The SP500 squeaked past yesterday's high by 0.43 cents, again on very low volume and then fell to close at a new closing high. The only excitement for today's session was the volatility giving some traders room to trade.
By 4 pm the markets closed in the green, the $NDX up 1.33% and the $RUT down 0.3%.
Todays S&P 500 Chart
WTI oil is at 57.16 falling from morning highs of 57.87 (Chart Here), Brent has fallen to 65.30 from its high of 65.76 (Chart Here), and the U.S. Dollar lost ground now at 97.14, up from its high at 97.73 (Chart Here).
Our medium term indicators are leaning towards SELL portfolio of non-performers and the session market direction meter (for day traders) is 6 % bearish down from 21 % bearish during the morning. We remain mostly conservatively bullish, but with a bearish slant. I am very concerned any downtrend could get very aggressive in the short-term and any volatility may also promote sudden reversals that will only please the day traders. The SP500 MACD has turned flat, but remains above zero at +8.31. Watch the WTI oil prices as anything below $50 will be the first sign of a declining market in the works. Below $44 you had better put on your seat belt as the encroaching market roller coaster ride may be be very bumpy.
Having some cash on hand now is not a bad strategy as negative market changes are happening everyday, 99% of them are minor, it is that 1% I am worried about. Many investors are starting to take in some profits from 'high-fliers' as a precaution and to build a better cash base for the 'dips'.
As of now, I do see some leading indicators that are warning of a 'long-term' reversal within six months. I believe one is most likely to occur later in 2015, but any market fluctuations we see now are more of a internal market rectification than a bear market. If you are not worried, then at least be cautious. A good rule is that one cannot be prepared for a situation if you do not anticipate the possibility of that situation materializing.
The Market in Perspective
Here are the headlines moving the markets. xxxxxxxxxxx
"Within just minutes of listing the open position on our jobs page, the flood of applications from treasury.gov email addresses started rolling in, and it hasn't slowed down since," said Browning, adding that most of the Treasury regulators who applied for the job highlighted their previous experience working closely with Wall Street financial firms and included a letter of recommendation from former Treasury Secretary Henry Paulson.
"All these applicants must realize what tough competition they're up against, but at the same time, I remember how it was back when I was just another government official who was ready to make the move to the private sector. We'll definitely keep the information of those candidates who don't get the job on file for future openings."
Browning added that the new hire was needed to take over the responsibilities of a former Goldman Sachs executive who had recently left for a high-ranking position in the Securities and Exchange Commission.
NEW YORK/TOKYO (Reuters) - The Apple Watch launched quietly around the world on Friday without the usual frenzy or fanfare for an Apple Inc rollout, as a handful of boutiques in major cities like Tokyo and Paris sold the timepiece - but not for purchase at its own stores.
WOKING, Britain (Reuters) - The British trader accused of sparking market chaos in 2010 cut his teeth in a drab building in a sleepy suburb that highlights how "day traders" dreaming of glory have to first tackle grim offices, zero glamour and high risk.
One month ago we wrote about the ripple effects of the "mini-Greece going off in the heartland of Europe", referring of course to the Viennese black swan, the bailed-in implosion of the Austrian Heta bad bank which nobody had anticipated because the numbers were so thoroughly cooked, nobody had even the faintest clue just how bad the truth was. We said that "while the acute pain came and went for Heta bondholders who have seen a nearly 50% loss in just a few short months, the bigger and far more diffuse pain is only just starting.... The first casualty: the beautifully picturesque southern Austrian province of Carinthia."
As it was revealed in late March, the issues for Carinthia, the home province of doubly defunct lender Hypo Alpe Adria, is that the Heta bonds were guarante ...
Since the launch of PSPP (i.e. ECB QE) on March 9, quite a bit of attention has been paid to German Bunds. Under the program, national NCBs' share of monthly purchases is based on the ECB's capital key and as it turns out, it's going to quite difficult (if not impossible) for Germany to source enough purchasable assets given projected supply and Qâ‚¬'s structural limitations. This has led to collapsing yields which have in turn forced the ECB and the Bundesbank to look further out in terms of maturities in order to avoid the -0.20% yield floor causing an epic flattening of the Bund curve as everything converges on the depo rate.
For all the visual learners out there, here's a table showing the shortage of purchasable assets in Germanyâ€¦
...and as central bank purchases move further outâ€¦
RIGA (Reuters) - Euro zone finance ministers warned Greece on Friday that its leftist government will get no more aid until it agrees a complete economic reform plan, as Athens lurches closer to bankruptcy.
PARIS (Reuters) - French Economy Minister Emmanuel Macron said on Friday he would "talk again" with Renault boss Carlos Ghosn but reaffirmed his intention to boost the government's voting rights in the carmaker in defiance of Ghosn's wishes.
LONDON (Reuters) - HSBC, Europe's biggest bank, has ordered a review into whether it should move its headquarters out of Britain and potentially back to its former home in Hong Kong, threatening London's reputation as a global hub for finance and investment.
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