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30Aug2017 Market Update: Wall Street Gains After Strong Data But NOKO Worries Linger, Warren Buffett: This Doesn't Feel Like A 3 Percent GDP Economy

Written by Gary

US stock markets trend upwards (SPY +0.3%), DOW trades sideways (+0.00%) after data showed stronger-than-expected U.S. economic growth.


Here is the current market situation from CNN Money

North and South American markets are mixed. The S&P 500 is higher by 0.27%, while the Bovespa is leading the IPC lower. They are down 0.71% and 0.22% respectively.

Traders Corner - Health of the Market

Index Description Current Value
CNN's Fear & Greed Index Above 50 = greed, below 50 = fear 33%
Investors Intelligence sets the breath Above 50 bullish 60%
StockChart.com Overbought / Oversold Index ($NYMO) anything below -30 / -40 is a concern of going deeper. Oversold conditions on the NYSE McClellan Oscillator usually bounce back at anything over -50 and reverse after reaching +40 oversold. +0.49
StockChart.com NYSE % of stocks above 200 DMA Index ($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 $OEXA200R rises above 65%
Secondary Bullish Indicators:
a) RSI is POSITIVE (above 50)
b) Slow STO is POSITIVE (black line above red line)
c) MACD is POSITIVE (black line above red line)
65%
StockChart.com NYSE Bullish Percent Index ($BPNYA) Next stop down is ~57, then ~44, below that is where we will most likely see the markets crash. 59%
StockChart.com S&P 500 Bullish Percent Index ($BPSPX) In support zone and rising. ~62, ~57, ~45 at which the markets are in a full-blown correction. 66%
StockChart.com 10 Year Treasury Note Yield Index ($TNX) ten year note index value 21.36
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 88.99
StockChart.com NYSE Composite (Liquidity) Index ($NYA) Markets move inverse to institutional selling and this NYA Index is followed by Institutional Investors 11,790

What Is Moving the Markets

Here are the headlines moving the markets.

Wall St gains after strong data but N.Korea worries linger

(Reuters) - Wall Street was higher in late morning trading on Wednesday after data showed stronger-than-expected U.S. economic growth, but gains were limited by concerns about escalating tensions between Washington and Pyongyang.

U.S. second-quarter GDP revised up, fastest in over two years

WASHINGTON (Reuters) - The U.S. economy grew faster than initially thought in the second quarter, notching its quickest pace in more than two years, and there are signs that the momentum was sustained at the start of the third quarter.

Fed's Powell says new rules for bank directors don't lower the bar

CHICAGO (Reuters) - Federal Reserve Governor Jerome Powell on Wednesday delivered a robust defense of new regulations for bank directors, saying they would streamline the role directors play in the day-to-day oversight of their institutions, but don't weaken their hand.

Warren Buffett tells CNBC he has not sold a share of Apple

NEW YORK (Reuters) - Billionaire investor Warren Buffett told CNBC on Wednesday that he had not sold a share of Apple and was not concerned about Wells Fargo as a long-term investment and that it was a "terrific" bank.

White House blocks Obama-era rule expanding pay data from companies

(Reuters) - The Trump administration has blocked a rule requiring U.S. employers to report detailed pay data broken down by gender and race, echoing business groups by saying it would not have the intended effect of addressing wage gaps.

Bain brings in Apple for last-minute $18 billion bid for Toshiba chip unit: sources

TOKYO (Reuters) - A consortium led by Bain Capital has made a revised last-ditch offer for Toshiba Corp's chip unit worth about $18 billion, bringing in Apple Inc to help bolster its bid, sources with direct knowledge of the matter said.

Home Capital's Buffett plan opposed by shareholder proxy ISS

TORONTO (Reuters) - Home Capital Group Inc could face a revolt over U.S. billionaire Warren Buffett's plan to increase his stake in the business after proxy advisory firm Institutional Shareholder Services (ISS) recommended shareholders vote against it.

Airbus says hopes M&A talk will not distract United Tech from operational priorities

PARIS (Reuters) - Airbus has urged United Technologies to stay focused on fixing industrial problems that have delayed aircraft deliveries even if it presses ahead with reported plans to buy avionics supplier Rockwell Collins

Strong data boosts yields, dollar; stocks edge higher

NEW YORK (Reuters) - The dollar and U.S. Treasury yields rose on Wednesday after economic data indicated solid momentum, keeping alive the prospect of a U.S. interest rate increase in December.

One Trader's "Ultimate Guide To Navigating The Equity Markets"

This remains a market in which traders are, for lack of a better word, "confused" (another good word is "paralyzed" as we observed one month ago).

For the latest confirmation of this, look no further than Bloomberg's macro commentator (and former hedge fund manager) Richard Breslow, who in his latest macro note admits that "truth be told, there are very few of us who know what's going on with the equities markets." The other problem is that despite all the "fundamental analysis, valuations, metrics and the like" by financial professionals, the market appears to move in jagged discontinuities, with little logic or rationale, immune to the best financial "hot takes."

Inevitably, Breslow writes, "the market doesn't carry through as promised and it's inevitably made clear that it has nothing to do with that day's investing thesis but some nefarious and exogenous influence."

Almost, as if, it's all in the hands of central bankers... Or maybe not that nefarious, and risk prices simply act as they (illogically) would in a robot-eat-robot, or perhaps algo-eat-algo, world (a perverse cannibalization that has been puzzling the FT recently).

The good news, is that Breslow believes he may have stumbled on the solution to everyone's problem: how to trade this painfully rangebound, seemingly irrational market:

So put all this aside and concern yourself with how each equity market is behaving around its 21- and 55-day moving averages. Almost every index respects these indicators and traders should love the opportunities presented when the two line ...

Total G-3 Central Bank Control

Total G-3 Central Bank Control

Posted with permission and written by Craig Hemke, TF Metals Report

Total G-3 Central Bank Control - Craig Hemke

There's a lot of amazement and wonder at how the "stock market" can be up today with the devastating news out of Texas and the latest North Korean missile launch. Longtime readers of TFMR know exactly how this market levitation is accomplished so this post is designed as a public service in order to better educate and inform everyone else.

Let's just keep it simple...

In 2017...and, actually, since 2008...the "markets" don't actually exist. Oh sure, there are trades and prices but in terms of what the markets were 20 years ago?...those days are long gone. Instead, what we have now is total HFT domination. Over 90% of all volume on the NYSE and NASDAQ is now done through HFT machines that swap positions back and forth. This is common knowledge and if you and I know this, then you can be assured that Th ...

As Harvey Moves Inland, A New Storm Is Brewing Over The Atlantic

Via StockBoardAsset.com,

The National Hurricane Center (NHC) will be initiating advisories at 11 AM AST, as the new area of low pressure in the eastern Atlantic Ocean will develop into Tropical Storm Irma. Tropical Storm Irma will become the 9th storm of the 2017 Atlantic hurricane season as it moves towards the Gulf of Mexico region.

NHC will be initiating advisories at 11 AM AST on Tropical Storm Irma, located west of the Cabo Verde Islands.

— NHC Atlantic Ops (@NHC_Atlantic) August 30, 2017

Per Weather Channel,

In the near-term, future Irma will bring locally heavy rain and gusty winds to the Cabo Verde Islands through Wednesday.

South Florida Weather Management District (SFWMD) reports various pathways for Irma.

Weird Things Are Happening With Gold

Authored by James Rickards

Last week featured two unusual stories on gold - one strange and the other truly weird. These stories explain why gold is not just money but is the most politicized form of money.

They show that while politicians publicly disparage gold, they quietly pay close attention to it.

The first strange gold story involves Germany...

The Deutsche Bundesbank, the central bank of Germany, announced that it had completed the repatriation of gold to Frankfurt from foreign vaults.

The German story is the completion of a process that began in 2013. That's when the Deutsche Bundesbank first requested a return of some of the German gold from vaults in Paris, in London and at the Federal Reserve Bank of New York.

Those gold transfers have now been completed.

This is a topic I first raised in the introduction to Currency Wars in 2011. I suggested that in extremis, the U.S. might freeze or confiscate foreign gold stored on U.S. soil using powers under the International Emergency Economic Powers Act, the Trading With the Enemy Act or the USA Patriot Act.

This then became a political issue in Europe with agitation for repatriation in the Netherlands, Germany and Austria. Europeans wanted to get gold out of the U.S. and safely back to their own national vaults. The German transfer was completed ahead of schedule; the original completion date was 2020.

But the German central bank does not actually want the gold back because there is no well-developed gold-leasing market in Frankfurt and no experience leasing gold under German law.

German gold in New York or London was available for leasing under New York or U.K. law as part of global price-manipulation schemes. ...

Emerging-Market Bonds: The Stars Align

Low inflation is a puzzle in developed markets, but a pleasant and powerful phenomenon for emerging-market bonds

Beijing Shows Its Power With China's Latest Megamerger

The combination of the country's leading coal miner and power producer is the clearest sign yet of Chinese leaders' desire to enhance the role of big state-owned companies.

Apple, Samsung Taking Phone Prices to the Edge

The newest smartphones are taking their screens to the edge. Apple and Samsung Electronics seem to be doing the same with their prices, in what amounts to a gamble to revive growth.

Second Estimate 2Q2017 GDP Growth Improves to 3.0 %

Written by Steven Hansen

The second estimate of second quarter 2017 Real Gross Domestic Product (GDP) was increased to a positive 3.0 % from the advance estimate's 2.6 %. Year-over-year growth was also increased from the advance estimate.

Key Words: 'Fecalboy.com' is just one of the nasty domain names Trump pal Felix Sater used to target a common foe

Sater reportedly went after Jody Kriss using a crop of vulgar websites.

Harry Boxer's four biotech stocks to watch

In focus: Abeona Therapeutics, Corcept Therapeutics, ImmunoGen and Sangamo Therapeutics.

NewsWatch: Amazon is actually the weakest of the big U.S. retailers

Amazon.com Inc. is far from dominating the retail sector, and is actually weaker than rivals including Wal-Mart, Costco and Best Buy, according to a new Moody's report.

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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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