As Volume Shrinks, Markets Dance
0
August 26, 2014

8-26-2014 5-49-29 PM Cash

First in overseas news, China stocks slump most in 2 weeks on glut of IPOs while European stocks were higher on stimulus expectations whenever Draghi drops a hint.

Durable Goods Orders soared 22.6% vs 5.1% expected & prior 2.7% BUT, ex-Transportation orders fell -08% vs0.3% exp & prior 0.2% (seriously misleading data given massive Boeing plane orders).

Case-Shiller Home Price Index fell -0.2% vs 0.1% expected & prior 1.1%. That was offset perhaps by Consumer Confidence 92.4 vs 89.5 exp & prior 90.3.

Meanwhile the Council on Foreign Affairs has chimed-in offering the idea that central banks should just give the population cash in lieu of QE. (Or the staid organization channels Randy Moss who famously said: “Straight cash homey”.

All this was enough to keep stocks well bid by those few still trading this last week of August.

Stocks inched higher but the S&P 500 closed above 2,000 and Small Caps managed to turn positive for the year. Investors are getting ultra-complacent.

Leading market sectors higher included: Banks (KBE), Regional Banks (KRE), Small Caps (IWM), Energy (XLE), Retail (XRT), Networking (IGN), Internet (FDN), Small Cap Value (VBR), Biotech (IBB), Brazil (EWZ), Eurozone Monetary ETF (EZU), Emerging Markets (EEM), Turkey (TUR), Israel (EIS), Spain (EWP), Gold (GLD), Gold Miners (GDX), Crude Oil (USO) and Sugar (SGG).

Leading market sectors lower included: Utilities (XLU), Industrials (XLI), Russia (RSX), Japan (EWJ) and Natural Gas (UNG)

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

Volume, well there wasn’t much but just enough to produce a print. Breadth per the WSJ was positive.

8-26-2014 5-50-13 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

  • XLF WEEKLY

    XLF WEEKLY

  • KBE WEEKLY

    KBE WEEKLY

  • KRE WEEKLY

    KRE WEEKLY

  • IGN WEEKLY

    IGN WEEKLY

  • IGV WEEKLY

    IGV WEEKLY

  • FDN WEEKLY

    FDN WEEKLY

  • IBB WEEKLY

    IBB WEEKLY

  • XLV WEEKLY

    XLV WEEKLY

  • DWX WEEKLY

    DWX WEEKLY

  • VBR WEEKLY

    VBR 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

  • USO WEEKLY

    USO WEEKLY

  • DBB WEEKLY

    DBB WEEKLY

  • DBA WEEKLY

    DBA WEEKLY

  • DBC WEEKLY

    DBC WEEKLY

  • IEV WEEKLY

    IEV WEEKLY

  • VWO WEEKLY

    VWO WEEKLY

  • TUR WEEKLY

    TUR WEEKLY

  • EWZ WEEKLY

    EWZ WEEKLY

  • EPI WEEKLY

    EPI WEEKLY

  • RSX WEEKLY

    RSX 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 MONTHLY

    VIX MONTHLY

    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

There’s not much in the way of economic data Wednesday. There isn’t much to comment on other than there is no volume. On that note it’s obvious many investors were washed out on the heavy volume sell-offs of early August. The subsequent light volume indicates they haven’t come back

Let’s see what happens.

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...

Headshot David Fry xsmall

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
Gold1,283.00-0.70-0.05 %08/27
WTI Crude Futr93.79-0.07-0.07 %16:43
Index Quotes Change Change % Local
CRB290.430.140.05 % 16:48
US Dollar82.490.010.01 % 16:59
Index Quotes Change Change % Local
VIX11.780.151.29 % 16:14
MSCI Value Daily MTD YTD
Brazil2586.0260.30 %6.40 % 16.59 %
Russia685.455-0.29 %4.04 % -12.89 %
India507.8190.21 %2.36 % 24.68 %
China66.786-0.27 %1.18 % 5.84 %