NASDAQ 5/11 Daily Market Update: IXIC by Drewby4321

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Summary: Positive jobs data pushed stocks higher in the morning. The rally faded by midday, but the indices held on to a new closing record. The employment record is particularly favorable to lowercase who has surpassed today.

Remarks

Ideas are always welcome in the comments. Errors will be edited as comments on TradingView or corrected online in my blog.

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Friday, November 5, 2021

Facts: +0.20%, Volume higher, closing range: 46%, body: 21% red
Good: Bullish trend intact, higher advance / decline line
Bad: Couldn’t hold above 16,000, slender red body in the middle of the candle
Highs / Low: Higher up, higher down
Candle: Thin red body in the center of the candle, indecision
Advance / Decline: 0.85, more declining than increasing stocks
Indices: SPX (+ 0.37%), DJI (+ 0.56%), RUT (+ 1.44%), VIX (+ 6.74%)
List of sectors: Energy ( XLE +1.30%) and Industrial ( XLI +1.02%) at the top. Finances ( XLF + 0.05%) and Health ( XLV -1.12%) at the bottom.
Waiting: Sideways or lower

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Market Snapshot

Positive jobs data pushed stocks higher in the morning. The rally faded by midday, but the indices held on to a new closing record. The employment record is particularly favorable to lowercase who has surpassed today.

The Nasdaq ended the day with a gain of +0.20%. The index has exceeded 16,000 resistance level but fell below in the afternoon. A slender red body covering 21% of the candle sits between the upper and lower long wicks, signaling some indecision in the market. Volume was higher than the day before. There were more stocks falling than stocks rising.

The Russell 2000 (RUT) gained + 1.44% on the day. The Dow Jones Industrial Average (DJI) Advanced + 0.56%. The S&P 500 (SPX) climbed + 0.37%. All four indexes posted record closings. The VIX Volatility The index increased by + 6.74%, driven by volatility late morning to afternoon.

Energy ( XLE +1.30%) and Industrial ( XLI +1.02%) were at the top of the sector’s list. Energy and travel stocks (in Industrial ) both benefited from news from Pfizer that their pill effectively keeps COVID patients out of the hospital. Finances ( XLF + 0.05%) and Health ( XLV -1.12%) were at the bottom of the list of sectors. Healthcare was the only sector in decline for the day. Even if Pfizer climbed more than 10%, its competitors suffered from the news. Merck and Moderna fell by -9.86% and -16.46%.

The non-farm payroll rose to 521,000 additional payrolls for October, beating the forecast of 450,000. The unemployment rate fell to 6.7% from 6.9% in September, and a forecast of 6. 8%.

The US dollar index ( DXY ) fell by -0.12%. US 30-year, 10-year and 2-year yields declined as investors saw an improvement in the outlook for the US economy. High efficiency ( HYG ) and Investment Grade ( LQD ) The prices of corporate bonds have risen sharply. Money and Gold also greatly increased.

The put / call ratio ( CHP ) fell to 0.580 after plunging extremely low yesterday. The CNN The Fear & Greed Index remains at the same spot in the Extreme Greed zone. The NAAIM fund managers’ exposure index reached 107.99 this week.

Three of the four biggest mega-caps earned for the day. Amazon ( AMZN ) climbed for the third day in a row, up + 1.21% today. Apple ( AAPL ) and Alphabet ( GOOGL ) was also up today, gaining + 0.21% and + 0.39%. Microsoft ( MSFT ) define another new All the time high but faded to end the day with a decline of -0.11%.

Pfizer ( PFE ) was the best mega-cap of the day, soaring + 10.86% on their news. Mastercard (MA) and Visa (V) were the second and third best mega-caps. Merck ( MRK ) was the worst performing mega-capitalization with a drop of -9.86%, standing in the opposite direction Pfizer new.

DataDog ( DDOG ) was the big winner on the Daily Update Growth List, up + 11.12% on a solid earnings growth. There were more falling stocks than advancing stocks on the list. The biggest loser was Peloton (PTON) which fell -35.35% on a dismal investor report and weaker forecast of almost 20% less revenue for next year.

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Look ahead

No major economic news is expected for Monday.

Pay Pal ( PYPL ), Roblox ( RBLX ), Trade Office (TDD), AMC ( AMC ), Tencent ( TME ), Trex ( TREX ), Five9 ( FIVN ), Zynga ( ZNGA ), Lemonade ( LMND ), and Vuzix ( VUZI ) are part of earnings reports for Monday.

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Trends, support and resistance

The Nasdaq rose above 16,000 but then fell back below resistance zone .

If the index returns to five days trend line , that would mean a gain of + 1.18% for Monday.

The trend line from the 10/4 low leads to a decline of -0.23%.

If the day trend line Continuing, this would mean a decline of -0.79%.

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Conclude

A great jobs report and a new COVID pill were enough to raise the indices for another day. It’s been two full weeks without a drop for the Nasdaq. Awesome, but it also can’t last forever. Perhaps this is the reason why investors got nervous after hitting 16,000 Milestone , lowering the prices a bit.

The wait for Monday is sideways or lower.

Stay Healthy and Trade Safely!


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