Stock Market Early Morning Insights – November 30, 2016

Stock Market Early Morning Insights – November 30, 2016

Banks and Managed Care stocks were the two most in demand groups yesterday.

Banks have had excellent quarterly earnings, plus the anticipation of restrictions being lifted in a Trump administration has given the group upside momentum. I assume the Managed Care stocks are benefiting from what looks like the beginning of the dismantling of Obamacare with Trump’s choice for Health and Human Services. He has been a severe critic of Obamacare from the beginning.

Both groups are at the top of my demand list in the industry view in the body of this report, in the dominate the top 50 group inclusion report.

Homebuilders were also strong as a group, but only Pultegroup, PHM, appears in the top 50.

Oil and oil related stocks were weak yesterday, but that will all change this morning with what looks like an agreement to limit production by OPEC members. Crude light futures are up over 7% as I write this, but have been higher this morning. The crude light contract has a tick size of .01, and each tick is worth $10 making each one point move worth $1000. Oil futures are not for the faint of heart.

As I looked over the information from HGSI, I have to remain on the bullish side, although I believe risk is very high. Yesterday we saw traders take profits as the day wore along, and towards the end of the day stock futures almost turned negative before bouncing and closing in positive territory.

This morning stock futures are up about .2%, and I assume much of this is due to the strength in oil futures. Exploration and Production stocks should soar today, but they will more than likely gap open, and whatever you do, do not chase the opening gaps. Market makers are going to be raising the ask on these stocks, and the OPEC deal, could still fall apart.

Internals were slightly negative yesterday for the NASDAQ composite, but if you go down look at the Broad Market Indices folder you’ll see that over half of my indexes were positive. Even with and imminent interest rate hike, Utilities continued to show strength. The Dow Jones Utilities index is up over 3% during the last 5 days.

Stock futures have gained slightly and strength since I have been writing this. It looks like the indexes are going to push into new highs, but be very careful about buying extended stocks. The further they get away from a contraction area, the more risk in a trade.


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