Technical Analysis:

  • Two major milestones achieved yesterday, with the Dow Jones Industrial Average (DJIA) reaching 19,000 and S&P 500 (SPX) passing 2,200 for the first time. 
  • The market has continued along the lines of Thanksgiving being a reliable ‘bullish’ week for the market. The Wednesday before Thanksgiving has a history of being reliably and consistently bullish as well. 
  • Since the Monday before the election, the market has risen 120 points and nearly unabated along the way.
  • CBOE Market Volatility Index (VIX) dropped for a fourth straight day, with only a -0.08% drop. 
  • I do think that a more risk adverse tone will need to be struck following the Thanksgiving Week, when investors return from the holiday and begin focusing on the near certain rate hike that will take place in December. 
  • Tomorrow the market is closed, and only open until 1pm on Friday. Expect today’s and Friday’s volume to be extremely light. 
  • Volume on SPDRs S&P 500 (SPY) fell for a second consecutive day and came in well below average readings. I expect the same to be the case for today. 
  • Expect Eli Lilly (LLY) to be a drag on the market today as they failed a late-stage trial for an Alzheimer drug. Biotech along with the Healthcare sector as a whole will be greatly hampered. 
  • Oil (/CL) showing some hesitation at its recent rally highs and looking to fill the gap on United States Oil Fund (USO) that was created on Monday. 

My Trades:

  • Sold AMZN yesterday at $783.00 (bought at $738.00) for a 6.1% profit. 
  • Did not add any new swing-trades to the portfolio yesterday.
  • I may add a new swing-trade to the portfolio, but am also content in riding the portfolio as it currently is. Very strong and profitable. 
  • I am currently 40% Long / 60% Cash

Chart for SPX:

sp 500 market analysis 11 23 16