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06Aug2015 Market Update: Markets Temporary Stop Steep Morning Fall As Has Oil Prices, Investors Are Worried About Tomorrow's Payroll And Earnings Reports

Written by Gary

U.S. averages were sliding seriously downward from the opening bell, but stopped the decent just before 1 pm. Most of this bearish activity is worried investors concerned about tomorrow's payroll and earnings reports plus fading revenue from cable television.

In the meantime, WTI oil fell to its support (~44.22) and set multi-month lows, then rebounded strongly which may mean absolutist nothing, but bearish analysts seem valid for a further decline.

Here is the current market situation from CNN Money

North and South American markets are lower today with shares in U.S. off the most. The S&P 500 is down 0.82% while Mexico's IPC is off 0.05% and Brazil's Bovespa is lower by 0.03%.

Deflation is spreading through the global oil industry. The current outlook for prices and demand implies a hit to oil producers' revenue of about $4.4 trillion over the next three years. Oil on Thursday dropped significantly as investors and traders sought clues about the market's next bottom after a large drop in U.S. crude inventories failed to boost prices.

Traders Corner - Health of the Market

Index Description Current Value Members Sentiment: % Bullish (the balance is Bearish) 61%
CNN's Fear & Greed Index Above 50 = greed, below 50 = fear 28%
Investors Intelligence sets the breath Above 50 bullish 43.1% Overbought / Oversold Index ($NYMO) anything below -30 / -40 is a concern of going deeper. Oversold conditions on the NYSE McClellan Oscillator usually bounce back at anything over -50 and reverse after reaching +40 oversold. +4.08 NYSE % of stocks above 200 DMA Index ($NYA200R) $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.

40.87% NYSE Bullish Percent Index ($BPNYA) Next stop down is ~57, then ~44, below that is where we will most likely see the markets crash. 48.06% S&P 500 Bullish Percent Index ($BPSPX) In support zone and rising. ~62, ~57, ~45 at which the markets are in a full-blown correction. 51.80% 10 Year Treasury Note Yield Index ($TNX) ten year note index value 22.36 Consumer Discretionary ETF (XLY) As long as the consumer discretionary holds above [66.88], all things being equal, it is a good sign for stocks and the U.S. economy 78.00 NYSE Composite (Liquidity) Index ($NYA) Markets move inverse to institutional selling and this NYA Index is followed by Institutional Investors 10,786

What Is Moving the Markets

Here are the headlines moving the markets.

Bank of England signals early 2016 hike after sterling climb

LONDON (Reuters) - The Bank of England pointed to a possible increase in interest rates early next year, after only one of its top policymakers backed an immediate move and the Bank forecast a slow pick-up in inflation from zero thanks to a strong pound.

Mylan CEO says does not 'have to' buy Perrigo, has other options

NEW YORK (Reuters) - Generic drugmaker Mylan Inc's chief executive said on Thursday that acquiring Perrigo Co was not a must and that it had other options should Perrigo successfully fend off Mylan's $34 billion hostile offer.

BlackRock betting big data can help revive its active equity funds

NEW YORK (Reuters) - BlackRock Inc CEO Larry Fink is betting that a trillion points of data can help revive his firm's ailing stock-picking business.

Investor Ackman takes $5.5 billion stake in Cadbury owner Mondelez

(Reuters) - Activist investor William Ackman has built a stake worth about $5.5 billion in Mondelez International Inc , the maker of Cadbury chocolate and Oreo cookies, in what is seen as an attempt to push the company to boost earnings or sell itself.

Russia's Latest Land Grab Attempt In The Arctic

Submitted by Andy Tully via,

Russia is resubmitting its claim of more than 460,000 square miles of the Arctic, including the North Pole, as its sovereign territory, saying it has enough evidence to convince the United Nations that its claim is valid.

The Arctic, which is believed to contain as much as one-quarter of Earth's undiscovered oil and gas, is part of a territorial dispute involving not only Russia but also Canada, Denmark, Norway and the United States.

This is the second time Moscow has submitted a claim in the Arctic. The U.N. rejected its effort in 2002, saying the Russian government hadn't provided enough evidence that it had a right to the territory.

But in its claim filed on Aug. 3, the Russian Foreign ministry said, "To justify Russia's rights in this area, ample scientific data collected during many years of Arctic research has been used."

The statement evidently was referring to exploratory missions and development of Arctic research facilities and floating ice stations dating back to the 1930s. In fact, around that time Soviet leader Josef Stalin's Kremlin claimed a large section of the Arctic Ocean.

No one took that claim very seriously, given its forbidding climate. But as th ...

Oil at multi-month lows; hunt for new bottom as gasoline piles up

NEW YORK (Reuters) - Oil set multi-month lows on Thursday as investors and traders sought clues about the market's next bottom after a large drop in U.S. crude inventories failed to boost prices.

Fed's forecasts for jobless rate looks out of step with history

WASHINGTON (Reuters) - Most Federal Reserve policymakers expect the U.S. jobless rate will stop plunging and stabilize right around its long-term normal level, a risky forecast given that this apparently hasn't happened in at least a half century.

JPMorgan Helps Comex Avoid Gold Depletion, Boosts Registered Gold By 78% Overnight

Earlier this week, when observing the most recent drop in Comex registered gold as a result of a reclassification by the gold vaults of JPM and Brink's of 25,386 ounces of registered gold into eligible (alongside the withrawal of 200,752 ounces of eligible gold from JPM), we wondered if Comex "may be on the edge" since after the adjustment, Comex registered gold had dropped to a never before seen low of just over 10 tons, resulting in record high gold coverage ratio of 124 ounces in outstanding gold open interest for every ounce of physical.

To be sure, we had no explanation for the drop, but we did muse that "the mainstream press will once again start paying close attention to the total, and especially registered, gold held at the Comex: at a pace of 25K a day, the gold vaults that make up the CME's vaulting system would be depleted in just under two weeks of daily withdrawals."

And while the mainstream press has certainly not opined on the peculiar events at the Comex, we have been paying particularly close attention to the daily Comex gold updates, and is probably why we were less than surprised to see that just 2 days after our report, the Comex once again succeeded in sweeping default fears under the rug by boosting its eligible gold by a whopping 78% overnight, from 362K ounces to 643K, thereby pushing deliverable gold from its all time lows.

Biotechs Battered Into Correction - Biggest Drop Since May To 1-Month Lows

Yellen Capital is backing up the truck... as Biotechs drop 11% from the highs, officially in correction.

S&P Biotechs down 5% - biggest drop since May...

Exclusive: UBS closes Paulson Advantage feeder fund - sources

BOSTON (Reuters) - UBS AG shut down a feeder fund at the end of July that provided wealthy clients access to billionaire investor John Paulson's Advantage fund due to the high cost of operating that portfolio, two sources said on Thursday.

New York Times revenue misses as print ad sales fall again

(Reuters) - New York Times Co reported lower-than-expected quarterly revenue as its print advertising sales fell for the fourth straight quarter.
< ...

Wall St. falls as media stocks slump; jobs data awaited

(Reuters) - U.S. stocks fell on Thursday as a spate of poor earnings reports from media companies added to investors' nervousness ahead of a key jobs data that could provide clues regarding the timing of a rate hike.

Stocks Are Tanking - Dow Hits 6-Month Lows

The Dow is now down for the 6th day in a row (and 11 of last 13 days) as it tests 17,400 - its lowest level since January. With The S&P and Small Caps tumbling towards red year-to-date, Nasdaq remains 2015's big winner but is falling precipitously today...

The Dow is down to 6-month lows...

as the entire equity complex tumbles..

as heavy volume is pressing stocks lower...

Right before 11:29 ET, 6k $ES_F contracts rip through that 2080 price level ET in one second. ~11:28

— rockhowse (@rockhowse) August 6, 2015

Year-to-Date, things are fading fast.

We're gonna need a bigger PPT!

Oil's $4.4 Trillion Hole

Deflation is spreading through the global oil industry. The current outlook for prices and demand implies a hit to oil producers' revenue of about $4.4 trillion over the next three years.

Wheels: Among the States, Self-Driving Cars Have Ignited a Gold Rush

The auto industry will spend billions developing the technology, and many states are being careful not to pass laws that would scare those dollars away.

Bits Blog: Teenagers Keep and Make Friends Online, Pew Says

In a survey released Thursday by the Pew Research Center, 57 percent of American teenagers age 13 to 17 say they have made a friend online.

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