Stock Market Early Morning Insights – November 22, 2016

Stock Market Early Morning Insights – November 22, 2016

Another day, another all-time high for the indexes. The Dow Jones industrial average closed above 19,000 at 19,023.87. The media hype surrounds the DJIA, but the real strength was in the S&P 600 small-cap index yesterday. The index was led by Steel stocks and Specialty Apparel stocks.

As I mentioned yesterday, the Steel stocks were setting up nicely, but many of the Specialty Apparel stocks appear to be bottom fishing stocks. It was like a feeding frenzy to put money somewhere just to get it working. The Healthcare sector, especially the Specialty Pharmaceutical and the Biotech stocks did not join the party. Both were down sharply in a strong market. The Metal and Mining ETF had a huge day up at 4.9%.

The top 50 group inclusion report is dominated by steel stocks including Steel Raw Material Suppliers and Steel Producers. The Specialty Apparel Stores were the second most dominant group. Semiconductor Devices has three representatives with Nvidia leading the way. Crude light pulled back yesterday, and is slightly down again this morning. Consequently, Exploration and Production stocks pullback as a group.

Volume seemed to be light for the indexes midday, but closed above average as buyers stepped up in the afternoon. It appears that there was no way traders were going to let the Dow Jones industrial average slip below 19,000 at the close once it had attained that level.

Today stock index futures are flat, but it will probably be another positive day for stocks. Stocks generally rise before holidays, and especially in a market with this much momentum. Trading should be relatively thin as traders wind down for Thanksgiving.

I am traveling this weekend, so there may not be a report on Friday. Have a safe and enjoyable Thanksgiving Holiday.


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