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Monday, June 11, 2018

Market Alert - The Close

Up but nothing spectacular to start the week. Futures were mushy and that never translated into a true rally. Stocks rose off a flattish to lower open, rallied decently to midday, but then lost their drive. A last half hour flop dimmed any shine the session may have held. The end result was chronic nothing for most stocks.

SP500 2.97, 0.11%
NASDAQ 14.42, 0.19%
DJ30 5.78, 0.02%
SP400 0.01%
RUTX 0.13%
SOX -0.23%
NASDAQ 100 0.22%

VOLUME: NYSE +1%, NASDAQ 0%. Still low volume on a bleed higher. No real buying just drifting with the trend.

ADVANCE/DECLINE: NYSE +1.2:1, NASDAQ +1.2:1. Ho-hum.

Some did manage some decent upside moves; some usually do. GOOG bounced off its test, FB as well. ROKU jumped nicely. BZUN moved to a new high on good volume. XNET gave us a continued move and we jumped on it early. DVA hit the initial target.

Others spent the session setting up better. NVDA looks very good over the 10 day EMA. AMZN as well. CAT, DE, TTWO, IP, VMW setting up better as well.

Thus, with modest gains overall and still holding good patterns, it was pretty much status quo. Upside bias, no shocks from the weekend, but no major bids either.

This is supposed to be the 'week from hell' for the market given the ECB meeting where it will discuss ending QE someday. Apparently that is a watershed event as the ECB apparently has been unable as of yet to broach the subject. Surely the world will end if it considers this. There is also the NK/US summit on Tuesday. Can't see that generating anything that would move the markets. Expiration as well. Surely this is a new circle of hell.

The news either was not enough to scare stocks or it was not enough to excite stocks. Thus, a modest move upside that did little to change the current position. That position is not bad with some new highs of late on NASDAQ, SP400, RUTX, and good setups with stocks across many sectors. SP500 is working higher, slowly. DJ30 is doing the same, even slower. The setups are there, the action is very summer slow.

We took some gain on DVA as it hit our initial target. Picked up some XNET early as it continued its upside move and really took off after that. Near the close we bought some GOOG calls and opened a position on EXAS.

With the indices still trending higher, albeit slowly, and with many good setups and continuing moves, we want to let positions work and pick up good breaks from good patterns when they occur. Nothing really different there, but there remain good setups, there are some good moves off those setups, and we will see if there are more coming.

Have a great evening!
Jon Johnson, Chief Market Strategist
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