Past the midway point in the trading week and the major averages have bounced back from consistent selling in the previous week and what many thought may prove a period of continued market consolidation and/or retrenching. Even with Boeing (BA), the most heavily price-weighted stock on the Dow Jones Industrial Average (DOW), proving a major…
After 5 consecutive days of declining markets, the major averages fought back with the strongest breadth since January 4th. The Nasdaq (NDX) led the indices with a 2% rally and the S&P 500 (SPX) followed with a rally of nearly 1.5 percent. The Dow Jones Industrial Average (DJIA) lagged its peers with a .79% rally,…
It was a huge day of VIX trading on Monday with VIX options and futures volume soaring. The bottom line is that hedging programs were deployed on scale given the relative low level/inexpensive hedges that could be afforded and with the S&P 500 achieving the 2,800 level intraday. Most of the hedging activity and upside…
Welcome to Finom Group’s technical market recap! In this weekend’s release, we run through Friday’s market activity with great commentary and analysis from our very own Wayne Nelson. Please click on the link to review the video, which is 38 minutes in duration. If you are new to finomgroup.com, please feel free to subscribe…
Despite it being a QT day of significance and without the benefits of U.S. Treasury issuance offsets, the major averages still rallied and after the FOMC minutes were released. The minutes proved innocuous by and large, inline with what most economists, strategists and analysts had previously assumed. The assumption was that there would be some…
There is at least one key component of the market rally that will likely come into play today, liquidity. Today marks yet another quantitative tightening (QT) day for the FOMC as it continues to reduce the size of its balance sheet. The calendar of QT days is depicted below. It’s a common and widely accepted…
The market’s reaction to the release of the December 2018 monthly retail sales was just a reasonable excuse to pullback modestly on Thursday. December retail sales proved disappointing and missed average analysts’ estimates for a modest rise in the MoM data. For the month of December, the Census Bureau reported a MoM decline of 1.2%,…
Please click on the link below to view the video! https://zoom.us/recording/play/-EODMMenR0S7ddbkdemXIw-5t8oHYem7duLoTJxDWR13rDmK01G3EB9TpccysLt4?continueMode=true Video Outline: Introduction to State of Market (opening minutes) December market collapse, liquidity drain, sentiment readings, falling into bear market (3-6 minutes in) Snapback rally from oversold conditions and pension fund rebalancing, not in recession, 1,000 point Dow rally typical of bear market conditions…
If you didn’t tune into the markets, CNBC or Bloomberg yesterday, you likely missed the Jeffrey Gundlach show. He many several comments about the equity markets, while patting himself on the back for his Facebook (FB) short. Additionally and as he always does, for better or worse, he made some innocuous calls on the market.…
While headlines on trade and/or the White House administration seem to pour out of the media on a daily basis, investors continue to be whipsawed and tumbled about, trying to decipher what is more meaningful to the future of corporate earnings. Yesterday’s most impactful market headline came on the global trade front. According to reports,…
