Commentary and Performance
Technically, it was a negative day for equities. However, given the resiliency displayed by the market, I would consider it a positive trading session. Proximity to key price resistance levels and the less than dovish comments from Fed Chairperson Yellen who issued a sobriety test to the market by confirming the potential for a rate hike in December did not lead to panic. Economic data were mixed but signs of growth still exist despite some pockets of deceleration.
The SP-500 closed @ 2102.31 (-7.48 / -0.35%). The Nasdaq-100 barely budged @ 4717.55 (-1.50 / -0.03%). Nor did the Rusell-2000 @ 1190.38 (-1.20 / -0.10%).
The VIX shared its glory with no one today and finished up @ 15.51 (+0.97 / +6.67%).
Federal Reserve ChairpersonJanet Yellen’s remarks had very little effect upon Treasury rates as the 10-Yr closed @ 22.30 (+0.10 / +0.45%) and the 30-Yr ended @ 29.94 (-0.07 / -0.23%).
The US Dollar Index responded more favorably to the prospects of higher interest rates. The Almighty ascended to a higher level @ 97.87 (+0.64 / +0.66%).
Gold moved closer to the 1100 barrier to end @ 1106.20 (-11.00 / -0.98%). WTI Crude Oil gave back some of yesterday’s gains and may be starting to consolidate @ 46.32 (-1.36 / 2.85%).
In real estate, the Dow Jones Real Estate Index continued to consolidate @ 297.35 (-1.41 / -0.47%) while the Dow Jones Home Construction Index made a second unsuccessful attempt to clear resistance at its 22-day moving average and closed @ 580.15 (-2.58 / -0.44%).
Daily Chart Analysis
The SP-500 is encountering resistance at these levels as anticipated due to an overbought condition. On a positive note, it still remains within the bullish channel and is maintaining support at the bottom channel trend line. This looks like an ideal area for consolidation if the bullish advance is to be sustainable.
Until further notice, it’s Hillbent for the Market Direction…
- Advancers (1294) vs. Decliners (1579).
- New 5-day highs (948) vs. New 5-day lows (333)
- New 52-week highs (196) vs. new 52-week lows (70)
- Bullish reversals (258) vs. Bearish reversals (495)
Volume Radar Alerts
|Stocks prices increasing on high volume|
|Company||Price||% Chg||Vol Surge %|
|Michael Kors Hldg Ltd (KORS)||42.57||+8.27%||424%|
|Fidelity Nat’l Info Services (FIS)||65.54||+1.76%||263%|
|3D Systems Corp (DDD)||11.49||+10.06%||233%|
|Charles River Labs Int’l (CRL)||71.47||+4.31%||222%|
|Bruker Corp (BRKR)||19.35||+2.82%||217%|
|Stock prices declining on high volume|
|Company||Price||% Chg||Vol Surge %|
|Groupon Inc (GRPN)||2.97||-26.30%||736%|
|DSW Inc (DSW)||22.59||-7.83%||687%|
|Booze Allen Hamilton Hldg Corp (BAH)||29.00||-2.59%||582%|
|Clean Harbors Inc (CLH)||42.81||-6.81%||393%|
|Time Warner Inc (TWX)||72.20||-6.60||380%|
Market Moving Events
- Economy / Services & Industries / USA: The ISM Non-Manufacturing Index for October-2015 expanded @ 59.1 vs. consensus @ 56.7 and prior @ 56.9.
- Economy / Services / UK: Great Britain’s CIPS/PMI Services Index for October-2015 continued to improve @ 54.9 vs. consensus @ 54.5 and actual @ 53.3.
- Central Banks / Monetary Policy / USA: Fed Chairperson, Janet Yellen, spoke before the House Financial Services Committee and confirmed that a rate hike in December is still on the table should the economic data warrant it.
- Economy / Services / USA: The PMI Services Index for October-2015 indicated slower growth @ 54.8 vs. consensus @ 54.8 and prior @ 55.1.
- Commodities / Energy / USA: The EIA Petroleum Status report for Oct-30-2015 confirmed another increase in crude oil inventory supplies @ +2.8mm bbl vs. consensus @ 2.4mm and prior @ 3.4mm.
- Economy / Employment / USA: The ADP Employment Report for October-2015 met ADP’s target for private payrolls @ 182k vs. consensus @ 185k and prior revised @ 190k.
- Economy / Trade / USA: The International Trade Balance for September-2015 was in line with expectations. Actual results were @ -$40.8bn vs. consensus @ -$41.1bn and prior revised @ -$48.0bn.
- Economy / Manufacturing & Services / Europe: The EU’s PMI Composite for October-2015 remains in expansion mode @ 53.9 for the Composite and 54.1 for Services vs. consensus respectively @ 54.0 and 54.2. Prior month’s results for Composite was @ 53.6 while Services @ 53.7.
|Lumber Liquidators Hldg Inc (LL)||-0.31||-0.214|
|Time Warner Inc (TWX)||1.25||1.09|
|Michael Kors Hldgs (KORS)||1.01||0.89|
|Wendy’s Co (WEN)||0.09||0.07|
|Avon Products Inc (AVP)||-0.11||0.07|
|Sodastream Int’l Ltd (SODA)||0.22||0.215|
|Virtu Financial Inc (VIRT)||0.04||0.32|
|GoDaddy Inc (GDDY)||-0.04||-0.085|
|Whole Foods Market Inc (WFM)||0.16||0.349|
|Qualcomm Inc (QCOM)||0.91||0.712|
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