By Bill Taylor-CEO, Fintegration/FintekNews & CIO, TLC Capital Group
12/18/16 Daily Closing Analysis – NASDAQ Fintech Index (KFTX)
Fintech rests. Pause, rest, stop and/or any other words you can come up with that says the NASDAQ KFTX fintech index basically halted movement today closing at 1067.67, off 1.79 points (-0.17%). After a busy morning, with options expiration, the rest of the day slacked off.
With that dull beginning statement let’s hunt down any (fingers crossed) of the index’s stocks that made a 2 point and/or 3% today.
ADS -2.55 (228.83)
DNB -2.08 (120.03)
LC +.21 (5.33) +4.10%
MKTX -4.73 (162.39)
RATE +.40 (10.35) +4.02%
Well, there were 5 at least. Rest of the others made the breadth a negative one with only 18 issues up and 31 down. Rest in peace Friday.
A down week. Following last week’s big leap upward, the KFTX turned lower this past week with a loss of 10.93 points (-1%) and settled at 1067.67. Didn’t give all the gains up, but ran out of steam as the week wore on. Let’s take a look at all the stocks in the index that moved at least 3% or more for the week.
ACIW -7.52% (18.07)
BOFI -4.74% (27.34)
ENV +5.77% (36.65)
EVTC -4.04% (17.80)
FLT -3.02% (148.04)
GDOT -3.63% (23.98)
LC -4.99% (5.33)
PAY +9.03% (18.43)
SQ +3.21% (14.38)
VNTV +3.49% (58.79)
WU -3.45% (21.25)
Not a long list which kind of sums up the whole fintech index; soft and pausing. The week’s breadth was fairly bearish with 17 issues up 31 down and 1 unchanged.
Looking ahead, this week would seem to be the beginning of a very subdued and quiet time with all the holidays rapidly approaching. Of course, there is always the unforeseen global event that could rock things. With that ‘disclaimer’ now in place I’m off the hook if markets jump wildly. In any event, the fintech index and sector just look tired and ready to pause for awhile. Personal opinion, there may be a little upward bias left but I would be very cautious and nervous up in these levels. Have a great rest of the weekend.