Summary: Major indexes marched higher today as confidence grows among investors that Omicron is not as dangerous as initially thought.
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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Wednesday, December 8, 2021
Facts: +0.64%, Volume lower, Closing Range: 97%, Body: 55% Green
Good: Higher high, higher low and high closing range, good advance/decline ratio
Bad: Lower volume
Highs/Lows: Higher high, Higher low
Candle: Green body at top of candle, long lower wick
Advance/Decline: 1.92, almost two advancing for every declining stock
Indexes: SPX (+0.31%), DJI (+0.10%), RUT (+0.79%), VIX (-9.09%)
Sector List: Health (XLV +0.75%) and Communications (XLC +0.73%) at the top. Consumer Staples (XLP -0.32%) and Financials (XLF -0.53%) at the bottom.
Expectation: Sideways or Higher
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Market Overview
Major indexes marched higher today as confidence grows among investors that Omicron is not as dangerous as initially thought.
The Nasdaq climbed +0.64% and closed near the intraday high. Volume was lower than the previous day, but almost two stocks advanced for every declining stock. The green body covers 55% of the candle, which has a 97% closing range. A longer lower wick formed at market open, but bulls bought the dip and sent the index higher.
The Russell 2000 (RUT) outperformed the other indexes with a +0.79% gain. The S&P 500 (SPX) climbed by +0.31%. The Dow Jones Industrial Average (DJI) only gained +0.10%. The VIX Volatility Index fell another -9.18%.
Health (XLV +0.75%) and Communications (XLC +0.73%) let the sector list. Communications led for most of the day, but Health caught up and topped the sector list just before close. Consumer Staples (XLP -0.32%) and Financials (XLF -0.53%) were at the bottom of the sector list.
The JOLTs Job Openings report showed 11.033 million openings for October, more than the expected 10.369 million. The report signals a continued labor shortage as people quit jobs at a record rate while companies are trying to hire for the holiday season.
The US Dollar weakened with the index (DXY) dropping -0.35% today. US 30y and 10y Treasury yields continue to climb while the 2y yield fell slightly. High Yield (HYG) Corporate Bond prices fell by only -0.02%. Investment Grade (LQD) Corporate Bond prices fell -0.67%.
Crude Oil Futures gained another +5.21% as Omicron fears eased worries about travel demand.
The put/call ratio rose to 0.706. The CNN Fear & Greed indicator moved closer to Neutral but remained at the Fear level.
All four largest mega-caps stayed positive for the day, although Amazon (AMZN) closed flat. Apple (AAPL) set another record close, gaining +2.28% today. Alphabet (GOOGL) gained +0.62%. Microsoft (MSFT) held onto a +0.01% gain.
PayPal (PYPL) was the top mega-cap for the day, gaining +3.31%. At the bottom of the list was Toyota Motor (TM ), which declined -2.65%.
Roku (ROKU) topped the daily update growth list with a +18.23% gain. The company announced a multi-year deal with Google to keep YouTube and YouTube TV on its streaming platform. DocuSign (DOCU) was the second-best performer on the list. The stock climbed +10.92% after the CEO bought $4.8 million in stock. Only four stocks in the growth list declined. Lululemon (LULU) dropped -2.06% ahead of earnings.
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Looking ahead
The weekly Initial Jobless Claims report will be available in the morning.
Oracle (ORCL), Broadcom (AVGO), Costco (COST), Lululemon (LULU), and Chewy (CHWY) report earnings on Thursday.
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Trends, Support, and Resistance
The Nasdaq did a steady climb toward the 16,000 resistance area but still has a ways to go.
If the one-day and five-day trend lines continue, it will result in a +0.63% advance for Thursday.
The trend line from the 11/22 high points to a -3.05% decline.
We are still watching for 15,833.11, which is the high of last week. A new weekly high will build confidence that the Omicron correction is behind us. It will also help if volume increases as the index moves higher.
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Wrap-up
Overall it was a productive day with broad gains across many stocks, but volume is decreasing as the markets move higher. We can have more confidence in the rally if the volume increases, showing more strength in the move.
The expectation for Thursday is Sideways or Higher.
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=-
Wednesday, December 8, 2021
Facts: +0.64%, Volume lower, Closing Range: 97%, Body: 55% Green
Good: Higher high, higher low and high closing range, good advance/decline ratio
Bad: Lower volume
Highs/Lows: Higher high, Higher low
Candle: Green body at top of candle, long lower wick
Advance/Decline: 1.92, almost two advancing for every declining stock
Indexes: SPX (+0.31%), DJI (+0.10%), RUT (+0.79%), VIX (-9.09%)
Sector List: Health (XLV +0.75%) and Communications (XLC +0.73%) at the top. Consumer Staples (XLP -0.32%) and Financials (XLF -0.53%) at the bottom.
Expectation: Sideways or Higher
-=x=-=x=-=x=-=x=-=x=-=x=-=x=-
Market Overview
Major indexes marched higher today as confidence grows among investors that Omicron is not as dangerous as initially thought.
The Nasdaq climbed +0.64% and closed near the intraday high. Volume was lower than the previous day, but almost two stocks advanced for every declining stock. The green body covers 55% of the candle, which has a 97% closing range. A longer lower wick formed at market open, but bulls bought the dip and sent the index higher.
The Russell 2000 (RUT) outperformed the other indexes with a +0.79% gain. The S&P 500 (SPX) climbed by +0.31%. The Dow Jones Industrial Average (DJI) only gained +0.10%. The VIX Volatility Index fell another -9.18%.
Health (XLV +0.75%) and Communications (XLC +0.73%) let the sector list. Communications led for most of the day, but Health caught up and topped the sector list just before close. Consumer Staples (XLP -0.32%) and Financials (XLF -0.53%) were at the bottom of the sector list.
The JOLTs Job Openings report showed 11.033 million openings for October, more than the expected 10.369 million. The report signals a continued labor shortage as people quit jobs at a record rate while companies are trying to hire for the holiday season.
The US Dollar weakened with the index (DXY) dropping -0.35% today. US 30y and 10y Treasury yields continue to climb while the 2y yield fell slightly. High Yield (HYG) Corporate Bond prices fell by only -0.02%. Investment Grade (LQD) Corporate Bond prices fell -0.67%.
Crude Oil Futures gained another +5.21% as Omicron fears eased worries about travel demand.
The put/call ratio rose to 0.706. The CNN Fear & Greed indicator moved closer to Neutral but remained at the Fear level.
All four largest mega-caps stayed positive for the day, although Amazon (AMZN) closed flat. Apple (AAPL) set another record close, gaining +2.28% today. Alphabet (GOOGL) gained +0.62%. Microsoft (MSFT) held onto a +0.01% gain.
PayPal (PYPL) was the top mega-cap for the day, gaining +3.31%. At the bottom of the list was Toyota Motor (TM ), which declined -2.65%.
Roku (ROKU) topped the daily update growth list with a +18.23% gain. The company announced a multi-year deal with Google to keep YouTube and YouTube TV on its streaming platform. DocuSign (DOCU) was the second-best performer on the list. The stock climbed +10.92% after the CEO bought $4.8 million in stock. Only four stocks in the growth list declined. Lululemon (LULU) dropped -2.06% ahead of earnings.
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Looking ahead
The weekly Initial Jobless Claims report will be available in the morning.
Oracle (ORCL), Broadcom (AVGO), Costco (COST), Lululemon (LULU), and Chewy (CHWY) report earnings on Thursday.
-=x=-=x=-=x=-=x=-=x=-=x=-=x=-
Trends, Support, and Resistance
The Nasdaq did a steady climb toward the 16,000 resistance area but still has a ways to go.
If the one-day and five-day trend lines continue, it will result in a +0.63% advance for Thursday.
The trend line from the 11/22 high points to a -3.05% decline.
We are still watching for 15,833.11, which is the high of last week. A new weekly high will build confidence that the Omicron correction is behind us. It will also help if volume increases as the index moves higher.
-=x=-=x=-=x=-=x=-=x=-=x=-=x=-
Wrap-up
Overall it was a productive day with broad gains across many stocks, but volume is decreasing as the markets move higher. We can have more confidence in the rally if the volume increases, showing more strength in the move.
The expectation for Thursday is Sideways or Higher.
Stay healthy and trade safe!
