Daily Market Update for 4/8
Summary: Friday was a continuation of this choppy week that saw more Fed officials take a hawkish stance toward policy to get inflation under control.
Notes
Ideas always welcome in the comments. Errors will be amended as comments on TradingView or corrected inline in my blog.
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Friday, April 8, 2022
Facts: -1.34%, Volume lower, Closing Range: 10%, Body: 69% Red
Good: Higher low, lower volume on decline
Bad: Lower high, closing range of 10%
Highs/Lows: Lower high, Higher low
Candle: Inside day, red body in between tiny upper and lower wicks
Advance/Decline: 0.42, more than two declining for every advancing stock
Indexes: SPX (-0.27%), DJI (+0.40%), RUT (-0.76%), VIX (-1.81%)
Sector List: Energy (XLE +2.75%) and Financials (XLF +1.01%) at the top. Consumer Discretionary (XLY -0.92%) and Technology (XLK -1.40%) at the bottom.
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Market Overview
Friday was a continuation of this choppy week that saw more Fed officials take a hawkish stance toward policy to get inflation under control.
The Nasdaq declined by -1.34%. Volume was lower than the previous day. The candle has a 69% red body in between small upper and lower wicks. The closing range of 10% put the close below the 50d moving average. There were more than two declining stocks for every advancing stock.
The Dow Jones Industrial Average (DJI) advanced +0.40%, helped by big energy and big finance companies. The S&P 500 (SPX) receded by -0.27%. The Russell 2000 (RUT) declined by -0.76%. The VIX Volatility Index fell by -1.81% after hitting higher levels earlier in the week.
Seven of the eleven S&P 500 sectors ended the day in the green. Energy (XLE +2.75%) and Financials (XLF +1.01%) were the best two sectors. Consumer Discretionary (XLY -0.92%) and Technology (XLK -1.40%) led the losing sectors.
There were no surprises in the World Agricultural Supply and Estimates (WASDE) report. Investors already know about the crisis in the food chain caused by the war in Ukraine.
The US Dollar Index (DXY) gained another +0.09%, ending the week at its highest point since May 2020. Treasury Yields continued higher as bond investors sell-off notes ahead of the Fed reducing the balance sheet. High Yield (HYG) and Investment Grade (LQD) Corporate Bond prices continued to track lower. Brent Oil moved slightly higher but is staying near the $100 level.
The put/call ratio (PCCE) declined to 0.786. The CNN Fear & Greed index moved closer to Neutral.
All of the big six declined, led by Nvidia (NVDA) which fell by -4.50%. Tesla (TSLA) is the only of the six to remain above moving averages, despite declining by -3% today.
Home Depot (HD) was the top mega-cap today, advancing +2.76%. The stock had been underperforming the market, including the Consumer Staples sector, so possibly investors are looking for a bargain. Nvidia was at the bottom of the mega-cap list, followed by Tesla.
Only four stocks in the Daily Update Growth List gained. RH was the biggest winner, advancing +2.43% and followed by Fastly (FSLY) which rose +2.20%. Lemonade (LMND) landed at the bottom of the list with a -8.34% drop today.
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Looking ahead
There is not much economic news to kick off on Monday, but Tuesday will bring the Consumer Price Index data for March.
The week will also start off light with earnings reports and then pick up with Finance firms reporting later in the week.
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Trends, Support, and Resistance
The Nasdaq dropped below the 50d moving average in the morning, recovered mid-day but then closed below that line to end the week.
The trend line from the 3/29 high and the one-day trend line point to a -0.21%.
The five-day trend line ends with a -1.95% decline.
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Wrap-up
There wasn't much news to change investor sentiment in either direction today, so more of the same continued into Friday. Equities chopped around while bonds sold off. The volatility will continue until more agreement is established on how quickly the Fed will reduce the balance sheet and how much they will increase interest rates.
Stay healthy and trade safe!
Notes
Ideas always welcome in the comments. Errors will be amended as comments on TradingView or corrected inline in my blog.
-=x=-=x=-=x=-=x=-=x=-=x=-=x=-
Friday, April 8, 2022
Facts: -1.34%, Volume lower, Closing Range: 10%, Body: 69% Red
Good: Higher low, lower volume on decline
Bad: Lower high, closing range of 10%
Highs/Lows: Lower high, Higher low
Candle: Inside day, red body in between tiny upper and lower wicks
Advance/Decline: 0.42, more than two declining for every advancing stock
Indexes: SPX (-0.27%), DJI (+0.40%), RUT (-0.76%), VIX (-1.81%)
Sector List: Energy (XLE +2.75%) and Financials (XLF +1.01%) at the top. Consumer Discretionary (XLY -0.92%) and Technology (XLK -1.40%) at the bottom.
-=x=-=x=-=x=-=x=-=x=-=x=-=x=-
Market Overview
Friday was a continuation of this choppy week that saw more Fed officials take a hawkish stance toward policy to get inflation under control.
The Nasdaq declined by -1.34%. Volume was lower than the previous day. The candle has a 69% red body in between small upper and lower wicks. The closing range of 10% put the close below the 50d moving average. There were more than two declining stocks for every advancing stock.
The Dow Jones Industrial Average (DJI) advanced +0.40%, helped by big energy and big finance companies. The S&P 500 (SPX) receded by -0.27%. The Russell 2000 (RUT) declined by -0.76%. The VIX Volatility Index fell by -1.81% after hitting higher levels earlier in the week.
Seven of the eleven S&P 500 sectors ended the day in the green. Energy (XLE +2.75%) and Financials (XLF +1.01%) were the best two sectors. Consumer Discretionary (XLY -0.92%) and Technology (XLK -1.40%) led the losing sectors.
There were no surprises in the World Agricultural Supply and Estimates (WASDE) report. Investors already know about the crisis in the food chain caused by the war in Ukraine.
The US Dollar Index (DXY) gained another +0.09%, ending the week at its highest point since May 2020. Treasury Yields continued higher as bond investors sell-off notes ahead of the Fed reducing the balance sheet. High Yield (HYG) and Investment Grade (LQD) Corporate Bond prices continued to track lower. Brent Oil moved slightly higher but is staying near the $100 level.
The put/call ratio (PCCE) declined to 0.786. The CNN Fear & Greed index moved closer to Neutral.
All of the big six declined, led by Nvidia (NVDA) which fell by -4.50%. Tesla (TSLA) is the only of the six to remain above moving averages, despite declining by -3% today.
Home Depot (HD) was the top mega-cap today, advancing +2.76%. The stock had been underperforming the market, including the Consumer Staples sector, so possibly investors are looking for a bargain. Nvidia was at the bottom of the mega-cap list, followed by Tesla.
Only four stocks in the Daily Update Growth List gained. RH was the biggest winner, advancing +2.43% and followed by Fastly (FSLY) which rose +2.20%. Lemonade (LMND) landed at the bottom of the list with a -8.34% drop today.
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Looking ahead
There is not much economic news to kick off on Monday, but Tuesday will bring the Consumer Price Index data for March.
The week will also start off light with earnings reports and then pick up with Finance firms reporting later in the week.
-=x=-=x=-=x=-=x=-=x=-=x=-=x=-
Trends, Support, and Resistance
The Nasdaq dropped below the 50d moving average in the morning, recovered mid-day but then closed below that line to end the week.
The trend line from the 3/29 high and the one-day trend line point to a -0.21%.
The five-day trend line ends with a -1.95% decline.
-=x=-=x=-=x=-=x=-=x=-=x=-=x=-
Wrap-up
There wasn't much news to change investor sentiment in either direction today, so more of the same continued into Friday. Equities chopped around while bonds sold off. The volatility will continue until more agreement is established on how quickly the Fed will reduce the balance sheet and how much they will increase interest rates.
Stay healthy and trade safe!
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