Stock Market Early Morning Insights – December 17, 2016

All major stock indexes saw price rejection yesterday as traders trying to push them above short-term resistance. Volume was heavy on all major indexes, and the internals were positive for all of my broad market indices with the exception of the Chinese Related Stocks Index.

The NASDAQ composite is showing better relative over the past few days than the S&P 400 mid-cap in the S&P 600 small-cap indexes which have led this rally. The NASDAQ composite remains above its 10 day VPOC, but the S&P 400 and the S&P 600 remain below the 10 day VPOC. Yesterday the NYSE data generated a Hindenburg, but until we start seeing multiple Hindenburg signals, I am not concerned.

The top 50 GIR generated stocks from multiple groups yesterday and was led by Semiconductor Devices, Airlines, and Banks. If you scroll down to the industry groups you will see that Airlines, Semiconductor Devices, and Banks are the top 3 most in demand groups as of yesterday.

The Semiconductor Devices have been showing strength for a few days after pulling back and are led by NVDA. XLNX is also another leader in this group and is extended after yesterday’s gap up and close near its high. There been many opportunities to get into XLNX over the past few months after it formed its moving average fan. A few stocks you may wish to consider from the Semiconductor Devices group are: KEM, CREE, and STM. All have pulled back slightly from previous highs and may be setting up again.

In the Airlines group, CPA looks to be under accumulation and is holding above its 18, 50, 100, and 200 day exponential moving averages. The VPOC is positive, and it shows a test for supply yesterday.

The Biotech ETFs were positive yesterday and the top 50 GIR contains 2 Biotech and 2 Specialty Pharma stocks. Banks, of course are the dominant group, as a have been since the election. GBCI and FRC are 2 banks that looked to be setting up to go higher.

The Dollar Index is trading at highs it is not seen for years. The Utilities were strong yesterday was 6.5 advancers for every decliner.

20,000 is within reach of the Dow. Stock futures are positive this morning, and the euphoria continues. If this market continues higher, I expect the strength remain in Banks, Semiconductor Devices, and Airlines, but I would not chase any stocks of these groups that are extended.

Have a good weekend, and for those of you who are taking my webinar series, I will hold a 2 hour wrap up session tomorrow morning at 10 AM central time.

STOCK MARKET EARLY MORNING INSIGHTS

Stock Market Early Morning Insights is a product of Ron Brown Investing. The complete report and all the charts are produced daily before the market opens and distributed by email to subscribers. Reports published on the HGSI Blog are delayed and do not contain all the charts.  For more information about subscribing use this link. MORE INFO