Stock Market Early Morning Insights – August 11, 2016

Selling pressure was evident yesterday on a low volume day for the NASDAQ.

Semiconductor stocks pulled back with the SPDR S&P Semiconductor ETD down 1.7%. The SOX only contained 4 advancing stocks compared to 25 decliners and one stocks unchanged. Semiconductor Devices has been one of the leading groups, so I will be watching it for further deterioration.

Utility stocks did well yesterday, and usually do when there is a down day in the indexes. It is an early flight to safety indicator, but does not mean that the group will continue to rise. The Broad Market Indices folder has the DJU, the Utilities sector and the Defensive stocks at the top of the list based upon advancing issues vs. declining issues. The SOX is at the bottom of the list.

It seemed to be an uneventful day for the indexes, but there were some notable movers. Oil futures continued their slide in a big way with the USO, the oil ETF, down 3% and UGA, the gasoline ETF down 3.8%. The bottom fishers in these ETFs have been unable to sustain the move to the upside, but they will more than likely try again. Oil futures are flat this morning. Oil seems to be one of the most heavily manipulated futures contracts because the news is constantly changing. One day there is too much supply, and the next day there is not!

Internet Media stocks continued to be the most in demand group along with Precious Metals and Mining, Internet Services, E-Commerce and Application Software stocks. Biotech and Specialty Pharma stocks had a bad day with the IBB, the Nasdaq Biotech ETF down 2%. The SPDR ETF was a bigger loser, down 3.1%.

Stock index futures are up slightly this morning, and even though the trends remain up, I doubt if there is much movement in either direction today due to the falling volume. The Natural Gas report comes out at 9:30 Eastern which could add to the selling pressure on the UNG, the Natural Gas ETF. It has fallen around 11% over the last 4 trading sessions.

The trends remain up for now for the Major Market Indexes

STOCK MARKET EARLY MORNING INSIGHTS

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