Commodities Alert for 12/07/2018

WEEKLY MARKET ANALYSIS

Stocks opened modestly lower and the decline continued to accelerate during the day into the close. The Dow Jones Industrial Average ETF DIA was down 2 points on the day and closed at 248. For the S&P 500, there is support near 2645 and 2604. Resistance levels are currently at 2727 and 2768.

GLOBAL ASSETS UPDATE

TWELVE SECTOR ANALYSIS

VOLATILITY UPDATE

On Wall Street, 11 of the 12 major market sectors are seeing green today. The biggest gainers are Homebuilding (XHB), Materials (XLB), and Utilities (XLU). The weakest sector today has been Technology (XLK) which has declined -0.4%.

The CBOE Volatility Index (VIX) is down $-0.98 going from $22.42 to $21.44 today. Both Call and Put volumes are below average today. The ratio of puts to calls for the current at-the-money strike of $22 is above average which means that traders are favoring Puts over Calls currently.

MARKET HEAT

A NASDAQ stock with unusually high volume today is Del Frisco’s Restaurant Group (DFRG). On the AMEX The Gabelli Global Goldn Natural Resources (GGN) has had significant interest, and on the NYSE Tronox Ltd (TROX) has had unusual volume.

The biggest mover out of other high-volume stocks is Tronox Ltd (TROX) which has moved down over -23% recently on volume of over 6 hundred thousand shares. The chart below shows the performance of TROX over the last year. Tronox Limited is engaged in the production and marketing of titanium bearing mineral sands and titanium dioxide (TiO2) pigment.

DARWIN TRONOX LTD FORECAST

The performance of Tronox Ltd (TROX) will be worth watching in the near term for a number of reasons. The forecast for the coming week on TROX is for the price to go down. The correlation of TROX to the S&P 500 recently has been 0.2 which is a weak positive correlation. Key levels to watch for TROX are upside resistance at both the $11 and $16 price points.