Mid-Week Commentary for 6/5/2019

Will It Hold?
MARKET

WEEKLY MARKET ANALYSIS

Stocks opened significantly lower but the decline reversed and accelerated during the day into the close. The Dow Jones Industrial Average ETF DIA was up 3 points on the day and closed at 254. For the S&P 500, there is support near 2741 and 2699. Resistance levels are currently at 2825 and 2867.

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 Retail (XRT), Software (XSW), and Transportation (XTN). The weakest sector today has been Utilities (XLU) which has declined -0.5%.

The CBOE Volatility Index (VIX) is down $-1.77 going from $18.74 to $16.97 today. Both Call and Put volumes are below average today. The ratio of puts to calls for the current at-the-money strike of $18 is above average which means that traders are favoring Puts over Calls currently.

MARKET HEAT

A NASDAQ stock with unusually high volume today is Mattel Inc (MAT). No AMEX names had significant interest, and on the NYSE Continental Resources, Inc. (CLR) has had unusual volume.

The biggest mover out of other high-volume stocks is Continental Resources, Inc. (CLR) which has moved up over 15% recently on volume of over 7 million shares. The chart below shows the performance of CLR over the last year. Continental Resources, Inc. is a crude oil and natural gas company with properties in the North, South and East regions of the United States.

DARWIN CONTINENTAL RESOURCES, INC. FORECAST

The performance of Continental Resources, Inc. (CLR) will be worth watching in the near term for a number of reasons. The forecast for the coming week on CLR is for the price to go up. The correlation of CLR to the S&P 500 recently has been 0.9 which is quite a strong positive correlation. Key levels to watch for CLR are upside resistance at both the $44 and $48 price points.

Trade smart,

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