Stick Save To Close The Week

Bulls are a determined and desperate bunch. There were two consecutive days of large sell-offs this week but on each day dip buyers entered to make things more respectable. Let’s face it, bulls have positions to defend, so getting a green close was huge psychological win for Main Street.

Durable Goods Orders beat expectations coming in at 3.3% vs 1.4% expected, and prior, -5.9%; Ex-transportation, which gives a better picture of conditions since they’re generally volatile like Boeing 787 orders for example, would be at 1.3% vs 0.4% expected, and prior -1.7%. This gave bulls some hope. But that news was sold hard early in the day Friday.

There really wasn’t any other news Friday and many traders were leaving early for the long weekend thus volume started to slacken making it easy for some algos (they never take a holiday) to bid things up squeezing some shorts.

The volatility in Japan markets continued as their leaders haven’t learned how to describe new policies as Earnings from Hewlett-Packard (HPQ) were initially well received but on second look the stock was hit hard Friday. More defensive sectors again led markets like consumer staples (XLP), but that’s about it. Most other sectors were either mildly lower or much lower. Overseas markets were mostly weaker than U.S. sectors especially China (FXI), emerging markets (EEM) and Europe (IEV). It would be wrong to conclude that Friday’s action was bullish when looking over the global landscape.

The dollar (UUP) was flat. Both gold (GLD) and silver (SLV) weakened once again. Commodities (DBC) were weak once again as was oil (USO) and bonds (TLT) were fractionally higher.

Volume trailed off and bulls were free to ramp stocks into the close. Breadth per the WSJ was mostly negative.

5-9-2013 7-00-48 PM gray ad insert 5.9.1

You can follow our pithy comments on twitter and become a fan of ETF Digest on facebook. 

NYMO

NYMO

The NYMO is a market breadth indicator that is based on the difference between the number of advancing and declining issues on the NYSE. When readings are +60/-60 markets are extended short-term.

NYSI

NYSI

The McClellan Summation Index is a long-term version of the McClellan Oscillator. It is a market breadth indicator, and interpretation is similar to that of the McClellan Oscillator, except that it is more suited to major trends.I believe readings of +1000/-1000 reveal markets as much extended.

VIX

VIX

The VIX is a widely used measure of market risk and is often referred to as the “investor fear gauge”. Our own interpretation is highlighted in the chart above. The VIX measures the level of put option activity over a 30-day period. Greater buying of put options (protection) causes the index to rise.

SPY 5 MINUTE

SPY 5 MINUTE

 

.SPX WEEKLY

.SPX WEEKLY

 

INDU WEEKLY

INDU WEEKLY

 

RUT WEEKLY

RUT WEEKLY

 

QQQ WEEKLY

QQQ WEEKLY

 

XLF WEEKLY

XLF WEEKLY

 

XLB WEEKLY

XLB WEEKLY

 

XLP WEEKLY

XLP WEEKLY

 

XLI WEEKLY

XLI WEEKLY

 

IYT WEEKLY

IYT WEEKLY

 

IYR WEEKLY

IYR WEEKLY

 

TLT WEEKLY

TLT WEEKLY

 

FXE WEEKLY

FXE WEEKLY

 

FXY WEEKLY

FXY WEEKLY

 

FXA WEEKLY

FXA WEEKLY

 

GLD WEEKLY

GLD WEEKLY

 

SLV WEEKLY

SLV WEEKLY

 

GDX WEEKLY

GDX WEEKLY

 

JJC WEEKLY

JJC WEEKLY

 

DBC WEEKLY

DBC WEEKLY

 

USO WEEKLY

USO WEEKLY

 

UNG WEEKLY

UNG WEEKLY

 

UUP WEEKLY

UUP WEEKLY

 

EFA WEEKLY

EFA WEEKLY

 

IEV WEEKLY

IEV WEEKLY

 

EEM WEEKLY

EEM WEEKLY

 

EWJ WEEKLY

EWJ WEEKLY

 

EWZ WEEKLY

EWZ WEEKLY

 

RSX WEEKLY

RSX WEEKLY

 

EPI WEEKLY

EPI WEEKLY

 

FXI WEEKLY

FXI WEEKLY

 

EWA WEEKLY

EWA WEEKLY

 

The market’s performance Thursday and Friday are misleading since there is so much destruction in many sectors globally. But the media depends on selling what’s going on with the DJIA. It’s just window dressing for the tourists frankly.

Next week will feature Consumer Confidence; Case-Shiller HPI, GDP; Jobless Claims; Pending Home Sales; Chicago PMI; and, the dueling U of Michigan Consumer Sentiment data. The Fed will continue POMO actions throughout the week with the largest liquidity add Friday.

Let’s see what happens.

    

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.