Alternative Investments Alert for 1/3/2019

WEEKLY MARKET ANALYSIS

Stocks opened significantly lower but the decline reversed but more modestly intra-day into the close. The Dow Jones Industrial Average ETF DIA was up 4 points on the day and closed at 233. For the S&P 500, there is support near 2441 and 2389. Resistance levels are currently at 2545 and 2597.

GLOBAL ASSETS UPDATE

TWELVE SECTOR ANALYSIS

VOLATILITY UPDATE

On Wall Street, 13 of the 12 major market sectors are seeing green today. The biggest gainers are Energy (XLE), Retail (XRT), and Semiconductors (XSD). The weakest sector today has been Real Estate (XLRE) which has declined -1.7%.

The CBOE Volatility Index (VIX) is down $-4.32 going from $27.54 to $23.22 today. Both Call and Put volumes are below average today. The ratio of puts to calls for the current at-the-money strike of $26 is below average which means that traders are favoring Calls over Puts currently.

MARKET HEAT

A NASDAQ stock with unusually high volume today is NetGear, Inc. (NTGR). On the AMEX Goodrich Petroleum Corp (GDP) has had significant interest, and on the NYSE Direxion Daily Brazil Bull 3X Shares ETF (BRZU) has had unusual volume.

The biggest mover out of other high-volume stocks is NetGear, Inc. (NTGR) which has moved down over -36% recently on volume of over 1 million shares. The chart below shows the performance of NTGR over the last year. NETGEAR, Inc. designs, develops and markets networking solutions and smart connected products for consumers, businesses and service providers.

DARWIN NETGEAR, INC. FORECAST

The performance of NetGear, Inc. (NTGR) will be worth watching in the near term for a number of reasons. The forecast for the coming week on NTGR is for the price to go up. The correlation of NTGR to the S&P 500 recently has been 0.4 which is a weak positive correlation. Key levels to watch for NTGR are upside resistance at both the $52 and $60 price points.