View From The Hill (Dec-21-2015): Santa Claus Rally Present In Gold

Posted on Posted in Views From The Hill

Commentary

bulls-and-bears4

Stocks snapped a two-day losing streak in today’s trading session. However, before getting hopes too high, this does not look like the beginning of a year-end Santa Claus rally, unless you are long Gold, which posted signs of a breakout, or Real Estate’s Home Construction Builders.

Top performance among sectors was found in Consumer Staples (XLP +1.13%), Financials (XLF +0.99%), Information Technology (VGT +0.98%) and Telecom (IYZ +0.92%). Sectors significantly lagging the market were Energy (XLE +0.10%) and Utilities (XLU -0.07%).

There were no major economic data reports today.

 


Performance Summary

*Trends: ST = short-term; MT = Intermediate-term; LT = long-term

vfthperformance-12-21-2015
Click to enlarge

 


Market Condition

Today’s market breadth was overwhelmingly positive but unfortunately most of the advancing issues traded on lower than average volume. Translated into plain English: the market internals are weak and the rally is not to be trusted. Market momentum continues to be bearish as key moving averages have been violated, especially among some of the heavier weighted market cap components of the SP-500. Even more important is the fact that the trend remains downward.

The bear trap which I predicted after last week’s rally still has a hold on many bulls. Be careful…

 

Hillbent on the Market Direction…

 

Daily Chart Technical Analysis
sp500-daily-chart-12-21-2015
Click to enlarge

 

Market Breadth
Advancers 411 Decliners 88
New 5-day highs 35 New 5-day lows 128
New 52-week highs 2 New 52-week lows 19
Bullish reversals 161 Bearish reversals 16

 

Market Momentum
% > 20 M.A. % > 50 M.A. % > 100 M.A. % > 200 M.A.
24% 31%
40%
40%
↑ = positive momentum; ↓ = negative momentum; and ↔ = neutral momentum

 


Volume Radar Alerts

  • Vol % = volume percentage greater than average volume
  • SIR = short interest ratio or days to cover
vfth-volume-radar-12-21-2015
Click to enlarge

 


Disclaimer

Hillbent does not provide individualized market advice. The information we publish regards securities in which we believe our readers may be interested and our reports reflect our sincere opinions. Nevertheless, they are not intended to be personalized recommendations to buy, hold, or sell securities. Investments in the securities markets, and especially in options, are speculative and involve substantial risk. Each individual investor should determine their respective appropriate level of risk. It is recommended that you seek personal advice from your professional investment advisor and conduct further independent due diligence research before acting on information published in any of our reports. Most of our information is derived directly from information published by the companies on which we report and/or from other sources we deem to be reliable, without our independent verification. Therefore, we cannot assure the completeness or accuracy of information contained within these reports and we do not in any way warrant or guarantee the success of any action which you take in reliance on our statements. Hillbent.com, Inc. or its affiliates may own positions in the equities mentioned in our reports. We do not receive any compensation from any of the companies covered in our reports.

 

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