The Stock Market At Close – Tuesday, September 26
The Toronto Market
The Toronto TSX composite index declined -244.46 points, or -1.23%, to close at 19,556.15. The market bear displayed its massive paws distinctly today. Any market session with a decline worse than -1.0% or gain higher than 1.0% calls for deeper than regular analysis. It is either that the market is being driven by strong downbeat (bearish) or buoyant upbeat trend (bulls in control) respectively. Either situation calls for deeper than cursory analysis.
Today, the market was driven at least in part by the 10-year yield which has stubbornly entrenched itself in the 4% plus domain. Any time the 10-year yield is higher than 3.65%, every trade should be considered a “higher than normal risk” venture.
Only the Durable Goods & Services sector gained on the TSX today. Most of the sectors were down by over 1%. The Energy sector managed to close with a -0.12% decline followed by Healthcare which declined -0.98%. Financials was next with a -1.22% decline. Technology was down -1.70%; Utilities was down -1.88% and Basic Materials was down -1.93%. It was a rough market session.
If you are a regular reader of this report, we strongly suggest that you put all trading on hold until the market reverses trend. When you preserve your capital you are ensuring that you will have available funds to trade with when the bull market returns. It is hard to make money in a downtrend market.
Today’s Statistics: The declined issues (decliners) continued to outnumber the gaining issues (advancers) today. The ratio of decliners to advancers was 4.65-to-1.00. In real numbers, 1137 decliners to 244 advancers with 193 Unchanged. There were 7 new 52-week highs and 147 new 52-week lows. The total volume of shares traded for gaining stocks was 64,396,922 or 19.3%; the total volume for declined stocks was 263,547,990 or 79.0% and 5,536,806 or 1.7% for “Unchanged”.
The total volume of stocks traded today was 333,481,718 compared to 323,297,087 yesterday, a 3.1% increase. Today’s volume at 333,481,718 was slightly higher than the most recent ten-market session average.
Yesterday, almost eight times as many stocks receded to their 52 week low compared to those reaching their new 52 week high. Today, the data is even worse. The number of stocks receding to their 52 week low is twenty times more than those reaching their 52 week high. The market probably could not be any more bearish than that. We are actually considering labelling the current market as worse than a downtrend market. Let us invent a new label – a “recession precursor” market.
The US Market
The Dow Jones Industrial Average declined -388.00 points, or -1.14%, to close at 34,006.88. The S&P 500 declined -63.91 points, or -1.47%, to close at 4,273.53. The Nasdaq Composite was down -207.71 points, or -1.57%, to close at 13,063.61. One question that comes to mind – Will Nasdaq cross the 13,000 level? The answer – that is a foregone conclusion. The more relevant question is when will Nasdaq dive down below the 13,000 level and for how long will it remain there?
All sectors of the US market declined today. The best performing sector was Healthcare sector which declined -0.65%, followed by Energy with a decline of -0.79%. Industrials declined -1.37%; Financials declined -1.48%; Technology-1.74% and Utilities declined -2.85%.
The market decline was broad based. It was a rough market day.
Today’s Statistics: Today, the declined issues (decliners) totally outnumbered the gaining issues (advancers) on both the NYSE and NASDAQ. The ratio of decliners to advancers on the NYSE was 5.88-to-1. In real numbers 584 advancers to 3,434 decliners with 220 “Unchanged”. The total volume of volume-gaining stocks was 98,861,065 or 11.0%; the total volume of declined-volume stocks was 795,050,655 or 88.5%; and 4,195,109 or 0.5% “Unchanged”.
It was a rough market day. For every 10 stocks that gained, 58 stocks declined. It must have been tough to make money unless you were a short seller. The total volume of stocks traded on the NYSE today was 898,106,829 compared to 841,581,629 yesterday, a 6.7% increase. The institutional holders must have been dumping stocks.
On the NASDAQ, the ratio of decliners to advancers was 2.13-to-1. The decliners prevailed today but the gap between the decliners and advancers was about usual. For every ten advancers there were twenty one decliners. In real numbers, 2,979 decliners to 1,395 advancers with 331 unchanged. There were 35 new 52-week highs and 390 new 52-week lows. The total volume of volume-gaining stocks was 1,529,336,363 or 31.8%; the total volume of declined-volume stocks was 3,222,464,515 or 67.1% and 51,996,468 or 1.1% for “Unchanged”.
The total volume of stocks traded today was 4,803,797,346 compared to 4,191,050,690 yesterday, an increase of 14.62%.
Regular Market Day Features
Beginner Investor’s (Canadian stocks) Watchlist
The Canadian Vanguard Chinese Stocks Watchlist
EV, Energy and Resource Stocks Watchlist
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