Mid-Week Commentary for 4/17/2019

This Company Will Skyrocket After Backing Off
MARKET

WEEKLY MARKET ANALYSIS

Stocks opened modestly higher but the advance reversed but more modestly intra-day into the close. The Dow Jones Industrial Average ETF DIA was up .64 points on the day and closed at 264.46. For the S&P 500, there is support near 2894 and 2878. Resistance levels are currently at 2924 and 2940. The key to this market is the tight shallow melt up in terms of trend channel. Golds dumping and oil is pumping while market drifts.

GLOBAL ASSETS UPDATE

TWELVE SECTOR ANALYSIS

VOLATILITY UPDATE

On Wall Street, 8 of the 12 major market sectors are seeing green today. The biggest gainers are Materials (XLB), Financial (XLF), and Transportation (XTN). The weakest sector today has been Healthcare (XLV) which has declined -2.9%.

The CBOE Volatility Index (VIX) is down $-5.20 going from $2912.26 to $2907.06 today. The ratio of puts to calls for the current at-the-money strike of $2909 is below average which means that traders are favoring Calls over Puts currently.

MARKET HEAT

A NASDAQ stock with unusually high volume today is QUALCOMM, Inc. (QCOM). On the AMEX The Gabelli Global Goldn Natural Resources (GGN) has had significant interest, and on the NYSE McDermott International Inc (MDR) has had unusual volume.

The biggest mover out of other high-volume stocks is QUALCOMM, Inc. (QCOM) which has moved up over 23% recently on volume of over 86 million shares. The chart below shows the performance of QCOM over the last year. QUALCOMM Incorporated is engaged in the development and commercialization of a digital communication technology called code division multiple access (CDMA).

DARWIN QUALCOMM, INC. FORECAST

The performance of QUALCOMM, Inc. (QCOM) will be worth watching in the near term for a number of reasons. The forecast for the coming week on QCOM is for the price to go up. The correlation of QCOM to the S&P 500 recently has been 0.3 which is a weak positive correlation. Key levels to watch for QCOM are downside support at both the $55 and $60 price points.

Trade smart,

Paul “Bulldog” Hudson, Chief Investment Officer
Darwin Investing Network

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