Gene Peroni's Daily Podcast

Sometimes trying to decipher the market’s behavior on a day-to-day – if not hour-by-hour – basis can be a frustrating task and not significant in revealing the real opportunities and underlying trends. 

The DJIA on track to be the best of the major indices in terms of performance for the month of November – could be the best November since 1987. 

Wednesday’s rotational behavior seemed to favor the stay-at-home theme and momentum stocks generally with the Nasdaq gaining. 

Another milestone reached with the Dow’s passage of 30,000 is no small feat. 

In late summer/early autumn a reverse head-and-shoulders pattern developed in the Dow Jones Average which bolstered support at the 27,000 level. 

Month-to-date the DJIA up about 10.4%, handily beating the Russell 3000, S&P 500 and even the very hot Nasdaq.

Gene Peroni Daily Podcast: In last year’s 4th quarter I began to note the improving relative strength of the materials-related stocks and they continued to improve heading into the coronavirus downturn. 

The CBOE Volatility Index – sometimes dubbed the “Fear Index” – may be running into a technical brick wall at the 40 level.

As dawn breaks on election day, stocks are up this morning…could this mean the market expects a clear cut winner?

VIX is down sharply this morning, presumably because we have gotten through election day. 

Dow 27,000 is still a viable support level, but I continue to look for a good year-end rally. 

Could this tumultuous year end on a positive note? It seems that may be the case with news this morning of a vaccine that could be 90% effective against the COVID-19 virus.

Stay-at-home-theme stocks had a rough day yesterday with prospects of a vaccine on the near-term horizon.

The rapid price vacillations that we’ve been seeing over the last week and more seem to be knee-jerk reactions as investors try to get a handle on the incoming administration.

The feverish rotation continuing yesterday with the Nasdaq rotating into favor with a nice rally in that index. 

No triskaidekaphobia for this stock market; even Friday the 13th can’t derail this advance which seems to have a great deal of momentum – built on interest rates and earnings.

In its 18-year run, this stock market has been very consistently driven by low interest rates and earnings.

The Dow punching into record territory, but the big news yesterday was the Russell 2000 were the small and midcap stock had good performance. 

The Dow’s multiple failures to move above 30,000 has imposed a bit of a technical wall of resistance at that millennium level – a big level that many are watching.

From its peak on September 2 to its intraday low yesterday, the Dow has fallen about 10% – which qualifies as a correction in some circles.

Yesterday’s violation of the Dow 27,000 support level was concerning, but not a TKO (technical knockout) for stocks

The basing formation in the CBOE Volatility Index gave a clue that we might be in for heightened volatility ahead of the election.

Monday’s session was another example of weekend hangover reaction by investors to the news of the increase in coronavirus cases.

Just 8 days out now from the presidential election with the stock market in a holding pattern and maintaining a “poker face” regarding their trends.

With just a dozen days before the election, the CBOE Volatility Index is in a basing pattern, which is of some concern.