19 March 2019 – Overly Bullishness, Indices retraces
Indices Dow Transportation closed at 10277.32 with a bearish candle below its 8 EMA, 21 EMA, 200 SMA and above its 50 SMA. Daily trading range was 200.26. Intermediate Cycle is positive and falling slope. Short Term Cycle is negative and rising slope. Market direction – Sell.
Dow Industrial closed at 25887.38 with a bearish candle above its 8 EMA, 21 EMA, 50 SMA and 200 SMA. Daily trading range was 294.76. Intermediate Cycle is positive and falling slope. Short Term Cycle is positive and rising slope. Market direction – Sell.
Russell 2000 closed at 1554.9851 with a bearish candle on its 8 EMA and above its 21 EMA, 50 SMA and below its 200 SMA. Daily trading range was 18.236. Intermediate Cycle is positive and falling slope. Short Cycle is positive and rising slope. Market direction: Sell.
Nasdaq 100 closed at 7349.2783 with a doji candle above its 8 EMA, 21 EMA, 50 SMA and 200 SMA. Daily trading range was 68.36. Intermediate Cycle is positive and rising slope. Short Cycle is positive and rising slope. Market direction: Buy.
S&P 500(SPX) closed at 2832.57 with a small spinning top bearish candle above its 8 EMA, 21 EMA, 50 SMA and 200 SMA. Daily trading range was 29.15. Intermediate Cycle is positive and falling slope. Short Cycle is positive and rising slope. Market direction: Buy.
Metals and Commodities WTI Crude oil futures (CL) closed at $59.29 per barrel with a doji candle above its 8EMA, 21 EMA, 50 SMA and below its 200 SMA. Daily trading range was 0.97. Intermediate Cycle is positive and rising slope. Short Cycle is positive and rising slope. Market direction: Buy.
Gold futures (GC) closed at 1306.3 with a small inverted hammer candle intertwined with its 8 EMA, 21 EMA, 50 SMA and above its 200 SMA. Daily trading range was 8.7. Intermediate Cycle is negative and rising slope. Short Cycle is negative and rising slope. Market direction: Buy.
Commodities (DBC) ETF closed at 16.04 with a small bearish candle above its 8 EMA, 21 EMA, 50 SMA and below its 200 SMA. Daily trading range was 0.11. Intermediate Cycle is positive and falling slope. Short Cycle is positive and rising slope. Market direction: Buy.
Bonds Bond futures (/ZB) closed at 145’25 with a bearish candle intertwined with its 8 EMA, 21 EMA, 50 SMA and above its 200 SMA. Daily trading range was 0.969. Intermediate Cycle is positive and rising slope. Short Cycle is positive and falling slope. Market direction: Buy.
High Yield bond ETF (HYG) closed at 85.80 with a small doji candle above its 8 EMA, 21 EMA, 50 SMA and 200 SMA. Daily trading range was 0.21. Intermediate Cycle is positive and falling slope. Short Cycle is positive and rising slope. Market direction: Buy.
Currency The dollar index ($DXY) closed at 96.411 with a bearish candle below its 8 EMA, 21 EMA and above its 50 SMA and 200 SMA. Daily trading range was 0.233. Intermediate Cycle is positive and falling slope. Short Cycle is negative and falling slope. Market direction: Sell.
EUR/USD closed at 1.1350 with a bullish candle above its 8 EMA, 21 EMA and below its 50 SMA, 200 SMA. Daily trading range was 0.0028. Intermediate Cycle is negative and rising slope. Short Cycle is positive and rising slope. Market direction: Buy. It is in a weekly Squeeze.
USD/JPY closed at 111.38 with a doji candle on its 8 EMA, 200 SMA and above its 21 EMA, 50 SMA. Daily trading range was 0.322. Intermediate Cycle is positive and falling slope. Short Cycle is positive and falling slope. Market direction: Sell.
Relative Strength – Sectors On a monthly lookback, the relative strength order of the ETFs that are outperforming the S&P 500 are XLK, XLE, XLV, XLY and XLF. On a 3-monthly lookback, the relative strength order of the ETFs that are outperforming the S&P 500 are XLK, XLI, XLE, XLY and XLF respectively.
Market Internals Market Sentiment is rather bullish. Market Breadth is sloping upwards showing more losers to gainers. Volume Acc/Dis is sloping upwards and showing accumulation. Skew is at 123.13. Vix is at 13.56 and Vix Futures is at 15.15.
The Week Ahead The indices pulled back. The Dow Transportation and Russell 2000 closed lower and continued showing Sell signals. Both these 2 indices tend to lead the market up or down or sideways. Market Breadth continues to show deterioration in the market. Market volume is still showing nett accumulation which means more and more volume in fewer and fewer stocks that are making gains. Skew is normal and Market Sentiment remains bullish. The prognosis is for the overall bullish market to continue but we might see short term weakness.
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.
19 March 2019 – Overly Bullishness, Indices retraces
Indices
Dow Transportation closed at 10277.32 with a bearish candle below its 8 EMA, 21 EMA, 200 SMA and above its 50 SMA. Daily trading range was 200.26. Intermediate Cycle is positive and falling slope. Short Term Cycle is negative and rising slope. Market direction – Sell.
Dow Industrial closed at 25887.38 with a bearish candle above its 8 EMA, 21 EMA, 50 SMA and 200 SMA. Daily trading range was 294.76. Intermediate Cycle is positive and falling slope. Short Term Cycle is positive and rising slope. Market direction – Sell.
Russell 2000 closed at 1554.9851 with a bearish candle on its 8 EMA and above its 21 EMA, 50 SMA and below its 200 SMA. Daily trading range was 18.236. Intermediate Cycle is positive and falling slope. Short Cycle is positive and rising slope. Market direction: Sell.
Nasdaq 100 closed at 7349.2783 with a doji candle above its 8 EMA, 21 EMA, 50 SMA and 200 SMA. Daily trading range was 68.36. Intermediate Cycle is positive and rising slope. Short Cycle is positive and rising slope. Market direction: Buy.
S&P 500 (SPX) closed at 2832.57 with a small spinning top bearish candle above its 8 EMA, 21 EMA, 50 SMA and 200 SMA. Daily trading range was 29.15. Intermediate Cycle is positive and falling slope. Short Cycle is positive and rising slope. Market direction: Buy.
Metals and Commodities
WTI Crude oil futures (CL) closed at $59.29 per barrel with a doji candle above its 8EMA, 21 EMA, 50 SMA and below its 200 SMA. Daily trading range was 0.97. Intermediate Cycle is positive and rising slope. Short Cycle is positive and rising slope. Market direction: Buy.
Gold futures (GC) closed at 1306.3 with a small inverted hammer candle intertwined with its 8 EMA, 21 EMA, 50 SMA and above its 200 SMA. Daily trading range was 8.7. Intermediate Cycle is negative and rising slope. Short Cycle is negative and rising slope. Market direction: Buy.
Commodities (DBC) ETF closed at 16.04 with a small bearish candle above its 8 EMA, 21 EMA, 50 SMA and below its 200 SMA. Daily trading range was 0.11. Intermediate Cycle is positive and falling slope. Short Cycle is positive and rising slope. Market direction: Buy.
Bonds
Bond futures (/ZB) closed at 145’25 with a bearish candle intertwined with its 8 EMA, 21 EMA, 50 SMA and above its 200 SMA. Daily trading range was 0.969. Intermediate Cycle is positive and rising slope. Short Cycle is positive and falling slope. Market direction: Buy.
High Yield bond ETF (HYG) closed at 85.80 with a small doji candle above its 8 EMA, 21 EMA, 50 SMA and 200 SMA. Daily trading range was 0.21. Intermediate Cycle is positive and falling slope. Short Cycle is positive and rising slope. Market direction: Buy.
Currency
The dollar index ($DXY) closed at 96.411 with a bearish candle below its 8 EMA, 21 EMA and above its 50 SMA and 200 SMA. Daily trading range was 0.233. Intermediate Cycle is positive and falling slope. Short Cycle is negative and falling slope. Market direction: Sell.
EUR/USD closed at 1.1350 with a bullish candle above its 8 EMA, 21 EMA and below its 50 SMA, 200 SMA. Daily trading range was 0.0028. Intermediate Cycle is negative and rising slope. Short Cycle is positive and rising slope. Market direction: Buy. It is in a weekly Squeeze.
USD/JPY closed at 111.38 with a doji candle on its 8 EMA, 200 SMA and above its 21 EMA, 50 SMA. Daily trading range was 0.322. Intermediate Cycle is positive and falling slope. Short Cycle is positive and falling slope. Market direction: Sell.
Relative Strength – Sectors On a monthly lookback, the relative strength order of the ETFs that are outperforming the S&P 500 are XLK, XLE, XLV, XLY and XLF. On a 3-monthly lookback, the relative strength order of the ETFs that are outperforming the S&P 500 are XLK, XLI, XLE, XLY and XLF respectively.
Market Internals
Market Sentiment is rather bullish. Market Breadth is sloping upwards showing more losers to gainers. Volume Acc/Dis is sloping upwards and showing accumulation. Skew is at 123.13. Vix is at 13.56 and Vix Futures is at 15.15.
The Week Ahead
The indices pulled back. The Dow Transportation and Russell 2000 closed lower and continued showing Sell signals. Both these 2 indices tend to lead the market up or down or sideways. Market Breadth continues to show deterioration in the market. Market volume is still showing nett accumulation which means more and more volume in fewer and fewer stocks that are making gains. Skew is normal and Market Sentiment remains bullish. The prognosis is for the overall bullish market to continue but we might see short term weakness.
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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