Stocks Continue to Defy the Skeptics, Grinding Higher in Slow Monday Trading - Chaikin Analytics

Stocks Continue to Defy the Skeptics, Grinding Higher in Slow Monday Trading

Stock of the Day – Agnico Eagle Mines (AEM) – Bullish Rating

Agnico Eagle Mines (AEM) has a Bullish Chaikin Power Gauge Rating and has been outperforming the SPY since late April. The OB / OS Indicator is beginning to move higher in an oversold position and Chaikin Money Flow is bullish. AEM is above the rising long-term trend line and price-based support near $60. The 21-day ATR currently stands at $2.62.

The Chaikin Power Gauge Rating for AEM is Bullish due to very strong earnings performance and very positive expert activity. The stock also has weak price/volume activity and very poor financial metrics. AEM’s earnings performance is very strong as a result of high earnings growth over the past 3-5 years and an upward yearly earnings trend.

Pre-Market Movers

Advancers: WU (11%), PK (5%), COTY (4%), SLG (4%), SMAR (4%)

Decliners: INVH (3%), GH (2%), CTVA (2%), CGNX (2%), BLUE (1%)

Market Commentary/Looking Ahead

US equities were higher in Monday trading, finishing near the best levels of the day. Health Care was the only sector to finish lower on the day. Treasuries were slightly weaker with the curve steepening. The dollar was weaker on the major crosses, extending the declines of the past two weeks. Gold finished down 0.1%. WTI Crude was down 0.1%. 

  • Outperformers: REITs +2.14%, Energy +1.68%, Financials +1.16%, Utilities +1.07%, Consumer Disc. +0.91%, Communication Svcs. +0.80%, Consumer Spls. +0.62%, Materials +0.55%
  • Underperformers: Healthcare (1.01%), Tech +0.02%, Industrials +0.20%

S&P futures are up 0.6% in Tuesday morning trading. Asian markets were higher overnight with Japan, Hong Kong and South Korea all up over 1%. European markets are higher as well. Treasuries are weaker across the curve. The dollar is stronger vs the yen but weaker against both the euro and sterling. Gold is weaker. WTI Crude is up 2.5%.

Slight Relative Improvement in Utilities

With the major market ETFs all at or near overbought conditions and having made strong runs from the March 23rd lows, we are on watch for signals of a near-term stall. One area that could be a tell is Utilities, which have seen a slight dampening of the intensity of their relative weakness. The Utilities Select Sector SPDR Fund (XLU) is also nearing a recent peak as it tests the long-term trend line on an absolute basis. Continued improvement on the part of this defensive sector could be sign that the near-term trend in equities is running out of steam. 

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