Well done, Theon.
In America:
Nasdaq Composite +0.56%. New York Composite +0.06%. Russell 2000 +1.13%. Dow Industrials +0.19%. SP500 +0.2%.
Nasdaq and R2K got back all their losses, plus a bit, from the previous session. The other three continued their slow creep up under the influence of OpEx Week.
The market dropped on opening after poor economic news out of Europe – but the Dip Buyers stepped in. They’re not going to let this fall until after Options Expiry is over.
Here’s the detailed chart for the SP500:
The Index is once again above 80 on the RSI.9 and the TSI continues to rise well above 25. That’s extremely overbought in my book. This needs to be worked off.
The Philadelphia Fed Business Activity Index had a huge rise – and finished at the highest level since 1993. Statistically, it looks impossible. And I don’t think the market believed it – otherwise stocks would have sky-rocketed. So, it makes great headlines – but is probably an anomaly which will be corrected.
Don’t expect anything dramatic to happen in the next session. We might have to wait till next week.
Commodities:
Copper in the U.S. was flat, +0.05%. No movement occurred in the Iron Ore price – it remains at $70. GLD had a belter +1.04%. US$ down marginally, -0.13%. The Energy Group (Oil, Natural Gas, Gasoline) in America continued strong upward movements. The Energy Sector in NY was the best performing sector last night, up +1.25%. The correlation between it and energy stocks in Australia is weak (unlike the Metals prices and our Mining Sector). But it might spark a bit of optimism here.
Oz stocks in New York:
BHP -1.25%. Rio -1.86%. Those are poor raw figures – but both stocks showed strong intra-day buying. Westpac -0.67%. ANZ +0.69%. EWA +0.42%. EWA and the banks also showed strong intra-day buying. Bottom fishing is obviously taking place after the big down day in Australia yesterday.
Volume in Australia today will be affected by Options Settlement Day.
After the big down day yesterday, and after eight down days in the past nine, and with bottom fishing in America – I’ll be surprised if we’re not up today. But the Stock Market Gods might think otherwise.
Redbacka
(20min delay)