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 2.04 points on the day, with a 258.71 close. For the S&P 500, there is support near 2845 and 2830. Resistance levels are currently at 2875 and 2890.
GLOBAL ASSETS UPDATE
TWELVE SECTOR ANALYSIS
On Wall Street, 11 of the 12 major market sectors are seeing green today. The biggest gainers are Energy (XLE), Retail (XRT), and Software (XSW). The weakest sector today has been Consumer Staples (XLP) which has declined -0.6%.
The CBOE Volatility Index (VIX) is down $-0.91 going from $15.86 to $14.95 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 $15 is below average which means that traders are favoring Calls over Puts currently.
A NASDAQ stock with unusually high volume today is Overstock.com Inc (OSTK). On the AMEX Contango Oil & Gas Company (MCF) has had significant interest, and on the NYSE Dycom Industries, Inc. (DY) has had unusual volume.
The biggest mover out of other high-volume stocks is Dycom Industries, Inc. (DY) which has moved up over 25% recently on volume of over 2 million shares. The chart below shows the performance of DY over the last year. Dycom Industries, Inc. is a provider of specialty contracting services throughout the United States and in Canada.
DARWIN DYCOM INDUSTRIES, INC. FORECAST
The performance of Dycom Industries, Inc. (DY) will be worth watching in the near term for a number of reasons. The forecast for the coming week on DY is for the price to go up. The correlation of DY to the S&P 500 recently has been 0.4 which is a weak positive correlation. Key levels to watch for DY are downside support at the $48 and upside resistance at the $62 price points.
Paul "Bulldog" Hudson, Chief Investment Officer
Darwin Investing Network