Global Growth Returns, 6 Monster Predictions For The Week Of Feb. 11

Look the same thing happened the Dow Jones Industrial Average. No volume.

djia,

I know someone is going to ask well then why on daily volume charts is volume rising. Good question. My reasoning for that is rather straight forward, at higher prices there was plenty of liquidity, but as prices fell volume thins out. In the absence of buyers or sellers, it takes fewer shares to make stock rise or fall. In this case, there were simply no buyers.

What I found most interest on Thursday and Friday is how the bulls and the bears battled things out. The bulls won both days.  The chart below shows the amount of volume that traded around support versus at higher level.

The chart below shows there was a lot of volume trading around the 2,690 to 2,695 region.

S&P 500

But notice how Friday is very different.  On Friday we find a surge of volume as the index lifted into the close at the end of the day, and the strong volume comes despite the index trading at that higher price only for the last hour.  It would suggest that buyers stepped into the market to close out the day and the week.

S&P 500

Additionally, when we look at the current trends in the index, they are still positive. The RSI for the S&P 500 continues to trend higher and recently broke above what had been a year-long downtrend.

S&P 500, spx

Russell 2000 (IWM)

However, it is worth noting that at this point the Russell has not confirmed a change of trend yet for the RSI.

Russell 2000

Semis

But there has been that break out in the Semiconductor ETF

smh

Global Growth Is Coming Back? Yes It Is

Some real signs are emerging that global growth may be on the rebound. Very quietly some essential commodities are showing some signs of life.

Copper

Copper which is followed by many as a leading indicator for global growth has been on the rise since the beginning of 2019. The metal’s price has risen from around $2.55 to $2.80, a jump of almost 10%.  The chart would suggest there may be more gains on the way.

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Disclosure: Michael Kramer and the clients of Mott Capital own Netflix

Michael Kramer owns SMH March 15 $101 Calls

Disclaimer: This article is my opinion and expresses my views. ...

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