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The stock market gave back previous week's gains - February 11, 2022

February 14, 2022
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market update

What happen to the market this week?

In general the stock market indices gave back the gains from previous week after strong CPI data spook the futures with a potential 0.5% interest rate hike in March. The market also suffer on Friday as the U.S. signal Russia might invade Ukraine soon. This is not a good sign.

On the other hand, Russell 2000 was able to produce a positive week. This might signify some strength. As we see below in the industry groups section, this could be due to the consumer discretionary industry groups strengthening as the Omicron virus peak and countries open up.

Index	Feb. 7-11
Nasdaq	-2.18%
S&P 500	-1.82%
Dow Jones	-1.00%
Russell 2000	1.39%

Earnings season are winding down with most companies reported. Mega cap techs did not do well this last week. This is a very concerning trait. If most of these stocks do not find footing soon, we may see the market conditions deteriorate.

MSFT (negative - fell back to its 40 weeks moving average)

AAPL (negative - fell back below 10 weeks moving average)

TSLA (negative - fell back to near its 40 weeks moving average)

GOOGL (negative - fell back to its 40 weeks moving average)

AMZN (negative-found resistance at its 10 weeks moving average)

FB (negative-fell further after its earnings results disappointment)

What is the current support level?

Most of the major market indices found resistance at its 21 days moving average and have now fell back below its 10 days moving average as well. This is not a good sign.

The market indices need to bounce back right away. Otherwise, we may see the major indices test new low in coming week.

NASDAQ - below its 50 days moving average line near 15200; current at 13791
S&P 500 - below its 50 days moving average line near 4640; current at 4418
DJIA - below its 50 days moving average line near 35560; current at 34738
RUSSELL 2000 - below its 50 days moving average line near 2190; current at 2030

Psychological levels

Nasdaq is now below 14000.
S&P 500 is now below 4500.
Dow Jones Industrial Average is now below 35000.
Small cap Russell 2000 is above 2000.

Stock market breadth - Accumulation vs Distribution for this week:

#industry groups 117 vs 111

#stocks 312 vs 295

The stock market breadth is showing slightly more stocks under accumulation than distribution. This is an indication of some sectors doing poorly while other sectors are doing fine.

Check out our course How to measure or calculate stock market breadth.

Which industry groups show strength?

There are many signs of industry groups showing accumulation specifically in the retail-consumer discretionary groups and commodities/energy groups.

Sector	Industry	Sub-group	#	Stocks
Technology	Technology	EDP Services (Integrated System)	2	NCR, PAR

Retail	Consumer Durables	Specialty Chemicals	3	ACB, CGC, TLRY
Retail	Consumer Services	Hotels/Resorts (Gaming)	6	BYD, GDEN, IGT, MCRI, PENN, WYNN
Retail	Consumer Services	Hotels/Resorts (Lodging)	5	CHH, H, HTHT, MAR, WH
Retail	Consumer Non-Durables	Recreational Products/Toys, Motor Vehicles	2	HOG, MBUU
Retail	Consumer Services	Marine Transportation	6	CCL, CUK, FXLV, PLNT, RCL, SIX
Retail	Miscellaneous	Business Services	3	ABNB, TCOM, TRVG
Retail	Consumer Services	Television Services	5	DIS, FOXA, LSXMA, TV, WWE
Retail	Consumer Services	Restaurants	6	CMG, DRI, PLAY, RRGB, WEN, YUMC
Retail	Transportation	Air Freight/Delivery Services	7	ALK, CPA, DAL, RYAAY, SAVE, SNCY, UAL
Retail	Consumer Non-Durables	Food Distributors	3	PFGC, SYY, USFD

Industrial	Capital Goods	Military/Government/Technical	8	ATRO, ISSC, JOBY, LMT, NOC, TDG, TGI, TXT
Industrial	Basic Industries	Major Chemicals: Plastics	2	AVNT, TSE
Industrial	Basic Industries	Environmental Services	4	AQUA, CLH, ECOL, TTEK

Health	Health Care	Hospital/Nursing Management	3	CYH, THC, UHS
Health	Health Care	Biotechnology: Commercial Physical & Biological Research	2	MEDP, TECH

Commodities	Consumer Services	Farming/Seeds/Milling	2	BG, CTVA
Commodities	Basic Industries	Agricultural Chemicals	4	FMC, MOS, NTR, SQM
Commodities	Energy	Coal Mining	4	ARCH, BTU, HCC, METC
Commodities	Basic Industries	Precious Metals	7	AEM, BVN, FNV, HL, KL, NEM, SBSW
Commodities	Basic Industries	Precious Metals	8	AA, BHP, CCJ, FCX, RIO, SCCO, TECK, VALE
Commodities	Energy	Oil & Gas Production: Drilling	2	HP, PTEN
Commodities	Energy	Integrated oil Companies	9	BP, CVX, EC, EQNR, EQT, MRO, PBR, PTR, SNP
Commodities	Energy	Oil & Gas Production (International)	2	OVV, OXY
Commodities	Energy	Integrated oil Companies	5	CLMT, GEL, HFC, PBF, VLO
Commodities	Energy	Natural Gas Distribution	7	DCP, ENB, EPD, KMI, NVGS, SHLX, WES
Commodities	Basic Industries	Steel/Iron Ore	2	PKX, TS

Financial	Finance	Commercial Banks	3	SHG, BAP, KB, NU

Which industry groups from recent strength show weakness this week?

Relative strength drops by 10%
Technology	Technology	Computer Software: Programming, Data Processing (Content)	-5	FB, GOOG, GOOGL, PINS, YNDX

Relative strength drops by 1%
Retail	Consumer Non-Durables	Meat/Poultry/Fish	-1	IBA

Relative strength drops by 10%
Retail	Consumer Services	Catalog/Specialty Distribution	-1	APRN

Below 50 days moving average
Retail	Health Care	Medical/Nursing Services	-1	CVS

Relative strength drops by 10%
Retail	Miscellaneous	Business Services (Internet)	-2	DASH, GRUB

Relative strength drops by 10%
Industrial	Public Utilities	Power Generation	-6	DTE, DUK, PCG, SJI, WEC, XEL

Below 50 days moving average
Health	Health Care	Major Pharmaceuticals (Diversified)	-1	GSK

Relative strength drops by 2%
Financial	Finance	Major Banks (Northeast)	-2	TBBK, LBAI

Relative strength drops by 8%
Financial	Finance	Specialty Insurers	-2	SLQT, EHTH

Disclaimer: MCBOSS CAPITAL provides financial education and information research. None of this information should be used for investment purpose. Please seek professional advice. Information provided may not always be accurate.

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