Written by Forrest Crist-Ruiz Earnings season has taken the stage for the next couple of weeks as the market steadies itself for another move higher. Of course, another push higher means that companies will need to outperform or show signs of continued growth into the fourth quarter. So far, the financial sector has started with a bang of better than anticipated earnings leaving a pleasant taste in investors' mouths as they load up on their
Written by Forrest Crist-Ruiz As seen on the above chart, two of the major indices including the S&P 500 (SPY) and the Dow Jones (DIA) cleared prior resistance from their 50-Day moving averages (DMA). On the other hand, the Russell 2000 (IWM) has resistance near $230 and the Nasdaq 100 (QQQ) has overhead resistance from its 50-DMA at $369.39. With that said, the recent market action has been enforced by strong bank earnings and consumer
Written by Forrest Crist-Ruiz For the past year, the Fed has stuck to its guns on the idea that supply-chain disruptions are causing a short-term increase in inflation, and that in 2022 inflation will decrease towards their 2% target. However, with continuous news of job shortages, shipping problems, rising food costs, and more, it doesn’t look as though inflation is going away anytime soon. On top of that, the Core Consumer Price Index, which the
Written by Forrest Crist-Ruiz Monday, we talked about specific sectors weakening as they teetered on the edge of support from their major moving averages. The main three were Transportation (IYT), Retail (XRT), and Semiconductors (SMH). It just so happens that these sectors perfectly align with the holiday season as people begin to do what they do best, consume and buy more stuff. Having said that, this should boost transportation along with tech and retail stores
Written by Forrest Crist-Ruiz Monday, the major indices attempted a reversal of Friday's price action but failed. This created another late-day selloff. Does this mean we should prepare ourselves for another move lower or does the market have support to lean on through the coming week? To get a quick but in-depth market picture, we like to use Mish’s Economic Modern Family which consists of 5 key sectors and one major index. Starting with the
Written by Forrest Crist-Ruiz The recent jobs report came in less than expected with analysts’ estimates running anywhere from 250,000 to 500,000 new jobs created. Disappointingly employers added only 194,000 jobs in September. Although the numbers mean slower progress towards the 2-3% unemployment goal, will investors take a cautious note? Possibly, but only if the market loses support from its biggest fan, the Fed. With the market heavily supported from the Fed's bond buying program,
Written by Forrest Crist-Ruiz Tuesday, we talked about the 6-month calendar range as a support level to hold in both the S&P 500 (SPY) and the Nasdaq 100 (QQQ). Wednesday, both indices were able to hold support from their calendar range lows around $427 for the SPY and $352 for the QQQ. This test of the calendar range and recent lows shows that we have a solid support level the market needs to stay over
Written by Forrest Crist-Ruiz Calendar ranges have been used for a long time in charting as important levels to clear or break down from. Investors can view price as bullish when over the range and bearish when trading under. We like to use the 6-months calendar range as it shows long-term support or resistance levels to watch. The most recent range for the S&P 500 (SPY) is created from the first ten trading days of
Written by Forrest Crist-Ruiz While the major indices continue to weaken, U.S factories have seen a 1.2% increase in orders in August. This shows that although equities are struggling, the demand for goods is steady. Therefore, now is the time to pay close attention to which spaces are holding up while the general market wanes. This leads us to food and energy commodities. While we’ve been trading commodities along with equities throughout the year, their
Written by Mish The U.S Dollar chart as represented by UUP, the Invesco DB US Dollar ETF, shows some classic signs of a top. Before I delve deeper into the technicals though, let’s look at the fundamental reasons for the dollar rally last week. For starters, China’s slowing growth turned the US dollar into a safe haven. The dollar becomes a safe haven as the world’s reserve currency. This flight to safety happens when another
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