Stock Market Early Morning Insights – April 28, 2016

Stock Market Early Morning Insights – April 28, 2016

After a strong close yesterday, stock futures are reacting negatively to the Bank of Japan’s decision to forgo further stimulus at this time, or at least that is what the headlines are telling us. The S&P E-mini’s are down about .70%, but are holding short-term support from three days ago. The German DAX is currently trading down 1.31%, but we will have to wait to see how this works out. The Bears were frustrated again yesterday as the indexes closed in the upper portion of their daily ranges, and many of the indexes turned positive.

The big news after the bell was Facebook’s earnings where they beat estimates handily, and now the stock is trading at an all-time high this morning of over hundred and $20 per share. This turned out to be another instance of where buy and hold paid off big time. If you remember there was a massive outcry after the IPO when Facebook tanked rather than shooting straight up as the IPO investors had expected. Those who have held on, have had their patience rewarded. I read this morning that many Facebook users spend over an hour a day on the site; what a waste of time.

Yesterday was a strong day for the market based upon internals. The strength was once again in small-cap and mid-cap stocks, while the NASDAQ composite is showing weakness. Therefore, we have a divergence in the indexes, but when the speculative fever is on, the small-cap and mid-cap stocks take precedence. As I have said the past several days, until I see the small-cap and mid-cap indexes starting to show distribution, I believe the trends remain up for this market. Today will be a good test to see how much absorption buying there is under this market.

If you look at the major markets plus folder you will quickly see that oil was one of the leading groups yesterday followed closely by utilities and commodities. Gold miners also had a good day as they are trying to rebound from a selloff.

I have been working with the new beta version of HGSI since last weekend. It contains some powerful new fields that I requested, and George and Matt put them in for us. The fields are based upon the Volume Point of Control indicator, and this opens up a completely new world of possibilities for HGSI. I am still figuring out how to best use these new features. You will see some changes in some of the views because I have started to incorporate the 10 VPOC into some of my charts and warehouse views.

Before the beta is released, I will try to have a limited add-on for you to work with. I am currently working on a complete trading procedure to help us make money with VPA and VPOC, but that will take some time to complete, and will be part of the webinar series that I plan to do in the near future. Later today, I will produce a very short video for morning report readers to show you some of the changes I am incorporating in the HGSI. This has the potential to totally change the way I use HGSI, and this implementation is unique to HGSI.


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