Ideas always welcome in the comments. Errors will be amended as comments on TradingView or corrected inline in my blog.
Friday, August 20, 2021
Facts: +1.19%, lower, Closing Range: 95%, Body: 95% Green
Good: All green body, high
Highs/Lows: Higher high, Higher low
Candle: Mostly green body with a tiny upper wick, low above yesterday’s close
Advance/Decline: 1.68, three advancing stocks for every two declining stocks
Indexes: SPX (+0.81%), DJIA (+0.65%), RUT (+1.65%), (-14.35%)
Sector List: Technology ( XLK +1.29%) and Utilities ( XLU +1.25%) at the top. Energy ( XLE +0.22%) and Consumer Staples ( XLP +0.17%) at the bottom.
The market shrugged off worries about the Fed tapering of economic support to rally higher today. While the indexes were still below recent highs, the day was an excellent structural day, with gains shared broadly across the market.
The Nasdaq closed +1.19% higher. was lower than the previous day. The candle is almost entirely green body, with a short upper wick. The closing range of 95% and 95% body creates the second candle in a row with no lower wick. The index closed back above its 21d as three stocks advanced for every two that declined.
All sectors gained today. Technology ( XLK +1.29%) and Utilities ( XLU +1.25%) topped the sector list, giving us another day of mixed growth and defensive sectors at the top of the sector list. Energy ( XLE +0.22%) had a slight gain to end a week of huge losses. Consumer Staples ( XLP +0.17%) was at the bottom of the sector list.
The Fed’s Kaplan, who has been a proponent of an early reduction in economic support, stated this morning that he might need to change his view based on the growing concerns around the Delta variant.
The US 30y Treasury Yield declined while the 10y and 2y Treasury Yields advanced .
Microsoft ( MSFT ) topped the largest four mega-caps with a gap up and huge +2.56% gain today that took the stock past 300 for the first time. Apple ( AAPL ) gained +1.02%. Alphabet ( GOOGL ) rose +1.29%. Both are riding support from their 21d . Amazon ( AMZN ) advanced +0.38% but remained below its 200d MA as the 50d MA starts to turn over to a decline.
Nvidia ( NVDA ) topped the mega-cap list with a 5.14% gain. The company was followed by Microsoft , Home Depot (HD), and Cisco ( CSCO ) to round out the top four. At the bottom of the list were Toyota Motor , Taiwan Semiconductor ( TSM ), Alibaba (BABA), and Intel ( INTC ).
Growth stocks were back in action today. Top performers in the daily update growth list included Ehang Holding (EH), Nvidia , FUTU Holding ( FUTU ), and Fastly ( FSLY ), all gaining more than 4%. There were a handful of losers, with Chewy ( CHWY ), Sea Limited (SE), Snowflake (SNOW), and Robinhood (HOOD) all declining more than 3%.
The dropped to 0.740. The ( PCCE ) is a contrarian indicator of overly or overly investor behavior. The 0.7 level is considered normal. Below that level is overly .
The CNN Fear & Greed index remained in extreme fear.
The NAAIM money manager exposure index dropped to 70.57 this week.
Manufacturing and Services Purchasing Managers Index data will be available on Monday, just after the market opens. Existing Home Sales data will also be available.
Trends, Support, and Resistance
The Nasdaq closed back above the 21d today.
It was a solid green day with broad gains shared across the market and small-caps leading the way higher. That all feels . The only thing missing from today was higher . As Microsoft ( MSFT ) made new all-time highs, helping the Technology sector lead for the day, investors also became cautious, turning to the Utilities ( XLU ) sector for defense.
Based on the low that’s above yesterday’s close, the expectation is for Higher on Monday.
Stay healthy and trade safe!