Today Shocked the Street…Here’s Why

WEEKLY MARKET ANALYSIS

Stocks opened modestly lower but the decline reversed and accelerated during the day into the close. The Dow Jones Industrial Average ETF DIA was up 1.49 points on the day and closed at 257.35. For the S&P 500, there is support near 2787 and 2765. Resistance levels are currently at 2829 and 2851.

GLOBAL ASSETS UPDATE

TWELVE SECTOR ANALYSIS

VOLATILITY UPDATE

On Wall Street, 12 of the 12 major market sectors are seeing green today. The biggest gainers are Healthcare (XLV), Pharmaceuticals (XPH), and Transportation (XTN). The weakest sector today has been Materials (XLB) which has declined 0.1%.

The CBOE Volatility Index (VIX) is down $-0.59 going from $14 to $13.41 today. The ratio of puts to calls for the current at-the-money strike of $14 is below average which means that traders are favoring Calls over Puts currently.

MARKET HEAT

A NASDAQ stock with unusually high volume today is Clean Energy Fuels Corp (CLNE). On the AMEX McClatchy Co (MNI) has had significant interest, and on the NYSE Aurora Cannabis Inc (ACB) has had unusual volume.

The biggest mover out of other high-volume stocks is Clean Energy Fuels Corp (CLNE) which has moved up over 29% recently on volume of over 8 million shares. The chart below shows the performance of CLNE over the last year. Clean Energy Fuels Corp. (Clean Energy) is a provider of natural gas as an alternative fuel for vehicle fleets in the United States and Canada.

DARWIN CLEAN ENERGY FUELS CORP FORECAST

The performance of Clean Energy Fuels Corp (CLNE) will be worth watching in the near term for a number of reasons. The forecast for the coming week on CLNE is for the price to go up. The correlation of CLNE to the S&P 500 recently has been 0.7 which is a moderate positive correlation. The key level to watch for CLNE is downside support at the $2 price point.

Trade smart,

Paul "Bulldog" Hudson, Chief Investment Officer
Darwin Investing Network