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Stick Save To Close The Week

David Fry's picture




 

Bulls are a determined and desperate bunch. There were two consecutive days of large sell-offs this week but on each day dip buyers entered to make things more respectable. Let’s face it, bulls have positions to defend, so getting a green close was huge psychological win for Main Street.

Durable Goods Orders beat expectations coming in at 3.3% vs 1.4% expected, and prior, -5.9%; Ex-transportation, which gives a better picture of conditions since they're generally volatile like Boeing 787 orders for example, would be at 1.3% vs 0.4% expected, and prior -1.7%. This gave bulls some hope. But that news was sold hard early in the day Friday.

There really wasn’t any other news Friday and many traders were leaving early for the long weekend thus volume started to slacken making it easy for some algos (they never take a holiday) to bid things up squeezing some shorts.

The volatility in Japan markets continued as their leaders haven’t learned how to describe new policies as Bloomberg notes. We covered two Japan ETFs this week, EWJ and DXJ.  Notably, DXJ was the best performing ETF in 2013 until this week. DXJ is interesting as it has a short-hedged position on the yen which benefits U.S. holders. EWJ is also popular but with the yen in sharp decline, it really hasn't benefitted U.S. holders as much.

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NYMO

NYMO

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

NYSI

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

VIX

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.

SPY 5 MINUTE

SPY 5 MINUTE

 

.SPX WEEKLY

.SPX WEEKLY

 

INDU WEEKLY

INDU WEEKLY

 

RUT WEEKLY

RUT WEEKLY

 

QQQ WEEKLY

QQQ WEEKLY

 

XLF WEEKLY

XLF WEEKLY

 

XLB WEEKLY

XLB WEEKLY

 

XLP WEEKLY

XLP WEEKLY

 

XLI WEEKLY

XLI WEEKLY

 

IYT WEEKLY

IYT WEEKLY

 

IYR WEEKLY

IYR WEEKLY

 

TLT WEEKLY

TLT WEEKLY

 

FXE WEEKLY

FXE WEEKLY

 

FXY WEEKLY

FXY WEEKLY

 

FXA WEEKLY

FXA WEEKLY

 

GLD WEEKLY

GLD WEEKLY

 

SLV WEEKLY

SLV WEEKLY

 

GDX WEEKLY

GDX WEEKLY

 

JJC WEEKLY

JJC WEEKLY

 

DBC WEEKLY

DBC WEEKLY

 

USO WEEKLY

USO WEEKLY

 

UNG WEEKLY

UNG WEEKLY

 

UUP WEEKLY

UUP WEEKLY

 

EFA WEEKLY

EFA WEEKLY

 

IEV WEEKLY

IEV WEEKLY

 

EEM WEEKLY

EEM WEEKLY

 

EWJ WEEKLY

EWJ WEEKLY

 

EWZ WEEKLY

EWZ WEEKLY

 

RSX WEEKLY

RSX WEEKLY

 

EPI WEEKLY

EPI WEEKLY

 

FXI WEEKLY

FXI WEEKLY

 

EWA WEEKLY

EWA WEEKLY

 

The market’s performance Thursday and Friday are misleading since there is so much destruction in many sectors globally. But the media depends on selling what’s going on with the DJIA. It’s just window dressing for the tourists frankly.

Next week will feature Consumer Confidence; Case-Shiller HPI, GDP; Jobless Claims; Pending Home Sales; Chicago PMI; and, the dueling U of Michigan Consumer Sentiment data. The Fed will continue POMO actions throughout the week with the largest liquidity add Friday.

Let’s see what happens.

 

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Sat, 05/25/2013 - 13:24 | 3598481 disabledvet
disabledvet's picture

Pays to take a second look. I'm not sure people really understand how far out of normalcy these markets still are. A move in silver from near 50 down to 22?! Gold looks mild by comparison. The technical damage from the obliteration of Europe's debt markets is truly extraordinary. And now Japan? This is the second largest economy in the world. Obviously something this big heading South would be the trigger for any multitude of "event horizons." amazingly "it's still all about Wall Street" though. Obviously there is The Biggest Short Ever put on here...the rumors have been around for well over a year now. "the man from Bowdoin" has been in da house for a while now. I find myself underwhelmed. "all these profits wind up in a Federal Program somewhere." and yes...courtesy of the 90's...if you short something to zero even then a transaction has been made and you have to put the "gain" on your books. No wonder the deficit is dropping so far so fast. "Long the Navy" ...and whatever is going on in the Sahara and Russia.

Sat, 05/25/2013 - 12:15 | 3598377 John Law Lives
John Law Lives's picture

Death by charts...

Ben prints and the stock markets rise.  Doesn't that just about sum things up...

FUBAR.

Sat, 05/25/2013 - 12:01 | 3598356 DawgAss
DawgAss's picture

MOAR charts please, I don't understand!

Sat, 05/25/2013 - 11:35 | 3598328 Fuh Querada
Fuh Querada's picture

Chart wanker.

Sat, 05/25/2013 - 10:45 | 3598278 GlobalCtzn
GlobalCtzn's picture

Maybe if I had a chart or two to look at I could make some sense of all this..............

Sat, 05/25/2013 - 10:44 | 3598275 markettime
markettime's picture

I love chart porn! 

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