Markets Continue Healing Process
0
October 20, 2014

10-20-2014 5-26-12 PM wounded bull

Although news from Europe was negative as earnings from SAP were weak, and rather than engaging in QE, the ECB decided bank stress tests are a better first step. (This would go into the “open book text” category.) Emerging markets were ragged weighed lower by Brazil and Russia while South Korea (never an emerging market in my mind) was quite strong.

Beyond horrible results from such bellwethers as IBM (-7%), Cisco (-1.50, Hewlett Packard (-1%) and Caterpillar (-1%) it was a day for the largest tech heavyweight Apple to carry the day up over 2.2%. Naturally, after the close, Apple (AAPL) will report earnings results and guidance, and clearly by today’s action the results are expected to be good.

Apple reported earnings of $1.42 vs $1.31 expected and revenues of $42 billion vs 39 billion expected. Much of the gains beyond good sales was from increased share buybacks. The stock is rising in after-hours trading but at previous levels of around $100 per share. Texas Instruments (TXN) stock was also sharply higher by nearly 3% while Chipotle (CMG) slid after offering weaker guidance going forward.

Despite the mixed bag from Europe and little news from Asia U.S. stocks managed decent gains across the board. But there'

Leading market sectors higher included: Tech (QQQ), Small Caps (IWM), Financials (XLF), Gold Stocks (GDX), Materials (XLB), Energy (XLE), Natural Gas Producers (FCG), REITs (IYR), Retail (XRT), Consumer Staples (XLP), Consumer Discretionary (XLY), Healthcare (XLV), Biotech (IBB), Utilities (XLU), Homebuilders (ITB), Semiconductors (SMH), Transports (IYT), South Korea (EWY), India (EPI), Turkey (TUR), Japan (EWJ), Spain (EWP) Solar (TAN), Gold (GLD), Silver (SLV) and Bonds (TLT).

Leading market sectors lower included: Dow (DIA), Brazil (EWZ), Russia (RSX), Hong Kong (EWH), Germany (EWG), The Dollar (UUP), Crude Oil (USO), Base Metals (DBB), Natural Gas (UNG), Agriculture (DBA) and Commodity Tracking (DBC)

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

Volume on Monday’s rally fell 50% from previous trading days these past few weeks. Breadth per the WSJ was positive.

10-20-2014 8-20-42 PMDiary

Charts of the Day
  • SPY 5 MINUTE

    SPY  5  MINUTE

  • SPY DAILY

    SPY DAILY

  • SPX WEEKLY

    SPX WEEKLY

  • INDU DAILY

    INDU DAILY

  • RUT WEEKLY

    RUT WEEKLY

  • NDX WEEKLY

    NDX WEEKLY

  • XLB WEEKLY

    XLB WEEKLY

  • XLE WEEKLY

    XLE WEEKLY

  • XLF WEEKLY

    XLF WEEKLY

  • XLI WEEKLY

    XLI WEEKLY

  • XLP WEEKLY

    XLP WEEKLY

  • XLY WEEKLY

    XLY WEEKLY

  • XRT WEEKLY

    XRT WEEKLY

  • XLV WEEKLY

    XLV WEEKLY

  • IBB WEEKLY

    IBB WEEKLY

  • IYR WEEKLY

    IYR WEEKLY

  • ITB WEEKLY

    ITB WEEKLY

  • TLT WEEKLY

    TLT WEEKLY

  • UUP WEEKLY

    UUP WEEKLY

  • FXE WEEKLY

    FXE WEEKLY

  • FXY WEEKLY

    FXY WEEKLY

  • GLD WEEKLY

    GLD WEEKLY

  • GDX WEEKLY

    GDX WEEKLY

  • SLV WEEKLY

    SLV WEEKLY

  • DBB WEEKLY

    DBB WEEKLY

  • USO WEEKLY

    USO WEEKLY

  • DBA WEEKLY

    DBA WEEKLY

  • DBC WEEKLY

    DBC WEEKLY

  • EFA WEEKLY

    EFA WEEKLY

  • EEM WEEKLY

    EEM WEEKLY

  • IEV WEEKLY

    IEV WEEKLY

  • EWG WEEKLY

    EWG WEEKLY

  • EWU WEEKLY

    EWU WEEKLY

  • EWJ WEEKLY

    EWJ WEEKLY

  • EWY WEEKLY

    EWY WEEKLY

  • EWZ WEEKLY

    EWZ WEEKLY

  • RSX WEEKLY

    RSX WEEKLY

  • EPI WEEKLY

    EPI WEEKLY

  • GXC WEEKLY

    GXC 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

Markets are trying to follow-through with the previous Friday rally. The mood is to buy and volume is comparatively light. The tone is to discard all companies reporting large disappointments like IBM, CAT and so forth while embracing AAPL. This is the way of markets during the past few years.

There may be more overseas economic data and news but little from the US until Wednesday.

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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Disclaimer: The charts and comments are only the author's view of market activity and aren't recommendations to buy or sell only any security. Market sectors and related ETF's are selected based on his opinion as to their importance in providing the viewer a comprehensive summary of market conditions for the featured period. Chart annotation's aren't predictive of any future market action rather they only demonstrate the author's opinion as to a range of possibilities going forward. More detailed information, including actionable alerts, are available to subscribers at www.etfdigest.com

 

ETF Digest

Market Summary
NYSE Composite Index S&P 500 Index Nasdaq Composite Index Russell 2000 Small Cap Index NYSE Composite Index S&P 500 Index Nasdaq Composite Index Russell 2000 Small Cap Index 10 Year Treasury Note Yield Gold Bugs Index Morgan Stanley High Tech 35 Index Market Chart
Commodity Quote Change Change % NY
Gold1,253.305.400.43 % 09:49
WTI Crude Futr83.791.081.31 % 09:19
Index Quotes Change Change % Local
CRB272.120.990.37 % 09:27
US Dollar85.270.220.26 % 09:43
Index Quotes Change Change % Local
VIX18.57-3.42-15.55 %10/20
MSCI Value Daily MTD YTD
Brazil2159.312-3.08 %-0.51 %-2.65 %
Russia579.800-1.39 %-5.13 %-26.32 %
India490.4541.26 %-2.03 %20.41 %
China61.7200.66 %0.09 % -2.19 %