View From The Hill: October-28-2015

Posted on Posted in Views From The Hill

Commentary and Performance

bulls-and-bears4Today’s trading was most definitely data dependent and this one was solely dependent upon the Federal Reserve’s latest announcement to leave interest rates unchanged. The SP-500 made a new 1-month high and closed @ 2090.35 (+24.46 / +1.18%). The Nasdaq-100 also hit a new 1-month high and finished @ 4678.58 (+39.35 / +0.85%). Stealing the show was a canary in the coal mine, the Rusell-2000 small cap index, which charged to a new 29-day new high and crossed above its 22 and 55 day moving averages to close  @ 1178.72 (+33.43 / +2.92%).

The VIX declined @ 14.43 (-1.10 / -7.13%).

Treasury rates continued their ascent with the 10-Yr @ 20.92 (+0.64 / +3.16%) and the 30-Yr @ 28.63 (+0.12 / +0.42%).

The US Dollar Index closed @ 97.64 (+0.72 / +0.74%).

Gold closed @ 1155.70 (-11.30 / -0.97%). WTI Crude Oil reversed its downtrend to close @ 46.17 (+2.78 / +6.41%).

The Dow Jones Real Estate Index continued its consolidation  @ 297.77 (+1.11 / +0.37%). The Dow Jones Home Construction Index regained support at its 22-day moving average and ended @ 588.00 (+7.97 / +1.37%).

 

Daily Chart Analysis

Okay… We are fast approaching a key resistance area which approximately converges with the bottom support line of the previous uptrend. Yes, we are still overextended but momentum is strong as evidenced by the bullish crossing of the 22-day moving average above the 55-day moving average. The contrarian in me still anticipates a temporary pullback, at minimum. However, if we clear 2100, then look for the SP-500 to challenge the previous tops @ 2130-2135. Anything above that takes us further into new high territory and opens up a whole new can of “whip-azz” for the bears!

 

sp500_oct-27-2015_daily
Click to enlarge

 

Market Breadth

  • Advancers (2595) vs. Decliners (329).
  • New 5-day highs (1178) vs. New 5-day lows (550)
  • New 52-week highs (265) vs. new 52-week lows (180)
  • Bullish reversals (574) vs. Bearish reversals (105)

 

Volume Radar Alerts

Stock prices increasing on high volume
  • Starwood Hotels & Resorts Worldwide Inc (HOT) @ 79.50 (+6.27%) on 458% volume surge
  • Cabela Inc (CAB) @ 39.26 (+17.47%) on 439% volume surge
  • Chicago Bridge & Iron NV (CBI) @ 46.14 (+15.14%) on 395% volume surge
  • Watsco Inc (WSO) @ 119.49 (+2.27%) on 323% volume surge
  • Vantiv Inc (VNTV) @ 50.92 (+8.36%) on 315% volume surge
Stock prices declining on high volume
  • Akamai Technologies Inc (AKAM) @ 62.91 (-16.73%) on 1072% volume surge
  • Rite Aid Corp (RAD) @ 8.06 (-7.04%) on 854% volume surge
  • Hyatt Hotels Corp (H) @ 49.63 (-1.82%) on 791% volume surge
  • Intercept Pharmaceuticals (ICPT) @ 164.13 (-2.09) on 551% volume surge
  • Wright Express Corp (WEX) @ 84.66 (-6.05%) on 494% volume surge

 

Market Moving Events

Bullish

  • Central Banks / Monetary Policy / USA: The latest FOMC announcement left US interest rates unchanged @ 0.25% and provided a dovish bias as the Fed sees job gains slowing vs. solid gains while the unemployment rate is steady instead of declining. More importantly, inflation continues to remain below its target rate.
  • Economy / Trade Balance / USA: The International Trade Balance  improved to -$58.6bn vs. previous @ -$67.2bn. Exports were up 3.1% while Imports declined -2.5%.
  • Commodities / Energy: The EIA report for the week of October-23-2015 indicated that Crude Oil Inventories continued to increase @ 3.37bn bbl vs. estimates @ 3.41bn and previous @ 8.0bn. Refineries operated @ 87.6% capacity vs. 90% the previous week. However, the report hints of positive news as year-over-year demand indicators for gasoline were up 3.4% and and distillates were up 10.0%.
  • Positive Earnings or Revenues: Apple Inc. (AAPL)

 

Bearish

  • N/A

Neutral

  • N/A

 

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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