Canary In the Metals Mine

WEEKLY MARKET ANALYSIS

Stocks opened modestly lower but the decline reversed but more modestly intra-day into the close. The Dow Jones Industrial Average ETF DIA was up 1 points on the day and closed at 259. For the S&P 500, there is support near 2756 and 2736. Resistance levels are currently at 2796 and 2816. Oil up was a good sign, however the inverse move between stocks and bonds was not.

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 Materials (XLB), Energy (XLE), and Transportation (XTN). The weakest sector today has been Healthcare (XLV) which has declined 0.2%.

The CBOE Volatility Index (VIX) is down $-0.77 going from $15.65 to $14.88 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 Windstream Holdings Inc (WIN). On the AMEX Silvercorp Metals Inc (SVM) has had significant interest, and on the NYSE PG&E Corporation (PCG) has had unusual volume.

The biggest mover out of other high-volume stocks is Windstream Holdings Inc (WIN) which has moved down over -61% recently on volume of over 16 million shares. The chart below shows the performance of WIN over the last year. Windstream Holdings, Inc. is engaged in providing advanced network communications and technology solutions for consumers, businesses, enterprise organizations and wholesale customers in the United States.

DARWIN WINDSTREAM HOLDINGS INC FORECAST

The performance of Windstream Holdings Inc (WIN) will be worth watching in the near term for a number of reasons. The forecast for the coming week on WIN is for the price to go down. The correlation of WIN to the S&P 500 recently has been 0.9 which is quite a strong positive correlation. Key levels to watch for WIN are upside resistance at both the $2 and $4 price points.

Trade smart,

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