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21Jun2017 Market Update: Wall Street Treading Water As Crude Prices Have Slipped And US Home Resales Unexpectedly Rise, Inflation Concerns At The Fed Worry Investors

Written by Gary

The Nasdaq Composite index was higher in late morning trading today (SPY -0.00%), boosted by biotechnology stocks, while the Dow Jones Industrial Average and the SP 500 were dragged lower by financial stocks.


Here is the current market situation from CNN Money

North and South American markets are higher today with shares in Brazil leading the region. The Bovespa is up 0.18% while Mexico's IPC is up 0.16% and U.S.'s S&P 500 is up 0.03%.

Traders Corner - Health of the Market

Looking at the last three columns (below), 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.

S&P treads water as energy stocks whipsaw

What Is Moving the Markets

Here are the headlines moving the markets.

Uber CEO Travis Kalanick resigns under investor pressure

SAN FRANCISCO (Reuters) - Uber Technologies Inc Chief Executive Travis Kalanick, co-founder of one of the most influential technology companies of its generation, resigned on Tuesday under pressure from investors after a string of setbacks. Kalanick's departure caps a tumultuous period for the world's largest ride-services company that has revolutionized the taxi industry and challenged transportation regulations worldwide.

Nasdaq boosted by biotechs; banks weigh on Dow, S&P

(Reuters) - The Nasdaq Composite index was higher in late morning trading on Wednesday, boosted by biotechnology stocks, while the Dow Jones Industrial Average and the S&P 500 were dragged lower by financial stocks.

Toshiba picks Bain-Japan government group to buy chip unit, big hurdles remain

TOKYO (Reuters) - Toshiba Corp has chosen a consortium of Bain Capital and Japanese government investors as the preferred bidder for its chip business, aiming to seal a deal worth some $18 billion by next week as it scrambles for funds to cover massive losses.

Fed policymakers in tug-of-war on inflation, instability

SAN FRANCISCO/WASHINGTON (Reuters) - The outlook for inflation and the future of financial stability are emerging as dueling concerns at the heart of a debate at the U.S. central bank over how fast to proceed on future interest-rate hikes.

Oil slips, headed for weakest first half in two decades

NEW YORK (Reuters) - Oil prices slipped on Wednesday despite a larger-than-expected decline in U.S. crude and gasoline inventories, as investors remained concerned about high global crude output and the nagging supply glut.

U.S. existing home sales unexpectedly rise in May

WASHINGTON (Reuters) - U.S. home resales unexpectedly rose in May to the third highest monthly level in a decade and a chronic inventory shortage pushed the median home price to an all-time high.

Lockheed wins U.S. Air Force deal for radar threat simulators

PARIS (Reuters) - Lockheed Martin Corp said on Wednesday it had won a $104 million U.S. Air Force contract to develop, produce and field a threat simulator to train combat aircrews to recognize and deal with rapidly evolving threats, such as surface-to-air missiles.

Airbus scoffs at Boeing wins, plays down bounce-back hopes

PARIS (Reuters) - Airbus sales chief John Leahy scoffed at Boeing's claims about the efficiency of a new 737 jet that has been grabbing orders and headlines at the Paris Airshow, but played down expectations of a last-minute comeback to win the event.

Airbus to fit ejectable black boxes to A350 from 2019

PARIS (Reuters) - European planemaker Airbus will fit ejectable flight recorders to its long-range A350 jets from 2019, meaning they could float in the event of a crash at sea, the company said on Wednesday.

Goldman: "Periods Of Low Vol End In Tears... The Biggest Risk Is Central Banks"

One month ago, unleashing the latest series of warnings that the current period of low volatility will not have a very unhappy ending, came from Bank of America, which said that "These Markets Are Very Weird." A few weeks later, JPM' Marko Kolanovic warned that complacency will end in "catastrophic losses" for short vol strategies followed promptly by Deutsche Bank's Aleksandar Kocic who demonstrated that there is no scarcity of scary adjectives when he likewise warned that the current period of market "metastability" will showed lead to "cataclysmic events." Now it's Goldman's turn.

In a note by Goldman's Christian Glissman seeking to explain "The upside of boring - risks and asset allocation in low volatility regimes", the vol strategist joins the bandwagon and writes that while "low volatility periods do not have to end in tears, they often do." His explanation:

Volatility tends to cluster and is often low for a good reason - this indicates investors should add risk during those periods. However, a prolonged low vol period can also eventually result in excessive risk taking and latent risks from elevated valuations. But moving out of a low vol period does not have to come with a material 'risk off', at least initially. Usually volatility tends to spike and equities settle into a higher volatility regime first (Exhibit 37) and the average drawdown is less than 5%.

Markets often enter a hi ...

Update:Project $1550 Gold Hints a Bottom is Near (But We're Nervous)

$1247 gets you $1220, but above $1214 and the $1550 target is still in play

via Soren K. Group for Marketslant

It should be noted that we are concerned that Gold under $1247 gets us to $1220. But the wave count we have been following says that a sell-off above $1214 still keep it intact. It is just hard for us to buy dips on short term trades. We'd rather buy a bounce off the lows. But as long as Gold remains above $1214 both the wave count and our own feel corroborate each other. It is just a matter of a person's time frame.

Chart HERE

The only other thing we can add to the excellent analysis below is that there is now a double bottom on the 30 minute chart. That is something we like to buy with a stop out right below that level for a bounce swing trade in a bearish mindset. it would be nice if what we see as a swing trade is in fact really a bottom as Enda says it could be.- Fay Dress writing for SKG

GOLD bullish at 3 degrees of trend via Enda Glynn and Bullwaves.org

My Bias: Long towards 1550
Wave Structure: ZigZag correction to the upside.
Long term wave count: Topping in wave (B) at 1550
Important risk events: USD: Existing Home Sales, Crude Oil Inventories.

Illinois Governor: "We're Like a Banana Republic"

Illinois is teetering on the edge of bankruptcy.

Illinois Governor Bruce Rauner said this month:

We're like a banana republic ....

We can't manage our money.

Well, yes ... all of America has become a banana republic.

Russian Diplomat Cancels US Meeting In Protest Over Sanctions And "Destructive" US Policy

Russia's deputy foreign minister Sergey Ryabkov cancelled an upcoming meeting with the US Under Secretary of State for Political Affairs Thomas A. Shannon, Jr., according to AP, in retaliation to the Trump administration's announcement on Tuesday that it has imposed sanctions on 38 Russian individuals and firms over Russian activities in Ukraine.

Ryabkov said that "the situation is not conducive to holding a round of this dialogue" that was scheduled for Friday and criticized the U.S. for "not having offered and not offering anything specific" to discuss.

"We have said from the very beginning of Washington's exceptionally destructive policy in regard to applying anti-Russia sanctions, that [such measures] will not and cannot have an effect desired by the US on our individuals or entities," Ryabkov told RIA Novosti Tuesday.

The decision to widen the list came as President Trump met with Ukrainian President Petro Poroshenko at the White House.

Shannon, who is currently meeting with United Kingdom officials in London, was set to meet with Ryabkov in St. Petersburg on Friday.

Earlier on Wednesday, the Kremlin said it regrets the new U.S. sanctions against Russia and warned of possible retaliation. Vladimir Putin's spokesman Dmitry Peskov said that the U.S. move wasn't constructive, adding that "various options are being considered on expert level."

Russia also said the new U.S. sanctions continue the "destructive trend" set by Obama administration.

On Tuesday, the Trump administration announced it has imposed additional sanctions on 38 Russian individuals and firms over Russian activities in Ukraine. Treasury Secretary Steven Mnuchin said that the p ...

Rampaging Oil Bears Are Missing Half the Picture

Oil has a U.S. supply problem, but unlike in previous downturns, demand still looks firm—for now.

One Almost-Certain Risk for Investors in the Health-Care Bill

As investors struggle to understand the overhaul of the Affordable Care Act, one area to watch is insurance deductibles, which are likely to rise and could increase pressure on the health-care industry to control costs.

Quitting Tobacco Stocks Is Easier at These Prices

Another big investor is giving up cigarettes. Regret has stalked similar decisions in the past, but the timing looks better this time.

May 2017 Headline Existing Home Growth Rebounds

Written by Steven Hansen

The headlines for existing home sales growth rebounded saying "Listings in the affordable price range are scarce, homes are coming off the market at an extremely fast pace and the prevalence of multiple offers in some markets are pushing prices higher". Our analysis of the unadjusted data agrees.

Tesla hires AI expert to help lead team in charge of self-driving software

Tesla has hired a Stanford computer science to play a role on its Autopilot division.

This is what siblings argue about when it comes to money

Fights are usually about caregiving, inheritance and how to support mom and dad.

The Ratings Game: AMD's stock takes another 'Epyc' leap

AMD's stock rockets on heavy volume, as analysts gave upbeat reviews of the new "Epyc" server chips.

Earnings Summary for Today

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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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