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08Feb2017 Market Update: Wall Street Taking Another Day Off As US Markets Are Mostly Flat, But In The Green, Investors Are Increasingly Worried The Trump Rally Could Reverse Itself

Written by Gary

U.S. stocks were little changed going into the afternoon trading session as investors assessed a flood of quarterly earnings reports. WTI crude prices remain weak and in the 51 handle while the US dollar index is dropping again towards the 99 level.


Here is the current market situation from CNN Money

North and South American markets are mixed today. The IPC is up 0.42% while the Bovespa gains 0.18%. The S&P 500 is even.

Traders Corner - Health of the Market

Index Description Current Value
Investors.com Members Sentiment: % Bullish (the balance is Bearish) 66%
CNN's Fear & Greed Index Above 50 = greed, below 50 = fear 57%
Investors Intelligence sets the breath Above 50 bullish 68%
StockChart.com Overbought / Oversold Index ($NYMO) anything below -30 / -40 is a concern of going deeper. Oversold conditions on the NYSE McClellan Oscillator usually bounce back at anything over -50 and reverse after reaching +40 oversold. -5.93
StockChart.com NYSE % of stocks above 200 DMA Index ($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 $OEXA200R rises above 65%
Secondary Bullish Indicators:
a) RSI is POSITIVE (above 50)
b) Slow STO is POSITIVE (black line above red line)
c) MACD is POSITIVE (black line above red line)
77%
StockChart.com NYSE Bullish Percent Index ($BPNYA) Next stop down is ~57, then ~44, below that is where we will most likely see the markets crash. 70%
StockChart.com S&P 500 Bullish Percent Index ($BPSPX) In support zone and rising. ~62, ~57, ~45 at which the markets are in a full-blown correction. 70%
StockChart.com 10 Year Treasury Note Yield Index ($TNX) ten year note index value 23.55
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 84.51
StockChart.com NYSE Composite (Liquidity) Index ($NYA) Markets move inverse to institutional selling and this NYA Index is followed by Institutional Investors 11,232

What Is Moving the Markets

Here are the headlines moving the markets.

Wall Street flat as investors focus on earnings

(Reuters) - U.S. stocks were little changed late Wednesday morning as investors assessed a flood of quarterly earnings reports.

Controversial Dakota pipeline to go ahead after Army approval

WASHINGTON/HOUSTON (Reuters) - The U.S. Army will grant the final permit for the controversial Dakota Access oil pipeline after an order from President Donald Trump to expedite the project despite opposition from Native American tribes and climate activists.

Harry Potter spinoff helps Time Warner top estimates

(Reuters) - Time Warner Inc reported higher-than-expected fourth-quarter results, largely due to box office hits such as the "Harry Potter" spinoff "Fantastic Beasts and Where To Find Them."

Microsoft offers patent troll defense for cloud customers

(Reuters) - Microsoft Corp has thought up another way to attract potential customers to its cloud computing service: deterrent against patent trolls.

Exclusive: Cancer drugmaker Tesaro attracts takeover interest - sources

(Reuters) - U.S. biopharmaceutical company Tesaro Inc is discussing its options with investment banks after receiving acquisition interest from several drugmakers, according to people familiar with the matter.

Canada gives aid to Bombardier, vows to defend any trade dispute

MONTREAL (Reuters) - The Canadian government on Tuesday announced C$372.5 million ($283 million) in repayable loans for two of Bombardier Inc's jet programs, promising to defend the deal against a potential trade challenge by Brazil.

BlackRock CEO Fink sees 'dark shadows' in financial markets

NEW YORK (Reuters) - BlackRock Chief Executive Larry Fink on Wednesday said the U.S. economy is in the midst of a slowdown and financial markets could see a significant setback, because of uncertainty over global trade and the Trump administration's plan to cut taxes.

Boutique bank Moelis wins advisory role for mammoth Saudi Aramco IPO

NEW YORK/LONDON/DUBAI (Reuters) - New York-based boutique investment bank Moelis & Co has been chosen as an adviser by Saudi Aramco [IPO-ARMO.SE] on its plans for what is expected to be the world's biggest initial public share offer, sources familiar with the matter told Reuters.

Exclusive: DOJ probing people who worked in DB's mortgage unit

NEW YORK (IFR) - The US Department of Justice is investigating potential wrongdoing by individuals who worked in Deutsche Bank's mortgage unit in the run-up to the financial crisis, according to two sources familiar with the matter.

The Clintons Assisted Goldman Sachs, Angela Merkel In The Greek Financial Crisis

It's a story that has been often told many times in part, but not in total. While Goldman Sachs role in helping to create the environment for Greece's government-debt crisis is well known, less discussion is given to the role the Clinton family played in helping Angela Merkel to consolidate political control of Greece while also assisting Goldman as it continued to benefit from the meltdown once austerity measures had begun. The Clintons appear to have received funds from both Germany and Goldman Sachs during this period.

I. Goldman Sachs Was Responsible For Greece's Economic Collapse

Goldman Sachs is generally blamed for having a hand in intentionally causing Greece's 2008 financial crisis. Observers have noted that the financial group was instrumental in helping to arrange a secret loan of 2.8 billion euros for Greece, disguised as an off-the-books "cross-currency swap" - a complicated transaction in which Greece's foreign-currency debt was converted into a domestic-currency obligation using a fictitious market exchange rate. This allowed Greece to hide 2% of its debt but left it immediately in a much worse position after the effects of 9/11 caused the amount Greece owed to Goldman double.

Meanwhile, Goldman padded its profits by leveraging Greece as much as possible along with most of the rest of the global economy. It continued this pattern of predatory lending advice in 2005, when they renegotiated the deal with Greece to lock in their debt at a staggering 5 ...

DOJ Launches Probe Of Individuals Who Worked In Deutsche Bank's Mortgage Unit

Deutsche Bank employees who were engaged in the actual trades that ended up costing the bank a $7.2 billion settlement at the end of 2016, and who were hoping to quietly get away without criminal or civil charges, are set for disappointment because as IFR reports the DOJ is probing for potential fraud by individuals who worked in Deutsche Bank's mortgage unit in the run-up to the financial crisis.

According to IFR's sources, "the investigation of former Deutsche staffers is a push to hold individuals accountable for their role in the housing crisis." The probe follows Deutsche's multi-billion settlement in December with the DOJ over toxic residential mortgage securities sold between 2006 and 2007. Observers were surprised when no individuals who worked at Deutsche were named in the settlement, leaving shareholders footing the bill.

Now, the DOJ's fresh probe leaves open the possibility of pursuing individuals who had worked at Deutsche. Confirming that there has been no individuals have been exempt from personal liability, in the January 17 press release outlining the facts, finalization and terms of the settlement, the DOJ said that the settlement with Deutsche does not release any individuals from potential criminal or civil liability.

Speaking of which, has anyone seen Greg Lippman these days?

* * *

Separately, and presaging what will soon take place in Deutsche Bank, Reuters writes that the DOJ in December named two former Barclays RMBS staffers in a civil suit it filed against Barclays and some of its US affiliates. The complaint against Barclays alleged that the bank and its staffers fraudulently sold te ...

Gilead's Boom Fades and Bust Will Linger

Company's great success with hepatitis drug says a lot about drug pricing and risk for the future.

Big Oil Loses Its Mojo

If integrated energy companies make fewer bets on megaprojects then their earnings may be less volatile but also less valuable.

Darkest Before the Dawn at Teva

A CEO change at the struggling drug giant marks a value opportunity.

Capitol Report: A fistfight led to the Senate rule that silenced Elizabeth Warren

The rule that led to Elizabeth Warren being silenced on the Senate floor Tuesday night starts with a fistfight — and is rarely invoked.

Market Extra: Trump administration could lead to more drinking—through deregulation

Proposed Trump administration policies, when combined with Republican control of both the House of Representatives and the Senate, could boost the already-booming sales of spirits, which includes whiskey, vodka and more.

Earnings Outlook: Yum earnings: Taco Bell, KFC will be solid, but Pizza Hut continues to struggle

Yum Brands, which spun off its China business late last year, will show strength in its Taco Bell and KFC brands, analysts say, but Pizza Hut is still challenged.

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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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