Overbought Near The Top: Stock Market Outlook Midday Analysis for Wed Oct 20 2021

As expected, buyers moved quickly in the early start of the day to place capital into the opening dip. Since then the SPX has moved to within 5 points of a new all-time high. The NASDAQ has seen good volume but just a slim gain. Meanwhile north of the border in Canada, the TSX Composite Index is making new all-time highs yet again marking an 11th straight day of gains, a stellar record.

New York Stats:

Volume is still a little light at just 1.6 billion shares traded on New York which is the same as yesterday at this time.

However today at lunch hour 73% of all shares being traded are to the upside and 65% of all stocks are climbing with 25% declining. The bulls should make a new all-time high either today or tomorrow. There is a high chance it will be today.

New highs are up to 153 much higher than yesterday and new lows are down to just 9, showing a lot of strength and a bullish signal for further upside.

NASDAQ Stats:

Volume is better again on the NASDAQ at 2.2 billion shares as of 12:20.

New highs have finally jumped well ahead of new lows with 112 new highs and 41 new lows. This is much better than yesterday and bullish.

60% of all volume is to the upside and 55% of all stocks are advancing which is similar to what we saw yesterday at the time.

Outlook:

Earnings are continuing to drive the markets higher. Some stocks like Netflix are a hindrance but stocks in most sectors are rising like Healthcare, Retail, Tech and even utilities. The outlook is for another higher close today. Tomorrow we could see the market take a breather. I am increasing capital and margin use into more trades.

TSX Composite Index – Canadian Stock Market Outlook

For those who follow the smaller Canadian Market, the TSX made another new 52 week high today. The index is up 75 points into the lunch hour, at 21,162.58. There is however no support at present levels which means if there is a day of selling, the TSX will fall back below 21,000 easily.

63% of volume is to the upside with 31% to the downside which is similar to yesterday at this time.

Advancing stocks are ahead of decliners with 50% of all stocks advancing while 31% are declining. There are 117 new highs and 20 new lows into the lunch hour which is more bullish than yesterday.

Many bank stocks continue to make new highs as rumors continue that once banks move out of the pandemic restrictions they will jump dividends as much as 25%.

I am continuing to place more capital into a number of trades this morning on the TSX Composite Index.

Overall the index looks steady. Outlook at present remains bullish for a positive close again today.

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Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. Trade at your own risk. Stocks, options and investing are risky and can result in considerable losses. None of the strategies, stocks or information discussed and presented are financial or trading advice or recommendations. Everything presented and discussed are the author’s own trade ideas and opinions which the author may or may not enter into. The author assumes no liability for topics, ideas, errors, omissions, content and external links and trades done or not done. The author may or may not enter the trades mentioned. Some positions in mentioned stocks may already be held or are being adjusted.

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