Stock Market Struggles To Hold Early Gains

Stock indexes advanced Tuesday and then eased off the day’s highs, leaving bulls in an uncertain place. Recent action in the stock market has been vulnerable to reversals. Bulls and bears alike will be focused on action near the close.


At around noon time in New York, the Nasdaq composite gripped a nearly 0.8% gain after being up more than 1.5%. Blue chips were mostly up, but the Dow Jones industrial average rose only 0.3%. The large cap S&P 500 and the small cap Russell 2000 each added 0.5% to 0.6%.

Volume fell on both major exchanges vs. the same time Monday.

In the Nasdaq 100, some stocks sent mixed messages. The stocks gapped up, which is bullish, but in slow volume which is not.

Leaderboard member Starbucks (SBUX) gapped up 1.9% in below-average volume; Tractor Supply (TSCO), 2.9% in weak volume; and TripAdvisor (TRIP), up 2% in near-average volume.

Slow volume wasn’t the story for all gap ups. Chip designer Xilinx (XLNX) gapped up 2.8% in volume 30% above average. Microsoft (MSFT) gapped up 2.7% in volume nearly twice its usual level.

Microsoft has been consolidating since early October. The stock is trying to build the right side of a 14% deep pattern. Microsoft’s relative strength line is at a high. The RS line measures a stock’s performance vs. the S&P 500. A rising line points to outperformance.

China Rumor

Meanwhile, a Bloomberg News report based on anonymous sources said a move to reduce tariffs on U.S. autos is before China’s Cabinet.

President Trump tweeted an optimistic message: “Very productive conversations going on with China! Watch for some important announcements!”

The automaker stock group rose 1.6% on the rumors but then reversed to a gain of roughly 0.1%.

General Motors (GM) gapped up 3.5% in below-average volume. Ford (F) rose 1.4% in volume 22% above average. Tesla (TSLA) rose 1.8% in mildly below-average turnover.

Brexit Vote Is Off

In other news, Britain’s Prime Minister Theresa May called off Tuesday’s vote on her Brexit proposal. May refused to say when a vote would be held, BBC News reported.


Hot Stocks: A Gold Miner Breaks Out

Trump’s Card In The China Trade War

Be Ready To Act When Investor Psychology Hits Extremes

Source link

Originally posted 2019-09-19 23:27:44.


No comments.

Leave a Reply

error: Content is protected !!