Is FOMO Trade Decelerating?

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Commentary Analysis

  • Market Moving Events: Mixed earnings results and economic data stalled the stock market’s advance with exception to a few outliers.
    • Earnings / Technology: Microsoft / MSFT (-2.83%) and Texas Instruments / TXN (-4.41%) delivered better than expected but good enough was not enough. Visa / V (+1.54%) profits exceeded estimates.
    • Earnings / Communications: Alphabet / GOOG (+3.16%) exceeded estimates.
    • Earnings / Healthcare: Missing their numbers was Amgen / AMGN (-7.22%).
    • Earnings / Industrials: Boeing / BA (-2.89%) missed estimates.
    • Perhaps the strongest catalyst today was the Energy Report which revealed lower than expected inventories. This sent Crude Oil and energy stocks’ prices higher.
    • Central Banks: The FOMC monetary policy statement was unchanged and proved to be a non-event. As expected rates remain near zero and Chairman Powell has no intentions of tapering until data confirms employment and inflation goals are met.
  • Equities: US stock markets were beginning to stall at current levels which are confirming resistance. To reiterate, this market is overbought and deficient in volume. Essentially, the FOMO trade is decelerating and running on fumes. However, two outlier sectors are Energy (XLE) and Communications (XLC). International markets, particularly in the Americas (EWZ and ILF) are leading in terms of relative strength and performance.
  • Large-Cap Volume Surgers:
    • Pinterest Inc (PINS) -14.50% on 365% volume surge
    • Enphase Energy Inc (ENPH) -14.14% on 269% volume surge
    • Amgen (AMGN) -7.22% on 176% volume surge
    • Adv Micro Devices (AMD) -1.40% on 114% volume surge
    • Nov Inc (NOV): +9.57% on 97% volume surge
  • Small-Cap Volume Surgers:
    • Vaxart Inc (VXRT) +1.32% on 378% volume surge
    • Spirit Airlines (SAVE): -5.65% on 172% volume surge
    • Two Harbors Invt Corp (TWO) +1.83% on 44% volume surge
    • Caesars Entertainment Inc (CZR) +0.82% on 45% volume surge
  • Bond Rates: The 10-Year Treasury yield closed @ 1.62 (-0.02bps / -0.12%).
  • Cryptocurrencies: Ethereum (ETHE) is beginning to separate itself from the rest of the cryptocurrency universe by achieving another record high while Bitcoin closed in negative territory and struggles to reclaim support above its 34-day EMA (exponential moving average).
  • Economy:
    • Goods Trade Balance (Mar-2021) @ -90.59bn vs prior @ -87.07bn.
    • Retail Inventories Ex Auto(Mar-2021) @ 0.6% vs prior @ 1.4%.
    • EIA Crude Oil Inventories @ 0.090mm vs estimates @ 0.659mm and prior @ 0.594mm.

ETF Daily Market Performance Summary: 28-April-2021

etf daily market summary for stocks, bonds, currencies, cryptocurrencies, commodities, real estate, and equity sectors
Click to enlarge

Market Diary: 28-April-2021

market diary summary for NYSE and Nasdaq exchanges: advancers, decliners, new highs and new lows, plus mega-cap market breadth
(Click table to enlarge)

Sidebar Note: Post-market earnings update

  • Both Facebook (FB) and Apple (AAPL) exceeded earnings estimates by large margins and traded significantly higher in the after-market hours.
  • Today’s regular trading session was rather tepid.
  • Tomorrow’s trading session should probably force investors to commit to a bullish or bearish bias going forward. It will be an exciting opening accompanied by volatility, so be prepared!

Covid19 Global Status Update: Top 10 New Cases in Last 7 Days

It’s become quite obvious that getting aid and suppies to India may prove to be the linchpin in reversing the global trends for Covid infection rates. The total number of new cases over the last 7 days for the top 10 countries is 4,394,439 and India represents @ 56% of this. This story is becoming more and more of a talking point in MSM and harder to ignore. Hopefully sooner than later, one will begin to see targeted aid and supplies to this part of the world and other regions which are experiencing systemic increases in Covid infections and variants. We’re all in this together!

RankCountryCases last 7 daysCases previous 7 daysWeekly % Chg
1India2,443,2901,853,91632%
2Brazil401,012445,231-10%
3USA390,411457,499-15%
4Turkey304,435421,034-28%
5France191,564224,454-15%
6Argentina159,338165,395-4%
7Iran148,093168,019-12%
8Germany142,802144,290-1%
9Colombia123,313115,5127%
10Italy90,18195,531-6%

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