Markets oped flat as expected then started to climb significantly, which was unexpected. WTI oil has recovered all of its morning losses, the U.S. dollar sea-sawing sideways and the EU markets have closed in the green.
Investor short-term indicators are fractionally bullish and trader scalping looks good to the downside, but be careful.
Here is the current market situation from CNN Money
North and South American markets are higher today with shares in Mexico leading the region. The IPC is up 0.41% while U.S.'s S&P 500 is up 0.37% and Brazil's Bovespa is up 0.05%.
$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.
(Reuters) - Wells Fargo & Co, the largest U.S. mortgage lender, reported a drop in profit for the second straight quarter as employee costs and other expenses rose at a time when it is struggling with slow revenue growth.
(Reuters) - JPMorgan Chase & Co , kicking off the second-quarter earnings season for U.S. banks, reported a stronger-than-expected rise in profit on Tuesday, helped by a drop in legal and restructuring expenses and a smaller tax bill.
(Reuters) - Natural gas producer WPX Energy Inc agreed to buy privately held RKI Exploration & Production LLC for $2.35 billion, snapping up oil-rich assets in the Permian basin on the cheap amid a steep drop in crude prices.
ATHENS/BRUSSELS (Reuters) - A secret International Monetary Fund study showed Greece needs far more debt relief than European governments have been willing to contemplate so far, as Germany heaped pressure on Athens on Tuesday to reform and win back its partners' trust.
Submitted by Charles Hugh-Smith of OfTwoMinds blog,
The problem with these policy extremes is that they are so painfully visibly acts of central-planning desperation.
It is perhaps fitting that I am posting a call for a financial crisis that fails to respond to the usual central-planning manipulations on Bastille Day. There are two main lessons for the present era we can draw from the storming of the much-hated Bastille fortress-prison by a revolutionary mob in 1789 Paris:
1. The authorities can only keep a lid on a simmering stew of injustice, inequality and structural imbalances for so long before the pot boils over.
2. Last-minute baby-step reforms designed to placate the masses (i.e. simulacra reforms that are all show and no substance) cannot resolve the crisis; rather, they only reveal the full depth of the injustices, inequalities and imbalances.
We are in the endgame of central planners' attempts to keep the lid on the simmering stew of profound imbalances that characterize the status quo. As I have described many times, Maintaining the Illusion of Stability Now Requires Ever-Greater Extremes of central-planning policies.
Mortgage/housing market melting down due to systemic fraud? Nationalize the mortgage market. This is what the federal/Federal Reserve central planners did post-2008, as 97% of all mortgages were guaranteed by federal agencies and the Fed bought $2 trillion of the $10 trillion outstanding mortgages in the U.S.--fully 20% of the entire mortgage market.
Stock market bubble popping? Ban short-selling, criminal ...
WASHINGTON (Reuters) - U.S. retail sales unexpectedly fell in June as households cut back on purchases of automobiles and a range of other goods, which could raise concerns the economy was slowing again.
Econintersect's analysis of final business sales data (retail plus wholesale plus manufacturing) shows unadjusted sales declined compared to the previous month. Even with inflation adjustments, business sales is in contraction. The inventory-to-sales ratios remain at recessionary levels.
With a 0.3% rise MoM (as expected), Business Inventories grew for the 4th month in a row (but growth slowed in May from April). Sales rose slightly more MoM (+0.4%) but this left the crucial inventories-to-sales ratio deep in recession territory.
Highest level of inventories-to-sales since Lehman...
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