Stock Market Early Morning Insights – March 15, 2016

TECH TALK… This is the 3nd webinar on the HGSI Volume Price Analysis Suite of Indicators. “HGSI VPA Float Turnover & Float Turnover Channel” Wed, Mar 16, 2016 4:30 PM – 5:45 PM EDT  REGISTER HERE

There was little movement in the major market indexes yesterday as traders remained noncommittal as a two-day Fed meeting begins.

Volume continued to fall as it has over the past few trading sessions. This could mean that the professional or smart money is not ready to push stocks higher at these levels, and are distributing their gains to the public. The falling volume indicates lack of demand.

Internals in all of the indexes were negative with the exception of Utilities and Healthcare which were positive, but only marginally so. There was a lack of enthusiasm to push stocks higher with a few exceptions. The Canary stocks did well compared to the rest of the market with seven advancers to only one decliner. Tesla remains the strongest stock in that group, and has formed a strong V bottom. Tesla generated several VPA buy flag on both the daily and weekly charts as traders drove it higher, and it still looks very strong.

I commented yesterday about how oil futures were struggling, and it continued yesterday when oil was down on news that Iran is not going along with OPEC production cuts, and Russia is supporting Iran’s decision. Crude light futures are down another 2.26% this morning as I write this, and if more news comes out about oversupply or a failure to maintain production cuts, oil could fall further. One positive for the oil Bulls is that the pullback has been on declining volume.

Gold futures are down again this morning as gold looks like it may have at its climax run and is now being distributed. Gold futures are currently trading at 1232, down from a high of 1287.80 which is a substantial drop in only three trading sessions. What was a very tight chart on the way up has become sloppy, and has that look and feel of distribution.

Stock index futures are down this morning as we wait on the Fed. Unfortunately, stocks often trade on news rather than fundamentals, and traders are waiting for another news event to move stocks.

Earnings season continues to wind down, but there are a couple of major stocks reporting today. Valeant Pharmaceuticals reported premarket, missed estimates and fell from around $69 to $56.50 in the premarket. This is a stock that has fallen from grace. Last year in July VRX traded as high as $263.81! Oracle is another major stocks the reports today after the bell.

ABOUT 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