It was surprising to see the Dow Jones Industrial Average (NYSEARCA:DIA) reach a new record intraday high despite a disturbing jump in weekly initial unemployment claims to 360,000. The Dow’s intraday surge occurred despite additional downbeat data, including the report on April housing starts and the Philadelphia Federal Reserve’s Business Outlook Survey.

But the Dow then lost 42 points to finish Thursday’s trading session at 15,233 for a 0.28-percent decline. The S&P 500 (NYSEARCA:SPY) declined 0.50 percent to 1,650. The Nasdaq 100 (NASDAQ:QQQ) dipped 0.11 percent to 2,999. The Russell 2000 (NYSEARCA:IWM) declined 0.32 percent to 985.

In other major markets, oil (NYSEARCA:USO) advanced 0.77 percent to close at $33.87. On London’s ICE Futures Europe Exchange, June futures for Brent crude oil  advanced by 26 cents, or 0.25 percent, to $103.76/bbl. (NYSEARCA:BNO). June gold futures declined by $12.40, or 0.89 percent, to $1,383.80 per ounce (NYSEARCA:GLD).

Transports lost some altitude on Thursday, with the Dow Jones Transportation Index (NYSEARCA:IYT) falling 0.71 percent.

European investors cooled off during Thursday’s trading session after there was no abrupt intervention by the European Central Bank following Eurostat’s report on Wednesday that the 27-nation European Union joined the euro zone in a recession which has been dragging on for six consecutive quarters (NYSEARCA:VGK). The Euro STOXX 50 Index finished with a 0.10 percent decline to 2,806 – remaining above its 50-day moving average of 2,683.  (NYSEARCA:FEZ).

In Japan, stocks made a retreat after the Cabinet Office reported that the nation’s GDP expanded at an annualized rate of 3.5 percent, despite economists’ expectations of 2.7 percent growth. The result raised fears that the market may be overheating. The Nikkei 225 Stock Average declined 0.39 percent to 15,037 (NYSEARCA:EWJ).

In China, stocks surged after the government instituted reforms in accordance with Premier Li Keqiang’s efforts to cut administrative red tape. The Shanghai Composite Index jumped 1.22 percent to 2,251 (NYSEARCA:FXI). Hong Kong’s Hang Seng Index advanced 0.17 percent to 23,082 (NYSEARCA:EWH).

Technical indicators reveal that the S&P 500 remains far above its 50-day moving average of 1,579 after closing at 1,650 — motivating bears to hope that we are watching the formation of a head-and-shoulders pattern, which would signal a decline. Its Relative Strength Index declined from 73.34 to 68.63 – back below the threshold level of 70, which most investors consider an “overbought” signal. Both the MACD and the signal line continue soaring above the zero line, suggesting the likelihood of a further advance.

For the day, all sectors finished in solidly negative territory except for the technology sector, which rose 0.60 percent. The biggest losers were the consumer discretionary and healthcare sectors.

Consumer Discretionary (NYSEARCA:XLY):  -1.18 percent

Technology (NYSEARCA:XLK):  +0.60 percent

Industrials (NYSEARCA:XLI):  -0.50 percent

Materials (NYSEARCA:XLB):  -0.46 percent

Energy (NYSEARCA:XLE):  -0.49 percent

Financials (NYSEARCA:XLF):  -0.66 percent

Utilities (NYSEARCA:XLU):  -0.82 percent

Healthcare (NYSEARCA:XLV):  -1.03 percent

Consumer Staples (NYSEARCA:XLP):  -0.61 percent

Bottom line: A batch of awful economic reports failed to stop the Dow Jones Industrial Average from reaching an new record intraday high on Thursday.

John Nyaradi is the author of The ETF Investing Premium Newsletter.

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The worse-than-expected drop in April industrial production was enthusiastically received by investors, who saw the bad news as justification for the Fed to reverse any earlier plans to taper back its quantitative easing program. The 0.5-percent decline in industrial production during April portrayed a situation worse than that seen by economists, who anticipated a less significant decline of 0.2 percent.

The Dow Jones Industrial Average (NYSEARCA:DIA) jumped 60 points to finish Wednesday’s trading session at a new record-high closing level of 15,275 for a 0.40-percent advance. The Dow also reached a new record intraday high of 15,301.34. The S&P 500 (NYSEARCA:SPY) advanced 0.51 percent to set a new record-high close at 1,658.78. The S&P also reached a new intraday record high of 1,661.49.

The Nasdaq 100 (NASDAQ:QQQ) rose 0.22 percent to 3,002. The Russell 2000 (NYSEARCA:IWM) advanced 0.26 percent to a new record-high close at 988.54. In other major markets, oil (NYSEARCA:USO) advanced 0.15 percent to close at $33.61.

On London’s ICE Futures Europe Exchange, June futures for Brent crude oil  advanced by $1.08, or 1.05 percent, to $103.59/bbl. (NYSEARCA:BNO). June gold futures declined by $33.40, or 2.34 percent, to $1,391.20 per ounce (NYSEARCA:GLD).

Transports sped along on Wednesday, with the Dow Jones Transportation Index (NYSEARCA:IYT) surging 0.75 percent.

European investors reacted with a wave of bullishness after Eurostat reported that the 27-nation European Union joined the euro zone in a recession that has been dragging on for six consecutive quarters. Euro zone GDP contracted by 0.2 percent during the first quarter, and GDP for the 27-nation European Union contracted by 0.1 percent (NYSEARCA:VGK).

The Euro STOXX 50 Index finished with a 0.50-percent advance to 2,809 — remaining above its 50-day moving average of 2,676 (NYSEARCA:FEZ).

In China, stocks advanced after the People’s Bank of China lowered its reference rate, keeping the yuan within its permitted trading range. So far this year, the exchange rate for the yuan has increased 1.4 percent. At the close of trading in Shanghai, the yuan fell 0.05 percent to 6.1459 per dollar. The Shanghai Composite Index advanced 0.36 percent to 2,224 (NYSEARCA:FXI). Hong Kong’s Hang Seng Index climbed 0.50 percent to 23,044 (NYSEARCA:EWH).

In Japan, yen weakness was again the big story as stocks soared after the yen dropped lower than a penny to less than 102 yen per dollar. A weaker yen results in more-competitive prices for Japanese exports in foreign markets (NYSEARCA:FXY). The Nikkei 225 Stock Average skyrocketed 2.29 percent to 15,096 (NYSEARCA:EWJ).

Technical indicators reveal that the S&P 500 remains far above its 50-day moving average of 1,577 after closing at 1,658.78 — motivating bears to hope that we are watching the formation of a head-and-shoulders pattern, which would signal a decline. Its Relative Strength Index rose from 71.49 to 73.34 — further above the threshold level of 70, which most investors consider an “overbought” signal. Both the MACD and the signal line continue soaring above the zero line, suggesting the likelihood of a further advance.

For the day, all sectors finished in solidly positive territory except for the energy sector, which fell 0.28 percent. The big winners were consumer staples, utilities, and financial.

Consumer Discretionary (NYSEARCA:XLY):  +0.54 percent

Technology (NYSEARCA:XLK):  +0.32 percent

Industrials (NYSEARCA:XLI):  +0.41 percent

Materials (NYSEARCA:XLB):  +0.55 percent

Energy (NYSEARCA:XLE):  -0.28 percent

Financials (NYSEARCA:XLF):  +0.92 percent

Utilities (NYSEARCA:XLU):  +0.95 percent

Health Care (NYSEARCA:XLV):  +0.53 percent

Consumer Staples (NYSEARCA:XLP):  +0.99 percent

Bottom line: Bad news was good news for American investors (as well as European investors) on Wednesday as the worse-than-expected decline in industrial production during April sent both the Dow and the S&P 500 to new record high intraday and closing levels. 

John Nyaradi is the author of The ETF Investing Premium Newsletter.

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The Small Business Optimism Index finally escaped from a rut of nihilism to reach a better-than-expected reading of 92.1 for April. The result was above the recovery average of 90.7, beating economists’ expectations of an advance from 89.5 in March to 90.5 in April. Investors responded enthusiastically to the report, sending the S&P 500 (NYSEARCA:SPY) to new record intraday and closing highs.

The Dow Jones Industrial Average (NYSEARCA:DIA) jumped 123 points to finish Tuesday’s trading session at 15,215 for a 0.82-percent advance. The S&P 500 surged 1.01 percent to set a new record-high close at 1,650.34.  The S&P also reached a new intraday record high of 1,651.10.

The Nasdaq 100 (NASDAQ:QQQ) rose 0.47 percent to 2,996. The Russell 2000 (NYSEARCA:IWM) jumped 1.25 percent to a new record high close at 985.96. In other major markets, oil (NYSEARCA:USO) declined 0.89 percent to close at $33.56.

On London’s ICE Futures Europe Exchange, June futures for Brent crude oil  declined by 11 cents, or 0.11 percent, to $102.53/bbl. (NYSEARCA:BNO, NYSEARCA:USO). June gold futures declined by $10.70, or 0.75 percent, to $1,423.60 per ounce (NYSEARCA:GLD).

Transports accelerated on Tuesday, with the Dow Jones Transportation Index (NYSEARCA:IYT) surging 1.85 percent.

European stocks made a strong afternoon advance. Stocks initially declined after a report indicated that German investor confidence remained in the doldrums. But enthusiasm was sparked in the afternoon, when the euro group finance ministers, meeting in Brussels, discussed creating a common banking union that would include a backstop mechanism for handling failed banks. The Euro STOXX 50 Index finished Tuesday’s trading session with a 0.66 percent advance to 2,795 — remaining above its 50-day moving average of 2,676.

Japanese stocks made a slight retreat on Tuesday as investors went on a wave of profit-taking as many stocks began to appear overbought following the recent rally after the exchange rate for the yen fell below a penny. A weaker yen results in more-competitive prices for Japanese exports in foreign markets (NYSEARCA:FXY).  The Nikkei 225 Stock Average dipped 0.16 percent to 14,758 (NYSEARCA:EWJ).

In China, stocks declined after JPMorgan Chase lowered its second-quarter GDP forecast to 7.8 percent to 8.0. Monday’s disappointing report on fixed-asset investment was just the latest in a string of economic reports which demonstrate an economic slowdown in China. The Shanghai Composite Index sank 1.11 percent to 2,217 (NYSEARCA:FXI). Hong Kong’s Hang Seng Index declined 0.26 percent to 22,930 (NYSEARCA:EWH).

Technical indicators reveal that the S&P 500 remains far above its 50-day moving average of 1,574 after closing at 1,650.34 — motivating bears to hope that we are watching the formation of a head-and-shoulders pattern, which would signal a decline. Its Relative Strength Index ticked upward from 67.37 to 71.49 — beyond the threshold level of 70, which most investors consider an “overbought” signal. The MACD remains above the signal line, suggesting the likelihood of a further advance.

For the day, all sectors finished in solidly positive territory. The big winners were financial and energy. The technology sector was the laggard of the group, with a 0.32-percent advance.

Consumer Discretionary (NYSEARCA:XLY):  +1.02 percent

Technology (NYSEARCA:XLK):  +0.32 percent

Industrials (NYSEARCA:XLI):  +1.23 percent

Materials (NYSEARCA:XLB):  +1.24 percent

Energy (NYSEARCA:XLE):  +1.42 percent

Financials (NYSEARCA:XLF):  +1.71 percent

Utilities (NYSEARCA:XLU):  +0.68 percent

Health Care (NYSEARCA:XLV):  +1.01 percent

Consumer Staples (NYSEARCA:XLP):  +1.19 percent

Bottom line: A jump in the Small Business Optimism Index for April kept those “animal spirits” alive on Wednesday, sending the S&P 500 to new record intraday and closing highs. 

John Nyaradi is the author of The ETF Investing Premium Newsletter.

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Concerns about the weekend reports on the U.S. Federal Reserve’s plans to taper back its quantitative easing program were eclipsed by a better-than-expected Retail Sales report on Monday. After the U.S. Department of Commerce’s Census Bureau reported that retail sales for April advanced by 0.1 percent, compared with economists’ expectations of a 0.3 percent decline, the bulls were back to retain their turf.

The Dow Jones Industrial Average (NYSEARCA:DIA) lost 26 points to finish Monday’s trading session at 15,091 for a 0.18-percent decline. The S&P 500 (NYSEARCA:SPY) climbed a nearly-imperceptible seven one-hundredths of a single point (not a percentage) to set a new record-high close at 1,633.77 from Friday’s 1,633.70. The S&P also reached a new intraday record high of 1,636.

The Nasdaq 100 (NASDAQ:QQQ) rose 0.04 percent to 2,982. The Russell 2000 (NYSEARCA:IWM) slipped 0.14 percent from Friday’s record high close to end the day at 973. In other major markets, oil (NYSEARCA:USO) declined 0.82 percent to close at $33.86.

On London’s ICE Futures Europe Exchange, June futures for Brent crude oil  declined by $1.15, or 1.11 percent, to $102.50/bbl. (NYSEARCA:BNO, NYSEARCA:USO). June gold futures declined by $6.00, or 0.42 percent, to $1,430.60 per ounce (NYSEARCA:GLD).

Transports slipped into reverse on Monday, with the Dow Jones Transportation Index (NYSEARCA:IYT) declining 0.51 percent.

European stocks had a tough session on Monday, as investors remained concerned about Wednesday’s release of GDP data on a number of euro zone countries, including Germany. The Euro STOXX 50 Index finished Monday’s trading session with a 0.28 percent decline to 2,777 — remaining above its 50-day moving average of 2,673.

Japanese stocks continued to climb higher on Monday after the G-7 finance ministers, at their weekend meeting in Britain, signaled that they had no objection to further weakening of the yen. A weaker yen results in more-competitive prices for Japanese exports in foreign markets (NYSEARCA:FXY). During Monday’s trading session in Tokyo, the yen sank as low as 102.11 per dollar. The Nikkei 225 Stock Average jumped 1.20 percent to 14,782 (NYSEARCA:EWJ).

In China, stocks declined after a report from the National Bureau of Statistics revealed that fixed-asset investment during the first quarter of the year advanced by 20.6 percent, falling short of economists’ expectations of a 20.9 percent increase. The Shanghai Composite Index declined 0.22 percent to 2,241 (NYSEARCA:FXI). Hong Kong’s Hang Seng Index sank 1.42 percent to 22,989 (NYSEARCA:EWH).

Technical indicators reveal that the S&P 500 remains far above its 50-day moving average of 1,572 after closing at 1,633.77 — motivating bears to hope that we are watching the formation of a head-and-shoulders pattern, which would signal a decline. Its Relative Strength Index ticked upward from 67.36 to 67.37 — approaching the threshold level of 70. Most investors consider a Relative Strength Index above 70 as an “overbought” signal. The MACD remains above the signal line, suggesting the likelihood of a further advance.

For the day, half of the sectors finished in negative territory.  The biggest losers were materials and utility. The healthcare sector had the best day of the group, with a 0.83-percent advance.

Consumer Discretionary (NYSEARCA:XLY):  +0.02 percent

Technology (NYSEARCA:XLK):  -0.25 percent

Industrials (NYSEARCA:XLI):  -0.39 percent

Materials (NYSEARCA:XLB):  -0.71 percent

Energy (NYSEARCA:XLE):  -0.01 percent

Financials (NYSEARCA:XLF):  +0.31 percent

Utilities (NYSEARCA:XLU):  -0.53 percent

Health Care (NYSEARCA:XLV):  +0.83 percent

Consumer Staples (NYSEARCA:XLP):  +0.17 percent

Bottom line: Many stock sectors finished Monday’s trading session in negative territory despite the fact that the S&P 500 set a new record intraday high and beat Friday’s record close.

John Nyaradi is the author of The ETF Investing Premium Newsletter.

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The stock market put on another record setting show past week, with the Dow Jones Industrial Average (NYSEARCA:DIA) closing at a record high of 15,118 and the S&P 500 (NYSEARCA:SPY) closing at 1633.70, another all-time closing high. For the week, the Dow gained 1 percent, the S&P 500 climbed 1.2 percent, the Nasdaq Composite (NYSEARCA:QQQ) added 1.7 percent, and the Russell 2000 (NYSEARCA:IWM) jumped 2.2 percent.

However, as exciting as the week’s stock market action was, the big news came after the close on Friday when The Wall Street Journal reporter Jon Hilsenrath published an article detailing a new Federal Reserve strategy for unwinding its $85 billion/month in bond buying known as QE3.

This is big news, of course, because recent stock market action has been labeled “The Bernanke Rally” or “The Bernanke Put” as investors count on the Federal Reserve to support stock market prices and protect them from potential declines.

On My ETF Radar

chart courtesy of StockCharts.com

In the chart above, we see how the S&P 500 has begun tracking a near parabolic ascent that began in January. The S&P 500 is now 11 percent above its 200-day moving average, the greatest divergence seen since March 2000, just before the beginning of the dot-com crash. Will history repeat or only rhyme and in Yogi Berra’s famous words, are you ready for “déjà vu all over again?”

ETF News You Can Really Use

Based on the after-market Journal article, it seems that the Fed is planning to take away the “punch bowl” of easy money. However, the timing and scope of the program is yet unknown. As we all know, markets don’t like uncertainty, and this development, coming along with a steady stream of economic reports indicating a slowing global economy, is potentially significant.

The Fed finds itself in a tricky place as timing the exit will likely be difficult, at best. Leaving it in place too long could continue to stoke asset bubbles, while too quick an exit could lead to significant stock market declines along with volatility in bond and commodity markets.

Here’s a quick summary of recent events:

1.  Stock market levitating to record highs on a daily basis.

2.  Macro economy slowing around the world with a steady stream of declining economic reports.

3.  Near record-margin debt — the highest level seen since 2007 — just before the last market highs and subsequent meltdown associated with the 2007-2008 financial crisis. Margin debt is now north of $350 billion for March and is thought to have possibly reached record highs in April, and this is typically a bearish indicator as excessive risk taking tends to mark market tops. Also, should a sell-off begin, margin calls tend to accelerate the decline as investors have to close positions and so selling can rapidly accelerate under these conditions.

4. Technical indicators put major stock markets in highly overbought conditions and so vulnerable to decline. The stock market is exhibiting signs of a “blow off top” and Friday’s news from the Fed further add to the risk of a quick reversal.

Last week saw a “another day, another record” as stock markets around the world responded to stimulus action by central banks in Japan, Europe, and the United States.

In economic reports, the weekly new unemployment claims report on Thursday beat expectations and March job openings were flat from the previous report.

This week brings a wave of fresh economic reports:

Monday: April retail sales, March business inventories

Tuesday: NFIB Small Business Index

Wednesday: Producer price index, Empire State Index, Home builders index, industrial production

Thursday: weekly unemployment claims, consumer price index, housing starts, Philadelphia Fed report

Friday: consumer sentiment, leading economic indicators

Bottom line: With new records, a levitating stock market and news from the Federal Reserve, investors will register their reactions on Monday.

Disclaimer: The content included herein is for educational and informational purposes only, and readers agree to Wall Street Sector Selector’s Disclaimer, Terms of Service, and Privacy Policy before accessing or using this or any other publication by Wall Street Sector Selector or Ridgeline Media Group, LLC.

John Nyaradi is the author of The ETF Investing Premium Newsletter.

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After several years in hibernation, it appears Ford’s (NYSE:F) luxury brand is ready for its closeup. The 2013 Lincoln MKZ has been garnering highly positive reviews and offers the Dearborn automaker a weapon to challenge GM’s (NYSE:GM) Cadillac, as well as Toyota’s (NYSE:TM) Lexus and other foreign luxury brands. In fact, Ford is presenting the 2013 MKZ as an offering from the “Lincoln Motor Co.”

The re-branding is meant to distract from similarities between Lincoln and the Ford Fusion on which it is based. The 2013 MKZ has gotten the hype appropriate for a luxury car along the lines of BMW or Lexus, with a Super Bowl ad and star billing at different car shows. Its best features include the styling and spaciousness, along with the car’s overall power. It has the size of a Lexus and the V-6 performance of other cars in the class, as well as purported fuel economy in the hybrid version (there is a gas-only option).

As far as sales are concerned, the Lincoln MKZ is doing exactly what Ford needed from its luxury division. April marked the first month of double-digit sales increases since February 2012 and a 115 percent increase from April 2012, with more than 4,000 MKZs sold last month. While some of the dramatic sales increase was due to delays at Mexican manufacturing plants, the main draw appears to be the car itself…

Ford spent a great deal of time and money on testing the MKZ in hopes it would stand up to almighty brands like BMW and and Cadillac, not to mention cars like Lexus, which appeal to younger and middle-aged drivers. Of course, any customers Ford could tempt from Lexus would give the company an advantage against rival Toyota. Prices start at $35,900 and go up $51,000 with a full array of features.

With the new Lincoln MKZ, just on the market worldwide, Ford may have the car that succeeds in reviving its luxury brand from the depths of obscurity. As James Healey pointed out in his USA Today article, it can sometimes take a decade to turn around a brand’s image, as it did with GM on its Cadillacs. Ford may have stolen a lot of time — along with some market share — by producing a winning Lincoln MKZ.

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The Dow Jones Industrial Average (NYSEARCA:DIA) extended its residence in the 15,000 range on Thursday as it continued beyond 15,100. After reaching a new record intraday high of 15,144.83 at 1:48 p.m. EDT, the Dow ran out of fuel at 2:28 p.m., when a head-and-shoulders pattern took shape on the chart, sending many investors running for the exits.

The S&P 500 (NYSEARCA:SPY) followed a similar course, fading from an intraday record high during the last 90 minutes of the session. Philadelphia Federal Reserve president Charles Plosser was to blame for the buzzkill after his statement that he would join forces with Kansas City Fed Head Esther George to advocate attenuation of the quantitative easing program at the June 18 FOMC meeting.

The day got off to a good start because the U.S. Department of Labor reported that initial unemployment claims fell to 323,000 despite expectations of an increase to 335,000.

Thursday also brought some big stock winners. Ocean Power Technologies (NASDAQ:OPTT) skyrocketed 33.78 percent after Ascendiant Capital Markets initiated coverage on the stock as a Strong Buy. Green Mountain Coffee Roasters (NASDAQ:GMCR) soared 27.84 percent after the company raised its profit forecast for the fiscal year ending in September from $2.82 per share to $3.15 per share due to the popularity of its K-Cup product line.

One of the most shorted stocks on the market, Tesla Motors (NASDAQ:TSLA), reported adjusted quarterly earnings of 12 cents per share, running over expectations of only 3 cents per share. It was Tesla’s first profitable quarter. Thursday’s trading session resulted in a massive short squeeze, on the very day when Consumer Reports announced that the Tesla Model S had achieved its highest score ever of 99. Although the same score was achieved by the Lexus LS460 in 2009, Consumer Reports has described the Tesla as the best car it has ever tested. Tesla’s share price finished the session with a gain of 24.40 percent.

The Dow lost 22 points to finish Thursday’s trading session at 15,082.62 for a 0.15-percent decline. Nevertheless, the Dow reached a new record intraday high of 15,144.83. The S&P 500 declined 0.37 percent to close at 1,626.67 after setting a new intraday record high of 1,635.01.

The Nasdaq 100 (NASDAQ:QQQ) fell 0.24 percent to 2,961. The Russell 2000 (NYSEARCA:IWM) dropped 0.43 percent to end the day at 966.

In other major markets, oil (NYSEARCA:USO) declined 0.67 percent to close at $34.17. On London’s ICE Futures Europe Exchange, June futures for Brent crude oil  advanced by 5 cents, or 0.05 percent, to $104.08/bbl. (NYSEARCA:BNO). June gold futures declined by $16.30, or 1.11 percent, to $1,457.40 per ounce (NYSEARCA:GLD). Transports stalled on Thursday, with the Dow Jones Transportation Index (NYSEARCA:IYT) sinking 1.11 percent.

European stocks had a lackluster day, with The Euro STOXX 50 Index finishing with a 0.41-percent drop to 2,773 — remaining above its 50-day moving average of 2,665.

In Japan, stocks were off to a good start, but they sank during the final three hours of the session as the yen picked up some strength. A stronger yen results in less-competitive prices for Japanese exports in foreign markets (NYSEARCA:FXY). The Nikkei 225 Stock Average declined 0.66 percent to 14,191 (NYSEARCA:EWJ). After the closing bell in Tokyo, the yen sank against the dollar.  “Yenny watch” has finally reached a climax as the currency is now worth less than one cent, trading at 100.7 per dollar.

In China, stocks declined after the National Bureau of Statistics reported that producer prices fell 2.6 percent in April due to weakening demand. The result confirmed fears that the nation’s economy was getting soft. The Shanghai Composite Index (NYSEARCA:FXI) declined 0.59 percent to 2,232. Hong Kong’s Hang Seng Index (NYSEARCA:EWH) dipped 0.14 percent to 23,211.

Technical indicators reveal that the S&P 500 remains far above its 50-day moving average of 1,567 after closing at 1,626.67 — motivating bears to hope that we are watching the formation of a head-and-shoulders pattern, which would signal a decline. Its Relative Strength Index declined from 68.58 to 65.54 — further below the threshold level of 70. Most investors consider a Relative Strength Index above 70 as an “overbought” signal. The MACD remains above the signal line, suggesting the likelihood of a further advance. Nevertheless the trajectory of the MACD has flattened while the signal line is ascending.

For the day, most sectors finished in negative territory, except for healthcare and consumer discretionary, which made modest advances. The utilities sector trailed the group.

Consumer Discretionary (NYSEARCA:XLY):  +0.14 percent

Technology (NYSEARCA:XLK):  -0.28 percent

Industrials (NYSEARCA:XLI):  -0.02 percent

Materials (NYSEARCA:XLB):  -0.15 percent

Energy (NYSEARCA:XLE):  -0.11 percent

Financials (NYSEARCA:XLF):  -0.73 percent

Utilities (NYSEARCA:XLU):  -1.51 percent

Health Care (NYSEARCA:XLV):  +0.17 percent

Consumer Staples (NYSEARCA:XLP):  -0.70 percent

Bottom line: The importance of the quantitative easing program to stock market performance became apparent on Thursday after Philly Federal Reserve President Charles Plosser announced that he would advocate attenuation of the program at the next FOMC meeting. The major stock indices headed south after widespread publication of Plosser’s remarks.

Disclaimer: The content included herein is for educational and informational purposes only, and readers agree to Wall Street Sector Selector’s Disclaimer, Terms of Service, and Privacy Policy before accessing or using this or any other publication by Wall Street Sector Selector or Ridgeline Media Group, LLC.

John Nyaradi is the author of The ETF Investing Premium Newsletter.

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The Dow Jones Industrial Average (NYSEARCA:DIA) had an opportunity on Wednesday to get comfortably established in the 15,000 range as it continued beyond 15,100. The other major stock indices also headed higher as the flow of better-than-expected earnings reports continued. Whole Foods (NASDAQ:WFM) made a healthy ten percent advance after its quarterly earnings of 76 cents per share beat expectations of 74 cents.

Computer game manufacturer Electronic Arts (NASDAQ:EA) gave a forecast of adjusted earnings for its fiscal year, ending in March, of $1.20 per share, zapping expectations of $1.10 per share. EA’s share price advanced to the next level with a 17-percent gain at Wednesday’s closing bell.

After the closing bell, Tesla Motors (NASDAQ:TSLA) reported adjusted quarterly earnings of 12 cents per share, running over expectations of only 3 cents per share. It was Tesla’s first profitable quarter. After-hours trading sent the company’s share price for a ride on one of CEO Elon Musk’s rockets, soaring more than 26 percent higher than the $55.79 at Wednesday’s closing bell.

The Dow gained 48 points to finish Wednesday’s trading session at a new record-high of 15,105.12 for a 0.32-percent advance. The Dow reached a new record intraday high of 15,106.81. The S&P 500 (NYSEARCA:SPY) advanced 0.41 percent to close at yet another record high of 1,632.69 after setting a new intraday record high of 1,632.78. The Nasdaq 100 (NASDAQ:QQQ) climbed 0.52 percent to 2,968. The Russell 2000 (NYSEARCA:IWM) advanced 0.27 percent to end the day at 970.

In other major markets, oil (NYSEARCA:USO) advanced 1.15 percent to close at $34.40. On London’s ICE Futures Europe Exchange, June futures for Brent crude oil  declined by 11 cents, or 0.11 percent, to $103.96/bbl. (NYSEARCA:BNO). June gold futures  advanced by $23.70 (1.64 percent) to $1,472.50 per ounce (NYSEARCA:GLD). Transports continued to get good mileage on Wednesday, with the Dow Jones Transportation Index (NYSEARCA:IYT) rising 0.29 percent.

European stocks advanced as well, as fears eased concerning the possibility that Germany may have entered a recession with the rest of the euro zone (NYSEARCA:VGK). Wednesday’s report from Destatis indicated that Germany’s industrial production increased by 1.2 percent in March on a month-over-month basis (NYSEARCA:EWG). The Euro STOXX 50 Index finished with a 0.56-percent climb to 2,784 — remaining above its 50-day moving average of 2,662.

In Japan, stocks made a big advance as the yen dropped as low as 99.14 per dollar during Wednesday’s trading session in Japan. “Yenny watch” has resumed as the exchange rate for the yen approaches one cent — at which point it will become the yenny.  A weaker yen results in more-competitive prices for Japanese exports in foreign markets (NYSEARCA:FXY). The Nikkei 225 Stock Average surged 0.74 percent to 14,285 (NYSEARCA:EWJ).

In China, stocks advanced following the release of the highly-controversial April trade balance report from the General Administration of Customs in Beijing. The report’s boast of a 14.7 percent increase in exports has been widely criticized by analysts from Nomura, Bank of America, and Mizuho Securities because most of the reported exports could be explained by a 57-percent increase in shipments to Hong Kong, which were allegedly conducted as an obfuscation tactic to conceal capital flows into China. The Shanghai Composite Index advanced 0.48 percent to 2,246 (NYSEARCA:FXI). Hong Kong’s Hang Seng Index climbed 0.86 percent to 23,244 (NYSEARCA:EWH).

Technical indicators reveal that the S&P 500 is climbing further above its 50-day moving average of 1,565 after hitting a new record-high close of 1,632.69 — motivating bears to hope that we are watching the formation of a head-and-shoulders pattern, which would signal a decline. Its Relative Strength Index advanced from 66.99 to 68.58 — just below the threshold level of 70. Most investors consider a Relative Strength Index above 70 as an “overbought” signal. The MACD continues to make a further break above the signal line, suggesting the likelihood of a further advance.

For the day, all sectors finished solidly in positive territory except for utilities, which fell back into the red by 88 basis points. Materials, financial, and technology led the group.

Consumer Discretionary (NYSEARCA:XLY):  +0.07 percent

Technology (NYSEARCA:XLK):  +0.80 percent

Industrials (NYSEARCA:XLI):  +0.63 percent

Materials (NYSEARCA:XLB):  +0.87 percent

Energy (NYSEARCA:XLE):  +0.16 percent

Financials (NYSEARCA:XLF):  +0.81 percent

Utilities (NYSEARCA:XLU):  -0.88 percent

Health Care (NYSEARCA:XLV):  +0.29 percent

Consumer Staples (NYSEARCA:XLP):  +0.12 percent

Bottom line: Earnings reports continue to fuel the ongoing stock market rally, which — according to Nouriel Roubini (a/k/a Dr. Doom) — could go on for another year or two before the next crash.

Disclaimer: The content included herein is for educational and informational purposes only, and readers agree to Wall Street Sector Selector’s Disclaimer, Terms of Service, and Privacy Policy before accessing or using this or any other publication by Wall Street Sector Selector or Ridgeline Media Group, LLC.

John Nyaradi is the author of The ETF Investing Premium Newsletter.

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After several days of anticipation, the Dow Jones Industrial Average (NYSEARCA:DIA) finally closed above 15,000 as Caterpillar (NYSEARCA:CAT) crawled its way to the front with a 2.51-percent gain while pulling the other 29 components far enough across the critical mark. The Dow gained 87 points to finish Tuesday’s trading session at 15,056.20 for a 0.58-percent advance.

Although the S&P 500 (NYSEARCA:SPY) had its usual record-breaking day, the Nasdaq 100 (NASDAQ:QQQ) actually finished in the red.  The S&P 500 climbed 0.52 percent to close at yet another record high of 1,625.96 after setting a new intraday record high of 1,626.03.

The Nasdaq 100 declined by 0.08 percent to 2,952. The Nasdaq Composite had better luck, advancing 0.11 percent to close at 3,396.63 after setting a 12-year record intraday high of 3,402.24. The Russell 2000 (NYSEARCA:IWM) climbed 0.84 percent to end the day at 967.

The entire tech sector had a bad day as Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), and Google (NASDAQ:GOOG) all fell into negative territory. On the other hand, the stock to own on Tuesday was MercadoLibre (NASDAQ:MELI), which closed with a gain of 17.88 percent.  The “Amazon” of the Amazon beat expectations with quarterly earnings of 40 cents per share on net income of $17.5 million.

In other major markets, oil (NYSEARCA:USO) declined 0.38 percent to close at $34.01. On London’s ICE Futures Europe Exchange, June futures for Brent crude oil  declined by $1.37 (1.30 percent) to $103.66/bbl. (NYSEARCA:BNO). June gold futures declined by $17.30, or 1.18 percent, to $1,450.70 per ounce (NYSEARCA:GLD). Transports lit the afterburner on Tuesday, with the Dow Jones Transportation Index (NYSEARCA:IYT) surging 1.60 percent.

European stocks advanced as earnings reports from the financial sector beat expectations (NYSEARCA:VGK). HSBC (NYSE:HBC), Société Générale, Commerzbank, and Allianz were the biggest winners.

The Euro STOXX 50 Index finished with a 0.67-percent climb to 2,769 — remaining above its 50-day moving average of 2,660. After breaking above its overhead resistance level of 2,700 on January 21, the STOXX 50 immediately retreated and spent the next three months trying to surpass that barrier.

In Japan, stocks soared to their highest level since June 2008 after the stock market opened for the first time since the Golden Week holiday. The rally was apparently motivated by Friday’s non-farm payrolls report from the United States as well as continued weakening of the yen. The Nikkei 225 Stock Average skyrocketed an enormous 3.55 percent to 14,180 (NYSEARCA:EWJ).

In China, stocks advanced in anticipation of a favorable trade balance report, which will be released on Wednesday. The Shanghai Composite Index advanced 0.20 percent to 2,235 (NYSEARCA:FXI). Hong Kong’s Hang Seng Index climbed 0.58 percent to 23,047 (NYSEARCA:EWH).

Technical indicators reveal that the S&P 500 is climbing further above its 50-day moving average of 1,562 after hitting a new record-high close of 1,625.96 — motivating bears to hope that we are watching the formation of a head-and-shoulders pattern, which would signal a decline.  Its Relative Strength Index advanced from 64.91 to 66.99, just below the threshold level of 70.

Most investors consider a Relative Strength Index above 70 as an “overbought” signal.  The MACD continues to make a further break above the signal line, suggesting the likelihood of a further advance.

For the day, most sectors finished solidly in positive territory, except for technology, which slipped into the red by 6 basis points. After breaking out of a losing streak, utilities led the group, followed closely by materials and industrial.

Consumer Discretionary (NYSEARCA:XLY):  +0.84 percent

Technology (NYSEARCA:XLK):  -0.06 percent

Industrials (NYSEARCA:XLI):  +0.92 percent

Materials (NYSEARCA:XLB):  +0.93 percent

Energy (NYSEARCA:XLE):  +0.72 percent

Financials (NYSEARCA:XLF):  +0.52 percent

Utilities (NYSEARCA:XLU):  +0.97 percent

Health Care (NYSEARCA:XLV):  +0.32 percent

Consumer Staples (NYSEARCA:XLP):  +0.78 percent

Bottom line: Despite the fact that the tech sector had a bad day, all other sectors rallied, sending the Dow Jones Industrial Average to its first close above 15,000 as the S&P 500 also set new records for intraday and closing highs.

Disclaimer: The content included herein is for educational and informational purposes only, and readers agree to Wall Street Sector Selector’s Disclaimer, Terms of Service, and Privacy Policy before accessing or using this or any other publication by Wall Street Sector Selector or Ridgeline Media Group, LLC.

John Nyaradi is the author of The ETF Investing Premium Newsletter.

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The Nasdaq Composite index hit at 12-year record high of 3,396.21 during intraday trading on Monday, thanks to a 2.38-percent advance by Apple (NASDAQ:AAPL). Barclays raised its price target on Apple from $465 to $525, and the iPhone maker spent most of the day above $460. Once again, the S&P 500 (NYSEARCA:SPY) was not the only index setting a record high.

Monday’s big winner was Tesla Motors (NASDAQ:TSLA), which skyrocketed 9.07 percent as gamblers jumped on-board in advance of Wednesday’s earnings report. On Monday, the company announced it had hired Chris Porritt as its vice president of vehicle engineering. Porritt had earlier been employed as chief engineer of vehicle engineering at Aston Martin.

Cliff’s Natural Resources (NYSEARCA:CLF) jumped 5.52 percent to $21.01 as the stock was upgraded by Mitesh Thakkar from Market Perform to Outperform.  Unfortunately, the jump did not do much for the materials sector, which made a modest 0.28-percent advance.

The Dow Jones Industrial Average (NYSEARCA:DIA) slipped by only 5 points from Friday’s record-high close to finish Monday’s trading session at 14,968 for a 0.03-percent dip.  The S&P 500 advanced 0.19 percent to close at yet another record high of 1,617.50 after setting a new intraday record high of 1,619.77.

The Nasdaq 100 (NASDAQ:QQQ) climbed 0.37 percent to 2,955. The Nasdaq Composite advanced 0.19 percent to close at 3,392.97. The Russell 2000 (NYSEARCA:IWM) climbed 0.56 percent to end the day at 959.

In other major markets, oil (NYSEARCA:USO) advanced 0.38 percent to close at $34.14. On London’s ICE Futures Europe Exchange, June futures for Brent crude oil  advanced by $1.16, or 1.12 percent, to $104.87/bbl. (NYSEARCA:BNO). June gold futures  advanced by $5.30, or 0.36 percent, to $1,469.50 per ounce (NYSEARCA:GLD). Transports remained in overdrive on Monday, with the Dow Jones Transportation Index (NYSEARCA:IYT) surging 1.36 percent.

European stocks declined after the final Markit Eurozone PMI for April came in at a contractionary 46.9 and Eurostat reported that euro zone retail sales declined by 0.1 percent in March. For the 27-nation European Union, March retail sales fell by 0.2 percent (NYSEARCA:VGK).

The Euro STOXX 50 Index finished Monday’s trading session with a 0.48-percent decline to 2,750 — remaining above its 50-day moving average of 2,656. After breaking above its overhead resistance level of 2,700 on January 21, the STOXX 50 continues to test resistance at that level, which had been a barrier since the beginning of the year.

In Japan, the Tokyo Stock Exchange (NYSEARCA:EWJ) was closed on Monday, which was the last day of the Golden Week. Trading will resume on Tuesday.

In China, stocks made a big advance despite disappointing PMI data from Markit Economics. The HSBC China Services Business Activity Index dropped to 51.1 in April from 54.3 in March for the weakest expansion of service sector activity since August 2011. The April HSBC China Composite PMI (which covers both manufacturing and services) declined to 51.1 from 53.5 in March, indicating the weakest rate of expansion since last October. The Shanghai Composite Index (NYSEARCA:FXI) jumped 1.17 percent to 2,231. Hong Kong’s Hang Seng Index (NYSEARCA:EWH) surged 0.99 percent to 22,915.

Technical indicators reveal that the S&P 500 is climbing further above its 50-day moving average of 1,559 after hitting a new record-high close of 1,617.50 — motivating bears to hope that we are watching the formation of a head-and-shoulders pattern, which would signal a decline. Its Relative Strength Index advanced from 64.15 to 64.91, holding below the threshold level of 70. Most investors consider a RSI above 70 as an “overbought” signal. The MACD continues to make a further break above the signal line, suggesting the likelihood of a further advance.

For the day, most sectors finished solidly in positive territory, though not utilities, consumer staples, and healthcare. The financial sector led the group as the lone one with an advance in excess of one percent.

Consumer Discretionary (NYSEARCA:XLY):  +0.32 percent

Technology (NYSEARCA:XLK):  +0.48 percent

Industrials (NYSEARCA:XLI):  +0.64 percent

Materials (NYSEARCA:XLB):  +0.28 percent

Energy (NYSEARCA:XLE):  +0.68 percent

Financials (NYSEARCA:XLF):  +1.06 percent

Utilities (NYSEARCA:XLU):  -1.39 percent

Health Care (NYSEARCA:XLV):  -0.65 percent

Consumer Staples (NYSEARCA:XLP):  -0.73 percent

Bottom line: Monday’s record-setting stock market bullishness was the result of good news about particular companies, rather than any economic data or government reports — demonstrating how the slightest sparks of upbeat information can send the bulls out for another record-breaking romp.

Disclaimer: The content included herein is for educational and informational purposes only, and readers agree to Wall Street Sector Selector’s Disclaimer, Terms of Service, and Privacy Policy before accessing or using this or any other publication by Wall Street Sector Selector or Ridgeline Media Group, LLC.

John Nyaradi is the author of The ETF Investing Premium Newsletter.

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