Oil is on Fire!

WEEKLY MARKET ANALYSIS

Stocks opened modestly higher but the advance reversed but more modestly intra-day into the close. The Dow Jones Industrial Average ETF DIA was down 0 points on the day and closed at 260. For the S&P 500, there is support near 2867 and 2853. Resistance levels are currently at 2895 and 2909.

GLOBAL ASSETS UPDATE

TWELVE SECTOR ANALYSIS

VOLATILITY UPDATE

On Wall Street, 7 of the 12 major market sectors are seeing green today. The biggest gainers are Utilities (XLU), Pharmaceuticals (XPH), and Software (XSW). The weakest sector today has been Financial (XLF) which has declined -1.0%.

The CBOE Volatility Index (VIX) is down $-0.35 going from $16.26 to $15.91 today. Both Call and Put volumes are below average today. The ratio of puts to calls for the current at-the-money strike of $16 is below average which means that traders are favoring Calls over Puts currently.

MARKET HEAT

A NASDAQ stock with unusually high volume today is Zynerba Pharmaceuticals Inc (ZYNE). No AMEX names had significant interest, and on the NYSE Eros International plc (EROS) has had unusual volume.

The biggest mover out of other high-volume stocks is Zynerba Pharmaceuticals Inc (ZYNE) which has moved up over 17% recently on volume of over 2 million shares. The chart below shows the performance of ZYNE over the last year. Zynerba Pharmaceuticals, Inc. is a specialty pharmaceutical company.

DARWIN ZYNERBA PHARMACEUTICALS INC FORECAST

The performance of Zynerba Pharmaceuticals Inc (ZYNE) will be worth watching in the near term for a number of reasons. The forecast for the coming week on ZYNE is for the price to go up. The correlation of ZYNE to the S&P 500 recently has been 0.4 which is a weak positive correlation. Key levels to watch for ZYNE are downside support at both the $11 and $6 price points.

Trade smart,

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