Markets Turn Schizophrenic
0
April 20, 2015

Stocks reversed course and rallied almost as much as they declined Friday.

What caused this change of mood?

Nothing in particular although some have suggested earnings from tech companies would be good thereby providing optimism for bulls.

First up, stock buyback king IBM will lead-off followed by others. (The company reported its 12th consecutive quarterly revenue decline as stock buybacks allow for earnings growth.)

Another positive was China moved to ease credit once again allowing another fear being removed for bulls.

Oil prices moved higher which lifted energy sectors as the U.S. sent more warships to confront Iranian vessels threatening to ship arms to Yemen rebels. Oh wait, isn’t that an obvious confrontation and geopolitical risk? Well, not to bulls evidently as the Pentagon clarifies mission saying, ships are moving there to keep energy flowing.

Leading market sectors higher included: Everything.

Leading market sectors lower included: Bonds (TLT), Gold (GLD), India (EPI), Mexico (EWW), Thailand (THD), Indonesia (IDX), Spain (EWP) and Silver (SLV).                                                                

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

Volume on this rally day was only half that of Friday while breadth per the WSJ was positive.

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4-20-2015 6-42-41 PM dIARY

Charts of the Day
  • SPY 5 MINUTE

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  • SPY DAILY

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  • SPX WEEKLY

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  • INDU WEEKLY

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  • RUT WEEKLY

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  • NDX WEEKLY

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  • XLB WEEKLY

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  • IBB WEEKLY

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  • ITB WEEKLY

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  • XLU WEEKLY

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  • IYR WEEKLY

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  • IYT WEEKLY

    IYT  WEEKLY

  • TLT WEEKLY

    TLT WEEKLY

  • UUP WEEKLY

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  • FXY WEEKLY

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  • GLD WEEKLY

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  • GDX WEEKLY

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  • SLV WEEKLY

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  • DBB WEEKLY

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  • USO WEEKLY

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  • EFA WEEKLY

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  • GREK WEEKLY

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  • RSX WEEKLY

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  • EPI WEEKLY

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  • 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.


 

This week is heavy for earnings as many tech companies will be reporting.

IBM’s report wasn’t good but owing to its heavy stock buybacks earnings can look better on fewer shares as revenues continue to decline.

The rally was impressive Monday due to China’s desire to keep its stock market propped higher.

One day authorities crack down on speculation by raising margin rates and the next they goose them by easing credit. The country’s housewives have gone nuts buying stocks and the government doesn’t want to hurt them.

4-20-2015 7-09-24 PM Chinese

Let’s see what happens.

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...

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Dave Fry is founder and publisher of ETF Digest and has been covering U.S. and global ETFs since 2001.  ETF Digest was named one of the most informative ETF website in the 10th Annual Global ETF Awards.

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
Gold1,196.80-7.50-0.62 %04/20
WTI Crude Futr56.500.761.36 % 17:14
Index Quotes Change Change % Local
CRB222.72-1.22-0.55 %17:28
US Dollar98.14-0.02-0.02 %17:00
Index Quotes Change Change % Local
VIX13.30-0.59-4.25 %16:14
MSCI Value Daily MTD YTD
Brazil1699.104-2.09 %9.74 % -7.27 %
Russia545.663-6.10 %13.61 % 34.76 %
India534.170-1.12 %2.32 % 7.61 %
China82.908-0.38 %16.12 % 25.55 %