December 6 Market Update | Technical, Fundamental, News
Description:
An analysis for the week ahead.
Points of Interest:
Projections near $3,710.00, the micro-composite HVNode at $3,690.75 and $3,667.75, as well as the $3,682.00 and $3,640.00 balance boundary.
Technical:
During much of the week, participants lacked the conviction to break through to new highs.
However, conditions markedly improved after Thursday’s long liquidation on Pfizer Inc (NYSE: PFE) news flushed out weak-handed participants, and responsive buyers surfaced. The quick recovery of the balance-area high suggested the news was immaterial.
During Friday regular trading, initiative buyers extended range — through the $3,682.00 balance-area high — separating and accepting value above the week-long balance-area.
Therefore, given the acceptance of higher prices, participants must monitor whether S&P 500 spends time trading above the $3,682.00 balance boundary. An initiative drive below that figure would portend a potential response at the $3,667.75 high-volume node. Auctioning further below that area would denote a clear change in conviction. The line in the sand is the $3,640 balance-area boundary. Auctioning below that figure puts the rally on hold.
All in all, though sentiment and positioning imply limited potential for upside, the S&P 500 remains in an uptrend after confirming a multi-month balance-break.
Fundamental:
In a commentary, Nasdaq’s Phil Mackintosh discussed new proposed actions from the SEC.
The U.S. is moving away from an equal, actionable, accessible market. It will become more similar to Europe, where segmentation and latency are so prevalent that, even though public data is available, each investor’s view of what they can access is different, making it hard to agree on what quotes and trades should be used to benchmark their executions.
Simply put, Mackintosh suggests proposals like NMS II, which is intended to modernize market data infrastructure, will likely lead to more market fragmentation, segmentation, and quote deterioration.
Key Events:
Monday: Consumer Credit Change.
Wednesday: MBA Mortgage Applications, Wholesale Inventories, EIA Cushing Crude Oil Stocks Change, EIA Distillate Stocks Change.
Thursday: Core Inflation Rate MoM and YoY, Inflation Rate MoM and YoY, Initial and Continuing Jobless Claims, Jobless Claims 4-Week Average, Monthly Budget Statement.
Friday: PPI MoM, Michigan Consumer Sentiment Preliminary, Michigan 5-Year Inflation Expectations Preliminary, Michigan Inflation Expectations Preliminary, Fed Quarles Speech.
Recent News:
The U.S. labor market looks to be losing its steam as the COVID-19 pandemic rages. reut.rs/3oxvVaT
Boeing Co (NYSE: BA) is reducing its 787 widebody production to five jets per month. reut.rs/3qyoIJn
For now, despite rising economic risks, the Fed will probably not ramp its bond-buying. reut.rs/33RVwn0
S&P Global Inc (NYSE: SPGI), IHS Markit Ltd (NYSE: INFO) merger credit positive. bit.ly/2VKgdN9
Economic recovery will likely be uneven across Latin American countries and sectors. bit.ly/39QoF5E
The business environment has improved, but will remain unsettled over the next year. bit.ly/2VN4ayu
These are the startups that are still expected to go public before the end of December. bit.ly/3lIVfc0
AstraZeneca PLC’s (NASDAQ: AZN) COVID-19 data has positive social implications. bit.ly/3qsahX8
The rapid recovery in profits could be signaling a brisk recovery by business activities. bit.ly/3ghZbzf
U.S. retail operating profit will grow in 2021 with growth pronounced in hard hit sectors. bit.ly/2JSAuxi
Britain and the EU make a last-ditch attempt to strike a post-Brexit trade deal this week. reut.rs/2JW25xs
Trump and McConnell expected to back a pandemic relief bill before the end of the year. bloom.bg/2VMV7hb
Travel and tourism demand will take several years to recover to pre-COVID-19 levels. bit.ly/33OU58V
Goldman Sachs Group Inc (NYSE: GS) could move a key division to new Florida hub. bloom.bg/2JJFQeq
Mystery surrounds a $7 billion outflow from one large Vanguard exchange-traded fund. bloom.bg/3qIXXSG
Key Metrics:
Sentiment: 49.1% Bullish, 28.3% Neutral, 22.7% Bearish as of 12/02/2020. bit.ly/330VhEp
Gamma Exposure: (Trending Neutral) 4,429,232,865 as of 12/04/2020. bit.ly/2UpgtRE
Dark Pool Index: (Trending Lower) 40.4% as of 12/04/2020. bit.ly/2UpgtRE
Disclaimer:
This is a page where I look to share knowledge and keep track of trades. If questions, concerns, or suggestions, feel free to comment. I think everyone can improve, especially me.
In no way should this post be construed as investment advice.
An analysis for the week ahead.
Points of Interest:
Projections near $3,710.00, the micro-composite HVNode at $3,690.75 and $3,667.75, as well as the $3,682.00 and $3,640.00 balance boundary.
Technical:
During much of the week, participants lacked the conviction to break through to new highs.
However, conditions markedly improved after Thursday’s long liquidation on Pfizer Inc (NYSE: PFE) news flushed out weak-handed participants, and responsive buyers surfaced. The quick recovery of the balance-area high suggested the news was immaterial.
During Friday regular trading, initiative buyers extended range — through the $3,682.00 balance-area high — separating and accepting value above the week-long balance-area.
Therefore, given the acceptance of higher prices, participants must monitor whether S&P 500 spends time trading above the $3,682.00 balance boundary. An initiative drive below that figure would portend a potential response at the $3,667.75 high-volume node. Auctioning further below that area would denote a clear change in conviction. The line in the sand is the $3,640 balance-area boundary. Auctioning below that figure puts the rally on hold.
All in all, though sentiment and positioning imply limited potential for upside, the S&P 500 remains in an uptrend after confirming a multi-month balance-break.
Fundamental:
In a commentary, Nasdaq’s Phil Mackintosh discussed new proposed actions from the SEC.
The U.S. is moving away from an equal, actionable, accessible market. It will become more similar to Europe, where segmentation and latency are so prevalent that, even though public data is available, each investor’s view of what they can access is different, making it hard to agree on what quotes and trades should be used to benchmark their executions.
Simply put, Mackintosh suggests proposals like NMS II, which is intended to modernize market data infrastructure, will likely lead to more market fragmentation, segmentation, and quote deterioration.
Key Events:
Monday: Consumer Credit Change.
Wednesday: MBA Mortgage Applications, Wholesale Inventories, EIA Cushing Crude Oil Stocks Change, EIA Distillate Stocks Change.
Thursday: Core Inflation Rate MoM and YoY, Inflation Rate MoM and YoY, Initial and Continuing Jobless Claims, Jobless Claims 4-Week Average, Monthly Budget Statement.
Friday: PPI MoM, Michigan Consumer Sentiment Preliminary, Michigan 5-Year Inflation Expectations Preliminary, Michigan Inflation Expectations Preliminary, Fed Quarles Speech.
Recent News:
The U.S. labor market looks to be losing its steam as the COVID-19 pandemic rages. reut.rs/3oxvVaT
Boeing Co (NYSE: BA) is reducing its 787 widebody production to five jets per month. reut.rs/3qyoIJn
For now, despite rising economic risks, the Fed will probably not ramp its bond-buying. reut.rs/33RVwn0
S&P Global Inc (NYSE: SPGI), IHS Markit Ltd (NYSE: INFO) merger credit positive. bit.ly/2VKgdN9
Economic recovery will likely be uneven across Latin American countries and sectors. bit.ly/39QoF5E
The business environment has improved, but will remain unsettled over the next year. bit.ly/2VN4ayu
These are the startups that are still expected to go public before the end of December. bit.ly/3lIVfc0
AstraZeneca PLC’s (NASDAQ: AZN) COVID-19 data has positive social implications. bit.ly/3qsahX8
The rapid recovery in profits could be signaling a brisk recovery by business activities. bit.ly/3ghZbzf
U.S. retail operating profit will grow in 2021 with growth pronounced in hard hit sectors. bit.ly/2JSAuxi
Britain and the EU make a last-ditch attempt to strike a post-Brexit trade deal this week. reut.rs/2JW25xs
Trump and McConnell expected to back a pandemic relief bill before the end of the year. bloom.bg/2VMV7hb
Travel and tourism demand will take several years to recover to pre-COVID-19 levels. bit.ly/33OU58V
Goldman Sachs Group Inc (NYSE: GS) could move a key division to new Florida hub. bloom.bg/2JJFQeq
Mystery surrounds a $7 billion outflow from one large Vanguard exchange-traded fund. bloom.bg/3qIXXSG
Key Metrics:
Sentiment: 49.1% Bullish, 28.3% Neutral, 22.7% Bearish as of 12/02/2020. bit.ly/330VhEp
Gamma Exposure: (Trending Neutral) 4,429,232,865 as of 12/04/2020. bit.ly/2UpgtRE
Dark Pool Index: (Trending Lower) 40.4% as of 12/04/2020. bit.ly/2UpgtRE
Disclaimer:
This is a page where I look to share knowledge and keep track of trades. If questions, concerns, or suggestions, feel free to comment. I think everyone can improve, especially me.
In no way should this post be construed as investment advice.
This is a page where I look to share knowledge and keep track of trades. If questions, concerns, or suggestions, feel free to comment. I think everyone can improve (myself especially), so if you see something wrong, speak up.
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