Roller coaster ride ends well
by, 01-12-2017 at 01:22 AM (603 Views)
It was quite a roller coaster ride for stocks on Wednesday as they rallied out of the gate in early trading and the Dow was up 117 by mid-morning. Comments from Donald Trump during a press conference about pharmaceutical companies sent bio-tech stocks plummeting and it triggered a "sell first, ask questions later", sell off. The volatility continued until about 1 PM when the buyers stepped up and took the indices toward intraday highs by the close. The Dow closed up 99-points.
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As volatile as the action was, the VIX (Volatility Index) closed down near 11 again showing little fear out there from investors.
Possibly the most positive development on Wednesday was the action in the Transportation Index, which had another big day gaining 1% and that led to a breakout out from its recent descending trend and back above the 20-day EMA.
The SPY (S&P 500 / C-fund) took a wild route but it ended the day near the highs of the day and continues to base here, and there is a small bull flag formed now. There's not a lot of bad things to point out here except in the short-term the back and forth action recently could mean it may chop back down if it doesn't break out to new highs soon.
The DWCPF (S-fund) was on the wild ride yesterday but closed with modest gains and is forming another small base.
The Nasdaq has been the hot index and has now been up 7 days in a row. It's in a strong uptrend but nearing resistance.
The EFA (I-fund) had a good day and it was a wild one for the dollar which broke down from a small bear yesterday helping out the I-fund. What's not to like here - a rising channel and not hitting resistance like the other indices, but those open gaps always get our attention as possible short-term targets.
The AGG (bonds / F-fund) had a wild day like the dollar and stocks, and closed the day closer to the lows than the early highs. It did hold above the 50-day EMA again, and it also remained above the recent rising support line.
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