Summary: Stocks rose on Wednesday after Crude Oil supplies signaled much higher demand than expected. That boosted the Energy sector by more than 3.5%, and the improved optimism drove broad gains across the market.
Notes
Ideas always welcome in the comments. Errors will be amended as comments on TradingView or corrected inline in my blog.
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Wednesday, September 15, 2021
Facts: +0.82%, Volume lower, Closing Range: 93%, Body: 48% Green
Good: Support at 15,000 sent started a rally into afternoon
Bad: Could not break above yesterday's high
Highs/Lows: Lower high, Lower low
Candle: Long lower wick formed from morning sell, green upper body
Advance/Decline: 1.31, more advancing than declining stocks
Indexes: SPX (+0.85%), DJI (+0.68%), RUT (+1.11%), VIX (-6.58%)
Sector List: Energy (XLE +3.74%) and Industrials (XLI +1.10%) at the top. Consumer Staples (XLP +0.36%) and Utilities (XLU -0.13%) at the bottom.
Expectation: Sideways or Higher
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Market Overview
Stocks rose on Wednesday after Crude Oil supplies signaled much higher demand than expected. That boosted the Energy sector by more than 3.5%, and the improved optimism drove broad gains across the market.
The Nasdaq gained +0.82% for the day after getting support at 15,000 in the morning. The 48% green body led to a 93% closing range. Volume was lower than the previous day, and there were more advancing stocks than declining stocks. The index could not break yesterday's high, so it is still in a downtrend, but the long lower wick formed from the bounce off 15,000 led to a rally in that afternoon that has potential.
Small-caps in the Russell 2000 (RUT) led the day, with the index advancing +1.11%. The S&P 500 (SPX) gained +0.85%, while the Dow Jones Industrial Average (DJI) climbed +0.68%. The VIX Volatility Index dropped -6.58%.
Energy (XLE +3.74%) and Industrials (XLI +1.10%) are the best sectors for the day. The only sector to decline was Utilities (XLU -0.13%). Consumer Staples (XLP +0.36%) was the second worst-performing sector but did gain for the day.
Crude Oil Inventories released at 10:30 am were -6.422m barrels compared to an expectation of -3.544m barrels showing much higher demand than forecasted.
The US Dollar weakened, with the DXY index dropping 0.20% for the day. The US 30y Treasury yield remained about the same while the 10y and 2y Treasury yields climbed. High Yield (HYG) Corporate Bond prices rose, setting a new post-pandemic high.
Crude Oil Futures rose on the news of higher demand. The improved economic outlook from higher oil demand also signals higher demand for materials. Timber, Copper, and Aluminum all climbed higher today.
The put/call ratio declined to 0.649. The CNN Fear & Greed index moved closer to Neutral but remained in Fear.
Exxon Mobil (XOM) topped the mega-cap list for the day. Comcast (CMCSA) was the second-best performer on the list after dipping yesterday. Microsoft (MSFT) gapped up in the morning and had a record close. All four largest mega-caps are above their 50d MA. Only Apple (AAPL) remains below its 21d EMA.
RobinHood (HOOD) was the top growth stock in the daily update list. The list is primarily gainers today. At the bottom of the list was Sumo Digital (SUMO).
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Looking ahead
On Thursday, we will get Retail Sales data for August. Initial Jobless Claims will also be available in the morning.
There are no relevant earnings reports for Thursday.
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Trends, Support, and Resistance
The Nasdaq bounced off the 15,000 support area and then rallied on optimism, generated by the Crude Oil numbers, for the remainder of the day.
If the one-day trend line continues into tomorrow, the index will gain +1.28%.
The trend line from the 9/7 top and the five-day trend line point to a -1.31% decline tomorrow.
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Wrap-up
The Crude Oil inventories data gave investors a shot of optimism that caused a market rally today. However, only the S&P 500 was able to reverse the trend fully and beat yesterday's high. The Nasdaq remains in a downtrend, but the long lower wick shows the strong reversal off the 15,000 support area and could be enough to boost prices further tomorrow.
The expectation for tomorrow is Sideways or Higher.
Stay healthy and trade safe!
Notes
Ideas always welcome in the comments. Errors will be amended as comments on TradingView or corrected inline in my blog.
-=x=-=x=-=x=-=x=-=x=-=x=-=x=-
Wednesday, September 15, 2021
Facts: +0.82%, Volume lower, Closing Range: 93%, Body: 48% Green
Good: Support at 15,000 sent started a rally into afternoon
Bad: Could not break above yesterday's high
Highs/Lows: Lower high, Lower low
Candle: Long lower wick formed from morning sell, green upper body
Advance/Decline: 1.31, more advancing than declining stocks
Indexes: SPX (+0.85%), DJI (+0.68%), RUT (+1.11%), VIX (-6.58%)
Sector List: Energy (XLE +3.74%) and Industrials (XLI +1.10%) at the top. Consumer Staples (XLP +0.36%) and Utilities (XLU -0.13%) at the bottom.
Expectation: Sideways or Higher
-=x=-=x=-=x=-=x=-=x=-=x=-=x=-
Market Overview
Stocks rose on Wednesday after Crude Oil supplies signaled much higher demand than expected. That boosted the Energy sector by more than 3.5%, and the improved optimism drove broad gains across the market.
The Nasdaq gained +0.82% for the day after getting support at 15,000 in the morning. The 48% green body led to a 93% closing range. Volume was lower than the previous day, and there were more advancing stocks than declining stocks. The index could not break yesterday's high, so it is still in a downtrend, but the long lower wick formed from the bounce off 15,000 led to a rally in that afternoon that has potential.
Small-caps in the Russell 2000 (RUT) led the day, with the index advancing +1.11%. The S&P 500 (SPX) gained +0.85%, while the Dow Jones Industrial Average (DJI) climbed +0.68%. The VIX Volatility Index dropped -6.58%.
Energy (XLE +3.74%) and Industrials (XLI +1.10%) are the best sectors for the day. The only sector to decline was Utilities (XLU -0.13%). Consumer Staples (XLP +0.36%) was the second worst-performing sector but did gain for the day.
Crude Oil Inventories released at 10:30 am were -6.422m barrels compared to an expectation of -3.544m barrels showing much higher demand than forecasted.
The US Dollar weakened, with the DXY index dropping 0.20% for the day. The US 30y Treasury yield remained about the same while the 10y and 2y Treasury yields climbed. High Yield (HYG) Corporate Bond prices rose, setting a new post-pandemic high.
Crude Oil Futures rose on the news of higher demand. The improved economic outlook from higher oil demand also signals higher demand for materials. Timber, Copper, and Aluminum all climbed higher today.
The put/call ratio declined to 0.649. The CNN Fear & Greed index moved closer to Neutral but remained in Fear.
Exxon Mobil (XOM) topped the mega-cap list for the day. Comcast (CMCSA) was the second-best performer on the list after dipping yesterday. Microsoft (MSFT) gapped up in the morning and had a record close. All four largest mega-caps are above their 50d MA. Only Apple (AAPL) remains below its 21d EMA.
RobinHood (HOOD) was the top growth stock in the daily update list. The list is primarily gainers today. At the bottom of the list was Sumo Digital (SUMO).
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Looking ahead
On Thursday, we will get Retail Sales data for August. Initial Jobless Claims will also be available in the morning.
There are no relevant earnings reports for Thursday.
-=x=-=x=-=x=-=x=-=x=-=x=-=x=-
Trends, Support, and Resistance
The Nasdaq bounced off the 15,000 support area and then rallied on optimism, generated by the Crude Oil numbers, for the remainder of the day.
If the one-day trend line continues into tomorrow, the index will gain +1.28%.
The trend line from the 9/7 top and the five-day trend line point to a -1.31% decline tomorrow.
-=x=-=x=-=x=-=x=-=x=-=x=-=x=-
Wrap-up
The Crude Oil inventories data gave investors a shot of optimism that caused a market rally today. However, only the S&P 500 was able to reverse the trend fully and beat yesterday's high. The Nasdaq remains in a downtrend, but the long lower wick shows the strong reversal off the 15,000 support area and could be enough to boost prices further tomorrow.
The expectation for tomorrow is Sideways or Higher.
Stay healthy and trade safe!
