Daily Market Update for 6/23

Original Chart

Notes

Ideas always welcome in the comments. Errors will be amended as comments on TradingView or corrected inline in my blog.

Wednesday, June 23, 2021

Facts: +0.13%, Volume lower, Closing range: 36%, Body: 12%
Good: New high, A/D over 1.0
Bad: Low closing range, weak volume
Highs/Lows: Higher high, lower low
Candle: Thin green body in the lower half of candle
Advanced/Decline: 1.04, About the same number of advancing and declining stocks.
Indexes:SPX (-0.11%), DJI (-0.21%), RUT (+0.33%), VIX (-2.16%)
Sectors: Consumer Discretionary ( XLY +0.77%) and Energy ( XLE +0.28%) were top. Materials ( XLB -0.64%) and Utilities ( XLU -1.06%) were bottom.
Expectation: Higher

Market Overview

Mixed economic data seemed to bring mixed reactions in the market today. The result is a day of slim gains across the market while the indices pause after a couple of days of gains.

The Nasdaq gained +0.13%. Volume was lower than the previous day. The thin 12% body is in the lower half of the candle, resulting in a 36% closing range. The longer upper wick was formed in a rally just after the market opened, but the index could not hold onto the gains. There were about the same number of advancing stocks as declining stocks.

The Russell 2000 (RUT) performed best among the major indices today, gaining +0.33%. The S&P 500 (SPX) declined -0.11%, while the Dow Jones Industrial Average (DJI) fell -0.21%.

The VIXvolatility index declined -2.16%.

Consumer Discretionary ( XLY +0.77%) and Energy ( XLE +0.28%) topped the sector list today. The only other sector with gains was Financials ( XLF +0.19%). Materials ( XLB -0.64%) and Utilities ( XLU -1.06%) were at the bottom of the sector list.

Economic Indicators

The US Dollar DXY advanced +0.09%.

The US 30y, 10y, and 2y Treasury Yields all advanced .

High Yield Corporate Bond ( HYG ) and Investment Grade Corporate Bond ( LQD ) prices declined.

Silver SILVER advanced while Gold GOLD ) declined.
Crude Oil (CRUDEOIL1!) advanced .
Timber (Wood) declined.
Copper (COPPER1!) and Aluminum (ALI1!) advanced .

Bitcoin BTCUSD ) gained +2.47%. Ethereum ETHUSD advanced +3.42%. (Time of writing)

Investor Sentiment

The put/call ratio lowered to 0.518. The put/call ratio ( PCCE ) is a contrarian indicator that shows overly bullish or overly bearish investor behavior. The 0.7 level is considered normal. Below that level is overly bullish .

The CNN Fear & Greed index is on the fear side.

Market Leaders

All four largest mega-caps declined for the day but are still showing strength. Apple AAPL ) lost -0.21%. Alphabet GOOGL ) declined -0.17%. Microsoft MSFT ) fell -0.09%. Amazon ( AMZN ) declined -0.05%.

Tesla TSLA ), Alibaba (BABA), Taiwan Semiconductor ( TSM ), and Walt Disney (DIS) were the top mega-caps today, all gaining over 1%. There were more decliners than gainers in the mega-cap list. Comcast ( CMCSA ), Eli Lilly ( LLY ), Pfizer PFE ), and PepsiCo PEP ) were at the bottom of the list.

The daily update growth stock list had another day of broad gains. The big winners at the top of the list were UP Fintech ( TIGR ), Lemonade LMND ), FUTU Holding ( FUTU ), and SNAP (SNAP). At the bottom of the list were DocuSign DOCU ), CrowdStrike ( CRWD ), D.R. Horton ( DHI ), and DoorDash (DASH).

Looking ahead

For Thursday, data will be available for Durable Goods Orders. GDP data for Q1 should not change much over previously released numbers. We will also get the Initial Jobless Claims data before the markets open. Finally, there are Fed Bank Stress Test results to be made available after the market closes.

Earnings reports on Thursday will include Nike NKE ), Accenture ( ACN ), FedEx FDX ), Blackberry (BB), and Bed Bath & Beyond BBBY ). The last two have been popular meme stocks.

Trends, Support, and Resistance

The Nasdaq rose to another new all-time high and continued with the third day of gains this week.

All three trend lines point to gains for tomorrow. The one-day trend-line is the flattest, with a +0. 05 increase for Thursday.

The trend-line from the 5/12 low points to a +0.36% gain, with the five-day trend-line coming in just under that mark.

Wrap-up

The rally in the morning faded as more economic data became available and potentially traders took some profits. Several stocks entering the Russell 3000 list this week also had significant gains today, even though they don’t officially join the indexes until Monday.

Overall, it seems like a healthy pause after several days of market gains. Based on the long upper wick formed by the lost morning rally, the expectation is for sideways or lower tomorrow. But by all means, please do surprise me.

Stay healthy and trade safe!

Comments

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