Morning markets have sea-sawed between green and red numbers finally breaking out to the upside posting 'moderate' fractional gains which have NOT been followed by the BTFDers jumping in securing the new higher level. Volume levels have remained low approaching anemic suggesting the recent non levels might not remain for long as investor confidence is very low.
Here are some thoughts reflecting investors worries.
Here is the current market situation from CNN Money
Many thoughts revolving around analysts desk this morning on market direction which would include a breakout. A breakout to the upside is possible, but believed to be only a 40% sustaining trend, while a breakout to the downside appears to be more likely. The correction percentage is another highly contested argument of 'how much' with predictions of 8% to as much as 25% later this year (October).
Crude has reached 64 dollars for the second time this year, but has stopped short going much higher. Uncharted resistance at $64/$65 perhaps? WTI has also found a resistance at ~$57/$58 and I am suspect of manipulation at this point and would disregard movements higher.
U.S. Dollar has formed a symmetrical triangle pattern this morning that contains at two lower highs and two higher lows and these can mark important trend reversals in the making.
The same can be said about today's SP500 chart being a symmetrical triangle pattern. Sideways movements can be bullish, but not being able to at least 'touch' the previous historic highs is troublesome, especially when they are within rock throwing distance. It did breakout upwards at noon, but is it a false breakout or better known as HFT computer manipulation?
U.S. Financial reports are 'not so good' lately with unemployment up, new home sales declining, factory activity showing the slowest momentum since January and rail traffic remains surprisingly weak with the rolling averages contracting.
There is defiantly a positive bullish pressure for the averages to push higher, but are having a serious time pushing above the current resistance.
Business activity weakened in China and Japan in April and growth slowed in Europe and the U.S., suggesting the global economy may be less robust than policymakers are predicting.
Sections of the U.S. financial system that may be vulnerable to investor panic are raising concerns inside the Federal Reserve, as policymakers preparing for the first interest-rate hike in nearly a decade seek to ensure the market is ready and able to handle it whenever it happens.
We have again arrived at a serious crossroad and I believe we need to wait this one out before making any serious decisions on market direction as any downward move may be in the aftermarket hours and it could be severe leaving many investors trying to catch a falling knife.
$NYA200R chart below is the percentage of stocks above the 200 DMA and is always a good statistic to follow. It can depict a trend of declining equities which is always troubling, especially when it drops below 60% - 55%. Dropping below 40%-35% signals serious continuing weakness and falling averages.
LONDON/NEW YORK (Reuters) - U.S. and British authorities fined Deutsche Bank $2.5 billion, accused Germany's largest lender of obstructing regulators and ordered it to fire seven employees in the eighth global settlement of alleged benchmark interest rate rigging.
NEW YORK (Reuters) - Janus Capital Group Inc , the firm that hired closely watched bond investor Bill Gross in September, said first-quarter earnings came in above expectations with the help of net inflows into its equity funds.
PARIS (Reuters) - French Economy Minister Emmanuel Macron has written to Renault boss Carlos Ghosn to defend the government's surprise stake increase in the carmaker and reject claims it endangers the Renault-Nissan alliance.
BRUSSELS/BERLIN (Reuters) - Greek Prime Minister Alexis Tsipras called for a speeding up of work to conclude a reform-for-cash deal with euro zone creditors to keep his country afloat after talks with German Chancellor Angela Merkel on Thursday.
(Reuters) - Wall Street stocks were little changed in late morning trading on Thursday as soft U.S., European and Chinese data, alongside disappointing earnings forecasts, were offset by gains in energy stocks as oil futures rose.
WASHINGTON (Reuters) - The number of Americans filing new claims for jobless benefits rose last week for a third straight week, but the underlying trend continued to point to solid improvement in the labor market.
CALGARY (Reuters) - Canadian Imperial Bank of Commerce is in talks with several U.S. companies on a potential $2 billion wealth-management and private-banking acquisition, its top executive said in an interview.
Econintersect: Week 15 of 2015 shows same week total rail traffic (from same week one year ago) improved according to the Association of American Railroads (AAR) traffic data. This improvement is totally due to Intermodal traffic, which accounts for half of movements - but weekly railcar counts remain in contraction. Rail traffic remains surprisingly weak with the rolling averages contracting..
WASHINGTON/NEW YORK (Reuters) - Sections of the U.S. financial system that may be vulnerable to investor panic are raising concerns inside the Federal Reserve, as policymakers preparing for the first interest-rate hike in nearly a decade seek to ensure the market is ready and able to handle it whenever it happens.
DETROIT (Reuters) - General Motors Co posted a smaller-than-expected quarterly profit on Thursday as weakness in South America and Russia hurt demand and the company's tax rate was higher than expected, sending shares down 4 percent.
(Reuters) - Two American Apparel shareholders have filed a lawsuit against the clothing and accessories retailer, alleging its founder and former Chief Executive Dov Charney was fired because he refused to sell the company.
RIO DE JANEIRO (Reuters) - Shares in Brazil's state-run oil company Petrobras fell 5 percent on Thursday, a day after it reported the largest loss ever on $17 billion in charges, giving investors a deeper look at the fallout from a huge corruption scandal.
LONDON/SYDNEY/NEW YORK (Reuters) - Business activity weakened in China and Japan in April and growth slowed in Europe and the U.S., suggesting the global economy may be less robust than policymakers are predicting.
Submitted by Charles Hugh-Smith via OfTwoMinds blog,
The only sustainable way to avoid being commoditized is to learn to create value in ways that cannot be commoditized.
Though we are still in the early stages of web-enabled automation, it's already evident that the old models of work are broken--though few are willing to admit it.The primary model of work is being an employee in a hierarchy--Corporate America or the state (government) or a government-funded industry (defense, higher education, R&D, Medicare, etc.)
The foundation of employee financial security is the paycheck, which is earned for 1) showing up and 2) following orders.
In the employee model, ownership is generally limited to those with stock options. Those working for start-ups that successfully go public can cash in their options for extraordinary profits; those working for start-ups that fizzle can use their expired options as bathroom wallpaper.
The conventional employee gets no ownership of their work, and this disconnect between the employee and the value created by the employee's labor is the source of Marx's definition of alienation: the worker is alienated from the output of his/her labor, which is owned by others.
In the new model of work, the worker has ownership of his/her work and human capital. Security in the new model flows not from dependence on an employer but on ownership of the entire process of value creation which includes the social and human capital of skills, collaboration, accountability and creativity.
I explain this process in my book
LONDON (Reuters) - After taking top executives to task over excessive pay and bonuses, investors are slowly turning their attention to the role of the chairperson, as concern about weak governance grows.
Back in December, following the Sony email leak, the world was granted a second (again uninvited) glimpse into the private life and thoughts of the person who had previously suffered another email leak, this time exposing his fraternity days explots: Snapchat founder and CEO Evan Spiegel.
And while many have been quick to mock Spiegel for some of his boyish ways, the reality is that the not only is the 24-year-old the world's youngest billionaire, but he has quickly won the admiration of Silicon Valley's brand names like Twitter CEO Dick Costolo who has said "I really think he is one of the best product thinkers out there right now."
The reason we bring up the Spiegel email leak again, some 4 months after the fact, is that while the public's attention when the email was first released focused on his strategy surrounding the growth of Snapchat, there was another far more important aspect to Spiegel's email. One that, in the aftermath of last night's Facebook earnings, has proven to be spot on.
Recall that in the latest Facebook earnings reported last night the company posted its slowest growth in quarterly revenue in two years coupled with higher spending on research and development ate into profits. Facebook has warned of heavy investments in 2015 as it steps up efforts to expand a collection of products that include messaging service WhatsApp, photo-sharing service Instagram and virtual reality headset maker Oculus Rift.
In other words, while many focus on Facebook's top-line and eyeball growth, far more importantly, Facebook's spending on user acquisition is soaring. As a result, Facebook's operating expenses rose 83% in the first quarter as R&D costs jumped 133 percent and ...
US stocks are open - Panic Buy. PMI missed! - Buy moar on bad data. New Home Sales miss - even better - buy moar as bad news is good news. Yesterday's highs hit... Stop-run complete... unleash the selling...
It appears Stocks and Oil are once again joined at the hip... until they're not...
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