FREE NEWSLETTER: Econintersect sends a nightly newsletter highlighting news events of the day, and providing a summary of new articles posted on the website. Econintersect will not sell or pass your email address to others per our privacy policy. You can cancel this subscription at any time by selecting the unsubscribing link in the footer of each email.

08Feb2016 Market Update: Averages Off Over Two Percentage Points, Crude Trading Lower In The High 29's And More Fractional Losses Forecast Today

Written by Gary

US markets are sharply lower this early afternoon and now trading more or less sideways after a selloff accelerated about an hour into the session. Energy, telecommunications and financials have led all 10 SP500 sectors in negative territory where they remain. The good news that many indicators are showing an up day tomorrow is very possible.

Here is the current market situation from CNN Money

North and South American markets are broadly lower today with shares in U.S. off the most. The S&P 500 is down 2.14% while Mexico's IPC is off 1.11% and Brazil's Bovespa is lower by 0.56%.

Traders Corner - Health of the Market

Index Description Current Value Members Sentiment: % Bullish (the balance is Bearish) 57%
CNN's Fear & Greed Index Above 50 = greed, below 50 = fear 19%
Investors Intelligence sets the breath Above 50 bullish 28.0% 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.

+15.23 NYSE % of stocks above 200 DMA Index ($NYA200R) $NYA200R chart below is the percentage of stocks above the 200 DMA and is always a good statistic to follow. It can depict a trend of declining equities which is always troubling, especially when it drops below 60% - 55%. Dropping below 40%-35% signals serious continuing weakness and falling averages. 19.90% NYSE Bullish Percent Index ($BPNYA) Next stop down is ~57, then ~44, below that is where we will most likely see the markets crash. 29.49% S&P 500 Bullish Percent Index ($BPSPX) In support zone and rising. ~62, ~57, ~45 at which the markets are in a full-blown correction. 31.60% 10 Year Treasury Note Yield Index ($TNX) ten year note index value

17.59 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

68.26 NYSE Composite (Liquidity) Index ($NYA) Markets move inverse to institutional selling and this NYA Index is followed by Institutional Investors 9,203

What Is Moving the Markets

Here are the headlines moving the markets.

India introduces net neutrality rules barring Facebook's free Internet

NEW DELHI/MUMBAI (Reuters) - India introduced rules on Monday to prevent Internet service providers from having different pricing policies for accessing different parts of the Web, in a setback to Facebook Inc's plan to roll out a pared-back free Internet service to the masses.

U.S. inflation survey tumbles in red flag for Fed

NEW YORK (Reuters) - An increasingly important gauge of U.S. inflation tumbled last month to its lowest level since the Federal Reserve Bank of New York began the survey in mid-2013, in what could be taken as another warning bell for the U.S. central bank.

Chesapeake Energy taps restructuring lawyers

(Reuters) - Natural gas producer Chesapeake Energy has tapped existing adviser Kirkland & Ellis to explore restructuring options, people familiar with the matter told Reuters.

Wall St. in selloff mode as techs extend rout, oil falls

(Reuters) - Wall Street was deep in the red in volatile trading on Monday, as technology stocks continued to sell off and oil prices remained under pressure, sending investors scurrying to safe-haven assets.

Wall St. crooks get a screen test - and this time pull in big audiences

NEW YORK (Reuters) - Wall Street villains are having their big moment on both television and the big screen.

Cloud and data analytics stocks extend losses after bloodbath

(Reuters) - Shares of companies offering data analytics and cloud services, including Tableau Software Inc, fell sharply again on Monday amid worries that their customers were cutting spending.

Oil prices slide, supply overhang in focus

LONDON (Reuters) - Crude oil prices fell on Monday because of lingering concerns over a supply overhang and after a Saudi-Venezuela meeting showed few signs that steps would be taken to boost prices.

Credit Suisse's Thiam wants his bonus to be cut up to 50 percent: report

ZURICH (Reuters) - Credit Suisse Chief Executive Officer Tidjane Thiam has asked the bank's board to cut his 2015 bonus by between 25 percent and 50 percent, the Financial Times reported on Monday, after the bank posted a 2.94 billion Swiss franc ($2.96 billion) loss last year.

For sugar tax supporters, 2016 may be the sweet spot

LONDON (Reuters) - 2016 could be the year of the sugar tax, as several large nations consider levies on sweetened food and drinks to battle obesity and fatten government coffers.

The Financial (Under)World Is Catching Down To The "Economy Of Actual Stuff"

Submitted by Howard Kunstler via,

The remaining Americans sound-of-mind must view the primary election spectacle with mounting sensations of wonder, nausea, and panic. It's one thing for the financial system to crack up, and another thing for social norms to disintegrate, and still another for the political system to become a locked ward of obvious psychopathology. Even the neurosurgeon on duty went narcoleptic the other night when his name was called to take the stage.

Last week's candidate "debates" (or boasting contests) only underscored the human frailty on display. Marco Rubio was unmasked as an android with a broken flash drive. For a few moments I thought I was seeing an clip from the old movie Alien. In fact, the Republican melodrama more and more echoes the tone and plot of that story: a hapless, bumbling crew lost in space. One of these nights, something unspeakable is going to shoot out of Donald Trump's mouth and there will be blood all over the podiums.

The Democratic boasting contest was not more reassuring. Bernie blew his biggest chance yet to harpoon the white whale known as Hillary when he cast some glancing aspersions on Mz It's-My-Turn's special side-job as errand girl of the Too-Big-To-Fail banks. Together, Bill and Hillary racked up $7.7 million on 39 speaking gigs to that gang, with Hillary clocking $1.8 million of the total for eight blabs. When Bernie alluded to this raft of grift, MzIMT retorted, "If you've got something to say, say it directly."

There was a lot Bernie could have said, ...

Don't Show Wolfgang Schaeuble This Chart

At this rate, Germany will be asking Greece for a bailout...

Germany's largest bank's credit risk is accelerating unbelievably... as Greek banks improve.

Is it time to panic yet?

Utilities Winning By Not Losing

Via Dana Lyons' Tumblr,

While the broad stock market has been getting hammered, the utility sector hit a 52-week high this week - and achieved a significant relative breakout.

Our firm's philosophy when it comes to investment selection, i.e., where to invest, is to concentrate in the strongest performing areas of the market. We refer to this as relative strength. Typically, this means the sectors that are rising more than the rest, especially on a risk-adjusted basis. Occasionally, though - in a market correction or bear market - it can mean the sectors that just aren't losing ground, or are losing the least. This is the case currently with the utility sector. For, while most areas of the market are off to a historically weak start, utilities are up 8% for 2016, as measured by the Dow Jones Utility Average (DJU). Furthermore, while the DJU is up a mere 1.7% over the past 52 weeks, it is nevertheless at a 52-week high.


Additionally, as the chart indicates, the utility sector has broken out of a well defined downtrend on a relative basis versus the S&P 500. While there is no guarantee, this does suggest that, over the longer-term, the utility sector could be in the early staged of out-performance versus the market. And based on past occurrences when we have witnessed relative breakouts of some variation (e.g., 2000, 2007), this is not necessarily a positive development for stocks overall.

It remains to be seen whether similarly challenging times will materialize for the broader market versus utilities over the longer-term, but ...

Europe Closes "On The Lows": Deutsche Bank Plunges 11% To 7 Year Lows

BTFD? Deutsche Bank stock crashed over 11% today (the most since July 2009) to its lowest since January 2009 record lows. We have detailed at length why this is a major systemic problem and we wonder how anyone can view this chart and not question their full faith in central planners engineering of the 'recovery'. Nothing is fixed and it's starting to become very obvious!

Does this look like a buying opportunity? At EUR13.465 today, DB is within pennies of the all-time record lows of EUR13.385...

As we explained earlier, since Europe unleashed their "Bail-In" regulations, European banks have utterly imploded with Deustche most systemically affected as it seems more than one person is betting that Deutsche will be unable to raise enough capital and will be forced to haircut depositors on up in the capi ...

Global Stocks Fall as Brief Oil Rally Fades

The flight from risky assets accelerated Monday, sending the Dow industrials sliding more than 2% and pummeling shares of banks in the U.S. and Europe.

Why European Bank Stocks Are Getting Clobbered

Stocks and bonds of European banks are selling off sharply. That is because a big profitability problem risks making their other, known issues worse.

Chesapeake Responds to Stock Drop, Says Doesn't Plan Bankruptcy

Chesapeake Energy said it œhas no plans to pursue bankruptcy after reports intensified such fears, cutting its stock in half in early trading.

January 2016 Conference Board Employment Index Improves Again

Written by Steven Hansen

The Conference Board's Employment Trends Index - which forecasts employment for the next 6 months - improved again this month "reducing the likelihood of further slowing in employment growth". Consider that this projected growth is six months from now.

The Margin: How to get a free Chipotle burrito

Chipotle has had a rough go after several foodborne illness outbreaks last year. But it wants to make up for it with free burritos.

The Tell: If you could know one asset price 20 years out, which would it be?

Bitcoin, China's stock market, oil, gold... so many options.

Earnings Summary for Today

Earnings Calendar provided by

leading Stock Positions

Leading Stock Quotes powered by

Current Commodity Prices

Commodities are powered by

Current Currency Crosses

The Forex Quotes are powered by

To contact me with questions, comments or constructive criticism is always encouraged and appreciated:

Click here for Historical Releases Listing

Make a Comment

Econintersect wants your comments, data and opinion on the articles posted.  As the internet is a "war zone" of trolls, hackers and spammers - Econintersect must balance its defences against ease of commenting.  We have joined with Livefyre to manage our comment streams.

To comment, using Livefyre just click the "Sign In" button at the top-left corner of the comment box below. You can create a commenting account using your favorite social network such as Twitter, Facebook, Google+, LinkedIn or Open ID - or open a Livefyre account using your email address.

You can also comment using Facebook directly using he comment block below.

Econintersect Live Market


Print this page or create a PDF file of this page
Print Friendly and PDF

The growing use of ad blocking software is creating a shortfall in covering our fixed expenses. Please consider a donation to Econintersect to allow continuing output of quality and balanced financial and economic news and analysis.

Take a look at what is going on inside of
Main Home
Analysis Blog
A Short Note on a Connection Between Marginalist Economics and Folk Medicine
Run A High Pressure Economy? Janet Yellen Does Not Understand the Problem
News Blog
Rail Week Ending 22 October 2016 Better Than The Previous Week
What Happens After The Islamic State Loses Mosul
Infographic Of The Day: The History Of Women's Ice Hockey In Canada
Early Headlines: Asia Stocks Mixed, Huge Antarctic Marine Park, Can Trump Get To 270?, US Workers Gaining, UK Inflation, France GDP, India Savings Lag And More
Why Amazon Gives So Many Perks To Prime Members
Where Workplace Trust Is Strongest
How A Lack Of Sleep Affects Your Brain - And Personality
How Accurate Are Final US Election Polls
What We Read Today 27 October 2016
A Pony And His Beloved Teddy Bear Reunite After Being Apart For 3 Years
October 2016 Kansas City Fed Manufacturing Remains In Expansion
September 2016 Median Household Income Not Statistically Different Than The Previous Month
September 2016 Pending Home Sales Index Improves
Investing Blog
Technical Thoughts: Looking For The Rebounds
Gold That Pays Dividends
Opinion Blog
Global Debt Investors: The Silence Of The Lambs
A Hard Brexit And Reduced Migration Won't Benefit UK Workers
Precious Metals Blog
Inflation Surging As Platinum Signals Stock Market Decline
Live Markets
27Oct2016 Market Close: Wall Street Closes Fractionally Lower, Interest-Rate Stocks Outweighed Gains In Healthcare, Market Indicators Bearish
Amazon Books & More

.... and keep up with economic news using our dynamic economic newspapers with the largest international coverage on the internet
Asia / Pacific
Middle East / Africa
USA Government

Crowdfunding ....



Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day


Asia / Pacific
Middle East / Africa
USA Government

RSS Feeds / Social Media

Combined Econintersect Feed

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution



  Top Economics Site Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2016 Econintersect LLC - all rights reserved