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31Aug2016 Market Update: Wall Street Slides, Texas Tea Slips, Gold Tumbles, US Dollar Falls, All In All, Not A Great Trading Day

Written by Gary

Wall Street extended losses after the opening bell and continues to melt down (SPY -0.6%) on increasing volume. Crude prices fell in North American, falling to the lowest level in nearly three weeks after data showed that oil supplies in the U.S. rose for the second week in a row. Indicators are bearish.

Here is the current market situation from CNN Money

Traders Corner - Health of the Market

Index Description Current Value Members Sentiment: % Bullish (the balance is Bearish) 73%
CNN's Fear & Greed Index Above 50 = greed, below 50 = fear 60%
Investors Intelligence sets the breath Above 50 bullish 67% Overbought / Oversold Index ($NYMO) anything below -30 / -40 is a concern of going deeper. Oversold conditions on the NYSE McClellan Oscillator usually bounce back at anything over -50 and reverse after reaching +40 oversold. -15.99 NYSE % of stocks above 200 DMA Index ($OEXA200R) $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 $OEXA200R rises above 65%
Secondary Bullish Indicators:
a) RSI is POSITIVE (above 50)
b) Slow STO is POSITIVE (black line above red line)
c) MACD is POSITIVE (black line above red line)
86% NYSE Bullish Percent Index ($BPNYA) Next stop down is ~57, then ~44, below that is where we will most likely see the markets crash. 70% S&P 500 Bullish Percent Index ($BPSPX) In support zone and rising. ~62, ~57, ~45 at which the markets are in a full-blown correction. 77% 10 Year Treasury Note Yield Index ($TNX) ten year note index value 15.66 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 80.30 NYSE Composite (Liquidity) Index ($NYA) Markets move inverse to institutional selling and this NYA Index is followed by Institutional Investors 10,730

What Is Moving the Markets

Here are the headlines moving the markets.

Wall St falls as lower oil prices weigh on energy stocks

(Reuters) - Wall Street extended losses on Wednesday, the last trading day of August, as lower oil prices weighed on energy stocks.

Faced with crunch, Tesla plans to raise additional cash this year

(Reuters) - Facing a severe cash crunch, Tesla Motors Inc plans to raise additional money this year to help fund development and production of its new Model 3 sedan and build out a giant battery factory, the company said on Wednesday.

U.S. senators seek federal probe of Takata-linked explosion

(Reuters) - Two U.S. senators on Wednesday called on the National Transportation Safety Board to investigate the Aug. 22 crash and explosion of a truck carrying Takata Corp air bag parts that killed a woman and injured four others.

Deutsche Bank, Commerzbank held talks about tie-up

FRANKFURT (Reuters) - Top executives of Deutsche Bank and Commerzbank held talks on a potential combination of Germany's two biggest banks earlier this month, a source familiar with the matter said on Wednesday.

Irish cabinet fails to agree on Apple appeal, to meet again: source

DUBLIN (Reuters) - Ireland's cabinet could not agree on Wednesday on whether to appeal a European Commission ruling against Dublin's tax dealings with Apple and will meet for further talks later this week, a government source told Reuters.

U.S. sues to stop Deere from buying Precision Planting

WASHINGTON (Reuters) - The U.S. Justice Department said on Wednesday it has filed a lawsuit to stop Deere & Co from buying Monsanto's Precision Planting farm equipment business.

U.S. pending home sales jump in July

WASHINGTON (Reuters) - Contracts to buy previously owned U.S. homes surged in July after two straight months of declines as demand rose almost across the board, suggesting the housing market remains on solid ground despite last month's drop in home resales.

Fed's Evans, citing slow growth, says low U.S. rates are here to stay

BEIJING (Reuters) - Chicago Federal Reserve Bank President Charles Evans on Wednesday said he is increasingly convinced that U.S. economic growth has slowed permanently, a situation that will keep U.S. interest rates low for a long time ahead.

Dubliners divided over Apple windfall dilemma

DUBLIN (Reuters) - Faced with a $14.5 billion windfall after an EU ruling on Apple's tax affairs, carer Louise O'Reilly knew exactly what the Irish government should do with the money: spend it on pensioners who are struggling to get by.

Negative Interest Rates: The Tax On Capital

Negative Interest Rates: The Tax On Capital Written by Jeff Nielson

So-called "negative interest rates" are illegal. This is an inescapable conclusion of law, arrived at simply by applying some of the most fundamental principles of our entire legal system. But let's put aside this issue of legality, it is a topic which will be dealt with comprehensively, in a sequel to this piece.

There is no such thing as a "negative interest rate". By definition, an "interest rate" is a positive number ...

Obama's Former Doctor Says Hillary "Should Have A Thorough Neurological Exam"

In a move that is certain to spark another round of what much of the left-of-center media has dubbed "unfounded conspiracy theories" about the health of Hillary Clinton, overnight President Obama's former physician, Dr. David Scheiner told CNN that he believes Democratic nominee Hillary Clinton should have a neurological examination due to her history of brain injury.

In the interview, Scheiner argued that Clinton's letter from her doctor, which details that Clinton had follow-up testing in 2013 that showed a full recovery from a concussion and that she tested negative for clotting disorders, is not enough.

Obama's fmr doc, Dr David Scheiner, says Hillary should have "THOROUGH Neurological Examination!"???? #HillarysHealth

— Boston Bobblehead (@DBloom451) August 31, 2016

"I think she should have had a neurological examination, a thorough neurological examination in 2016," Scheiner said Tuesday night. "We know what happens to football players who have had concussions, how they begin to lose some of their cognitive ability. I think both of them should release their records."

To be fair, Scheiner also criticized Trump's health, saying he believes the GOP nominee needs to release real medical records that include information like height and weight. He also panned Trump's doctor's note, which the doctor said was written in five minutes. "I think you need real details, I think you need actual medical records," he continued. "I'd like to know his height and weight. He looks a little bit overweight to me."

"This is arguably one of t ...

Oil Plunges Under $45 - Near Saudi-Short-Squeeze-Lows

After the biggest short squeeze in history - thanks to a well-placed and entirely useless Saudi statement about OPEC freeze discussions - oil prices have slipped notably - now back below $45 once again...

As we said before - the short-squeeze ammo has run out - and record gluts, record production, and slumping demand realities are biting.

Deere, Monsanto Slide After DOJ Files Suit To Block Precision Planting Deal; Ag Sector Lower

Several months after dozens of merger arb funds had their worst day in years when the US government effectively killed the Pfizer-Allergan deal, moments ago both Deere and Monstanto stocks dropped, after the DOJ filed a lawsuit seeking to block Deere's deal for Monsanto's Precision Planting.






The news promptly dragged down the entire ag complex...


... as it now appears that the US government has shifted away from blocking tax inversion deals, and is instead focusing on the US agri space.

As a reminder, in November 2015, Monsanto and Deere struck a deal to strengthen their cooperation in the emerging business of big-data services that help farmers improve crop performance. Deere agreed to buy Monsanto's line of high-tech planting equipment, called Precision Planting, and in return make it easier for farmers to link their John Deere machinery to Monsanto's Climate Corp. unit, which crunches data on crop performance and weather conditions to formulate farming advice. Terms of the deal weren't disclosed.

The deal "benefits all our customers and will allow for more information and better data-driven insights to come out of Climate," Mike Stern, president of the division at Monsanto, said Tuesday.

It appears that US government thought otherwise.

Emerging Markets: Catch the Yield Where You Can

The latest target in the search for anything with a yield: emerging-market bonds in local currencies.

The ECB's Persistent Inflation Headache

Eurozone inflation remains stuck in low gear. Expectations are building again for more from the ECB.

Why Chinese Banks Are Moving Deeper Into Property

Given Chinese banks' increasing exposure to mortgage lending, they will have more on the line the next time prices turn south.

July 2016 Pending Home Sales Index Improves?

Written by Steven Hansen

The National Association of Realtors (NAR) seasonally adjusted pending home sales index again increased. For the second month in a row, our analysis of pending home sales is more negative than the NAR's, and we are forecasting little growth in August existing home sales. The quote of the day from this NAR release:

... There's little doubt there'd be more sales activity right now if there were more affordable listings on the market ...

Market Extra: Energy sector ETF on pace to cap August with worst daily loss of the month

Energy-related ETFs and stocks fell sharply on Wednesday, tracking the price of crude oil lower as concerns remained over the level of supply in the commodity

London Markets: FTSE 100 slammed as commodity shares tumble

After a wobbly start to the day, U.K. stocks end firmly lower with commodity shares leading the charge south on the back of a slump in oil prices.

Tesla's Elon Musk promises 'major improvement' for Autopilot

The software update will be ready for wide release in a few weeks, Elon Musk writes on Twitter.

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