Market Trend Commentary & Analysis September 11, 2019

In the equity market trend the S&P 500 index eked out a tiny +0.03% gain in yesterday trading session, ceasing at its best posting levels of the entire day after trading with reasonable losses. 

Tuesday's price action saw traders and investors advancing to rotate out of this year's very best-performing equities for those recognized as having much more inherent value.

The DJI Average closed with +0.3% gain aided by its highest-priced index component, Boeing Co. with +3.0% increase on the day, while the small-cap Russell 2000 posted +1.2% rally improved amid substantial gains in energy stock sector.

While the Russell 2000 index has climbed higher, the Nasdaq Composite plunged, only to be panic-bid clawed back near unchanged price level finishing with -0.04% posting, just below its even line between relative weakness in shares of high-tech companies.

The Russell 2000 index advancement in the next few trading sessions will be determined as to where all stocks will go. BTW, the small-cap Russell 2000 index is a unique leading market indicator for the rest of the stock market trend. 

We certainly saw that in yesterday session when Russel 2000 index rose and displayed a healthy path towards Trade Selector Signal Inner Index Rally $1,565, Mean Res $1,586.

The value-oriented stocks, in this situation, those stocks which have underperformed among market growth concerns, have come to life this current trading week. Improved economic sentiment concerning growth and trade war has added to this value trade.

Russell 2000 Index

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Wild market trend trading

As we continue to witness a wild market trend for the past couple of months, this week Monday session delivered the wickedest trading day in this decade. The "Beneath the surface" equities sector transformations were climactic enough to indicate a much rebalancing action of some kind. 

The massive trading momentum move on Monday session left many momentum investors, and traders most likely at their most damaging state. Many stocks which exhibited the best gains Year-To-Date (YTD) endured with some of the most severe losses.

On the contrary, many stocks which were under the water this year manifested some of the most significant gains. Without the doubt, this was the most extensive one-day transfer in the momentum I have ever seen since 2009, and a ratio based on long/short trading momentum is now dropped by 10% from its top.

Serve to state that some very major transformations occurred on Tuesday trading session. Today and tomorrow, and perhaps a couple of next week first few days will tell us whether it was just an unusual occurrence or a significant development: BTW, with the last five days of trading sessions, this was the biggest shorts squeeze this year. 

Amidst other market tend assets, granddaddy coin (Bitcoin) remains mired at the Maginot $10,000 line and lower end of its Completed Inner Coin Dip range, while the Gold traded lower, hovering below $1500 level, while Silver was best, succeeding to end unchanged for the day.

Crude oil continues to be bid, allegedly aided by recent Saudi Arabia's moves of the West Texas Intermediate trades just above Mean Res $58.25. The Euro Dollar is slightly down against the U.S. Dollar, as the interest yields were unchanged, for the second day in a row. 

The GBP is displaying further energy to advance higher and to address our Next Outer Currency Rally $1.2553 (See Market Trend Commentary & Analysis September 8, 2019 post).

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