Monday, August 31, 2015

Market Recap For 8/31/2015

The market started the week with another down day. The Dow Jones Industrial lost more than 100 points today, but the breadth showed improvement. Today in the NYSE, there were only 376 more declining issues than advancing issues, and the up/down volume ratio was 1.2 to 1 favored the down volume. In the Nasdaq, the U/DVOL ratio was 1.8 to 1 favored the down volume and 22 more declining issues than advancing issues. The number of new low has contracted to 42 new low in the NYSE and 27 new low in the Nasdaq.

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Sunday, August 30, 2015

Weekly Market Recap For 8/30/2015

Last week, the market started with a free fall on Monday when the SP500 went down by more than 5.3% and the Nasdaq 100 lost more than 9.7% within the first 5 minutes of trading. These drops are historic, but mild in comparison to previous market crashes on a percentage basis. Just as the market had dropped swiftly, it bounced back with similar speed. The SP500 launched a rally on Tuesday and gained more than 80 points before it sold off in the last hour of trading, and ended the session with a loss. On Wednesday, the SP500 made another attempt to recover some of its recent losses. This time the market was able to hold on to its gains. The SP500 closed on Wednesday with a 3.9% gain. On Thursday, a follow through rally ensued. The SP500 ended the session with another 47 points gain. By the close on Thursday, the SP500 not only regained the losses from Monday, it was positive for the week. Then on Friday, typical for weekly options expiration, the market just meandered and the SP500 closed with a small gain of 1.21 or 0.06%.

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Thursday, August 27, 2015

Market Recap For 8/27/2015

Today, the market continued with the rally that started yesterday. The breadth also continues to improve. There were only 27 new 52 week low versus 1335 new low on Monday. The up/down volume continues to be leaning on the buy side with the ratio greater than 20 to 1. In the NYSE today, the up volume was 4.77 billion shares and the down volume was 230 million shares. Yesterday, the up volume was 4.676 billion versus 593 million down volume. The magnitude of the up volume is a clear indication this rally is more than a short covering rally. Once again, the advancing issues was leading the declining issues by a wide margin, 2869 vs 357 in the NYSE and 2220 vs 655 in the Nasdaq.

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Market Recap For 8/26/2015

The market finally closed with a green day after six consecutive down days. Once again, the index futures were positive coming into the opening bell this morning. Similar to yesterday, the market started to fade soon after the open. In the noon hour, it was like deja-vu when most of the earlier gains evaporated. The A/D also faded from the open at a level above 1800 to near the zero line for the NYSE, and the A/D line for the Nasdaq went below zero (declining issues outnumbered advancing issues) for a brief period before it reverted to positive. Unlike yesterday, when the market was fading today, the U/DVOL was expanding upward. This was a sign that the selling has reached exhaustion, at least for today. The only time the U/DVOL looked as it was going into the negative territory was when the market printed the LOD (low of the day). After the LOD was made, the U/DVOL expanded upward and the A/D rotated up, and the market rallied into close.

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Tuesday, August 25, 2015

Market Recap For 8/25/2015

In yesterday’s market recap, it presented us with two possible near term scenarios on what the market might do. The scenarios are 1) the market will capitulate with the break of the October closing low or 2) a dead cat bounce rally.

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Monday, August 24, 2015

Market Recap For 8/24/2015

Everyone was bracing for the worse today when the SP500 index futures was down more than 4% in the overnight market. Within five minutes after the US market opened for trading, the indexes hit their low of the day with the DJI being down -1,089 or -6.6%, the SPX down -104 or -5.3%, the NDX down a whopping -410 or -9.7%, and the RUT down -50.86 or 4.4%. Shortly after the opening rout, the market started to bounce and recovered most of the opening losses by early afternoon. Then after 1:00 PM ET, the rally fizzled and the market started to selloff again. The afternoon selloff didn’t stop until 30 minutes before the close.

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Sunday, August 23, 2015

Weekly Market Recap For 8/23/2015

Last week, the market made a decisive move to the downside. The SP500 ended the week with a weekly loss of 120.65 or 5.8%. The last time SP500 dropped more than 100 points in a week was in October 2008. For the week of October 6, 2008, the SP500 closed with a loss of 200.01 or 18.2%. On a percentage basis, the last time SP500 closed with a weekly loss of more than 6% was on the week of August 1, 2011 when it dropped 92.9 points or 7.19%.

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Thursday, August 20, 2015

Market Recap For 8/20/2015

From yesterday’s market action, we have noticed the breadth indicators were sending mixed messages and that have alerted us to be defensive. Today, the market continued its decline with vengeance. Yesterday, the U/DVOL ratio for the NYSE reached a high of 10:1 favoring the down volume. Today, the U/DVOL was 11:1 favoring the DVOL in the NASDAQ with the NYSE running at 7:1 to the downside. The advance-decline was a carbon copy of yesterday. There were more than 2600 declining issues vs. 508 advancing issues in the NYSE, and similar number of advance vs. decline in the NASDAQ. Today, the market did not pause for anything. Yesterday there was a pause for the FOMC minutes.

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Wednesday, August 19, 2015

Market Recap For 8/19/2015

With the continuation of the currency war, a clear sign the global economy is under some stress. The CPI report did not show much inflation in the US, and the FOMC minutes did not reveal any certainties from the committee on the timing of a rate hike. They appeared to be just as confused as all the talking heads in the media. One wonders what did that 4 trillion dollars the FED spent on will end up giving us. Another global financial crisis? It certainly looks that way at the present with economic slowdown and currency devaluation taking place in the Far East.

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Tuesday, August 18, 2015

Market Recap For 8/18/2015

The market spent most of the trading session on the down side. The breadth chart shows the DVOL and the declining issues lead their counterpart during the entire trading session. The TICK also spent most of the session on the negative side.

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Monday, August 17, 2015

Market Recap For 8/17/2015

The market might have snookered the shorts today. Shortly after the market had opened, the decliners lead the advancers by 1476 in the NYSE and in the NASDAQ, the decliners lead by 1075. In addition, the DVOL was leading the UVOL. The SP500 went down 12.07 points in the first 5 minutes of trading. It then traded within a 2-3 points range for the next twenty minutes. After the first 30 minutes of trading, the market breadth started to rotate back up, and the indexes followed. Within 30 minutes before the European market close, the U/DVOL and the A/D turned positive, and the market rallied into the Euro close.

The shorts might have been looking for the market to retest last Wednesday low. When the market broke above the short term declining trend line, the shorts appeared to have decided to cover their positions and pushed the indexes to their high of the day near the close.

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Sunday, August 16, 2015

Weekly Market Recap For 8/16/2015

Last Wednesday, August 12, 2015, the market had a dramatic reversal day. After the first hour of trading, the SP500 was down as much as -31.98 (-1.5%) and the DJ Industrial was down -277.03 (-1.6%) points. The Nasdaq 100 and the Russell 2000 were down by -77.45 (-1.7%) and -21.72 (-1.8%) points respectively within the first 90 minutes of trading. At the close, the SP500 ended up 1.98, the DJI closed with a small loss of -0.33, the Nasdaq 100 gained 14.20 and the Russell 2000 ended with a loss of -2.16. To many market participants, this looked like a typical oversold rally. However, for the market watchers, it is more than an oversold bounce.

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Thursday, August 13, 2015

Market Recap For 8/13/2015

It's beginning to sound like a broken record. Eventually, this market will break to the upside or to the downside.

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Wednesday, August 12, 2015

Market Recap For 8/12/2015

After yesterday selloff, the SP500 crashed through the 2063.52 support level at today’s open. It was down as much as 31.98 points when it’d reached the low of the day at 2052.09 during the first hour of trading. After the first hour, the market started to firm up and attempted to reverse direction. The market breadth chart highlighted how the U/DVOL and the A/D started to reverse direction around 12:00 pm EST, and how strongly these breadth indicators were at the end of the session. At the close, the UVOL moved ahead of the DVOL, and the A/D in the NYSE went from 1700+ more decliners than advancer to only 42 more decliners than advancers. In the Nasdaq, the number of decliners over the advancers went from more than 1600 to less than 400. In addition, the TICK at both exchanges was mostly positive throughout the session and with multiple instances where it was above 1000 in the NYSE, showing strong buy program activities.

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Market Recap For 8/11/2015

The currency devaluation from China surprised the market today. The market essentially gave back all its gains from yesterday with the SP500 closed at 2084.07, down -20.11 or 0.96%.

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Monday, August 10, 2015

Market Recap For 8/10/2015

Last Friday’s price action had indicated a possibility of an oversold rally could appear this week. The market did not disappoint, it opened up today and rallied nearly all the way to the close. Very little profit taking took place during the session to allow the latecomers to get in. This rally did not look like a typical short squeeze rally since the hammer like candle that formed on Friday had squeezed the shorts.

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Sunday, August 9, 2015

MOMO Stocks Update - 8/9/2015

These momentum stocks are review in this video: FB, AAPL, GOOGL, AMZN, NFLX, TSLA & TWTR.

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Weekly Market Recap – 8/9/2015

Last week, the market had one up day and that was on Wednesday. This up day came after it had logged a three consecutive down days. The price action from this up day highlighted a lack of buyers as it'd printed a shooting star candle.

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Thursday, August 6, 2015

Market Recap For 8/6/2015

The market was weak throughout today’s session. There was more down volume than up volume, and the decliners were leading the advancers. New 52 week low also expanded.

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Wednesday, August 5, 2015

Market Recap For 8/5/2015

After yesterday close, the market logged in a three consecutive down days and alerted us to watch for possible dead cat bounce. To no surprise, the market opened up today. But the rally was short lived. The market reached its high of the day after the first hour of trading, and then it started to fade. By early afternoon, the market gave back most of the day’s gains. Two hours before the market close, it mounted a feeble rally but the sellers took control and closed the market on a down note.

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Tuesday, August 4, 2015

Market Recap For 8/4/2015

The market continues with its pullback and the SPX recorded three consecutive down days. It also printed an inside day candle holding in between the Fibonacci 61.8% and the 50% retracement zone. The SPX needs to hold the support level 2079.11.

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Monday, August 3, 2015

Market Recap For 8/3/2015

The market started the week on a down note. The SPX closed at 2098.04, a loss of -5.80 or -0.28%. It dipped below the 50% retracement level before rebounding into the close. It printed a hammer like red candle and closed right beneath the Fibonacci 61.8% level near 2100. The potential resistance remains to be 2108.86 with possible support near 2079.

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Sunday, August 2, 2015

Weekly Market Recap – 8/2/2015

The market had a nice bounce last week. After a five consecutive down days, the SPX rallied and ended the week almost 2% above Monday’s low. The SPX tried and failed to get above the resistance level of 2108.86. It might need to retest the 2100 level before it can launch another attempt to get above the 2108 level. If it can reclaim the 2108 level, then the resistance level near 2124.20 could be in play. If it fails to hold the 2100 level and moves below the 50% retracement level near 2090, then look for the possibility for SPX to retest the 2079 support level.

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