Despite some impressive post-earnings moves, not to mention the esé’s in LOCO earning street creed for their heart, the market at-large remains a bifurcated mess.
With the FOMC announcement out of the way, the major averages and indeed many individual issues are searching for their next directional move.
Stick around for my video market recap after the bell for more analysis.
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The initial move in the market, post-FOMC, was higher, but now stocks are coming in a bit before we see if this is a head-fake or the true move.
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To update this blog post from last week, high yield corporate paper and junk continue to quietly get smashed.
The HYG and JNK ETF’s both illustrate as much, below, with bear pennant breakdowns today.
As far as divergences and correlations to equities go, it won’t matter until it does, and then everyone will point to it in hindsight as a warning sign.
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Courtesy of The PPT algorithm, here are the most current top five readings from my “12631 RELATIVE STRENGTH” custom-made screen, identifying which stocks are exuding some of the best performances to the market at-large at any given moment.
I look for stocks whose Daily PPT Hybrid Score surges, while the Weekly Hybrid has been negative over the past week. This can often yield stocks which are emerging from consolidations.
Members can click here to view and save the screen.
Sorted for at least 500,000 shares of daily average volume to ensure liquidity.
Please click on image to enlarge.
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Bears can point to the break in steep trend today in the Dow Jones Industrial Average, seen on the daily chart, below.
In addition to the S&P 500 Index, the mega caps in the Dow have been exceptionally resilient this year. Nonetheless, you can plainly see the rising wedge breakdown. Closing weak is going to be key for bears, as will the elusive downside follow-through.
But the Dow’s weakness off the open is noteworthy, especially considering how quickly bullish sentiment became with a bevy of earnings pops last night.
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Yesterday morning’s move below $30 on LOCO may have been scary, but the stock is making fresh highs today on a break-taking comeback. It was truly a false, pendejo breakdown which led to a fast move higher.
Plenty of our 12631 members are in on this trade and doing quite well.
Not me, though, as I instead got stopped out of my gold miner long for a loss this morning on disappointing action from what had been an attractive long setup.
What are you trading this morning?
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