Month: December 2022

December 25th 2022 |

Key Takeaways

• Further short-term seasonal support into the year-end possible
• Nevertheless, the quality of the current downtrend still remains quite high
• The current risk-/reward ratio still looks too low for a strategic bargain hunt

Market Review |

U.S. stocks finished the week with a mixed performance. The Dow Jones Industrial Average gained 0.9% during the week to close at 33,203.93. The S&P 500 finished at 3,844.82 and ended the week down 0.2%, posting its third straight weekly decline. The Nasdaq Composite closed at 10,497.86 and lost 2% for the week, also for the third down week in a row. Among the key S&P sectors, energy was by far the best weekly performer, while consumer discretionary dragged the most. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded near 20.9. Read More

December 18th 2022 |

Key Takeaways

• Stronger deterioration within our indicator framework is confirming negative market regime
• Stronger seasonal gains possible, but outlook remains grim
• Stay on the sideline as the risk-/reward ratio is too low for a strategic long position

Market Review |

U.S. stocks finished the week with losses. The Dow Jones Industrial Average lost 1.7% over the week to 32,920.46. The S&P 500 retreated 2.1% for the week to finish at 3,852.36. The tech-heavy Nasdaq posted a 2.7% loss for the week and finished at 10,705.41. All averages notched a second consecutive week of losses. Nearly all key S&P sectors ended in negative territory for the week, led by the technology sector. Energy was the only gainer. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded near 22.6. Read More

December 11th 2022 |

Key Takeaways

• Trend condition of the S&P 500 changed fairly during the week
• The S&P 500 is getting increasingly vulnerable for stronger disappointments
• Time to place a stop-loss at 3,903 since the uptrend quality deteriorated significantly

Market Review |

U.S. stocks finished the week with losses. The Dow Jones Industrial Average dropped 2.8% over the week to 33,476.46. The S&P 500 booked a weekly loss of 3.4% to finish at 3,934.38. The Nasdaq shed 4% for the week to end at 11,004.62. All key S&P sectors finished negative for the week, led by the energy sector. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded near 22.8. Read More

December 4th 2022 |

Key Takeaways

• Expected profit taking took place at the beginning of the week
• The trend quality continued to improve on all time frames
• No reason to change our strategic bullish outlook for the time being

Market Review |

U.S. stocks ended a volatile week with gains. The Dow Jones Industrial Average eked out a small weekly gain of 0.2% to end at 34,429.88. The S&P 500 added 1.1% in that time period to close at 4,071.70. The Nasdaq increased 2.1% from last Friday's close to 11,461.50. Friday’s close marked the first time the three major indexes notched back-to-back weekly gains since October. Most key S&P sectors finished positive for the week, led by the comm. services sector. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded near 19. Read More