Markets Keep Rolling Along
0
July 23, 2014

 photo 7c752ad164f13e37fddf09a80cb14ebe-man-punches-bear-trap-for-some-reason_zpsaa347f82.gif

Bears are nowhere to be seen at present. Many bears are calling for a market top, or at the very least, a correction. But any attempts to fade this market thus far have led to bear traps. Now that I posit this, maybe this will all change.

Clearly Apple (AAPL) given its heavy weighting in most tech indexes continues to lead markets higher. Do you really need a new phone with a larger screen? Applephiles will say, you’re damn tootin’! The company did report earnings that slightly beat estimates and guided lower but this negative note only fazed investors temporarily last night. Wednesday all was well and the stock rallied nearly 3%.

Other earnings reports, especially from industrial names like Boeing (BA) and Caterpillar (CAT) were not impressive and heavyweight McDonald’s (MCD) saw analyst downgrades.

Overseas China stocks rallied on mere speculation the government will promote stimulus measures to boost growth. The government may engage in “monetary easing and support the housing market,” said Benjamin Tam, a fund manager who helps oversee about $1.5 billion at IG Investment Management (Hong Kong) Ltd. “People are still optimistic that the government policies will support growth in China. All of that is positive and that’s why the market is moving higher.” This is the speculative chatter driving up shares.

Leading market sectors higher included: Tech (QQQ), Materials (XLB), Energy (XLE), Healthcare (XLV), Biotech (IBB), Internet (FDN), China (FXI), Turkey (TUR), Australia (EWA), Crude Oil (USO) and Australia (EWA).

Leading market sectors lower included: Gold Miners (GDX), Industrials (XLI), Brazil (EWZ), Solar (TAN), Semiconductors (SMH) and Silver Miners (SIL).

The top 20 market movers by percentage change in volume whether rising or falling is available daily.

Volume plunged Wednesday and breadth per the WSJ was positive. However, looking at the Money Flow things didn’t look great especially for Financials.

7-23-2014 6-00-10 PM Diary

Charts of the Day
  • SPY 5 MINUTE

    SPY 5 MINUTE

  • SPX WEEKLY

    SPX WEEKLY

  • INDU WEEKLY

    INDU WEEKLY

  • RUT WEEKLY

    RUT WEEKLY

  • NDX WEEKLY

    NDX WEEKLY

  • FDN WEEKLY

    FDN WEEKLY

  • SOCL WEEKLY

    SOCL WEEKLY

  • SMH WEEKLY

    SMH WEEKLY

  • XLI WEEKLY

    XLI WEEKLY

  • TAN WEEKLY

    TAN WEEKLY

  • XLV WEEKLY

    XLV WEEKLY

  • XBI WEEKLY

    XBI WEEKLY

  • TLT WEEKLY

    TLT WEEKLY

  • UUP WEEKLY

    UUP WEEKLY

  • FXA WEEKLY

    FXA WEEKLY

  • FXE WEEKLY

    FXE WEEKLY

  • GLD WEEKLY

    GLD WEEKLY

  • GDX WEEKLY

    GDX WEEKLY

  • SLV WEEKLY

    SLV WEEKLY

  • DBB WEEKLY

    DBB WEEKLY

  • USO WEEKLY

    USO WEEKLY

  • VEA WEEKLY

    VEA WEEKLY

  • VGK WEEKLY

    VGK WEEKLY

  • VWO WEEKLY

    VWO WEEKLY

  • EWA WEEKLY

    EWA WEEKLY

  • EWS WEEKLY

    EWS WEEKLY

  • EWH WEEKLY

    EWH WEEKLY

  • EWZ WEEKLY

    EWZ WEEKLY

  • RSX WEEKLY

    RSX WEEKLY

  • EPI WEEKLY

    EPI WEEKLY

  • FXI WEEKLY

    FXI WEEKLY

  • NYMO DAILY

    NYMO DAILY

    The NYMO is a market breadth indicator that is based on the difference between the number of advancing and declining issues on the NYSE. When readings are +60/-60 markets are extended short-term.

  • NYSI DAILY

    NYSI DAILY

    The McClellan Summation Index is a long-term version of the McClellan Oscillator. It is a market breadth indicator, and interpretation is similar to that of the McClellan Oscillator, except that it is more suited to major trends. I believe readings of +1000/-1000 reveal markets as much extended.

  • VIX WEEKLY

    VIX WEEKLY

    The VIX is a widely used measure of market risk and is often referred to as the "investor fear gauge". Our own interpretation is highlighted in the chart above. The VIX measures the level of put option activity over a 30-day period. Greater buying of put options (protection) causes the index to rise.

Closing Summary

Thursday will yield economic data from Jobless Claims, PMI Mfg Index Flash and New Home Sales. Earnings will include among others, 3M, Amazon, Baidu, Caterpillar, D.R. Horton, Eli Lilly, Ford, Hershey and Visa.

Let’s see what happens.

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Dave Fry is founder and publisher of ETF Digest and has been covering U.S. and global ETFs since 2001.

He is the author of "Create Your own ETF Hedge Fund: A Do-It-Yourself Strategy for Private Wealth Management" published by Wiley Finance and "The Best ETFs: U.S. Equities, A Companion Guide to Building Your ETF Portfolio".



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