WEEKLY MARKET ANALYSIS
Stocks opened modestly higher but the advance reversed and accelerated during the day into the close. The Dow Jones Industrial Average ETF DIA was down 1.59 points on the day and closed at around 257. For the S&P 500, there is support near 2797 and 2766. Resistance levels are currently at 2859 and 2890. What we didnt like was the pump and dump. While end of day it looks like it closed mid range, intraday it crapped into the close. Stay frosty and watch out on this stall. Market didnt like Fed announcement.
GLOBAL ASSETS UPDATE
TWELVE SECTOR ANALYSIS
On Wall Street, 8 of the 12 major market sectors are seeing red today. The biggest losers are Financial (XLF), Healthcare (XLV), and Retail (XRT). The strongest sector today has been Energy (XLE) which has gone up 1.2%.
The CBOE Volatility Index (VIX) is up $0.37 going from $13.54 to $13.91 today. Both Call and Put volumes are below average today. The ratio of puts to calls for the current at-the-money strike of $14 is above average which means that traders are favoring Puts over Calls currently.
A NASDAQ stock with unusually high volume today is Zynerba Pharmaceuticals Inc (ZYNE). On the AMEX VirnetX Holding Corporation (VHC) has had significant interest, and on the NYSE Nevro Corp (NVRO) has had unusual volume.
The biggest mover out of other high-volume stocks is Nevro Corp (NVRO) which has moved up over 36% recently on volume of over 7 million shares. The chart below shows the performance of NVRO over the last year. Nevro Corp. is a global medical device company.
DARWIN NEVRO CORP FORECAST
The performance of Nevro Corp (NVRO) will be worth watching in the near term for a number of reasons. The forecast for the coming week on NVRO is for the price to go down. The correlation of NVRO to the S&P 500 recently has been 0.2 which is a weak positive correlation. Key levels to watch for NVRO are downside support at both the $45 and $52 price points.
Paul "Bulldog" Hudson, Chief Investment Officer
Darwin Investing Network