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17Apr2017 Market Update: Wall Street Breaks Three-day Loosing Streak, Markets Looking To Close In The Green, DOW Up Triple Digits, Crude Prices Fall And The US Dollar Down, But Steady

Written by Gary

US stocks opened higher today and were on track to snap a three-day losing streak as investors shifted focus to the first-quarter earnings season, with geopolitical concerns seemingly taking a back seat. WTI crude slipped from the morning highs into the 52 handle.


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 1.39% while U.S.'s S&P 500 is up 0.53% and Mexico's IPC is up 0.22%.

Traders Corner - Health of the Market

Index Description Current Value
Investors.com Members Sentiment: % Bullish (the balance is Bearish) 71%
CNN's Fear & Greed Index Above 50 = greed, below 50 = fear

29%

Investors Intelligence sets the breath Above 50 bullish 64%
StockChart.com Overbought / Oversold Index ($NYMO) anything below -30 / -40 is a concern of going deeper. Oversold conditions on the NYSE McClellan Oscillator usually bounce back at anything over -50 and reverse after reaching +40 oversold. -16.57
StockChart.com NYSE % of stocks above 200 DMA Index ($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 $OEXA200R rises above 65%
Secondary Bullish Indicators:
a) RSI is POSITIVE (above 50)
b) Slow STO is POSITIVE (black line above red line)
c) MACD is POSITIVE (black line above red line)
79%
StockChart.com NYSE Bullish Percent Index ($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 ($BPSPX) In support zone and rising. ~62, ~57, ~45 at which the markets are in a full-blown correction. 71%
StockChart.com 10 Year Treasury Note Yield Index ($TNX) ten year note index value 22.36
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 87.12
StockChart.com NYSE Composite (Liquidity) Index ($NYA) Markets move inverse to institutional selling and this NYA Index is followed by Institutional Investors 11,392

What Is Moving the Markets

Here are the headlines moving the markets.

Wall Street gains as focus shifts to earnings

(Reuters) - U.S. stocks edged higher on Monday and were on track to snap a three-day losing streak as investors shifted focus to the first-quarter earnings season, with geopolitical concerns taking a back seat.

The long, rough ride ahead for 'Made in America'

RUSTON, Louisiana (Reuters) - Mini motorcycle and go-kart maker Monster Moto made a big bet on U.S. manufacturing by moving assembly to this Louisiana town in 2016 from China.

Steel, stimulus drive China's strongest economic growth since 2015

BEIJING (Reuters) - China's economy grew faster than expected in the first quarter as higher government infrastructure spending and a gravity-defying property boom helped boost industrial output by the most in over two years.

Undaunted by oil bust, financiers pour billions into U.S. shale

HOUSTON (Reuters) - Investors who took a hit last year when dozens of U.S. shale producers filed for bankruptcy are already making big new bets on the industry's resurgence.

China's Ant hikes MoneyGram bid by more a third, beats rival U.S. offer

BEIJING (Reuters) - China's Ant Financial has sweetened its bid for MoneyGram International Inc by over a third, beating a rival offer to gain approval from the U.S. electronic payment firm's board, although it still faces regulatory hurdles.

U.S. judge approves $2.6 billion fine for Odebrecht in corruption case

NEW YORK (Reuters) - A U.S. judge on Monday sentenced Brazilian engineering company Odebrecht SA to pay $2.6 billion in fines in a massive criminal corruption case, signing off on a plea deal between the company and U.S., Brazilian and Swiss authorities.

Chinese automakers SAIC, Geely turn up heat on global rivals

SHANGHAI (Reuters) - Global automakers face fresh threats to their profits in China from domestic automakers SAIC and Geely, which are launching new models and marketing strategies to challenge better-known foreign brands in the world's largest car market.

Oil dips, trade thin as some cash in after 3 weeks of gains

NEW YORK (Reuters) - Crude oil prices slipped on Monday in subdued trading after a long holiday weekend following three straight weeks of gains, but strong economic growth in China and a weaker dollar limited losses.

Blackstone to buy EagleClaw Midstream for about $2 billion

(Reuters) - EagleClaw Midstream Ventures LLC, the largest privately held operator of pipelines and processing facilities in West Texas' Delaware Basin, said it agreed to be bought by funds managed by Blackstone Group LP for about $2 billion.

North Korea Ambassador Tells UN: "US Has Pushed World To Brink Of Nuclear War"

Following US Vice President Pence's earlier remarks that "the era of strategic patience is over."

.@VP Mike Pence on North Korea: "The era of strategic patience is over." https://t.co/78WhdfZWfb pic.twitter.com/I3JnAal71I

— Fox News (@FoxNews) April 17, 2017

Ambassador Kim, North Korea's Permanent UN Representative, hosted a news conference in Ryong on "the consideration of non-proliferation in the DPRK to be held in the Security Council on April 28."

He did not pull any punches...



*U.S. PUSHED KOREAN PENINSULA TO 'BRINK OF WAR': ENVOY KIM

*ENVOY KIM SAYS U.S. `USURPED' UN DISCUSSION ON N. KOREA

*KIM OBJECTS TO SESSION NEXT WEEK LED BY TILLERSON

*N. KOREA UN ENVOY KIM WARNS OF RISK OF NUCLEAR WAR

"It has been created dangerous situation in which the thermonuclear war may break out at any moment on the peninsula and pose a serious threat to the world's peace and security, to say nothing of those of northeast Asia."

And concluded by warning that North Korea will take toughest counter actions; "We will hold the US accountable"

US Deploys Two More Aircraft Carriers Toward Korean Peninsula: Yonhap

According to a report by South Korea's primary news outlet, Yonhap, the Pentagon has directed a total of three US aircraft carriers toward the Korean Peninsula, citing a South Korean government source.

Yonhap reports that in addition to the CVN-70 Carl Vinson, which is expected to arrive off the South Korean coast on April 25, the CVN-76 Ronald Reagan - currently in home port in Yokosuka, Japan - and the CVN-68 Nimitz carrier group - currently undergoing final pre-deployment assessment, Composite Training Unit Exercise off Oregon - will enter the Sea of Japan next week. According to the senior government official. the US and South Korea are discussing joint drills, which will include the three aircraft carriers and other ships.


CVN-68 Nimitz carrier group

USS Carl Vinson, surrounded by a fleet of US warships, was sent by Washington toward the Korean Peninsula in the beginning of April.

While details are scarce, and we would urge confirmation from US-based sources,

How To Stop Venezuela's Fatal Inflation

During my testimony of March 28th before the U.S. House of Representatives Committee on Foreign Affairs, I stressed that, to establish stability and turn Venezuela's economy around, runaway inflation must be stopped in its tracks. After all, stability might not be everything, but everything is nothing without stability.

To grasp the magnitude of Venezuela's inflation problem, take a look at the chart below. It shows the annual inflation rates (yr/yr) for chicken. Venezuela's current chicken-price inflation is running at a whopping 700% annual rate.

The New York Times editorial of March 30th, "Crisis Upon Crisis in Venezuela," picked up on my "stop inflation first" elixir. As the Times put it: "the international community could propose specific macroeconomic reforms that could curb Venezuela's runaway inflation and stabilize its currency."

The Times failed to offer a specific inflation-killing strategy, however. There are only two sure-fire ways to kill Venezuela's inflation and establish the stable conditions which are necessary to carry out much-needed economics reforms. One way would be to dump the bolivar and officially dollarize the economy, an option I covered in my March 30th Forbes piece, "On Venezuela's Death Spiral."

A second method would be to adopt a currency board system. In such a system, the bolivar would become a clone of a reliable anchor currency, such as the U.S. dollar.

Elliott Wins an Early Round Against Arconic

The departure of Arconic's CEO won't end the bitter feud with Elliott Management.

China Gets Bailed Out by Its Consumers

A big ramp up in consumer debt is keeping growth chugging along in China, which has helped slow a dangerous buildup in corporate borrowing. But goosing household debt to bail out struggling firms is a risky growth strategy.

The Risk of Rising Consumer Borrowing

A rise in various forms of consumer debt will pose issues for banks eventually.

Are Ben Affleck and Jennifer Garner making the worst financial decision of their lives?

Nearly two years after announcing their divorce, the couple appear to be ready to make it final.

Arconic's CEO ouster a big win for Paul Singer's Elliott Management

Arconic Inc.'s ouster of Chief Executive Klaus Kleinfeld means activist investor Elliott Management Corp.'s bullying tactics have paid off, as the stock surges toward its biggest gain in two months.

Earnings Outlook: Bank of America earnings: Expect strong trading, weak loan growth

Bank of America Corp. is scheduled to report first-quarter earnings before the bell on Tuesday, and analysts are expecting similar trends to those seen at rivals last week of strong trading profits but weak loan growth.

Earnings Summary for Today

Earnings Calendar provided by Investing.com.

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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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