Markets Rally Because They Can
0
July 22, 2014

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I searched reasonably well for news to account for new market highs.

Major names struggled to gain traction for most of the day. Travelers (TRV), McDonalds (MCD), Coca-Cola (KO), Harley Davidson (HOG) and so forth posted crummy earnings for one reason or another. Rising was Chipotle (CMG) and Waters (WAT) rose sharply. (Yeah, most don’t know WAT is, but in this environment, who cares?) Anyway, finding few one assumes there are good things ahead. Most likely Apple (AAPL) earnings after the close must deliver positive results for the Apple herd.

Microsoft earnings miss at 0.55 cents vs 0.60 cents expected even as stock buybacks exceeded $1.2 billion.

Economic data Tuesday included the CPI which came in as expected at 0.3% and core rate at 0.1%. So if you don’t eat or drive you’re winning. FHFA House Price Index rose slightly to 0.4% vs 0.1% previously. And, Existing Home Sales rose to 5.04M vs 4.89M or a gain of 2.6%.

Leading market sectors higher included: Tech (QQQ), Small Caps (IWM), REITs (ICF), Energy (OIH), Consumer Discretionary (XLY), Homebuilders (ITB), Semiconductors (SMH), Transports (IYT), Healthcare (XLV), Solar (TAN), Networking (IGN), China (FXI), India (EPI), Hong Kong (EWH), South Korea (XLY), Asia ex-Japan (AAXJ), Emerging Markets (VWO), Brazil (EWZ), Mexico (EWW), Germany (EWG), Latin America (ILF), The UK (EWU) and the dollar (UUP).

Leading market sectors lower included: Regional Banks (KRE), Gold Miners (GDX), Silver Miners (SIL), Gold (GLD), Crude Oil (USO), Natural Gas (UNG), the Euro (FXE) and Grains (JJG).

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

Volume was light once again on the melt-up. Breadth per the WSJ was positive.

7-22-2014 6-06-28 PM Dairy

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

  • IGN WEEKLY

    IGN WEEKLY

  • XLP WEEKLY

    XLP WEEKLY

  • XLY WEEKLY

    XLY WEEKLY

  • XRT WEEKLY

    XRT WEEKLY

  • XLB WEEKLY

    XLB WEEKLY

  • OIH WEEKLY

    OIH WEEKLY

  • IYT WEEKLY

    IYT WEEKLY

  • ICF WEEKLY

    ICF WEEKLY

  • ITB WEEKLY

    ITB WEEKLY

  • XLI WEEKLY

    XLI WEEKLY

  • CVY WEEKLY

    CVY WEEKLY

  • DWX WEEKLY

    DWX WEEKLY

  • AMJ WEEKLY

    AMJ WEEKLY

  • HYG WEEKLY

    HYG WEEKLY

  • BOND WEEKLY

    BOND 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

  • DBC WEEKLY

    DBC WEEKLY

  • VEA WEEKLY

    VEA WEEKLY

  • VGK WEEKLY

    VGK WEEKLY

  • VWO WEEKLY

    VWO WEEKLY

  • ILF WEEKLY

    ILF WEEKLY

  • AAXJ WEEKLY

    AAXJ 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 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

Wednesday will be quiet domestically from economic data while overseas PMI’s may come in view.

Earnings will continue apace for the next few weeks. Most bulls will be crooning how companies are beating estimates; but, they seem to always do, don’t they?

Wednesday features earnings from AT&T, Biogen, Delta Airlines, ETrade, EMC Corp, F5 Networks, Facebook, Freeport-McMoran, General Dynamics, Gilead Sciences, GlaxoSmithKline PLC, Owens Corning, Potlatch Corp, PepsiCo Inc and Whirlpool among many others.

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

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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
Gold1,308.800.300.02 % 08:15
WTI Crude Futr103.120.730.71 % 17:15
Index Quotes Change Change % Local
CRB298.771.420.48 % 17:27
US Dollar80.880.030.03 % 16:59
Index Quotes Change Change % Local
VIX11.52-0.72-5.88 %16:14
MSCI Value Daily MTD YTD
Brazil2587.4810.99 %8.25 % 16.65 %
Russia685.7531.91 %-7.25 %-12.85 %
India498.9771.51 %1.29 % 22.51 %
China63.6942.00 %3.58 % 0.94 %