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03Dec2015 Market Update: Oil Up On No News, US Markets Continue To Slide, Investors Very Leary Of Bull Run Continuing

Written by Gary

US markets continue the morning slide where the small caps are showing more than a one percentage point decline. The US Dollar plunges under the weight of short-squeezed EUR FX traders, so commodities are making gains. WTI continues to be the highest beta and has soared back to yesterday's highs on no news whatsoever.

Here is the current market situation from CNN Money

North and South American markets are mixed. The Bovespa is higher by 3.44%, while the IPC is leading the S&P 500 lower. They are down 1.02% and 0.82% respectively.

Traders Corner - Health of the Market

Index Description Current Value Members Sentiment: % Bullish (the balance is Bearish) 64%
CNN's Fear & Greed Index Above 50 = greed, below 50 = fear 52%
Investors Intelligence sets the breath Above 50 bullish 49.5% Overbought / Oversold Index ($NYMO) anything below -30 / -40 is a concern of going deeper. Oversold conditions on the NYSE McClellan Oscillator usually bounce back at anything over -50 and reverse after reaching +40 oversold. -1.18 NYSE % of stocks above 200 DMA Index ($NYA200R) $NYA200R chart below is the percentage of stocks above the 200 DMA and is always a good statistic to follow. It can depict a trend of declining equities which is always troubling, especially when it drops below 60% - 55%. Dropping below 40%-35% signals serious continuing weakness and falling averages. 36.91% NYSE Bullish Percent Index ($BPNYA) Next stop down is ~57, then ~44, below that is where we will most likely see the markets crash. 54.56% S&P 500 Bullish Percent Index ($BPSPX) In support zone and rising. ~62, ~57, ~45 at which the markets are in a full-blown correction. 67.80% 10 Year Treasury Note Yield Index ($TNX) ten year note index value 23.12 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 80.08 NYSE Composite (Liquidity) Index ($NYA) Markets move inverse to institutional selling and this NYA Index is followed by Institutional Investors 10,324

What Is Moving the Markets

Here are the headlines moving the markets.

Staples ready to sell more assets for Office Depot deal approval: Bloomberg

(Reuters) - Office supplies retailer Staples Inc is willing to sell more assets to win antitrust approval for its $6.3 billion takeover of Office Depot Inc , Bloomberg reported on Thursday, citing two people familiar with the matter.

Former Massey exec found guilty of conspiracy in West Virginia mine blast

CHARLESTON, W. Va. (Reuters) - Former Massey Energy Chief Executive Don Blankenship was found guilty on Thursday of conspiracy to violate mine and safety standards in a trial over the 2010 explosion at the Upper Big Branch mine that killed 29 people.

U.S. services sector cools, but economy growing at moderate pace

WASHINGTON (Reuters) - U.S. services sector activity slowed in November but remained at levels consistent with a steady pace of economic growth for the fourth quarter, a business survey showed on Thursday.

ECB disappoints markets with bare-minimum easing package

FRANKFURT (Reuters) - The European Central Bank eased policy further on Thursday to fight stubbornly low inflation but kept much of its powder dry, disappointing high market expectations for greater stimulus.

JPMorgan defeats London Whale shareholder lawsuit in U.S

NEW YORK (Reuters) - A federal appeals court said JPMorgan Chase & Co Chief Executive Jamie Dimon and other bank officials need not face a shareholder lawsuit claiming they did a bad job investigating the 2012 "London Whale" trading scandal that caused $6.2 billion of losses.

Exclusive: Germany's RWE bets big on wind and solar in corporate overhaul

DUESSELDORF, Germany (Reuters) - RWE could triple investments in wind and solar power in a big expansion of its renewables business, its CEO told Reuters, days after the company announced it would break itself up to cope with a crisis in conventional energy generation.

Yellen gives Congress upbeat view on march towards liftoff

WASHINGTON (Reuters) - Federal Reserve Chair Janet Yellen opened a Congressional committee hearing on the U.S. economy on Thursday with an upbeat assessment of where the country stands as the Fed marches towards its first interest rate hike in a decade.

S&P downgrades holding companies of eight U.S. banks

(Reuters) - Standard & Poor's cut its nonoperating holding company (NOHC) ratings on eight U.S. "global systemically important banks" by one notch, citing uncertainty about the U.S. government's willingness to provide support to the banking system if it came under stress.

Buy the Rumor and Sell the News Alive in Forex Markets

By EconMatters

ECB Disappoints All those who continue to forget this trading maxim were royally punished on Thursday morning as the ECB could not match the trading enthusiasm built into the move in shorting the Euro and thus going long the US Dollar for the prior 7 weeks lead up into the ECB Monetary Policy Decision.

This is such a strong trading maxim to buy the rumor, and sell the actual news that it is the exception rather than the rule where an event over delivers. The best move is to take profits the day before the event as opposed to getting crushed on the news which happened t ...

WTI Crude Surges On OPEC Hope, Dollar Drop

As the USDollar plunges under the weight of short-squeezed EUR FX traders, so commodities are making gains. With OPEC right around the corner, WTI continues to be the highest beta and has soared back to yesterday's highs on no news whatsoever (apart from comments from OPEC that they will only cut if non-OPEC cuts).

There Go The Truckers: Unprecedented 59% Plunge In November Heavy Truck Orders

The rout beneath the relative calm of the market surface continues today as another sector has gotten crushed today in reaction to the domestic and global collapse in trade, the spreading domestic manufacturing recession and the bursting of the commodity bubble: truckers, and especially the heaviest, Class 8 trucks, those with a gross weight over 33K pounds, those which make up the backbone of U.S. trade infrastructure and logistics.

Such as this Kenworth W900:

The following charts of Wabco and Paccar show just where the pain is most acute today:

What happened? Nothing short of a complete disintegration in the heavy trucking sector. Wells Fargo explains:

November Class 5-8 orders decreased 40% yr/yr and 26% from October. The yr/yr decline was the eighth consecutive month of Class 5-8 contraction. The decline yr/yr was driven by weaker Class 8 order intake. Class 8 orders of 16,600 were below our channel check based 22,000-25,000 expectation, dropped 59% yr/yr and 36% from October (vs. the ten-year average 7% decrease in November from October), and was the weakest order month on a seasonally adjusted basis since August 2010. Clearly, Nove ...

ECB Moves Roil Markets; Euro Soars

The euro surged to a one-month high and stock markets in Europe tumbled after the European Central Bank served up a package of stimulus measures that fell well short of many investors' expectations.

U.S. Stocks Slide as Energy Shares Weigh Again

U.S. stocks fell to session lows in early afternoon trading Thursday as all sectors in the S&P 500 traded lower and the energy sector again posted steep losses.

Guess Which Funds Missed the Gain, and Pain, of Valeant

The steep drop in Valeant's stock in recent months hurt a lot of investors, with a surprising exception: the two biggest mutual funds that specialize in health care.

October 2015 Manufacturing Improves But Still Not Good

Written by Steven Hansen

US Census says manufacturing new orders improved. Our analysis says sales did improve but are still not good. Unadjusted unfilled orders' growth remains in CONTRACTION year-over-year.

London Markets: FTSE 100 yanked lower as ECB stimulus disappoints

U.K. stocks sell off following disappointment over the European Central Bank's plan for more stimulus of the eurozone economy, the U.K. largest trading partner.

Europe Markets: European stocks slammed as ECB stimulus plans disappoint

Equities mark their worst session since late August, while the euro rallies, with investors expressing disappointment over the European Central Bank's policy adjustments.

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