Summary: Consumer price data was higher than expected, but not that high. After an initial premarket reaction, the major indices moved higher on the day while yields continued their drop and volatility moved out of the market.
Notes
Ideas always welcome in the comments. Errors will be amended as comments on TradingView or corrected inline in my blog.
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Thursday, June 10, 2021
Facts: +0.78%, Volume lower, Closing range: 91%, Body: 68%
Good: High closing range, close above 14,000
Bad: Lower volume
Highs/Lows: Higher high, lower low
Candle: Outside day, mostly green body with a longer lower wick
Advanced/Decline: 0.66, Three declining stocks for every two advancing stocks
Indexes: SPX (+0.47%), DJI (+0.06%), RUT (-0.68%), VIX (-10.0%)
Sectors: Health (XLV +1.71%) and Real Estate (XLRE +1.02%) were top. Materials (XLB -0.60%) and Financials (XLF -1.17%) were bottom.
Expectation: Sideways or Higher
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Market Overview
Consumer price data was higher than expected, but not that high. After an initial premarket reaction, the major indices moved higher on the day while yields continued their drop and volatility moved out of the market.
The Nasdaq advanced +0.78% on lower volume and closed above 14,000. The candle is mostly green body with a short lower wick and even shorter upper wick. The high closing range of 91% and body of 68% is bullish, but there were three declining stocks for every two advancing stocks and volume overall was lower.
The S&P 500 (SPX) gained +0.47%. The Dow Jones Industrial Average (DJI) only advanced +0.06%. The Russell 2000 (RUT) pulled back with a -0.68% decline.
The VIX volatility dropped -10.00%., its lowest close in over a year.
Health (XLV +1.71%) and Real Estate (XLRE +1.02%) topped the sector list. Utilities (XLU +0.66%) was also in the top four. These three sectors at the top of the list would indicate caution in the market. However, mixed in to that is Technology (XLK +0.74%) and Communications (XLC +0.54%). Materials (XLB -0.60%) and Financials (XLF -1.17%) were the bottom sectors.
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Economic Indicators
The US Dollar (DXY) dropped -0.09%.
The US 30y, 10y, and 2y Treasury yields continued to decline. The spread between long term and short term yields tightened to levels in early March.
High Yield Corporate Bond (HYG) and Investment Grade Corporate Bond (LQD) prices advanced.
Silver (SILVER) and Gold (GOLD) advanced.
Crude Oil (CRUDEOIL1!) advanced.
Timber (Wood) declined.
Copper (COPPER1!) and Aluminum (ALI1!) advanced.
Bitcoin (BTCUSD) declined -1.85%. Ethereum (ETHUSD) declined -5.35%.
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Investor Sentiment
The put/call ratio rose to 0.600. The put/call ratio (PCCE) is a contrarian indicator that shows overly bullish or overly bearish investor behavior. The 0.7 level is considered normal. Below that level is overly bullish.
The CNN Fear & Greed index is at neutral.
The NAAIM money manager exposure index declined slightly to 6.95.
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Market Leaders
Apple (AAPL) is the only one of the four largest mega-caps to decline today, with a -0.80% loss, and remaining below the 50d MA. Amazon (AMZN) gained +2.09% and moved above its 50d MA. Microsoft (MSFT) gained +1.44% and Alphabet (GOOGL) gained +1.13%. Both Microsoft and Alphabet are trading above the 21d EMA and 50d MA.
Adobe (ADBE), Eli Lilly (LLY), ASML Holding (ASML) and PayPal (PYPL) were the top four mega-caps. Most mega-caps gained for the day. At the bottom of the list were Apple, Bank of America (BAC), JP Morgan Chase (JPM) and Oracle (ORCL).
RH (RH) was the top daily update growth stock with a 15.67% gain thanks to a great earnings beat. CrowdStrike (CRWD), DoorDash (DASH), and Service Now (NOW) were the other growth stocks to top the list. Ehang Holdings (EH), GrowGeneration (GRWG), UP Fintech (TIGR) and Lemonade (LMND) were at the bottom of the list.
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Looking ahead
We'll get the first consumer sentiment and expectations data for June after the market opens on Friday morning.
There are no relevant earnings reports for the daily update.
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Trends, Support, and Resistance
The index was able to close above the 14,000 line today.
All three trend-lines are pointing to a the range between a +0.10% and +0.41% gain for Friday.
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Wrap-up
It was a nice advance for the Nasdaq today. However, there is some weakness in the volume and breadth of gains across stocks in the index. The defensive sectors at the top of the sector list is also a reason for some pause. Investors do not seem to be in agreement on whether the consumer price data was good news, or bad news, or no news.
We'll look for a continuation of higher tomorrow to confirm the direction.
Stay healthy and trade safe!
Notes
Ideas always welcome in the comments. Errors will be amended as comments on TradingView or corrected inline in my blog.
-=x=-=x=-=x=-=x=-=x=-=x=-=x=-
Thursday, June 10, 2021
Facts: +0.78%, Volume lower, Closing range: 91%, Body: 68%
Good: High closing range, close above 14,000
Bad: Lower volume
Highs/Lows: Higher high, lower low
Candle: Outside day, mostly green body with a longer lower wick
Advanced/Decline: 0.66, Three declining stocks for every two advancing stocks
Indexes: SPX (+0.47%), DJI (+0.06%), RUT (-0.68%), VIX (-10.0%)
Sectors: Health (XLV +1.71%) and Real Estate (XLRE +1.02%) were top. Materials (XLB -0.60%) and Financials (XLF -1.17%) were bottom.
Expectation: Sideways or Higher
-=x=-=x=-=x=-=x=-=x=-=x=-=x=-
Market Overview
Consumer price data was higher than expected, but not that high. After an initial premarket reaction, the major indices moved higher on the day while yields continued their drop and volatility moved out of the market.
The Nasdaq advanced +0.78% on lower volume and closed above 14,000. The candle is mostly green body with a short lower wick and even shorter upper wick. The high closing range of 91% and body of 68% is bullish, but there were three declining stocks for every two advancing stocks and volume overall was lower.
The S&P 500 (SPX) gained +0.47%. The Dow Jones Industrial Average (DJI) only advanced +0.06%. The Russell 2000 (RUT) pulled back with a -0.68% decline.
The VIX volatility dropped -10.00%., its lowest close in over a year.
Health (XLV +1.71%) and Real Estate (XLRE +1.02%) topped the sector list. Utilities (XLU +0.66%) was also in the top four. These three sectors at the top of the list would indicate caution in the market. However, mixed in to that is Technology (XLK +0.74%) and Communications (XLC +0.54%). Materials (XLB -0.60%) and Financials (XLF -1.17%) were the bottom sectors.
-=x=-=x=-=x=-=x=-=x=-=x=-=x=-
Economic Indicators
The US Dollar (DXY) dropped -0.09%.
The US 30y, 10y, and 2y Treasury yields continued to decline. The spread between long term and short term yields tightened to levels in early March.
High Yield Corporate Bond (HYG) and Investment Grade Corporate Bond (LQD) prices advanced.
Silver (SILVER) and Gold (GOLD) advanced.
Crude Oil (CRUDEOIL1!) advanced.
Timber (Wood) declined.
Copper (COPPER1!) and Aluminum (ALI1!) advanced.
Bitcoin (BTCUSD) declined -1.85%. Ethereum (ETHUSD) declined -5.35%.
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Investor Sentiment
The put/call ratio rose to 0.600. The put/call ratio (PCCE) is a contrarian indicator that shows overly bullish or overly bearish investor behavior. The 0.7 level is considered normal. Below that level is overly bullish.
The CNN Fear & Greed index is at neutral.
The NAAIM money manager exposure index declined slightly to 6.95.
-=x=-=x=-=x=-=x=-=x=-=x=-=x=-
Market Leaders
Apple (AAPL) is the only one of the four largest mega-caps to decline today, with a -0.80% loss, and remaining below the 50d MA. Amazon (AMZN) gained +2.09% and moved above its 50d MA. Microsoft (MSFT) gained +1.44% and Alphabet (GOOGL) gained +1.13%. Both Microsoft and Alphabet are trading above the 21d EMA and 50d MA.
Adobe (ADBE), Eli Lilly (LLY), ASML Holding (ASML) and PayPal (PYPL) were the top four mega-caps. Most mega-caps gained for the day. At the bottom of the list were Apple, Bank of America (BAC), JP Morgan Chase (JPM) and Oracle (ORCL).
RH (RH) was the top daily update growth stock with a 15.67% gain thanks to a great earnings beat. CrowdStrike (CRWD), DoorDash (DASH), and Service Now (NOW) were the other growth stocks to top the list. Ehang Holdings (EH), GrowGeneration (GRWG), UP Fintech (TIGR) and Lemonade (LMND) were at the bottom of the list.
-=x=-=x=-=x=-=x=-=x=-=x=-=x=-
Looking ahead
We'll get the first consumer sentiment and expectations data for June after the market opens on Friday morning.
There are no relevant earnings reports for the daily update.
-=x=-=x=-=x=-=x=-=x=-=x=-=x=-
Trends, Support, and Resistance
The index was able to close above the 14,000 line today.
All three trend-lines are pointing to a the range between a +0.10% and +0.41% gain for Friday.
-=x=-=x=-=x=-=x=-=x=-=x=-=x=-
Wrap-up
It was a nice advance for the Nasdaq today. However, there is some weakness in the volume and breadth of gains across stocks in the index. The defensive sectors at the top of the sector list is also a reason for some pause. Investors do not seem to be in agreement on whether the consumer price data was good news, or bad news, or no news.
We'll look for a continuation of higher tomorrow to confirm the direction.
Stay healthy and trade safe!
