Stock Market Early Morning Insights – December 5, 2016

The selling stopped on Friday for the NASDAQ composite, but the candle did not show much conviction. The S&P 400 mid-cap index in the S&P 600 small-cap index both generated No Demand flags to suggest that buying was tepid.

This morning stock futures are positive and oil is up again, but the stock futures are off their overnight highs. The question today will be if the markets can build upon this early-morning strength, or if this is just an opportunity for longs to unload positions as bulls come into the market to scoop up perceived bargains.

The Semiconductor Devices group was hard last week, but there was some buying on Friday. The buying was not strong enough to lift any of the Semiconductor Devices into the top 50 group inclusion report, but the SMH Market Vectors Semiconductor ETF was up 1.6% and the XSD, the SPDR S&P Semiconductor ETF was up 1%. If you are looking for long trades, the semiconductor stocks may offer some opportunities since they. NVDA reversed on Friday with a Piercing Candle and is up today in the premarket. Nvidia has been the leading stock in this group, but stalled over the last couple of weeks.

When I am doing market analysis and prospecting with HGSI I always look in several places to see where the strength and weaknesses is. The ETF groups are a great way to stay on top of market rotation along with the top 50 GIR, Stocks and Groups Moving up and down, the Broad Market Indices Folder, and the Industry Group folder. Each gives a slightly different perspective on the markets.

The Steel stocks continue to be one of the leading groups. The Steel Raw Material Suppliers are at the top of the list using my Demand Combo, and Steel Producers are #8. Even though these stocks have had a very nice run, earnings are increasing, and tight charts and demand suggest higher prices. This is a list of steel stocks whose earnings have been growing.

I am neutral to bullish on the indexes. It is best to concentrate on industry groups that are showing strength rather than getting hung up on the indexes.

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