Stock Market Early Morning Insights – April 22, 2016

Yesterday was a slightly negative day for the major market indexes, but volume was light, so there was not a lot of selling pressure. The NASDAQ 100 and the NASDAQ Composite were stronger than the S&P 500, S&P 400 and the S&P 600, but even with the slightly down day, there was little damage done.

The IBB, the Ishare NASDAQ Biotech ETF, had a strong day up 2.9% primarily because Biogen reported better than expected earnings. Biogen is now trading at resistance, but with the boost yesterday including a Pocket Pivot, both Force Indexes turning positive, and an Effort to Rise VPA flag, there is a good chance BIIB will go higher. The Biotech’s and the Healthcare stocks had a good day overcoming weakness from the prior two sessions. Biogen was weak going into earnings, and the surprisingly good results seem to energize the entire group.

The VIX was up 5% yesterday, but it remains in a strong downtrend. Premium sellers are frustrated with the low volatility, and bears are extremely frustrated because the stock indexes refuse to roll over.

I expected to see more downside pressure on the NASDAQ 100 futures this morning due to Google’s earnings miss, but it is only down .11%. The S&P E-mini’s are up slightly as I write this, and crude light is trading up .90% providing support to stocks.

Google is currently trading at $723.80 down from the closing price of $760.87. That is a difference of $37.07, and the expected market makers move as I mentioned yesterday was $39, so it looks like Google will open within the expected range. The market makers got this one right, and traders who either bought calls or puts will lose money, while who sold premium outside of the expected range made money.

The number of earnings reports today is down considerably from yesterday, but there are some well-known names reporting including CAT, AAL, GE, HON, MDC and KMB.

SPECIAL ONLINE WEBINAR EVENT

On April 26th HGSI resident expert and analyst, Ron Brown, will be joined by Roman Bogomazov, a nationally recognized teacher of the Wyckoff Method, to illustrate several HGSI tools especially suited to Wyckoff-oriented investors and traders. Ron will present the fundamentals of HGSI Tools For Wyckoff Traders.

• HGSI’s Volume Price Analysis, which is based on concepts first articulated by Richard D. Wyckoff to identify market operations of the “Smart Money”;
• the Heat Map, which provides user-friendly analytics showing changes in the relative strength of a stock or industry group compared to the overall market or another index (another critical dimension of Wyckoff analysis);
• the Top 50 Group Inclusion Report, a weekly watch-list of top-caliber growth stocks.

Using several case study examples, Roman will then demonstrate the exceptional utility of these tools for identifying and timing high-probability Wyckoff Method trades. This joint presentation will be a great opportunity for Wyckoff traders to learn how these features of the HGSI platform can enhance their analysis and profitability.  Join us!

Here is a webinar link for Tuesday, April 26th at 1pm PDT:
Registration URL: https://attendee.gotowebinar.com/register/8009091560395478786

We hope to see you online.

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