US markets opened higher and have traded sideways near the session highs with the DOW up moderately 71 points. The Fed's gauge of manufacturing activity in the region declined in August. The gauge fell to a negative reading of -2.41 from a positive reading of 0.55 in July. Wall Street had anticipated an increase to 2.50. Readings above 0 point to expansion, while those below indicate contraction. Indicators are bullish to neutral.
Here is the current market situation from CNN Money
North and South American markets are broadly higher today with shares in Brazil leading the region. The Bovespa is up 1.14% while Mexico's IPC is up 1.06% and U.S.'s S&P 500 is up 0.38%.
If the Transportation Index (updated below), confirms a Head & Shoulder pattern, then the downside would be about 760 points from where it ended last Friday. If it doesn't experience the pattern and moves up instead, the upside resistance level to break above would be at 8149.
$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%. Following a major market correction, the conditions for safe re-entry are when:
a) Daily $OEXA200R rises above 65%
Secondary Bullish Indicators:
a) RSI is POSITIVE (above 50)
b) Slow STO is POSITIVE (black line above red line)
c) MACD is POSITIVE (black line above red line)
NEW YORK (Reuters) - Oil prices hit five-week highs on Monday, gaining about 10 percent in a three-day rally as speculation intensified over potential producer action to support prices amid a crude glut.
SHANGHAI/SAN FRANCISCO (Reuters) - Tesla removed the word "autopilot" and a Chinese term for "self-driving" from its China website after a driver in Beijing who crashed in "autopilot" mode complained that the car maker overplayed the function's capability and misled buyers.
TOKYO (Reuters) - Japan's economic growth ground to a halt in April-June as weak exports and shaky domestic demand prompted companies to cut spending, putting fresh pressure on premier Shinzo Abe to come up with policies that will produce more sustainable growth.
HONG KONG (Reuters) - Crypto-currency exchange Bitfinex's plan to impose losses on all its trading clients for the theft by hackers of $72 million in Bitcoin rests on two flawed pillars, according to lawyers.
CARACAS (Reuters) - Venezuela, which holds the world's largest crude reserves, is on track to suffer its steepest annual oil output drop in 14 years as it suffers the effects of an economic crisis and years of under investment and mismanagement, according to data seen by Reuters and interviews with company sources and workers.
EDINBURGH (Reuters) - Royal Bank of Scotland would move its main office from Scotland if the nation were to split from the UK after Britain's vote to leave the European Union, although moving domicile would not mean major job losses, the head of RBS has said.
HONG KONG (Reuters) - The New York Stock Exchange (NYSE) sees technology companies driving a revival in new Asian listings and expects double-digit IPOs through the end of 2017 from the region, the exchange's global head of capital markets said in an interview.
Submitted by Ingrid Carlqvist via The Gatestone Institute,
Almost all the perpetrators of sexual assaults who attacked in groups and who have been apprehended, are citizens of Afghanistan, Eritrea and Somalia -- three of the four largest immigrant groups in Sweden who fall into the category of "unaccompanied refugee children."
A few days later, it turned out that many of the perpetrators who sexually assaulted women at the "Putte i parken" music festival in Karlstad wore the "Don't grope" bracelet.
Many people were therefore aghast to learn that the organizers of the Trästocksfestivalen music festival in Skellefteå had decided to arrange free bus rides to the festival for the local "unaccompanied refugee children." They claimed they were "proud to be the first music festival in Sweden that encourages a significant increase of newly arrived migrants in the audience." By the time the Trästocksfestivalen ended, the police counted twelve reported sexual assaults.
Apparently, Swedish girls and women should learn to live with being groped and raped -- or leave the public space altogether. The latter seems quite in line with what Islamic sharia law prescribes.
In the wake of the New Year's Eve attacks in Cologne, Germany, news broke in Sweden that a large number of sexual assaults against girls and women had occurred at the music festival "We Are Sthlm" [short for Stockholm] in both 2014 and 2015, but had been covered up by both the police and the media. The National Police Commissioner, Dan Eliasson, immediately launched an investigation to find out the ...
It has been one of the greater paradoxes of the record S&P rally from the February lows: how has the market continued to rise even with unprecedented outflows? In other words, "Who's buying equities?"
Overnight, Barclay's chief equity strategist Keith Parker asks that very question, pointing out that global equities have continued to rally despite $128bn of outflows from equity funds since mid-March. His answer: futures buying (which has traditionally been associated with central bank intervention), whiuh since March ($60bn notional) has surpassed the amount of buying between October 2011 and May 2013,and which together with short-covering has more than offset the outflows.
He notes that with that dramatic shift in positioning basically done, retail and foreign investors are the incremental buyers/sellers of equities; S&P 500 returns have been 49% correlated with shifts in their combined ownership over the last 20 years. Active equity MFs are selling amid large retail redemptions while foreign investors are also selling US equities.
In other words, it may be all up to retail now:
"A turn in retail/foreign sentiment and a resumption of equity inflows would get markets back to more of a grind since the positioning-driven bounce has played out, but still elevated active manager positioning leaves the market vulnerable to risks."
So, to better assess the path for equities and identify potential opportunities, Barclays seeks to better understand the buying dynamics ac ...
The Big Banks have been regulated to the point of absurdity after the 2008 financial crisis, and when the financial markets crash this time the public will need a new entity to blame. There is nothing but air under stocks right now, very dangerous for investors right here!
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