FB, NFLX, TWTR - momo stocks catch a bid

Whilst the broader market was weak across the day, there was notable strength in some of the momo stocks. Facebook (FB), Netflix (NFLX), and Twitter (TWTR) settled higher by 0.9%, 1.3%, and 2.2% respectively. The strong reversal from the opening declines is arguably indicative of a key floor.


FB,daily

NFLX, daily

TWTR, daily

Summary

Little to add.

Suffice to say.. of all the sectors/stocks today... the momo stocks stood out at the close.

In particular, Facebook and Twitter both closed with particularly bullish candles.
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*I have ZERO interset in getting involved in any of the momo stocks, but they can often be useful to keep an eye on, as an early warning of a trend change in the broader market.

CHK, CNX, SDRL - energy stocks under severe pressure

With WTIC Oil seeing a severe net Monday decline of around -6%, most energy stocks were severely impacted. Chesapeake Energy (CHK), Consol Energy (CNX), and Seadrill (SDRL), settled lower by -6.4%, -15.0%, and -9.8% respectively. Current price action offers no sign of a short term floor.


CHK, daily

CNX, daily

SDRL,daily

Summary

*I could highlight a great many energy stocks, but for today.. the above 3 will have to suffice.
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re: Oil. With OPEC completely abandoning any kind of supply ceiling.. never mind any actual cuts, the oil market continues to spiral lower.

For the moment, there is absolutely ZERO sign of a floor.

Naturally.. most energy related stocks are imploding, breaking new multi-year.. even multi-decade lows.
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The energy sector is yet to see the capitulation that will be necessary for supply to balance against demand. Such capitulation will by definition require far more significant cuts... with some companies not surviving - as has been the case in the coal industry.

TVIX, UVXY - a third weekly decline

With equities soaring into the weekend, the VIX was crushed, and that sure didn't help the 2x lev' bullish VIX instruments of TVIX and UVXY, which saw net weekly declines of -8.4% and -8.9% respectively. Near term outlook offers further equity upside, and that will equate to VIX losing the teens.


TVIX, daily

UVXY, daily

Summary

*first, an update on the VIX, which saw a net weekly decline of -2.0%.

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As for TVIX and UVXY, it was all going so well into the Thursday close.. but with an effective equity hyper-ramp.. the VIX was crushed into the weekend.

VIX looks set to remain broadly subdued into year end. Sustained action above the 20 threshold looks out of range.

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*I have ZERO interest in being long the VIX until spring 2016 at the earliest.