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16May2017 Market Update: Wall Street In Negative Territory After Making New Highs, Crude Prices In The High 48 Handle, US Dollar Continues To Slide

Written by Gary

US stocks reversed course (SPY -0.1%) after making opening historic highs with healthcare and industrial stocks leading the decliners. US manufacturing production recorded its biggest increase in more than three years and the oil market has essentially reached a balance and will continue to accelerate in the near term.


Here is the current market situation from CNN Money

North and South American markets are lower today with shares in Brazil off the most. The Bovespa is down 0.23% while Mexico's IPC is off 0.19% and U.S.'s S&P 500 is lower by 0.07%.

Traders Corner - Health of the Market

Index Description Current Value
Investors.com Members Sentiment: % Bullish (the balance is Bearish) 72%
CNN's Fear & Greed Index Above 50 = greed, below 50 = fear 65%
Investors Intelligence sets the breath Above 50 bullish 65%
StockChart.com Overbought / Oversold Index ($NYMO) anything below -30 / -40 is a concern of going deeper. Oversold conditions on the NYSE McClellan Oscillator usually bounce back at anything over -50 and reverse after reaching +40 oversold. +2.82
StockChart.com NYSE % of stocks above 200 DMA Index ($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 $OEXA200R rises above 65%
Secondary Bullish Indicators:
a) RSI is POSITIVE (above 50)
b) Slow STO is POSITIVE (black line above red line)
c) MACD is POSITIVE (black line above red line)
80%
StockChart.com NYSE Bullish Percent Index ($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 ($BPSPX) In support zone and rising. ~62, ~57, ~45 at which the markets are in a full-blown correction. 70%
StockChart.com 10 Year Treasury Note Yield Index ($TNX) ten year note index value 23.33
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 89.75
StockChart.com NYSE Composite (Liquidity) Index ($NYA) Markets move inverse to institutional selling and this NYA Index is followed by Institutional Investors

11,609

What Is Moving the Markets

Here are the headlines moving the markets.

Wall St. retreats after S&P, Nasdaq hit record highs

(Reuters) - U.S. stocks reversed course as some investors locked in gains after the S&P 500 and the Nasdaq hit record highs, with healthcare and industrial stocks leading the decliners.

U.S. factory output surges in April; homebuilding stumbles

WASHINGTON (Reuters) - U.S. manufacturing production recorded its biggest increase in more than three years in April, bolstering the view that economic growth picked up early in the second quarter despite a surprise decline in homebuilding.

Researchers say global cyber attack similar to North Korean hacks

SEOUL/WASHINGTON (Reuters) - Cybersecurity researchers have found evidence they say could link North Korea with the WannaCry cyber attack that has infected more than 300,000 computers worldwide, as global authorities scrambled to prevent hackers from spreading new versions of the virus.

Home Depot's profit tops on higher sales of big-ticket items

(Reuters) - Home Depot Inc's first-quarter profit and same-store sales topped estimates as customers spent more on expensive items such as appliances and flooring and roofing materials.

JPMorgan's Dimon defends Trump advisory role, deregulation

NEW YORK (Reuters) - JPMorgan Chase & Co Chief Executive Jamie Dimon on Tuesday responded to criticism from angry shareholders of his role advising President Donald Trump on economic matters, saying he would help "any president" in office.

Starbucks software glitch takes some stores offline

(Reuters) - Some U.S. and Canadian Starbucks Corp stores were only accepting cash on Tuesday because of a payment system outage that the company blamed on an overnight software update that knocked some cash registers offline.

Yahoo to buy back $3 billion shares in tender offer

(Reuters) - Yahoo Inc said on Tuesday it would buy back up to $3 billion shares through a tender offer to provide liquidity to stockholders looking to sell the stock ahead of the company's pending deal with Verizon Communications Inc.

Major U.S. hotel groups sponsor tourism investment meeting in Havana

HAVANA (Reuters) - The annual Latin American Hotel and Tourism Investment Conferences meeting opened in Havana this week and the list of sponsors read like the who's who of the U.S. hotel industry.

Etsy heading for biggest gain since 2015 after funds disclose stake

SAN FRANCISCO (Reuters) - Shares of Etsy Inc surged more than 20 percent on Tuesday and were on track for their biggest daily gain since 2015 after two investment firms revealed stakes in the online crafts retailer and the company said it was reviewing its strategy.

French 30-Year Bond Sale Over 4 Times Oversubscribed

In its first bond sale since the presidential election and the first big test of investor sentiment after Emmanuel Macron won the presidency, France received more than 31 billion in demand for a 30-year bond offering, once again demonstarting the unprecedented demand for duration on the yield-starved continent where the ECB is happily gobbling up every interest-yielding instrument. With some 7 billion in ultra-long duration paper sold via a syndicate of banks, pricing at 30Y FRTR +12, tighter than the +14 price talk, the issue was more than 4 times oversubscribed.

Investor appetite for the bond, which some said helped by a cheapening of French debt in past weeks, also sparked an outperformance of 30-year French bond yields, which fell 3 basis points in late trade. When France opened books on the deal around 0830 GMT on Tuesday, interest was already in excess of 18 billion even before it started taking orders, according to Retuers IFR. It nearly doubled over the course of the day.

"The 30-year area has been relatively cheap so it is no surprise to see strong demand for this bond today," said Patrick Jacq, rate strategist at BNP.

It goes without saying that a main driver for the investor interest is that while the bond matures in May 2048, three years later than the current 30-year benchmark, it is still eligible for ECB purchases in June,

Primary market demand for the long-end has persisted because while French government bonds rallied sharply since Macron emerged as the likely winner, longer-dated bonds had lagged the move; France's 10s/30s yield spread growing to 108 bps, the widest since Dec 2014.

The sale could also indicate whether Japanese investors, key lenders to France, are returning. "Japanese investors have been large buyers of French securities and given that the political risk has reduced, we should see a gradual return to this market," said Antoine Bouvet, rates st ...

14-Year Veteran Undercover Cop Exposes Truth About The Drug War: "I Used To Believe I Was Doing Good"

Authored by Carey Wedler via TheAntiMedia.org,

Yet another police officer is speaking out against the drug war, this time in the United Kingdom. Former officer Neil Woods worked as an undercover drug cop for 14 years, infiltrating some of the most violent gangs in Britain only to learn his tactics were worsening the drug epidemic. Now, he advocates ending the drug war and decriminalizing drugs as he admits his own role in fueling violence and the proliferation of narcotics.

Woods recently spoke with the Independent to make his case and recount the struggles he faced enforcing the British government's drug war. He was first enlisted by the Home Office to tackle the crack cocaine epidemic in the early 1990s, an effort that apparently 'pleased the crown.'

Woods says the tactics he helped develop only exacerbated drug-related crime.

"The first place I was posted was in Derby and it wasn' ...

The Market Rig of the Last Two Weeks is Now Ending

The $USD/Yen prop is now actively being pulled.

For two weeks straight "somebody" was pinning stocks by ramping the $USD/ Yen pair. You can see the tight correlation between the two in the chart below.

This resulted in a one in 125 years event: a 10-day period in which stocks didn't move more than 0.2%. And we've even had confirmation now that the last 15 days have seen the LEAST movement in stocks in history.

However, now that we're on to their game, the rampers are giving up. The $USD/Yen pair is now breaking down in a big way.

The downside target for this move will be 2,200 on the S&P 500.

And if the rampers REALLY let go, we're looking at a much larger drop than that.

Are you ready?

We offer a FREE investment report outlining when the bubble will burst as well as what investments will pay out massive returns to investors when this happens. It's called The Biggest Bubble of All Time (and three investment strategies to profit from it).

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Best Regards

Graham Summers

Chief Market Strategist

How Nvidia Invaded Intel's Turf

Nvidia's new success in chips for data centers puts the videogame chip maker in competition with Intel as data centers embrace artificial intelligence.

Dividend Hunters Should Look Out for Vodafone

Income-hungry investors worried about upheaval in the U.S. telecom market should cast their eyes across the Atlantic. The fat dividends paid by European mobile leader Vodafone look secure, and could even grow.

When to Worry About China Again

China's debt-market selloff is driven mostly by a regulatory crackdown—growth is decent and corporate profits are healthy—but risks are poised to rise again, meaning things could shortly get hairier.

April 2017 Headline Industrial Production Improved

Written by Steven Hansen

The headlines say seasonally adjusted Industrial Production (IP) improved. Our view is mixed..

Ask Arora: Did Trump reveal secrets to Russia? The impact on stocks, bonds and gold

Don't panic — and stay focused on what really matters, says Nigam Arora.

Bill Gates updates the 'plastics' advice from 'The Graduate' for 2017

The Microsoft founder stepped into the shoes of Mr. McGuire in that seminal movie scene.

ETF Focus: U.K. ETF jumps to highest level since 2015 as FTSE 100 hits record

The largest exchange-traded fund to track the U.K. equity market rallied on Tuesday, jumping to its highest level since 2015 and extending its strong year-to-date advance.

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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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