At least the technical analyst thinks so. I would not doubt we have seen, continue to see a retracement of the recent gains. However, this pullback has occurred on declining volume levels, suggesting that the pullback is a countertrend move and that the uptrend that began in June will continue. Beside, the RBC technical analyst's thesis seems to rest solely on Syrian-related political risks. My memory may be slipping but I do not recall John Kerry calling for a Syrian war back in June.
Monday, September 9, 2013
Volume Off the High- 9/6 Trading Day Edition
People say that it quality is what counts, not quantity. Well, the one name falling from recent highs, on volume, in Friday's trading does make the quality list. The mattress and bedding retailer's accounting has been discussed in various reports. This company has also been flagged on my accounting quality (or lack there of) screen a number of times over the last few months. We may see far lower prices in MFRM before the decline is done.
High Volume High- 9/6 Trading Day Edition
An interesting list of names today. A couple names higher on reported earnings, but three others gained on other news. DWCH gained after an analyst report. CYD's shares increased following the report that the Chinese company can sell products in Europe. Lastly, TKR's shares gained after announcing the spin-off its steel-unit. TKR is a company worth putting on your radar, as experience has shown that spin-off create interesting value/growth plays.
Another Day and More Weak Demand- S&P 500 Price/Volume Heat Map- 9/6 Trading Day and Week
The S&P 500 closed out Friday's trading just about flat on the day. Utilities were the largest gainers, but contributed little to the overall gain considering the paltry 3% weighting in the index.
Reflecting the overall price performance, the demand outlook was tepid at best. Utilities, as shown in the price/volume heat map below, experienced the best overall demand levels, but the rest of the market showed more neutral results overall. These results are not what you would like to see a few days into a rally attempt.
Trading Week ending 9/6
For the week, the S&P 500 gained 140 basis in value, retracing a portion of 50 point loss from the 1,700 level.
The price/volume heat map for week reflected the price performance seen above. Stronger demand was seen in all sectors except for telecom and utilities, with the latter two taking it on the chin on price.
Reflecting the overall price performance, the demand outlook was tepid at best. Utilities, as shown in the price/volume heat map below, experienced the best overall demand levels, but the rest of the market showed more neutral results overall. These results are not what you would like to see a few days into a rally attempt.
Trading Week ending 9/6
For the week, the S&P 500 gained 140 basis in value, retracing a portion of 50 point loss from the 1,700 level.
The price/volume heat map for week reflected the price performance seen above. Stronger demand was seen in all sectors except for telecom and utilities, with the latter two taking it on the chin on price.
The Olympics As the New Skyscaper Index
This video is rather old (Pre- 2012 London Olympics), but watching this the other day I could not help but think the Skyscraper Index.
The Skyscraper Index, if you will recall, states that the completion of
large skyscrapers will at times mark the end of economic expansions.The index does not suggest a cause and effect relationship but more of a anecdotal indicator at best. Significant arguments and evidence for and against this theory/index do exist, but in some instances the completion of large-scale construction projects (like skyscrapers or Olympic complexes) do appear to herald the end of an economic expansion. And Just an FYI- next year will bring the completion of the new World Trade Center in New York City, Sky City in China, and the Olympics in Sochi, Russia.
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