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 2 points on the day and closed at 241. For the S&P 500, there is support near 2570 and 2542. Resistance levels are currently at 2626 and 2654.
GLOBAL ASSETS UPDATE
TWELVE SECTOR ANALYSIS
On Wall Street, 12 of the 12 major market sectors are seeing green today. The biggest gainers are Healthcare Equipment (XHE), Utilities (XLU), and Healthcare (XLV). The weakest sector today has been Transportation (XTN) which has declined -0.6%.
The CBOE Volatility Index (VIX) is up $0.07 going from $18.53 to $18.6 today. Call volumes are above average today but Put volumes are lower than average. The ratio of puts to calls for the current at-the-money strike of $19 is below average which means that traders are favoring Calls over Puts currently.
A NASDAQ stock with unusually high volume today is Goodyear Tire & Rubber Co (GT). On the AMEX VirnetX Holding Corporation (VHC) 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 VirnetX Holding Corporation (VHC) which has moved up over 64% recently on volume of over 17 million shares. The chart below shows the performance of VHC over the last year. VirnetX Holding Corporation is an Internet security software and technology Company with a technology for secure communications, including fourth-generation (4G) long term evolution (LTE) security.
DARWIN VIRNETX HOLDING CORPORATION FORECAST
The performance of VirnetX Holding Corporation (VHC) will be worth watching in the near term for a number of reasons. The forecast for the coming week on VHC is for the price to go up. The correlation of VHC to the S&P 500 recently has been 0.7 which is a moderate positive correlation. The key level to watch for VHC is downside support at the $3 price point.
Paul "Bulldog" Hudson, Chief Investment Officer
Darwin Investing Network