Thursday, November 7, 2013

Demand Weak But Prices Still Rise- S&P 500 Price/Volume Heat Map Nov. 6 Trading Day

Another day and another gain, with the S&P 500 gaining roughly 40 basis points in value. This is as all sectors except for the discretionary and healthcare stocks gained ground, the latter group losing group by about 20 to 30 basis points.

It looks like the operators were jamming the market higher ahead of the Twitter IPO. Would it not look poorly on Goldman if one of the biggest of IPO's of year came off into a sign of market weakness. I say this as despite the gain in value on the S&P 500, overall market demand remained weak, representing yet another day when equity prices rose overall but demand remained weak. That said, there were some sectors that showed signs a strength, most notably the defensive groups. More so, telecoms and utilities gained in price on higher demand, despite bond rates that continue to bounce off the 200 day moving average. Is this traders positioning themselves for lower interest rates? Time will tell. 

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