US markets are trading fractionally lower on low, but choppy volume. Crude prices traded mostly unchanged as investors waited to see if some OPEC ministers and Russia plan to reduce oil output. Short-term indicators are neutral, with market conditions up but under very high stress.
Here is the current market situation from CNN Money
North and South American markets are mixed. The Bovespa is higher by 0.47%, while the IPC is leading the S&P 500 lower. They are down 1.64% and 0.13% respectively.
$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)
(Reuters) - U.S. stocks were lower in early afternoon trading on Friday as health stocks weighed and investors cashed in after the post-election rally, but the three major indexes continued to hover near record levels.
WOLFSBURG, Germany (Reuters) - Volkswagen and its labor unions agreed to cut 30,000 jobs at the core VW brand in exchange for a commitment to avoid forced redundancies in Germany until 2025, a compromise which leaves the carmaker's profitability still lagging rivals.
WASHINGTON (Reuters) - Most of the U.S. coal industry doubts Donald Trump can fulfill his promise to make the ailing industry great again in a country awash in dirt-cheap natural gas, a competing fuel.
NEW YORK (Reuters) - JPMorgan Chase & Co is once again facing questions about who will succeed its larger-than-life chief executive after Jamie Dimon was courted by the incoming U.S. president for the role of Treasury secretary.
LIMA (Reuters) - Leaders of Pacific rim nations gathered in Peru on Friday seeking to salvage hopes for regional trade as prospects of a Donald Trump presidency in the United States sounded a possible death knell for the Trans-Pacific Partnership (TPP) free trade pact.
GENEVA (Reuters) - China has filed an appeal against a ruling by the World Trade Organization (WTO) in a dispute over methodologies used by the United States to calculate anti-dumping tariffs targeting Chinese imports, a WTO statement said.
NEW YORK (Reuters) - The dollar rose to its highest level since April 2003 against a basket of currencies on Friday and was on track for its largest two-week increase since March 2015, as traders piled bets on a massive dose of fiscal stimulus under a Trump U.S. presidency.
SAN FRANCISCO (Reuters) - After tussling for years to win customers, the two biggest U.S. companies in fantasy sports, DraftKings and FanDuel, said on Friday they are teaming up in a merger that will cut down on legal bills and advertising spending.
ZURICH (Reuters) - Novartis has abandoned a 2016 goal to start testing its autofocus contact lens on people, though it said the groundbreaking product it is making with internet giant Google is "progressing steadily."
Submitted by Symfonie Capital's Michael Sonenshine via ValueWalk.com,
Electoral colleges vs popular vote explained...
What??? Hillary Clinton had a majority but still lost? It may seem unbelievable and unfair, but really....it's as fair as it's been for more than 200 years.
A Visit to Electoral Land
For those of you who need a quick US civics lesson I'll give you the long story short. In the US Electoral system, voters don't choose the President and Vice President directly. Instead, they vote for Electors who gather in each state (the first Monday after the second Wednesday in December) to cast their ballots for President and Vice President.
Each State is assigned a number of Electors equal to that State's number of Congressional representatives plus two, being the number of Senators. Presently there are 538 Electors nationwide. The number change every 10 years as the US Census measures the national population and demographic.
In the early days of the US electors were not chosen by popular vote. In most states the Electors were chosen by the state legislatures. Clearly this meant there could a wide gap between who the people wanted for President who was actually.
Over time this all changed and by 1870 all states had gone to a where the Electors are actually chosen by the people so that in practice, the Electors are really proxies for the people. What makes the Electoral college system unique is that instead of simply counting the nationwide ...
The US oil rig count surged by 19 to 471 last week - the biggest weekly rise since July 2015 back to 9-month highs. This is the 22nd weekly rise in the last 24 weeks and is occurring as US crude production is beginning to rise once again.
*U.S. OIL RIG COUNT UP 19 TO 471 , BAKER HUGHES SAYS :BHI US
*U.S. GAS RIG COUNT UP 1 TO 116 , BAKER HUGHES SAYS :BHI US
It was just one year ago when the biggest worry for the market - which culminated with a near 10% S&P correction in in early 2016 - was the daily plunge in the Yuan driven by the surging dollar, which in turn prompted China to engage in an unprecedented reserve liquidation (in which it sold both government bonds and equities), leading to a daily selloff in risky assets on days when the Yuan was fixed lower.
Fast forward a year later, when the US Dollar has blown through last year's highs and is now at levels not seen since 2003, the Yuan is trading at record lows, just shy of 7.00, and yet stocks stubbornly ignore the one catalyst that led to so much headache for the bulls one year ago.
In his daily note, RBC's cross-asset strategist Charlie McElligott points out that while the market may be oblivious, what is taking place in China is something to be concerned about:
ONE IMPORTANT TACTICAL MACRO POINT WITH REGARDS TO THE NEAR-TERM DIRECTION OF USTs / GLOBAL LONG-END: The yuan 'slow bleed' devaluation by the PBoC versus the USD seen since the start of October has without question been tied to at least some of the weakness in the US long-end, as the central bank sells USTs to try and mitigate the depreciation of the yuan against the SDR basket—see here:
One notable distinction from last year is that while bond yields would slide on days when the PBOC intervened to stabilize the currency by selling TSYs, this time around the selling of both assets is taking place concurrently - as shown in the chart above - which may suggest that C ...
We delve into the recent 10-Day move in the US Dollar Index, and look at the major currency pairs in this video. The Oil and commodity related currencies may outperform against the US Dollar next week on optimism regarding an OPEC deal getting done. Expect a largely range bound market in an overall light holiday trading week.
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