Daily Market Update for 4/27

Original Chart

Notes

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

Wednesday, April 27, 2022

Facts: -0.01%, Volume lower, Closing Range: 21%, Body: 4% Red
Good: Lower volume on decline
Bad: Lower high, lower low, closing range, long upper wick
Highs/Lows: Lower high, Lower low
Candle: Thing red body near bottom of candle underneath a long upper wick
Advance/Decline: 0.51, two declining for every advancing stock
Indexes:SPX (+0.21%), DJI (+0.19%), RUT (-0.34%), VIX (-5.73%)
Sector List: Technology ( XLK +1.48%) and Materials ( XLB +1.47%) at the top. Real Estate ( XLRE -0.60%) and Communications ( XLC -2.23%) at the bottom.

Market Overview

Equities were mixed as the US Dollar continues to strengthen against the Euro and Japanese Yen.

The Nasdaq closed just -0.01% lower after a morning rally failed and turned into afternoon selling. The 4% red body underneath a long upper wick shows the round trip to intraday highs that eventually resulted in a 21% closing range. There were two declining stocks for every advancing stock.

The S&P 500 (SPX) did better, helped by Microsoft and the Technology sector. It closed +0.21% higher. The Dow Jones Industrial Average (DJI) gained by +0.19%. Small-caps did not fare well, with the Russell 2000 (RUT) declining -0.34%. The VIXVolatility Index dropped -5.73%.

Six of the eleven S&P 500 sectors gained today. Technology ( XLK +1.48%) led the list with help from Microsoft . Materials ( XLB +1.47%) was the next best sector. Communications ( XLC -2.23%) was at the bottom of the sector list, brought down by Google and Facebook losses.

The US Dollar continues to strengthen. The index ( DXY ) that measures the dollar against a basket of other currencies, rose +0.68% today. It is up more than 5% for the month. Treasury Yields rose. High Yield ( HYG ) and Investment Grade ( LQD ) Corporate Bond prices declined. Silver and Gold continued to drop. Brent Oil remains around $105 a barrel.

The put/call ratio ( PCCE ) rose to 0.937. The CNN Fear & Greed index remains deep in the Fear region.

Microsoft MSFT ) led the big six mega-cap list with a +4.81% gain after strong earnings . Alphabet GOOGL ) led the declines with a -3.75% loss after taking another hit on advertising revenues. Meta ( FB ) declined by -3.32% as investors expected a similar fate, but then the company surprised with stronger-than-expected user growth and the stock rose % by 18 in extended trading.

Visa (V) was the top mega-cap, gaining +6.47% after telling investors there was no impact on the business from economic and geopolitical situations. Mastercard (MA) rose +5.07% thanks to the Visa news. Alphabet and Facebook were the worst two mega-caps for the day.

JD.com JD ) led the Daily Update Growth List with a +7.91% gain. Enphase ( ENPH ) deserves an honorable mention after climbing +7.72% to land in the second spot thanks to strong earnings . Beyond Meat BYND ) is also notable. The stock gained +30% intraday on misunderstood news coverage. After the news was clarified, the stock dropped but held onto a +7.57% gain.

Roku (ROKU) was at the bottom of the list again, declining by -7.63% today.

Looking ahead

We’ll get the first look at GDP for Q1 on Thursday. We’ll also get the weekly Initial Jobless Claims.

The big six mega-caps will finish out their earnings season with Apple AAPL ) and Amazon ( AMZN ) reporting on Thursday. In addition, Mastercard (MA), Eli Lilly ( LLY ), Merck ( MRK ), Thermo Fisher Scientific TMO ), Comcast ( CMCSA ), Intel INTC ), and McDonald’s ( MCD ) are among many more reporting in this busy earnings week.

Trends, Support, and Resistance

If the one-day trend continues into Thursday, that will be near the trend line from the 3/29 high and result in a +0.47% gain.

The five-day trend line points to a -2.24% decline.

Wrap-up

Earnings continue to surprise in multiple ways. While Meta faces some of the same earnings pressures as Google , the company was able to show strong user growth and excite investors. Overall the earnings season continues to show companies outperforming and showing a positive outlook even amidst headwinds.

Stay healthy and trade safe!

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