$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)
WASHINGTON (Reuters) - U.S. President Donald Trump pushed the chief executives of General Motors Co, Ford Motor Co and Fiat Chrysler Automobiles NV on Tuesday to increase production in the United States and boost American employment.
(Reuters) - Aetna and Humana would consider all available options for their proposed $34 billion merger, the two U.S. health insurers said on Tuesday, a day after a court ruled against the deal due to fears it would lower competition.
TOKYO/WASHINGTON (Reuters) - Toyota Motor Corp on Tuesday said it would add 400 jobs to build more SUVs at one of its U.S. plants, highlighting its expansion plans just as U.S. President Donald Trump calls on manufacturers to build more cars in the country.
(Reuters) - Citigroup Inc and Morgan Stanley each agreed to pay more than $2.96 million to settle charges they misled investors about a foreign exchange trading program they were selling, the U.S. Securities and Exchange Commission said on Tuesday.
WASHINGTON (Reuters) - The U.S. International Trade Commission said on Tuesday it will investigate a complaint by Nokia Technologies alleging that Apple Inc has imported smart phones, tablet computers and other electronics that infringe upon its patents.
FRANKFURT (Reuters) - Preconditions for stable inflation in the euro zone are in place so the European Central Bank should soon start to discuss an exit from its stimulus program, Executive Board member Sabine Lautenschlaeger said on Tuesday.
SAO PAULO (Reuters) - Swiss commodities trader Glencore Plc is considering additional sugar and ethanol mills takeovers in Brazil, where it recently bought a second plant, to ramp up operations in the world's No. 1 sugar producer, three people familiar with the plan said on Tuesday.
BERLIN (Reuters) - Germany's highest federal court handed Vodafone a victory on Tuesday in a dispute with Deutsche Telekom over how the former state monopoly charges for the use of cable ducts, Vodafone said.
After a bizarre first press briefing earlier this week in which Sean Spicer slammed the media for their obsession with Trump's inaugural crowd sizes, Spicer is set to take questions once again from an undoubtedly anxious press corps starting at 3:30PM EST. Although yesterday's briefing was somewhat more subdued, we suspect the press will be eager to pepper Spicer with questions regarding Trump's rapid-fire signing of several executive orders aimed squarely at dismantling key components of Obama's "legacy".
And while yesterday's breifing was somewhat more subued than his first, Spicer sent a clear message that White House Press Breifings going forward will be anything but "traditional" by calling on the New York Post and the Christian Broadcasting Network for his first questions.
Sean Spicer, the new White House press secretary, made it clear in his first official briefing that, like his boss, he would break with Washington precedents. After he stepped to the lectern yesterday and read a lengthy readout of the President's day—three Presidential memoranda signed and several meetings with corporate C.E.O.s, union officials, and congressional leaders—he called on his first news organization, the New York Post.
So it was no surprise when Spicer ignored the first row of correspondents from the major news wires and TV networks and selected the Post, whose correspondent inquired, "When will you guys commence the building of the border wall?"
With no pressure in the repo market anywhere along the curve, there was little probability of a "surprise" squeeze into today's 2Y auction, and predictably, today's sale of 2 Year paper closed with a wide tail, printing at 1.21%, some 0.6bps wide of the When Issued 1.204%, which in turn was also well outside of the 1.176% yield the 2Y was trading at just ahead of the auction. This was below the 1.27% in December, but above the 1.085% in November and 0.92% 6 month average.
On the flipside, the internals were decidedly better with the Bid to Cover of 2.68 rising materially from December's 2.436, and just better than the 2.62 6 month average.
Finally, after a foreign buyer strike over the past 6 months which saw Indirect bidders under 40% and even under 30% in July and August, foreign central banks were back, taking down 48.8% of the auction, compared to just 32.7% last month and 33% on average in the prior 6 auctions. With directs taking down 9.3% this means that Dealer were left holding 41.2% of the auction, the lowest takedown by primary dealers since May 2016.
Overall, while nothing to write home about, today's auction was stronger than the "tailing" headline would suggest.
Perhaps reports of the Trumpflation rally's death have been somewhat exaggerated in the past few days. After RBC pointed out yesterday that equity generalists are "increasingly uncomfortable with reflation trades", this morning we have seen the latest violent inversion in this theme.
As RBC's Charlie McElligott points out, "after yesterday saw painful "stop-outs" by the leveraged-hordes of UST shorts as the USD came 'off' on account of what looks to me the ongoing concerns surrounding President Trump's ability to implement an alternative to a "border-adjusted" tax system, which had been a core driver of the Dollar's appreciation thesis, "today we see both US rates reversing higher again with overnight UST weakness following 1) ongoing +++ data trajectory (the strongest Japan Manu PMI print in nearly 3 years alongside the best aggregate Markit Eurozone Manu PMI in series history and another Markit US Manu PMI beat as well) and 2) some intrigue around the pro-reflation $1T Senate Democrat Infrastructure plan proposal. USH (Treasury Long Bond March fut) saw 8000 147/150 put spreads trade earlier, although it should be noted that we are seeing ongoing interest from TLT call buyers hedging for a short-squeeze on account of the significant short-base across UST futs and ED$."
As McElligott summarizes, "a glimpse at thematic equities today is like a glimpse back to the halcyon days of late Nov / early Dec, as 'cyc vs def,' 'inflation longs,' 'high beta' and 'value' factor all work, while 'low vol' and 'growth' suck wind."
According to a new Reuters / Ipsos poll, a record number of disaffected, Hillary-supporting Californians now support secession from the United States because they're just so "triggered" by Trump's victory. If successful, California would become the single largest "safe space" in the world.
Per the poll, 1 in every 3 Californians now support a "peaceful withdrawal from the union," which is a substantial increase from the 20% who favored such a withdrawal the last time a similar poll was conducted in 2014.
One in every three California residents supports the most populous U.S. state's peaceful withdrawal from the union, according to a new Reuters/Ipsos opinion poll, many of them Democrats strongly opposed to Trump's ascension to the country's highest office.
The 32 percent support rate is sharply higher than the last time the poll asked Californians about secession, in 2014, when one-in-five or 20 percent favored it around the time Scotland held its independence referendum and voted to remain in the United Kingdom.
California also far surpasses the national average favoring secession, which stood at 22 percent, down from 24 percent in 2014.
Of course, as most of the country made a shift to the right in November's election, California continued it's steady march to the left with Democrats now controlling a super-majority in both houses of the legislature.
As Reuters notes, many Cali residents felt triggered by Trump's promises to actually enforce immigration laws and repeal Obamacare with one Democrat consultant saying that "many citizens believe it would be smarter to leave than fight."
Prominent market technician Ralph Acampora thinks the stock market has more room to run over the near term, despite a trend that has seen the Dow steadily walk back from the psychologically significant level of 20,000.
Between the partisan excesses of the women's march and the petty obsessions of the Trump administration over crowd sizes, it's easy to get pessimistic. But Darrell Delamaide offers some reasons for hope.
Econintersect wants your comments,
data and opinion on the articles posted. As the internet is a
"war zone" of trolls, hackers and spammers - Econintersect must balance its
defences against ease of commenting. We have joined with Livefyre
to manage our comment streams.
To comment, using Livefyre just click the "Sign In" button at the top-left corner of
the comment box below. You can create a commenting account using your
favorite social network such as Twitter, Facebook, Google+, LinkedIn or
Open ID - or open a Livefyre account using your email address.
You can also comment using Facebook directly using he comment block below.
Econintersect Live Market
Print this page or create a PDF file of this page
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.
Take a look at what is going on inside of Econintersect.com