If it wasn’t obvious to investors, fanned the market volatility. Treasury Secretary Steven Mnuchin said that algorithmic trading played a role in the sell-off as he sought to reassure jittery investors.
The S&P 500 fell as much as 9.7% from its peak. That’s practically the definition of a market correction, which is commonly understood to be a decline of at least 10%. The small-cap Russell 2000 did sink more than 10%. (IBD)
No, i am not talking about terminator 2 judgement day
yahoo has a small segment here
As posted in the previous post on this site we have had and we had exited the market on Jan 30th when we
5 days of stalling and no progress
2 days of high volume selling
100 points loss in 2 days in high volume
Top leaders down in high volume
( first photo source : trading view )
FFTY etf a proxy for top 50 beat stocks in the market down by 2%
On Jan 30th – the market gapped down 88 points …
For the first time since almost 30 years – the entire world is seeing +positive grown for 12 months!
Of the top ten largest corporations in the world in 2009, only one was a technology company – Microsoft. Today, seven of the ten largest companies worldwide are technology companies including Apple, Google/Alphabet, Microsoft, Facebook, Amazon, Alibaba and Tencent. The shift to a technology dominated economy provides a boost to earnings growth rates.
Over a fifth of the S&P 500 is represented by the technology sector. Consensus revenue growth for the technology sector in 2018 is 9.4% which should drive 35% earnings growth. In the past month, the revenue growth forecast was revised up from 8.7% to the current 9.4%.
The earnings per share for the MSCI AC World Index (ACWI) is above $30. In the U.S., the S&P 500 consensus earnings estimate is expected to advance by about 11% year-over-year on revenue growth of about 5% off of record levels reached in 2017.
If the P/E remains constant as it has for the past two years, the S&P 500 should be up in-line with earnings or about 11%.
Source : Delta market sentiment
this year there has been over 60 times that NASDAQ hit high.
this week begins with 6th week of record high.
above is a weekly close for QLD.
QLD which is 2X Nasdaq 100 appears to have hit a plateau 2 weeks in a row 10/16 and then last few days.
last 4 trading sessions NASDAQ hit 3 distribution days – which is concerning.
On 5/29 week QLD closed 62.65, where as the MA 20 Weeks was 53.67 – 8.98 dollars difference! about 14 %. Then it dropped by 6.3 dollars (around 10%)
The situtation is not that bad now – the difference between the two (MA and the price ) is about 4 %
Now for the current scenario – the ATR 20 DAYS is 2.43.
So lets wait and see. No clear sell as yet
IBD has this – “When it comes to overall market health, what’s interesting to note is that the market has moved from a high distribution-day count in the S&P 500 and Nasdaq and overall healthy action in leading growth stocks to a low distribution-day count and suspect action in some leading growth stocks. Many leaders are still acting fine, while others have turned sluggish.”
For 38 weeks in a row – straight weeks, Since Donald Trump was elected the 45th U.S. President the market has been in a bullish trend. That is it has been around 269 days of relentless bull (a very, very mature bull market though).
Many people got left out, because they predicted the market collapse. The market is a leading indicator of the overall health of the economy of the USA
S@P gained around 18%
DOW gained around 21%
NASDAQ gained around 23%
41 times DOW hit new highs!! 41 times!
Monday August 21, 2017 is a coast to caost solar eclipse and some people as usual are predicting dire straits for USA. They may or may not be right. But as of today USA is doing great!!
But for the naysayers
Here is good news too
Electronics for Imaging – EFII, collapsed 41% in thousands of times more volume than average. This might be a time to time to buy Put Options. Remember Enron accounting irregularities! – Thursday was quarterly results and they failed to release it , citing issues over revenue recognition!!
Applied Optoelectronics – AAOI, plummeted 27%. The maker of optical-communications devices forecast current-quarter revenue that was well below estimates. Before Friday’s drop, Applied had best-possible IBD ratings. Its fiber optics industry group was ranked No. 1 of 197.
Trivago- TRVG, collapsed 18% to a three-month low after the travel-booking company reported loss in the quarter.
Impinj- PI, skidded 23% in more than seven times its usual volume. The tracking-chip company beat Q2 sales and earnings views, but gave a soft outlook.
Weekly chart on the right appears to be forming a top. but it is clearly in an uptrend
daily chart (on the left) – good chart damage a few days ago in higher volume
Major Indexes rose only 0.2 % – 0.3 %. Small caps ran up – Russel went up 0.2%
On NASDAQ – volume – a good indicator of institutional buying is roughly even compared to Monday.
The best Industry group today is automation industry – up 4.1% – supported by CGNX – up 11%
Consumer loan, oil field services, scientific and measuring gear, heavy construction and outsourcing companies also outperformed well and grew more than 2% today.