econintersect.com
       
  

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.



06Dec2016 Market Update: Markets Higher As Bull Trend Remains Intact, Crude Price Fall Fractionally As Does Gold

Written by Gary

US markets continue to edge higher on choppy volume as crude prices continued to fall as investors turned their attention to the implementation of OPEC's deal to cut output. Short-term Indicators: Bull trend remains intact as S&P 500 rallies from breakout point.


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 1.58% while Mexico's IPC is up 0.24% and U.S.'s S&P 500 is up 0.17%.

Traders Corner - Health of the Market

Index Description Current Value
Investors.com Members Sentiment: % Bullish (the balance is Bearish) 75%
CNN's Fear & Greed Index Above 50 = greed, below 50 = fear 74%
Investors Intelligence sets the breath Above 50 bullish 62%
StockChart.com Overbought / Oversold Index ($NYMO) anything below -30 / -40 is a concern of going deeper. Oversold conditions on the NYSE McClellan Oscillator usually bounce back at anything over -50 and reverse after reaching +40 oversold. +23.57
StockChart.com NYSE % of stocks above 200 DMA Index ($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 $OEXA200R rises above 65%
Secondary Bullish Indicators:
a) RSI is POSITIVE (above 50)
b) Slow STO is POSITIVE (black line above red line)
c) MACD is POSITIVE (black line above red line)
67%
StockChart.com NYSE Bullish Percent Index ($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

23.98

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 82.36
StockChart.com NYSE Composite (Liquidity) Index ($NYA) Markets move inverse to institutional selling and this NYA Index is followed by Institutional Investors 10,950

What Is Moving the Markets

Here are the headlines moving the markets.

Wall Street flat as telecom gains fail to counter oil drop

(Reuters) - U.S. stocks were little changed on Tuesday, as gains in telecom services were offset by losses in energy stocks following a drop in oil prices.

U.S. trade gap widens as exports of soybeans, other goods fall

WASHINGTON (Reuters) - The U.S. trade deficit recorded its biggest increase in more than 1-1/2 years in October as exports of soybeans and other goods dropped, suggesting that trade would be a drag on growth in the fourth quarter.

Supreme Court rules for Samsung in smartphone fight with Apple

(Reuters) - The Supreme Court on Tuesday sided with Samsung in its big-money smartphone patent fight with Apple, throwing out an appeals court ruling that said the South Korean company had to pay a $399 million penalty to its American rival for copying key iPhone designs.

Microsoft gains EU approval for $26 billion buy of LinkedIn

BRUSSELS (Reuters) - Microsoft won EU antitrust approval on Tuesday for its $26 billion bid for professional social network LinkedIn , its largest ever acquisition, after agreeing to a series of modest concessions.

A shift from yoga pants may leave Lululemon investors in a sweat

SAN FRANCISCO (Reuters) - Mutual funds that bought Lululemon Athletica's stock in recent months may find themselves in a cold sweat if the retailer's quarterly report on Wednesday shows strong signs that leggings and other yoga apparel are falling out of fashion.

Chipotle says new director slate due 'shortly,' recovery lags

LOS ANGELES (Reuters) - Chipotle Mexican Grill Inc, amid activist pressure to revamp its board and revive sales following last year's string of food safety lapses, will "shortly" announce a new slate of directors, founder and co-chief executive Steve Ells said on Tuesday.

House panel quizzes EPA on VW zero emission vehicle fund

WASHINGTON (Reuters) - A U.S. House panel on Tuesday questioned the Environmental Protection Agency's diesel emissions settlement with Volkswagen AG , which requires the German automaker to invest $2 billion in zero emission vehicle efforts over 10 years.

Oil falls on production cut skepticism, OPEC and Russia output rise

NEW YORK (Reuters) - Oil prices on Tuesday fell for the first session since OPEC agreed to cut output last week after data showed crude production rose in most major export regions and on growing skepticism that the cartel would be able to reduce production.

Lego replaces long-time CEO with first foreign boss in organizational shake-up

COPENHAGEN (Reuters) - Danish toymaker Lego is to appoint its first foreign CEO and give its family owners a bigger role in developing the Lego brand under an organizational shake-up that will see incumbent Jorgen Vig Knudstorp step down by the end of the year.

Time Urges 65 Million Americans Who Voted For Hillary Not To Pay Taxes

Under the twisted premise of losing the popular vote and "no taxation without representation", TIME's Mark Weston proclaims that the approximately 65 million Democrats who voted for Hillary Clinton should pledge "we won't pay taxes to the federal government... until democracy is restored."

Because, It's just not fair?

Twice in the past 16 years, a Republican candidate who finished second in the popular vote has won the presidency. This year, Donald Trump won the electoral vote with about 46% of the popular vote, while Hillary Clinton received about 48%. If the parties stay this evenly divided, another electoral mishap is more likely than not in the next 20 years.

Most Republicans are quite content with this system. Appeals to fairness have not persuaded them of the need to amend the Constitution to establish direct presidential elections, preferably with a runoff if no one wins 50% of the vote. Nor does the real chance that a Democrat could win the presidency with fewer votes than a Republican alarm them. Even the taunt, "Are you afraid of a direct election? Can't you win a straight-up vote?" doesn't faze them. Democrats must, therefore, pester Republicans where it hurts: the pocketbook.

Is signing a pledge to not pay taxes legal?

The Dramatic Impact Of Surging Rates On Housing And Refis In One Chart

To visualize the impact the recent spike in mortgage rates will have on the US housing market in general, and home refinancing activity in particular, look no further than this chart from the October Mortgage Monitor slidepack by Black Knight.

The chart profiles the sudden collapse of the refi market using October and November rates. As Black Knight writes, it looks at the - quite dramatic - effect the mortgage rate rise has had on the population of borrowers who could both likely qualify for and have interest rate incentive to refinance. It finds it was cut in half in just one month.

Some more details from the source:


The results of the U.S. presidential election triggered a treasury bond selloff, resulting in a corresponding rise in both 10-year treasury and 30-year mortgage interest rates

Mortgage rates have jumped 49 BPS in the 3 weeks following the election, cutting the population of refinanceable borrowers from 8.3 million immediately prior to the election to a total of just 4 million, matching a 24-month low set back in July 2015

Though there are still 2M borrowers who could save $200+/month by refinancing and a cumulative $1B/month in potential savings, this is less than half of the $2.1B/ month available just four weeks ago

The last time the refinanceable population was this small, refi volumes were 37 percent below Q3 2016 levels

Which is bad news not only for homeowners, but also for the banks, whose refi pipeline - a steady source of income and easy profit - is about to ...

Watch Ron Paul Ask If Trump Can Leash Pentagon "Mad Dog" Mattis: Live Feed

President-elect Trump's choice of Gen. James Mattis to be Defense Secretary has raised more than a few eyebrows. Not only as a military officer in a traditionally civilian position, but also as an executive in a leading defense contractor. His views on Iran are also considered extreme and not grounded in reality.

"The Iranian regime in my mind is the single most enduring threat to stability and peace in the Middle East. ...Iran is not an enemy of ISIS. They have a lot to gain from the turmoil in the region that ISIS creates."

Ron Paul asks "Will the mad dog be leashed?" in the following live discussion (starting at 12ET)...

* * *

As Ron Paul detailed earlier, President-elect Donald Trump told a Cincinnati audience this week that he intends to make some big changes in US foreign policy. During his "thank you" tour in the midwest, Trump had this to say:

We will pursue a new foreign policy that finally learns from the mistakes of the past. We will stop looking to topple regimes and overthrow governments. ...In our dealings with other countries we will seek shared interests wherever possible..."

If this is really to be President Trump's foreign policy, it would be a welcome change from the destructive path pursued by the two previous ad ...

Supreme Court Rules On Insider Trading For First Time In 20 Years: Why It Matters

On Tuesday morning, the U.S. Supreme Court, ruling in an insider trading case for the first time in two decades, upheld the conviction of a Chicago man - Bassam Salman - in a decision that could make it easier to prosecute people accused of profiting from confidential information.

The justices, in a unanimous 8-0 decision, ruled against Salman, who was appealing a 2013 conviction stemming from federal charges that he made nearly $1.2 million trading on non-public information that came from his brother-in-law at Citigroup Inc. In the ruling, the justices found that people can be sent to prison for making trades even when the insider who provided the tip wasn't trying to make money, a key point of contention in previous cases. The court said it's enough if the insider gave the information as a gift.

Salman had argued that prosecutors in insider trading cases must prove that an alleged source of corporate secrets like the brother-in-law received a tangible benefit like cash in exchange for any tips, something his brother-in-law did not receive. Such proof, prosecutors have said, would make it more difficult for authorities to pursue insider trading cases, potentially preventing cases in which executives tip friends or relatives without any getting anything tangible in return.

Writing for the court, though, Justice Samuel Alito said the court rejected Salman's arguments, ruling that friends and family members could be held liable even if a tipper provides inside information as a "gift."

"In such situations, the tipper benefits personally because giving a gift of trading information is the same thing as trading by the tipper followed by a gift of the proceeds," Alito wrote.

Prosecutors said Maher Kara, a Citigroup investment banker and Salman's brother-in-law, provided tips about deals involving Citi clients to Kara's brother, who in turn tipped Salman. A federal jury in ...

The Euro: Looking Through the Political Jitters

The euro has shaken off the Italian referendum result. Politics doesn't look like the swing factor yet for the single currency.

Wearable Tech Looking Worse for Wear

Slowing sales of wearable gadgets at Fitbit and Apple cast doubt on market's ultimate potential.

Smoother Brexit Hopes for Banks But No Special Deal

Officials are making soothing noises towards a key U.K. industry, but offer few details.

October 2016 Manufacturing New Orders Improved

Written by Steven Hansen

US Census says manufacturing new orders improved. Our analysis agrees. The rolling averages improved and are now in expansion year-over-year.

Key Words: NY Times: Trump needs to call Elon Musk

Donald Trump's road to the presidency has been paved with promises of lighting a fire under the U.S. manufacturing sector and bringing back all those "jobs that have been stolen from you." He needs to add somebody to the group.

Capitol Report: The average Defense Department contractor is paid nearly $200,000

The average contractor working for the Defense Department is paid nearly $200,000 a year, including benefits and other costs, according to an internal Pentagon study aimed at saving money and making its bureaucracy more efficient.

The Wall Street Journal: Trump sold all of his stock holdings in June, says transition spokesman

President-elect Donald Trump sold all of his equity-market holdings in June, a transition spokesman said, removing himself from positions in numerous U.S. companies.

Earnings Summary for Today

Earnings Calendar provided by Investing.com.

leading Stock Positions

Leading Stock Quotes powered by Investing.com

Current Commodity Prices


Commodities are powered by Investing.com

Current Currency Crosses

The Forex Quotes are powered by Investing.com.



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

gary@econintersect.com

Click here for Historical Releases Listing










Make a Comment

Econintersect wants your comments, data and opinion on the articles posted. You can also comment using Facebook directly using he comment block below.




Econintersect Live Market







search_box
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.







Keep up with economic news using our dynamic economic newspapers with the largest international coverage on the internet
Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government




























 navigate econintersect.com

Blogs

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

Newspapers

Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government
     

RSS Feeds / Social Media

Combined Econintersect Feed
Google+
Facebook
Twitter
Digg

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution

Contact

About

  Top Economics Site

Investing.com Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2018 Econintersect LLC - all rights reserved