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30Jan2017 Market Update: Wall Street Is Down Moderately, DOW Off Triple Digits, Crude And The US Dollar Have Slipped Off From Their Session Highs, Trumps's Travel Ban Is Over Reaction By Media

Written by Gary

US stock market main indexes are having their worst day (SPY -0.9%) in more than three months, as President Trump's orders to curb travel and immigration sparked uncertainty, mostly by the media. US consumer spending accelerated as households bought cars and cold weather increased demand for utilities.


Here is the current market situation from CNN Money

Traders Corner - Health of the Market

Index Description Current Value
Investors.com Members Sentiment: % Bullish (the balance is Bearish) 65%
CNN's Fear & Greed Index Above 50 = greed, below 50 = fear 52%
Investors Intelligence sets the breath Above 50 bullish 69%
StockChart.com Overbought / Oversold Index ($NYMO) anything below -30 / -40 is a concern of going deeper. Oversold conditions on the NYSE McClellan Oscillator usually bounce back at anything over -50 and reverse after reaching +40 oversold. +3.31
StockChart.com NYSE % of stocks above 200 DMA Index ($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 $OEXA200R rises above 65%
Secondary Bullish Indicators:
a) RSI is POSITIVE (above 50)
b) Slow STO is POSITIVE (black line above red line)
c) MACD is POSITIVE (black line above red line)
74%
StockChart.com NYSE Bullish Percent Index ($BPNYA) Next stop down is ~57, then ~44, below that is where we will most likely see the markets crash. 71%
StockChart.com S&P 500 Bullish Percent Index ($BPSPX) In support zone and rising. ~62, ~57, ~45 at which the markets are in a full-blown correction. 72%
StockChart.com 10 Year Treasury Note Yield Index ($TNX) ten year note index value 24.84
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 84.57
StockChart.com NYSE Composite (Liquidity) Index ($NYA) Markets move inverse to institutional selling and this NYA Index is followed by Institutional Investors 11,169

Looking at the last three columns, the first one (Actual), is what was reported this morning. The second column (Forecast) is what analysts had forecast and the third column is the previous report. Full calendar HERE.

What Is Moving the Markets

Here are the headlines moving the markets.

U.S. stocks slump as Trump's travel ban triggers uncertainty

(Reuters) - Wall Street's main indexes were set for their worst day in more than three months on Monday, as President Donald Trump's orders to curb travel and immigration from some countries sparked uncertainty.

U.S. consumer spending, housing data bolster economic outlook

WASHINGTON (Reuters) - U.S. consumer spending accelerated in December as households bought motor vehicles and cold weather boosted demand for utilities amid a rise in wages, pointing to sustained domestic demand that could spur economic growth in early 2017.

Trump signs executive order to slash regulations

WASHINGTON (Reuters) - President Donald Trump signed an order on Monday that will seek to dramatically pare back federal regulations by requiring agencies to cut two existing regulations for every new rule introduced.

Goldman Sachs CEO says bank does not support Trump travel ban

(Reuters) - Goldman Sachs Group Inc Chief Executive Lloyd Blankfein became the first major Wall Street leader to speak out against President Donald Trump's order to halt arrivals from several Muslim-majority countries.

Snap selects New York Stock Exchange for IPO: source

(Reuters) - Snap Inc, the owner of the popular messaging service Snapchat, has chosen Intercontinental Exchange Inc's New York Stock Exchange (NYSE) for its initial public offering (IPO), a person familiar with the matter said on Monday.

Walgreens delays Rite Aid deal again, cuts offer price

(Reuters) - Drugstore chain Walgreens Boots Alliance Inc said its deal to buy smaller rival Rite Aid Corp would now take six months longer to close and reduced its offer price, as it expects to divest more stores to gain regulatory approval.

Ford Motor criticizes Trump immigration order

WASHINGTON (Reuters) - Ford Motor Co on Monday criticized President Donald Trump's controversial immigration order, becoming one of the highest profile U.S. manufacturers to question the decision to temporary ban travelers coming from seven predominantly Muslim countries.

Negative effective of currency rates on company results fall in third quarter

NEW YORK (Reuters) - Currency market fluctuations in the third quarter of 2016 had the smallest negative impact on North American companies' financial results since 2014, FIREapps said in a report on Monday.

Bond markets set for a taste of the 60s as inflation picks up

LONDON (Reuters) - Inflation has a habit of creeping up on you. Just ask historians.

Five Clear Indicators That the US Economy is Slipping Into Recession

Everyone who is buying the market move since November 8th is about to get destroyed.

The 4Q16 GDP and full 2016 GDP numbers confirm that the US is rapidly moving into recession.

For those who missed it, the US just posted the weakest GDP growth numbers since 2011... during an election year in which the Government was going everything possible to juice growth.

The details of the growth numbers were even worse. Stripped of various gimmicks, real GDP growth for 2016 was likely sub-1%.

We get additional indications of a turn in the economy from the following:

1) Credit card company Capital One (COF) which reported a 30% INCREASE in Charge offs Year Over Year.

2) Goldman Sachs has confirmed that US auto demand has peaked.

3) The Insider Sell/Buy ratio hit 59 to 1 meaning insiders are dumping 59 shares for every 1 share they buy.

4) Tax revenues are showing a marked collapse in taxes collected.

Put simply, it is evident from any of the "unmassaged" data that the US economy is turning.

Meanwhile, the financial media is abuzz with the notion that somehow US GDP growth of 5% is just around the corner based on the view that Trump can somehow conjure up growth within a month or two (impossible).

Anyone who is investing today based on the idea that an economic renaissance is just around the corner is going to lose a LOT of money.

That fantasy will soon come crashing down. The markets have completely misjudged the immediate impact of Donald Trump taking office.

If you're ...

Mike Shedlock: "Liberals, Not Trump, To Blame For Backlash"

Submitted by Michael Shedlock via MishTalk.com,

Here's an interesting view in the Wall Street Journal that will ring a bell for many readers: Liberals Killed the Freedom of Movement.

By suppressing debate about Islam, nationalism and terror, the left set the stage for today's backlash.

Politicians across the West are saying the same thing in what is shaping up to be the widest rollback of the freedom of movement in decades.

It's not just right-wing nationalists like Marine Le Pen in France or Hungary's Viktor Orbán. Centrists get it, too. Some, like Angela Merkel, are still-reluctant restrictionists. Others, like Theresa May, Dutch Prime Minister Mark Rutte and French presidential aspirant François Fillon, are more forthright. All have wised up to the popular demand for drastically lower immigration rates.

The irony is that freedom of movement is unraveling because liberals won central debates—about Islamism, social cohesion and nationalism. Rather than give any ground, they accused opponents of being phobic and reactionary. Now liberals are reaping the rewards of those underhanded victories.

Liberals refused to acknowledge the link between Islamist ideology and terrorism. For eight years under President Obama, the U.S. government refused even to say "Islamism," claiming ludicrously that U.S. service members were going to war against "violent extremism." Voters could read and hear about jihadists offering up their actions to Allah before opening automatic fire on s ...

Speculation Grows That Bashar Assad Has "Suffered A Stroke" As Syria Slams Trump's "Safe Zone" Proposal

Geopolitical pundits were caught by surprise last Thursday when Donald Trump told ABC he would "absolutely do safe zones in Syria for the people", a statement that was has been viewed as a precursor to further escalation of US intervention in the region. They were just as surprised overnight when instead of challening Trump's decision to potentially send more troops into Syria, Russia Foreign Minister Sergey Lavrov said Moscow may support the US initiative to establish so-called 'safe zones' for refugees in Syria, but added that the plan would require close cooperation with the UN and approval from Syrian President Bashar Assad's government.

"If this is about the people who were forced to leave their homes by the conflict, [...] getting their basic needs covered, [...] then I think that the idea to create areas within Syria for those internally displaced could be discussed with the UN's High Commissioner for Refugees and other organizations," Lavrov said cited by RT.

Lavrov said the American proposal to create secure areas for refugees within Syria was put forward in the context of migrant flows to the neighboring countries, the Middle East, as well as Europe, and "at the end of the day, the US."

He noted that the US initiative is completely different from what Western countries proposed at various stages of the Syrian war. "There have been ideas of creating some areas where an alternative Syrian government could sit, and use those areas for regime change." Such a scheme was seen in Libya, where the establishment of an alternative government in Benghazi was used as a pretext for the Western-led invasion to topple the regime of Muammar Gaddafi, Lavrov explained, adding that the Libyan intervention went ahead despite no green light from the UN Security Council.

While promising, the proposal would require negotiations with Damascus to a ...

Toyota Still Biggest Car Maker by the Measures that Matter

Car buffs, journalists and economists pay a lot of attention to unit-car statistics, but investors shouldn't—just look at Volkswagen's rise to the top of the official league table.

T-Mobile and Dish: Better Together?

Investors consider Dish Network and T-Mobile US to be takeover targets, but the most interesting merger possibility may be between the two companies.

December 2016 Pending Home Sales Index Improves?

Written by Steven Hansen

The National Association of Realtors (NAR) seasonally adjusted pending home sales index improved. Our analysis disagrees. The quote of the day from this NAR release:

... contract activity was mixed throughout the country in December but ultimately ended on a high note to close out 2016 ...

Key Words: An impassioned letter passed to Paul Ryan midflight: 'Be on the right side of history'

A woman claiming to be on the same flight as the House Speaker over the weekend took the opportunity to share with him her feelings about the direction of the country, particularly in light of the Donald Trump's controversial immigration ban.

Your Digital Self: Advice for President Trump: How to use your smartphone

Jurica Dujmovińá chides U.S. politicians for failing to follow security directives, and offers advice for them and the rest of us.

Market Extra: Path to Bitcoin ETF still uncertain but may be easier under Trump

President Donald Trump's anti-regulatory administration may make it more likely that a bitcoin exchange-traded fund gets approved, although analysts say it is still far from a done deal.

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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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