Deep Value Play Alert

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 2 points on the day and closed at 255. For the S&P 500, there is support near 2709 and 2684. Resistance levels are currently at 2761 and 2786.

GLOBAL ASSETS UPDATE

TWELVE SECTOR ANALYSIS

VOLATILITY UPDATE

On Wall Street, 10 of the 12 major market sectors are seeing green today. The biggest gainers are Materials (XLB), Consumer Discretionary (XLY), and Retail (XRT). The weakest sector today has been Energy (XLE) which has declined -0.2%.

The CBOE Volatility Index (VIX) is up $0.20 going from $15.23 to $15.43 today. The ratio of puts to calls for the current at-the-money strike of $15 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 Altisource Asset Management Co (AAMC) has had significant interest, and on the NYSE Bristow Group Inc (BRS) has had unusual volume.

The biggest mover out of other high-volume stocks is Bristow Group Inc (BRS) which has moved down over -40% recently on volume of over 9 million shares. The chart below shows the performance of BRS over the last year. Bristow Group Inc. is an industrial aviation services provider and helicopter service provider to the offshore energy industry.

DARWIN BRISTOW GROUP INC FORECAST

The performance of Bristow Group Inc (BRS) will be worth watching in the near term for a number of reasons. The forecast for the coming week on BRS is for the price to go up. The correlation of BRS to the S&P 500 recently has been -0.5 which is a moderate negative correlation. Key levels to watch for BRS are upside resistance at both the $3 and $9 price points.

Trade smart,

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