Tuesday, November 06, 2018

The Daily, Part 1 of 2, 11-6-18

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11/6/2018 Investment House Daily
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Investment House Daily Subscribers:

MARKET ALERTS:

Targets hit: None issued
Entry alerts: AEP
Trailing stops: None issued
Stop alerts: HMY; REV

The market alert service is a premium level service where we issue intraday alerts relating to the general market conditions, when stocks hit action points (buy, stop, target, etc.), and when we see other information impacting the market or our stocks. To subscribe to the alert service you can sign up at the following link:
https://www.investmenthouse.com/alertdaily.html

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The REPORT SCHEDULE is as follows:

Market Summary Video, Plays and Play Videos, and Play Table with play annotations will issue Wednesday, Weekend.

Monday a Market Summary video, new plays, play table annotations.

Tuesday and Thursday reports will contain the market summary, chart links to view the index charts, and updated play table.

Access to all current videos will remain assessable each day using the play links in the reports.

If any market circumstances arise where we see additional plays we want to prepare for the next session, we will of course issue those plays regardless of the day of the week.


MARKET SUMMARY

- All indices overcome a slow start, close positive.
- No major ground gained, but doing a good job of holding the moves and buying time for more patterns to develop.
- The Tuesday moves were nice, but it is all just a prelim for the election results.
- Some say a democratic House is built into the market via the selloff, but speculation is running wild as the polls start closing.
- Have some great plays working that will likely keep working, and have more ready to enter if they can show the moves.

Back and forth all session, starting lower, bouncing, selling, then rallying into the close. That action left the indices near the 20 day (most) or 50 day MA (DJ30). Holding gains as stocks more or less idle after a bounce higher and before an important event such as the midterm elections is not bad action. Did not tell you a rally is coming, but it is not bad action.

Further, they continued working on what are short inverted head and shoulders patterns, forming the right shoulder. The timing could be very right with the election put to bed to deliver some breaks upside.

SP500 17.14, 0.63%
NASDAQ 47.11, 0.64%
DJ30 173.31, 0.68%
SP400 0.62%
RUTX 0.55%
SOX 1.14%
NASDAQ 100 0.75%

VOLUME: NYSE -13%, NASDAQ +6%. NYSE trade fell below average, not that surprising.

ADVANCE/DECLINE: NYSE +1.7:1, NASDAQ +1.6:1.

CHARTS

To view, click on the following links:

http://investmenthouse1.com/ihmedia/f/charts/sp500.jpg
http://investmenthouse1.com/ihmedia/f/charts/NASDAQ.jpg
http://investmenthouse1.com/ihmedia/f/charts/DJ30.jpg
http://investmenthouse1.com/ihmedia/f/charts/RUTX.jpg
http://investmenthouse1.com/ihmedia/f/charts/SP400.jpg
http://investmenthouse1.com/ihmedia/f/charts/SOX.jpg
http://investmenthouse1.com/ihmedia/f/charts/nasdaq100.jpg

It was a day that saw most areas higher though it is the same story: those with damaged patterns bounced but it was nothing that built confidence a surge is coming. It could; if there is no change in the Congress the notion is there may be more stimulus then these growth areas may see money move back their way. That is the premise some are putting out today, i.e. the market sold on worries the democrats would take the House, and if that happens, then stocks have it priced in. If not, then stocks could see a nice rebound. That is the theory.

On the other hand the same leaders that enjoy good patterns and broke higher moved again: WMT, MCD, ULTA, KR, M, JNJ, WBA -- familiar names. We even picked AEP, yes one of those utility stocks. Good volume upside so we opted to get some exposure there.

Thus, the indices held their recent moves higher, indeed adding upside, the same leaders continued their moves higher, and the patterns that broke managed to add some to their rebounds. Definitely hopeful the economy continues receiving the preference it has, but in reality the 'day before' moves do not mean a lot. There is an old saying: news trumps everything, and the election is news. Blue wave? Red wave? Those calling for the former are now not sure at all. Those mentioning the latter are wishing, but there is history re the polls -- 2016.

We have upside plays working and working well, others we would like to buy, e.g. DATA, SQ, TTWO, OKTA, FEYE, XLNX. The question is will they show the moves post-election results? We will let them show us. There are some great setups. If they work, we will be in at the best entries we can get.

Not much more to say about this. Going to watch as much of the election results as I can take -- the pundits tend to drive you insane after awhile.

Have a great evening!


MARKET STATS

DJ30
Stats: +173.31 points (+0.68%) to close at 25635.01

Nasdaq
Stats: +47.11 points (+0.64%) to close at 7375.96
Volume: 2.29B (+6.02%)

Up Volume: 1.35B (+290M)
Down Volume: 883.5M (-176.5M)

A/D and Hi/Lo: Advancers led 1.59 to 1
Previous Session: Decliners led 1.13 to 1

New Highs: 45 (+6)
New Lows: 83 (+23)

S&P
Stats: +17.14 points (+0.63%) to close at 2755.45
NYSE Volume: 812.591M (-12.60%)

Up Volume: 517.458M (+241.312M)
Down Volume: 280.074M (+3.929M)

A/D and Hi/Lo: Advancers led 1.66 to 1
Previous Session: Advancers led 1.81 to 1

New Highs: 51 (+21)
New Lows: 65 (+12)


SENTIMENT

VIX: 19.91; -0.05
VXN: 26.17; -1.09
VXO: 20.80; -0.75

Put/Call Ratio (CBOE): 1.12; +0.10


Bulls and Bears:

This now gets at least interesting. Bulls tumbled 6.2 points, now well below 50. Perhaps that is the dam breaking and negative sentiment will ramp. It is noteworthy that the market rebounded in the aftermath. Bears mad a significant move, at least for the bears.

Bulls: 44.3 versus 50.5

Bears: 19.8 versus 19.0

Theory: When everyone is bullish and has put all their capital to work, where does the ammunition to drive the market come from? There is always new money to start a new year. After that is used will more money be coming? That is the question.




Bulls: 44.3 versus 50.5
50.5 versus 51.9 versus 56.3 versus 61.8 versus 60.6 versus 59.0 versus 57.7 versus 60.1 versus 59.6 versus 57.7 versus 57.3 versus 54.9 versus 54.5 versus 54.9 versus 55.3 versus 52.4 versus 47.1 versus 47.6 versus 52.0 versus 55.5 versus 52.9 versus 50.0 versus 49.1 versus 46.6 versus 43.1 versus 43.6 versus 48.0 versus 43.6 versus 42.2 versus 49.5 versus 55.5 versus 54.9 versus 48.6 versus 48.1 versus 48.5 versus 41.9 versus 54.4 versus 66.00

Bears: 19.8 versus 19.0
19.0 versus 18.3 versus 18.5 versus 18.6 versus 18.3 versus 18.1 versus 18.3 versus 18.1 versus 18.3 versus 18.3 versus 18.6 versus 18.8 versus 18.6 versus 18.5 versus 18.5 versus 18.6 versus 18.4 versus 17.6 versus 17.8 versus 17.7 versus 19.2 versus 19.2 versus 19.4 versus 19.4 versus 20.6 versus 20.8 versus 19.6 versus 19.8 versus 18.6 versus 17.5 versus 16.8 versus 15.7 versus 15.5 versus 14.4 versus 14.6 versus 14.4 versus 15.5 versus 12.6 versus 12.8 versus 12.7 versus 13.5 versus 15.2 versus 15.1 versus 15.2 versus 15.1 versus 15.1 versus 15.4 versus 15.4 versus 14.4 versus 14.4 versus 15.1 versus 15.2 versus 15.1 versus 17.0 versus 17.1 versus 19.0 versus 20.2


OTHER MARKETS

Bonds: 3.222% versus 3.201%. Bonds sold slightly, yields rose, still holding just off the Friday low that more or less matched the early October low.

Historical: the last sub-2% rate was in November 2016 (1.867%). 3.201% versus 3.22% versus 3.146% versus 3.149% versus 3.119% versus 3.089% versus 3.079% versus 3.126% versus 3.111% versus 3.1692% versus 3.20% versus 3.196% versus 3.1779% versus 3.209% versus 3.165% versus 3.158% versus 3.167% versus 3.146% versus 3.169 versus 3.206% versus 3.233% versus 3.189% versus 3.183% versus 3.061% versus 3.087% versus 3.061% versus 3.052% versus 3.048% versus 3.048% versus 3.085% versus 3.066% versus 3.068% versus 3.076% versus 3.057% versus 2.99% versus 3.00% versus 2.972% versus 2.963% versus 2.977% versus 2.937%


EUR/USD: 1.14228 versus 1.14090. A modest rise the past week off the 6 weeks of selling.

Historical: 1.14090 versus 1.13881 versus 1.14019 versus 1.13394 versus 1.13455 versus 1.13760 versus 1.14042 versus 1.13757 versus 1.3972 versus 1.14682 versus 1.14626 versus 1.1538 versus 1.14556 versus 1.14961 versus 1.1578 versus 1.15906 versus 1.15592 versus 1.15901 versus 1.15324 versus 1.4966 versus 1.4916 versus 1.1598 versus 1.15164 versus 1.14762 versus 1.15517 versus 1.15774 versus 1.16038 versus 1.16357 versus 1.17501 versus 1.17658 versus 1.17476 versus 1.17486 versus 1.17772 vs 1.16833 versus 1.16692 versus 1.16858 versus 1.16226 versus 1.16900 versus 1.15863 versus 1.16016 versus 1.15946 versus 1.15534 versus 1.16243 versus 1.16341 versus 1.15832 versus 1.16029 versus 1.1664 versus 1.17035 versus 1.1691 versus 1.16802 versus 1.16216 versus 1.15390 versus 1.15709 versus 1.158 versus 1.1487


USD/JPY: 113.419 versus 113.244. Dollar edging past the late October highs, trying to breakout from its short double bottom with handle but not exploding upside.

Historical: Last below 109 in June 2018: 113.244 versus 113.204 versus 112.81 versus 112.877 versus 112.876 versus 112.58 versus 111.89 versus 112.391 versus 112.091 versus 112.427 versus 112.680 versus 112.527 versus 112.385 versus 112.553 versus 112.558 versus 111.848 versus 112.222 versus 112.076 versus 112.158 versus 113.01 versus 113.12 versus 113.706 versus 113.894 versus 114.383 versus 113.642 versus 113.690 versus 112.734 versus 112.981 versus 112.811 versus 112.575 versus 112.448 versus 112.247 versus 112.369 versus 111.849 versus 112.06 versus 111.81 versus 111.491 versus 111.608 versus 111.192 versus 111.064 versus 110.680


Oil: 62.22, -0.88. Oil tried to hold recent lows but then faded Tuesday to lower lows on this selling.


Gold: 1232.30, -1.00. Similar to gold, setting up for a break higher.

End part 1 of 2
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