Views From The Hill

View From The Hill: November-12-2015

No Higher Ground Without Solid Ground

bulls-and-bears4Equities came out of the gate with a bad start this morning and never found any “terra firma” thereafter.  One might blame it on today’s economic data, but Initial Jobless Claims @ 276k are still at historically low levels despite exceeding consensus estimates @ 266k. There have not been any anomalies in the economic data lately that will give investors any reason to think the Fed might reverse its stance on December being open to a rate increase. We merely have an overbought market that is in the process of correcting. You cannot reach a higher ground without solid ground.

In addition to this, today’s energy report released by the EIA should have left no one surprised. The economic fortunetellers  missed the surplus inventories by a long shot and then some: actual was  @ 4.2mm/bbl vs. consensus @ 1.1mm. The WTI Crude Oil December-2015 futures contract crashed through key support @ 42.50 and settled with a 41-handle. The market hates surprises.

Lastly, Gold is worthy of mention. It has been rather resilient in this price area and gold bugs and investors both are behaving like they will support the precious metal at these levels regardless of a Fed interest rate hike. Here’s my take on gold:

Central banks have pretty much emptied their clips when it comes to interest rate cuts. The only ammunition they have left in their arsenal is the fabrication of more fiat currency. The next recession battle or financial crisis will be fought with paper bullets and not interest rates.

Good night!

 


Performance Summary

 

vfth-performance-11-12-2015
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  • Trends: ST = short-term; MT = Intermediate-term; LT = long-term

 


Market Condition

Well so much for the rally. The bears have now rested control of the market from the bulls as support at the 22-day moving average was violated. The SP-500’s next level of support will be the 2020-2023 level and afterwards 1995-2000. Resistance is at 2060 and then 2085.

By the way, if you’ve been reading our reports regularly, it’s not like you were not forewarned. Stay Hillbent for the Market Direction…

 

Daily Chart Technical Analysis
sp500-daily-11-12-2015
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Market Breadth
Advancers 28 Decliners 473
New 5-day highs 21 New 5-day lows 277
New 52-week highs 19 New 52-week lows 29
Bullish reversals 13 Bearish reversals 44

 

Market Momentum
% > 20 M.A. % > 50 M.A. % > 100 M.A. % > 200 M.A.
30% ↓
60% ↓
41% ↓
40% ↓

 


 Volume Radar Alerts

 

vfth-volume-radar-11-12-2015
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– Vol % = percentage greater than average volume
– SIR = short interest ratio or days to cover

 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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