Daily Market Update for 4/28

Original Chart

Notes

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

Thursday, April 28, 2022

Facts: +3.06%, Volume higher, Closing Range: 83%, Body: 34% Green
Good: Gain on higher volume , long lower wick shows bullish reversal
Bad: Nothing
Highs/Lows: Higher high, Higher low
Candle: Green body above long lower wick, short upper wick
Advance/Decline: 1.26, more advancing than declining stocks
Indexes:SPX (+2.47%), DJI (+1.85%), RUT (+1.80%), VIX (-5.09%)
Sector List: Technology ( XLK +4.00%) and Communications ( XLC +4.00%) at the top. Industrials XLI +1.13%) and Utilities ( XLU +1.11%) at the bottom.

Market Overview

Strong earnings from big tech helped boost the stock market on Thursday, led by Meta, PayPal and Qualcomm .

The tech-heavy Nasdaq soared +3.06% on higher volume than the previous day. The 34% green body sits above a long lower wick showing a bullish reversal to the upside mid-day. The closing range of 83% comes after a little profit taking at the end of the day. There were more advancing stocks than declining stocks.

All indexes had great days. The S&P 500 (SPX) rose by +2.47%. The Dow Jones Industrial Average (DJI) climbed by +1.85%. And the Russell 2000 (RUT) gained +1.80%. The VIXVolatility Index remains elevated, but declined by -5.09% today.

All S&P 500 sectors gained. Technology ( XLK +4.00%) and Communications ( XLC +4.00%) tied for the top spot on the sector list. Industrials XLI +1.13%) and Utilities ( XLU +1.11%) were at the bottom.

The morning dip was probably due to economic data that showed the economy shrinking in the first quarter despite higher prices. The combination is a recipe for stagflation, one of the biggest market evils. Initial Jobless Claims hit the forecast exactly at 180,000 for last week.

The US Dollar just won’t quit. The US Dollar index DXY ) rose by another +0.65% today. US 30y and 10y Treasury Yields declined while the 2y Yield rose slightly. High Yield ( HYG ) and Investment Grade ( LQD ) Corporate Bond prices tracked higher with Treasuries. Brent Oil rose to $107 a barrel.

The put/call ratio ( PCCE ) lowered slightly to 0.935. The CNN Fear & Greed index landed in the middle of the fear range. The NAAIM money manager exposure index dropped to 46.25.

There were big gains for the big six. Meta ( FB ) rose +17.59% despite mixed results. The surprise came in unexpected user growth. Microsoft MSFT ) continued it post-earnings gains with a +2.26% advance today. Alphabet GOOG ) rebounded a bit from yesterday’s loss, advancing by +3.82% today.

Apple AAPL ) and Amazon( AMZN ) both gained over 4% ahead of their earnings releases in the evening. Both were down in extended hours trading. Apple beat expectations but provided a cautious outlook for Q3 due to the impact of shutdowns in China. Amazon disappointed on results as the surge in consumer online spending during the pandemic is tapering off.

Meta was the top mega-cap, followed by Nvidia NVDA ) which gained +7.42%, likely thanks to Qualcomm’s performance. Novo Nordisk NVO ) fell by -1.23% to end at the bottom of the mega-cap list which had only four declining stocks.

On the Daily Update Growth List, it was Pinterest (PINS), Upwork UPWK ) ,and PayPal ( PYPL ) that soared on earnings results, all rising more than 10%. Pinterest topped the list with a +13.55% gain. Four stocks ended up with losses at the bottom of the list. Ehang Holdings (EH) had the biggest decline, losing -1.38% today.

Looking ahead

PCE Price Index Data for March will be released tomorrow morning. We will also get the Chicago PMI and Michigan Consumer Sentiment and Consumer Expectations numbers for April.

Exxon Mobil XOM ) both Chevron CVX ) report earnings in the morning. AbbVie ABBV ) and Honeywell (HON) are also notable reports for Friday.

Trends, Support, and Resistance

After a dip in the morning, the Nasdaq headed back toward the 13,000 support/resistance area, stopping short of 13,000 before a bit of profit taking before the close.

That action created a one-day trend line that points to a +4.36% advance for Friday. The index is unlikely to rise that much in one day, especially given Amazon will most certainly decline.

If sentiment turns bearish and the index returns to the five-day trend, that would meet up with the trend line from the 3/29 high and mean a -2.82% decline to end the week.

Wrap-up

Something like 40% of Nasdaq companies reported earnings this week. Overall earnings continue to show strong performance from public companies across sectors and sizes. Leaders are cautious about the next few quarters which will continue to make investors cautious.

Tomorrow could be a good signal of just how investors feel after taking the whole week of reports in view.

Stay healthy and trade safe!

Comments

If you find this helpful or have comments, please reply and like at

https://www.tradingview.com/chart/IXIC/gvdmetOh-Daily-Market-Update-for-4-28/

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.