Monday, July 3, 2023

SPX Break Out Pause and Test...Happy Fourth of July...Be Grateful for the Goodness of Freedom...Markets Closed on Tuesday...

 

“Ever since the first settlement of Europeans in the New World—at Jamestown in 1607 and at Plymouth in 1620—America has been a magnet for people seeking adventure, fleeing from tyranny, or simply trying to make a better life for themselves and their children.
            An initial trickle swelled after the American Revolution and the establishment of the United States of America and became a flood in the nineteenth century, when million of people streamed across the Atlantic, and a small number across the Pacific, driven by misery and tyranny, and attracted by the promise of freedom and affluence.
            When they arrived, they did not find streets paved with gold; they did not find an easy life.  They did find freedom and an opportunity to make the most of their talents.  Through hard work, ingenuity, thrift, and luck, most of them succeeded in realizing enough of their hope and dreams to encourage friends and relatives to join them.
            The story of the United States is the story of an economic miracle and a political miracle that was made possible by the translation into practice of two sets of ideas—both, by a curious coincidence, formulated in documents published in the same year, 1776.
            One set of ideas was embodied in The Wealth of Nations, the masterpiece that established the Scotsman Adam Smith as the father of modern economics.  It analyzed the way in which a market system could combine the freedom of individuals to pursue their own objectives with the extensive cooperation and collaboration needed in the economic field to produce our food, our clothing, our housing.  Adam Smith’s key insight was that both parties to an exchange can benefit and that so long as cooperation is strictly voluntary, no exchange will take place unless both parties do benefit and that, so long as cooperation is strictly voluntary, no exchange will take place unless both parties do benefit.  No external force, no coercion, no violation of freedom is necessary to produce cooperation among individuals all of whom can benefit.  That is why, as Adam Smith put it, an individual who ‘intends only his own gain’ is led by an invisible hand to promote an end which was no part of his intention.  Nor is it always the worse for the society that it was no part of it.  By pursuing his own interest he frequently promotes that of the society more effectually than when he really intends to promote it.  I have never known much good done by those who affected to trade for the public good.’
            The second set of ideas was embodied in the Declaration of Independence, drafted by Thomas Jefferson to express the general sense of his fellow countrymen.  It proclaimed a new nation, the first in history established on the principle that every person is entitled to purse his own values: ‘We hold these truths self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights; that among these are Life, Liberty, and the pursuit of Happiness’” (bold emphasis added).  Milton & Rose Friedman, Free to Choose, (1980,1979), pp. xv, xvi


© 2023


Mega caps TSLA, NVDA, GOOGL rose and AMZN, META, MSFT, AAPL  fell.


SPY up .51 at 443.79, on 32.7 million shares, below average volume, up on lower volume.  Trading until 1 pm ET, due to July 4 holiday.
VIX down .02 at 13.57
QQQ up .87 at 370.29,


WBA, DIS, AMGN, GS led the DJIA, 18 advancers, -8
TSLA, FIS, ZION, CMA, GPN led the SPX, 315 advancers
LCID, TSLA, WBD, ABNB led the NDX, 59 advancers.

The two-year trend term is sideways.  The one-year trend is up.

Up:  QQQ, IWM, SPY, DIA,
Down:

Nine of eleven sectors were higher on Monday, led by XLY, XLRE and XLP.

The SPY MFC green line is pointed up at 86.8 and is short-term bullishSPY opened flat and closed slightly higher on the fifth day of a bull flag bounce.

Uptrend sectors:   XLK, XLC, XLY, XLI, XLF, XLB, XLRE, XLV, XLP,
Neutral sectors:  XLU, 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 TrendUp


59 of 100 NDX stocks closed higher on Monday.

80 NDX stock are above their 30 DMA:  AAPL, AMZN, CPRT, ISRG, CSGP, MSFT, NVDA, CEG, LRCX, META, VRSK, FTNT, ZS, NFLX, AMAT, KLAC, AVGO, MRVL, TSLA, WDAY, CSCO, ADBE, CTAS, PANW, NXPI, COST, PDD, ATVI, INTC, QCOM, BKR, CSX, DXCM, MCHP, ABNB, HON, PCAR, ALGN, SIRI, ADI, FAST, INTU, LULU, ROST, VRTX, ODFL, IDXX, PYPL, ON, ORLY, DLTR, ADP, CHTR, CMCSA, EA, EXC, GFS, ANSS, ASML, BKNG, CDNS, CTSH, DDOG, EBAY, MAR, TMUS, TXN, WBD, FANG, LCID, AEP, GEHC, PAYX, PEP, SNPS, ZM, AMGN, KDP, MDLZ, PDD,


NDX Stocks to Watch on Wednesday:
Moving Above 30 DMA = 4
AMGN, KDP, MDLZ, PDD,


Moving Below 30 DMA = 0




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2 comments:

TraderBobb said...

Thanks Dave for this blog and your post. May we always and in all ways be grateful.

Hank Hollenbaugh said...

Assume quote Dave. Thank you. So few seem to understand these basic, fundamental ideas without which this great nation would not have flourished. These are the very things some today are attempting to undermine with failed marxist ideas. They have no knowledge of history of of the both benefits of liberty and the horrors society was subjected to by totalitarianism in the 20th century.