© 2019
DJIA: The Path from 986 to 27,000…
Fed Chairman Powell completed
his semiannual monetary policy testimony before the Senate Banking Committee today. Markets reacted positively to his testimony
on yesterday and today and the FOMC minutes on Wednesday. Bottom line the perception seems to be that
the Fed will cut rates at the July 30 – 31 meeting.
Today UNH led the DJIA to a record
close above 27,000 for the first time.
Healthcare stocks including UNH
rallied after the Trump administration dropped a plan to reduce drug rebates to
distributers.
The SPX finished at new
all-time closing high of 2,999.91, just short of 3,000.
The DJIA, closed up 227 points at 27,088, led by strength in UNH, GS, MMM, BA and HD. Closing above 27,000 for
the first time ever after closing above 26,000 for twenty two straight days.
Ten of eleven sectors were higher on Thursday, led by industrials XLI +0.68% and financial XLF +0.57%.
SPY up .70 at 299.31 on 50.8 million shares, 20% below average volume. Up on lower volume.
VIX down .10 at 12.93
Oil up .16 at 60.43
TLT down 1.76 at 130.07 on 14.1 million shares.
UNH +5.53%, GS +2.61%, led the DJIA, 22 advancers, +3
CI +9.24%, ANTM +5.54% and CVS +4.68%, led the SPX.
NVDA +3.89%, WDAY +2.31%, CTSH +1.92% and COST +1.89% led the NDX.
Long term up
trend intact. 3-day short term trend is up.
Up: DIA, SPY,
Down: QQQ, IWM,
Breadth weakened
on Thursday, as advancers led 1,435 to 1,412 on the NYSE and decliners led 1,717 to 1,317 on
the NASDAQ
The SPY
MFC green line is in the upper zone at 96 and is short-term
bullish.
Uptrend sectors: XLP, XLY, XLK, XLC, XLRE, XLU, XLV,
XLF, XLI, XLB,
Neutral sectors:
XLE,
Down trend sectors:
The 6-month intermediate
trend is up. The ten-day trend is up.
3-month Intermediate Term Market Trend: Up
3-day Short Term Market Trend: Up
54 of 100 NDX stocks closed higher on Thursday.
83 NDX stocks are above their 30
DMA: PEP, CERN, CTAS, CHTR, IDXX, TTWO, MELI, MDLZ,
WLTW, COST, HAS, ILMN, SBUX, VRSN, EXPE, FISV, INTU, PCAR, PYPL, SNPS,
LBTYA, MSFT, MXIM, ROST, BKNG, CTSH, EBAY, ISRG, MAR, AAPL, ADI, AMZN,
CDNS, DLTR, INTC, WBA, CTXS, UAL, AAL, ATVI, LULU, SIRI, FB, TSLA, VRTX, ADBE,
SYMC, AMAT, ASML, AVGO, JD, KLAC, MCHP, NFLX, NVDA, SWKS, TXN, WYNN, XLNX, KHC,
MNST, QCOM, WDC, MYL, AMD, CTRP, MU, ADP, CHKP, FOXA, VRSK, ADSK, CMCSA,
GOOGL, WDAY, CSCO, ORLY, ULTA, BIDU, LRCX, ADP, HSIC, NTES, TMUS,
NDX Stocks to Watch on Friday:
Moving Above 30 DMA = 0
Moving Below 30 DMA = 8
ALXN, AMGN, BIIB, BMRN, GILD, INCY, NXPI,
XRAY,
Add Comments here
7 comments:
Great info. You help me keep looking for the opportunities that are out there every day. Thanks you.
How do you still have prophet charts? Is it an LDS thing? Lol
Dave,
How does the lagging IWM relate to the rest of the indices, since it typically leads the rallies and the sell offs?
Thanks,
Gary
Dave:
This Bull Direction is exciting. The Bears Guys are beside theirselves. Watch the Charts and not the financial media. Learning
from ChartSignals is the way to go.
Kempington...you're welcome...DJ
Gary...it actually doesn't lead the rallies and selloffs...Big money buys what it buys which is way more SPX, 500 stocks that represent approximately 80% of total U.S. market capitalization. RUT small caps(IWM) approx 2,000 stocks represent only approx 8-9% of U.S. market capitalization. If Big money is buying small caps as aggressively as large caps, then small caps gain more because there is less supply. Gaining more and leading are NOT the same thing. If small caps are gaining less that tells you that Big money is not buying small caps as aggressively as large caps...I hope that helps...DJ
Don...you've got it...touchdown! Dave
Post a Comment