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02Dec2016 Market Update: WTI Crude Climbed Back Up To Previous 51 Handle, US Dollar Index Trading At The100 Level, Oil Rig Count At 10-Month High

Written by Gary

US markets appear to be on a precipice and ready to fall off. Trading has been mostly sideways near the unchanged line trying to overcome Friday headwinds. Trading has been somewhat volatile, with major indexes fluctuating between positive and negative territory throughout the session. More downside is seen before the closing bell.


Here is the current market situation from CNN Money

North and South American markets are mixed. The Bovespa is higher by 0.64%, while the IPC is leading the S&P 500 lower. They are down 0.21% and 0.06% respectively.

Traders Corner - Health of the Market

Index Description Current Value
Investors.com Members Sentiment: % Bullish (the balance is Bearish) 76%
CNN's Fear & Greed Index Above 50 = greed, below 50 = fear 66%
Investors Intelligence sets the breath Above 50 bullish 62%
StockChart.com 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.

-1.69

StockChart.com 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 $OEXA200R rises above 65%
Secondary Bullish Indicators:
a) RSI is POSITIVE (above 50)
b) Slow STO is POSITIVE (black line above red line)
c) MACD is POSITIVE (black line above red line)
65%
StockChart.com NYSE Bullish Percent Index ($BPNYA) Next stop down is ~57, then ~44, below that is where we will most likely see the markets crash. 65%
StockChart.com S&P 500 Bullish Percent Index ($BPSPX) In support zone and rising. ~62, ~57, ~45 at which the markets are in a full-blown correction. 65%
StockChart.com 10 Year Treasury Note Yield Index ($TNX) ten year note index value

23.85

StockChart.com 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 81.58
StockChart.com NYSE Composite (Liquidity) Index ($NYA) Markets move inverse to institutional selling and this NYA Index is followed by Institutional Investors 10,854

What Is Moving the Markets

Here are the headlines moving the markets.

Trump's dilemma: slower job growth or rising rates and inflation?

WASHINGTON (Reuters) - A drop in the U.S. unemployment rate last month to a 9-year low signals the risk of a collision between President-elect Donald Trump's plans to goose the economy and the Federal Reserve's efforts to tap the brakes with higher interest rates.

U.S. payrolls rise solidly; jobless rate falls to nine-year low

WASHINGTON (Reuters) - U.S. employers boosted hiring in November and the unemployment rate dropped to a more than nine-year low of 4.6 percent, making it almost certain that the Federal Reserve will raise interest rates later this month.

S&P, Nasdaq set to snap two-day losing streak

(Reuters) - The S&P 500 and the Nasdaq rose for the first time in three days, supported by gains in technology and health stocks, but Dow slipped after a rally in bank stocks paused.

Investor Cuban to testify at Senate hearing on AT&T-Time Warner deal

WASHINGTON (Reuters) - Billionaire investor Mark Cuban will be among the witnesses scheduled to testify at a U.S. Senate Judiciary panel hearing on Dec. 7 on AT&T Inc's proposed $85.4 billion acquisition of Time Warner Inc .

Traders keep bets on Fed rate hike later this month

(Reuters) - Traders of U.S. short-term interest-rate futures kept bets on Friday that the Federal Reserve will raise interest rates later this month, after a government report showed the unemployment rate in November fell to a nine-year low.

Starbucks' CEO transition unlikely to stymie growth: analysts

(Reuters) - Starbucks Chief Executive Howard Schultz's decision to step down is unlikely to hamper growth at the world's biggest coffee chain as his successor Kevin Johnson is well suited to take the helm, analysts said.

Brazil court calls McDonald's to hearing for alleged labor violations

SAO PAULO (Reuters) - Brazilian labor authorities on Friday called local McDonald's Corp representatives to a hearing on Dec. 13 over alleged violations of the country's labor laws, and said they could impose fines of up to 103 million reais ($30 million).

Ford recalls 680,000 vehicles including Fusion, MKZ

(Reuters) - Ford Motor Co said on Friday it will recall about 680,000 of its Ford Fusion and Lincoln MKZ sedans to fix a seat belt issue.

Fed's Tarullo warns against 'backsliding' on bank regulations

WASHINGTON (Reuters) - U.S. banking regulators must defend tough rules governing Wall Street and resist efforts to dilute regulations that might prevent a future financial crisis, Federal Reserve Governor Daniel Tarullo said on Friday.

US Oil Rig Count Rises To 10-Month Highs

From the 316 rig trough in May, American oil drillers have added 161 to 477 - the highest since January 2016. The rising rig count continues to track lagged oil prices higher and US crude production is following that trend to its highest level since June.

US Oil Rig count is up 3 in the last week to 477 - up 25 of the last 27 weeks...

And with the OPEC deal holding oil prices, is US production set to rise no matter what?

Schwarzman, Dimon, Fink Will Advise Trump How To Create Jobs

Shortly after Donald Trump picked former Goldman partner Steven Mnuchin as Treasury Secretary, he was rumored to be considering another Goldmanite, current President and COO Gary Cohn - who as reported earlier this week is already contemplating "life after Goldman" - for energy secretary. The follows a previous report that Trump may appoint Cohn as head of the Office of Management and Budget. So, as Trump wonders which other Goldman banker to poach to fully outsource financial management of the US directly to Goldman, a taxpayer-backed hedge fund which has already taken over the world's central banks, he decided to spread the Wall Street love and earlier today announced that he has created an economic panel chaired by Blackstone's Stephen Schwarzmann, whose members will also include such illustrious "non-swampies" as Jamie Dimon and Larry Fink, as well as various other "prominent U.S. business leaders" to get Wall Street's advice on such matters as ... job creation.

The President's Strategic and Policy Forum will begin meeting with Trump in February after his inauguration. From the announcement:

President-elect Donald J. Trump today announced that he is establishing the President's Strategic and Policy Forum. The Forum, which is composed of some of America's most highly respected and successful business leaders, will be called upon to meet with the President frequently to share their specific experience and knowledge as the President implements his plan to bring back job ...

Hillary Clinton Gains One Vote On First Day Of Wisconsin Recount

Submitted by Joseph Jankowski via Planet Free Will

On the first day of the Jill Stein spawned vote recount in Wisconsin, the gap between Hillary Clinton and Donald Trump narrowed by 1 vote.

The first day's results suggest that Stein's efforts, which came with a hefty price of almost $3.5 million, will show a final vote tally very close to the original one.

Wire transfer of $3,499,689 from @DrJillStein has arrived at Wisconsin Elections Commission.

— Wisconsin Elections (@WI_Elections) November 29, 2016

Daily Caller reports:

Only Menominee County, home to the Menominee Indian Reservation, fully reported its recounted results on the first day. It found 17 extra votes for Stein and 12 for Libertarian Gary Johnson, while removing two votes from Trump and one from Clinton.

When putting all the results together, that means the first day of the recount narrowed the gap between Clinton and Trump by just a single vote.

Trump defeated Clinton in the state of Wisconsin by just over 22,000 votes or about 1% of the total vote.

Stein filed for a Wisconsin recount after suggesting that fraud or t ...

Deutsche Bank Stock Slides After "Cutting Off" 3,400 "Non-Strategic" Trading Clients

In September, headlines of Deutsche Bank trading clients pulling collateral sparked grave concern over the world's most systemically dangerous bank. Today, the stock is sliding once again as WSJ reports the bank said it would cease providing some coverage for about 3,400 actively trading clients in its global markets division, according to a memo sent to equities staff.

The memo to equity sales, sales trading and structuring staff said the move is with "immediate effect," according to The Wall Street Journal.

A Deutsche Bank spokesman confirmed the contents of the memo.

It follows a detailed review by the trading division of the German lender's client list "to identify clients with whom it is not strategically viable for us to continue to do business," according to the memo from Dixit Joshi.

The action is aimed at balancing "risk, revenue and profitability," according to the memo. The cuts affect Institutional Client Group debt and equity sales, sales trading and equity structuring clients, according to the memo.

The question is - what knock-on effect will the liquidation ...

Passive Investors Get Sucked Into Hong Kong Market Failures

Multibillion-dollar bubbles like Fullshare may end up fitting a pattern: stocks with small floats that get added to major benchmarks and then plunge.

Baby Boomers vs. Millennials: The Uneven Jobs Recovery

Ahead of Friday's jobs report, the economic recovery has produced uneven results and unintended consequences for baby boomers and millennials.

India's Cash Dash Stuffs Banks With Problems

India's demonetization has ended up squeezing banks, eroding their role as agents of monetary policy.

The Wall Street Journal: FCC raises fresh concerns over 'zero-rating' by AT&T, Verizon

Federal regulators raised new concerns about AT&T Inc.'s practice of excluding its new DirecTV Now streaming service from data charges and, for the first time, lobbed similar questions at Verizon Communications Inc.

In One Chart: Bitcoin price climbs to highest level in nearly 3 years

Bitcoin traders are finally moving past the collapse of Tokyo-based digital currency exchange Mt. Gox.

Capitol Report: Trump taps Jamie Dimon, Mary Barra and other top CEOs for advice on the economy

Donald Trump has tapped J.P. Morgan Chase's Jamie Dimon and other prominent chief executives for a "strategic and policy forum" that the president-elect says will meet frequently to discuss economic issues.

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

gary@econintersect.com

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