93.8%. It has exited its monthly Squeeze.
Metals and Commodities (Weekly charts)
WTI Crude oil futures closed with a spinning top doji above its moving averages at $53.10 per barrel. It has been a good week for the oil as it touched a recent high of $54.51 per barrel.
Gold futures closed with a big bearish candle below its moving averages at $1136.80 per ounce in a continuing sharp downtrend.
Silver futures closed with a bearish candle below its moving averages in a continuing downtrend.
Agriculture (DBA) ETF closed with a bullish candle at 20.14 and below its 21 EMA but above its 8 EMA. It is in a weekly and monthly Squeeze.
Commodities (DBC) ETF closed with a bearish candle above its moving averages at 15.64.
Bonds (Weekly charts)
Bond futures (/ZB) closed with a low closing spinning top doji candle at 147’25 below its 200 SMA. Momentum is sharply downward.
High Yield bond ETF (HYG) closed with a bearish candle above its moving averages at 86.05. It is in an uptrend but within a range.
Bonds ETF (TLT) closed with a low closing doji candle at 117.14 below its moving averages in a sharp downtrend.
Currencies (Weekly charts)
The dollar index closed with a bullish spinning top doji candle at 102.81 above its moving averages. It continues its sharp uptrend.
EUR/USD closed with a bearish spinning top doji candle below its moving averages. Momentum is downward.
USD/JPY closed with a bullish candle above its moving averages at 117.942. Momentum is sharply upward.
Relative Strength – Sectors
On a monthly lookback, the relative strength order of the ETFs that are outperforming the S&P 500 are XLE, XLF, XLU, XLK, XLB, XLP and XLV respectively.
On a 3-monthly lookback, the relative strength order of the ETFs that are outperforming the S&P 500 are XLF, XLE, XLI and XLB respectively.
Market Internals
Vix closed at 12.20. Vix futures is at 12.725. Skew is at 129.44. Market sentiment is bullish. Market breadth is sloping upward. Volumetric accumulation/distribution is sloping downward.
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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16 December 2016 (Weekly Review) – Another good week for the bulls
The indices took a “breather” and pulled back slightly on Friday. We had “quadruple witching” with Option expiration in individual stocks, indices, stock futures and index futures on the same Friday. The indices held on to their weekly gains for the 6th straight week. Energy stocks outperformed as oil bounced upwards. Banking stocks performed well but the technology stocks underperformed. Bonds continued to be sold off as 10-year yields posted 6 straight weeks of gains. As the US dollar index continued its upward trend, gold continued to drop.
On the economic front, housing starts for November posted a surprise drop of -18% month-on-month. Single family starts fell to 828k while multi-family starts fell to 262k in November.
Building permits for November fell to 1,201k from a revised 1,260k in October which was below the estimated 1,240K. Permits fell 4.7% in November after rising 2.9% the prior month.
Indices (Weekly chart)
Dow Transportation closed with a bearish harami candle and above its moving averages at 9167.49. It has been on a sharp uptrend for the last 6 weeks. Weekly volumetric buying pressure is at 43.1%. It has been over bought on its weekly chart.
Dow Industrial closed for the week with a small bullish candle above its moving averages at 19843,41. It is within touching distance of 20,000. Momentum is sharply upward. Weekly volumetric buying pressure is at 99%. It is overbought on its weekly chart.
Russell 2000 closed with a bearish harami candle above its moving averages at 1364.1894. Momentum is sharply upward. Volumetric buying pressure is at 76.7%.
Nasdaq 100 closed with a spinning top doji candle above its moving averages at 4914.864. It is within touching distance of the 5000 level. Volumetric buying pressure is at 91.1%. The index is in a weekly and monthly Squeeze.
S&P 500 closed with a doji candle above its moving averages at 2258.07. Momentum is still sharply upward. Volumetric buying pressure is at 93.8%. It has exited its monthly Squeeze.
Metals and Commodities (Weekly charts)
WTI Crude oil futures closed with a spinning top doji above its moving averages at $53.10 per barrel. It has been a good week for the oil as it touched a recent high of $54.51 per barrel.
Gold futures closed with a big bearish candle below its moving averages at $1136.80 per ounce in a continuing sharp downtrend.
Silver futures closed with a bearish candle below its moving averages in a continuing downtrend.
Agriculture (DBA) ETF closed with a bullish candle at 20.14 and below its 21 EMA but above its 8 EMA. It is in a weekly and monthly Squeeze.
Commodities (DBC) ETF closed with a bearish candle above its moving averages at 15.64.
Bonds (Weekly charts)
Bond futures (/ZB) closed with a low closing spinning top doji candle at 147’25 below its 200 SMA. Momentum is sharply downward.
High Yield bond ETF (HYG) closed with a bearish candle above its moving averages at 86.05. It is in an uptrend but within a range.
Bonds ETF (TLT) closed with a low closing doji candle at 117.14 below its moving averages in a sharp downtrend.
Currencies (Weekly charts)
The dollar index closed with a bullish spinning top doji candle at 102.81 above its moving averages. It continues its sharp uptrend.
EUR/USD closed with a bearish spinning top doji candle below its moving averages. Momentum is downward.
USD/JPY closed with a bullish candle above its moving averages at 117.942. Momentum is sharply upward.
Relative Strength – Sectors
On a monthly lookback, the relative strength order of the ETFs that are outperforming the S&P 500 are XLE, XLF, XLU, XLK, XLB, XLP and XLV respectively.
On a 3-monthly lookback, the relative strength order of the ETFs that are outperforming the S&P 500 are XLF, XLE, XLI and XLB respectively.
Market Internals
Vix closed at 12.20. Vix futures is at 12.725. Skew is at 129.44. Market sentiment is bullish. Market breadth is sloping upward. Volumetric accumulation/distribution is sloping downward.
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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