Indexes opened in the green and stayed there all day as the turtle like rally continues. The S&P 500 gained 0.28% and the NASDAQ 0.56%. TINA (There Is No Alternative) to the right of me, TINA to the left of me….
“It’s a major vacation time between now and Labor day,” said Ernie Cecilia, CIO at Bryn Mawr Trust. “The market right now is floating up on not a lot of news.” “There’s a lack of alternatives into other instruments,” he said, noting that trading volume has been low recently.
“The market should continue to go higher on the no-alternative factor,” said Peter Cardillo, chief market economist at First Standard Financial. “The market is feeding on itself.”
“The market is grinding higher thanks to better-than-expected earnings results during this season as well as due to lack of alternatives, since bond yields are so low,” said Karyn Cavanaugh, senior market strategist at Voya Financial.
If you are interested in what hedge fund giant David Tepper thinks, he sounds a tad cautious but not bearish.
Not much to add to the index commentary that we did not say last week, the S&P 500 continues to press against the top of this wedge.
The article originally appeared on Oil-Trading.CO at http://www.oil-trading.co/oil-analysis-blog/market-recap-for-aug-15-and-16-2016
The Russell 2000 on the other hand looks like a genuine move out of a base.
For the umpteenth time, rumors of oil producers doing “something”(!!!) are out there.
On Monday, Russian Energy Minister Alexander Novak bolstered hopes that oil producing nations could take action to stabilize prices, telling a Saudi newspaper that his country was consulting with Saudi Arabia and other producers to achieve market stability. “Good luck with that, if investors believe this. The move which we are seeing in the market is the real example how speculations can drive the price action. ” said Naeem Aslam, chief market analyst at Think Markets.
I said it last week in recaps and I’ll say it again…. Twitter (TWTR) continues to act like a stock that is going to be acquired – stocks that bomb post earnings don’t usually recover like this! Reports today are that the company is in talks with Apple to launch an application for streaming National Football League games on Apple TV.
Twilio (TWLO) exploded after earnings last week. Today’s monster morning move to fresh highs reversed on massive volume. Is this finally a top?
Acacia Communications (ACIA) continues to be on fire after reporting earnings on Friday. Huge earnings growth and clearly the momentum leader in this market.
Impressive move by GoPro (GPRO).
Apple (AAPL) continues to look strong
Weibo (WB) aka “Chinese Twitter” also is trucking along
YY (YY) another Chinese internet company (with the easiest symbol in the world to remember) is also showing immense strength.
Per Bespoke Premium here are the NASDAQ 100 stocks most “extended” i.e. farthest away from their 50 day moving average.
The tech-heavy Nasdaq 100 has now rallied 15% over the last 35 trading days since the post-Brexit low was made on June 27th. The average Nasdaq 100 stock is up 5% year-to-date, and the average stock is now 5% above its 50-day moving average as well. That’s a pretty extended reading that would suggest some kind of “mean reversion” trade — whether it’s through a pullback or sideways action — is on the horizon. The stocks below are the most extended in the index at the moment.